Ownership of Property- Present Interests

Question 1

Grantor Future Interests

Answer 1

Reversion, Possibility of Reverter, & Right of Entry

Question 2

Grantee Future Interests

Answer 2

Remainder and Executory Interest

Question 3

Fee Simple Absolute

Answer 3

A fee simple absolute is the largest estate that one can give. It gives the holder full possessory rights and has potentially infinite duration.
* O to A.
* O to A and his heirs.

Grantor (“O”) does not retain ANY interest.

Fully alienable (interest can be transfered, no restrictions). Exceptions:
* Partial restraint- against particular person or by particular method, or until a particular time.
* Impose Right of First Refusal
* Impose condition for the limited time and limited purpose.

Examples:
* “To A but cannot sell it” = Invalid
* “To A but if he sells, B has the right of first refusal.” = VALID

Question 4

Life Estate

Answer 4

A life estate is an estate that is measured by life. It is NEVER measured by time.
* To A for life.
* To A for 500 years if he lives to be that old.
* To A and then to B and C after A dies (A has an implied life estate).

Grantor (“O”) has does retain an interest, a REVERSION.

If the estate goes to a 3rd party, that party is called a remainder.

Restratints on alienation ARE VALID.(restrictions can be imposed on transfers of interests).