Possessory Estates

Question 1

Absolute

Answer 1

An estate that doesn’t have a condition on it

Question 2

Fee Simple Absolute

Answer 2

Can continue forever without any limitation. E.g., to B and his heirs (note does not give heirs any interest, just words of limitation that describe the estate)

Question 3

Life Estate

Answer 3

Determined for the lifetime of a person. E.g. to B for life. (Cannot be made for a business/corporation)

Question 4

Waste

Answer 4

Only life tenant is not permitted to commit waste to injure the property for person holding FI

Question 5

Affirmative waste

Answer 5

When voluntary acts of present estate owner significantly reduce the value of the property.

Exception: open mines doctrine (if open mine can continue to take all resources) BUT cannot make new mine unless future people agree

Question 6

Permissive Waste

Answer 6

Failure of possessor to exercise reasonable care to protect the estate (results in a reduction of the value)

Question 7

Ameliorative Waste

Answer 7

Affirmative act that leads to a substantial change in the property and increases the value. Note jdx split on whether the court recognizes this

Question 8

Defeasible Estates

Answer 8

Estate that has a condition on it; may end upon the occurrence of some event (note waste does not apply)

Question 9

FS/LE Determinable (FSD)

Answer 9

Using durational language (so long as, while, until, during the time that, until it’s not)

If broken, then automatically reverts to owner (P/R)

Question 10

FS/LE Subject to Condition Subsequent (FS/CS)

Answer 10

Created using conditional language (provided that, but if, on condition that)

If condition is broken, then grantee will still own the estate and Owner has the right to exercise right of entry.

Must be EITHER: in a reasonable time after breach OR latches

Latches= no unreasonable delay in exercising R/E AND prejudice to holder of FS/CS

Question 11

FS/LE Executory Limitation

Answer 11

When transferee holds FI. When condition is broken, automatically shift back to EI holder

Question 12

Direct Restraints on Alienation

Answer 12

“I grant this property to E and it is not to be sold”

Rule: these are void

Question 13

Indirect Restraints on Alienation

Answer 13

“To E and her heirs so long as the property is used for residential purposes”

Rule: Valid if they are reasonable as to duration (shorter is more reasonable), scope (greater impact on marketability, less reasonable) and purpose (more charitable, more reasonable)

Question 14

Remainder

Answer 14

Capable of coming into possession at the natural end of the proceeding estate. (DOES NOT divest an interest)

Question 15

Vested remainder

Answer 15

(a) Given to at least one ascertained person AND (b) not subject to a condition precedent (any other condition except the natural termination of the prior estate)

Question 16

Indefensibly vested remainder

Answer 16

All takers are ascertained and/or all conditions have been met and no subsequent conditions can divest interest

Question 17

Vested remainder subject to divestment

Answer 17

Where interest could be divested by a condition

Question 18

VR/SO

Answer 18

Remainder held by one or more living members of a group/class that may be enlarged in the future

Question 19

Contingent Remainder

Answer 19

(a) no ascertained person OR (b) unmet condition

When this, likely the transferor retained a reversion

Question 20

Executory interest

Answer 20

FI in the transferee NOT capable of coming into possession at the natural end of the proceeding estate (must divest an interest to become possessory)

Question 21

Springing EI

Answer 21

EI cuts off the transferor’s interest

Question 22

Shifting EI

Answer 22

The EI cuts off another transferee’s interest