Ownership of Real Property

Question 1

2 Primary Types of defeasible fee-simple estates

Answer 1

1) fee simple determinable
2) fee simple subject to condition subsequent.
The primary difference between the two is what happens when the triggering event occurs.

Question 2

Fee Simple Determinable

Answer 2

Gives the grantor a possibility of reverter. The triggering event automatically ends the fee simple estate and reverts ownership to the grantor.

Question 3

Fee Simple Subject to Condition Subsequent

Answer 3

Gives the grantor a right of entry. The triggering event does not automatically end the fee simple estate. Rather, even after the triggering event, ownership will remain with the grantee unless and until the grantor takes some additional step to reclaim ownership.

Question 4

How is fee simple determinable created?

Answer 4

Fee simple determinable is typically created with durational words such as “until,” “while,” or “so long as.”

Question 5

Affirmative Waste

Answer 5

Occurs if the life tenant actively & willingly takes an action that results in a material decrease in the value of the property, like exploitation of natural resources or destruction or removal of beneficial buildings or structures.

Question 6

Exceptions to affirmative waste rule

Answer 6

there are several potential exceptions that might make it permissible for a life tenant to engage in what would otherwise be affirmative waste. One exception allows a life tenant to exploit some of the property’s resources if necessary to preserve the interests of the life tenant or future interest-holders.