Possessory Estates & Future Interests

Question 1

Fee Simple

Answer 1

“O to A and his/her heirs”

Question 2

Fee Tail

Answer 2

” O to A and the heirs of her body”

Question 3

Life estate

Answer 3

” O to A for life”

Question 4

Term of Years

Answer 4

” O to A for _ years”

Question 5

Defeasible estate

Answer 5

The name for the category of estates that could end early by the happening of a particular event.

Question 6

Types of Defeasible estates

Answer 6

Determinable and Subject to Condition Subsequent

Question 7

Determinable

Answer 7

An estate is determinable if the grantor has described its duration as measured by the occurrence of a particular event.

Question 8

Determinable Ex.

Answer 8

” O to A and her heirs until B reaches 30”

Question 9

Subject to Condition Subsequent

Answer 9

An estate whose natural duration may be cut short by the happening of a particular event or condition allowing the grantor to retake the property.

Question 10

Subject to Condition Subsequent Ex.

Answer 10

” O to A and her heirs, but if B reaches 30, then to O”

Question 11

Signs of Determinable interests

Answer 11

• until
  -so long as
• while
  -during

Question 12

Signs of Condition Subsequent

Answer 12

-but if
-provided that
- on condition that
- However

Question 13

Reversion

Answer 13

The name for a grantor’s future interest that follows an estate that ends naturally.

Question 14

Possibility of Reverter

Answer 14

The grantor’s future interest following a determinable estate.

Question 15

Right of Entry

Answer 15

The name for the future interest that follows an estate subject to condition subsequent.

Question 16

Remainder

Answer 16

A grantee’s future interest that “waits patiently” for the possessory estate to “ end naturally”

Question 17

Remainder Ex.

Answer 17

” O to A for life, then to B”

Question 18

Reversion Ex.

Answer 18

” O to A for Life, then to O”

Question 19

Two types of remainders

Answer 19

• Vested
• Contingent

Question 20

Vested Remainder

Answer 20

A remainder is vested if:
1. It is given to an ascertained person AND
2. The words creating the remainder do NOT include a condition precedent.

Question 21

Types of Vested remainders

Answer 21

• Indefeasibly vested remainder: created in an ascertainable person and not subject to a condition precedent
• Vested remainder subject to divestment : a vested remainder that is subject to a condition subsequent.
• Vested remainder subject to open: a vested remainder held by one or more members of a class that may be enlarged in the future.

Question 22

Contingent Remainder

Answer 22

A remainder is contingent if:
1. It is given to an unascertained person OR
2. The words creating the remainder contain a condition precedent

Question 23

Ascertained

Answer 23

A person is ascertained if he or she has been BORN and is IDENTIFIED

Question 24

Condition Precedent

Answer 24

A condition precedent is a condition other than the ending of the prior estate that must be met before the remainder is ready to become possessory.

Question 25

Condition precedent Ex.

Answer 25

" O to A for life, then to B if B has reached 21."

Question 26

Freehold Estates

Answer 26

- Fee simple absolute - Life estate - Fee tail - Fee simple determinable - Fee simple subject to a condition subsequent - fee simple subject to an executory limitation

Question 27

Intestate succession

Answer 27

If a person dies intestate ( without a will) , most states will distribute her property in the following sequence: - issue and surviving spouse -if none, then to parents and their issue - if none, then to ancestors and/ or collaterals - if none, then property escheats to the state.

Question 28

Restraints on alienation

Answer 28

A restraint on alienation is a provision in a deed or will that prohibits or limits a future transfer of the property.

Question 29

Absolute restraints

Answer 29

A provision that totally prohibits the future transfer of a fee simple is void as against public policy

Question 30

Partial Restraints

Answer 30

A provision that partially restrains transfer of a fee simple is valid if reasonable in duration, scope, and purpose.

Question 31

Waste

Answer 31

The main doctrine used to resolve land use disputes when property rights are divided between a person in possession of land and another holding a future interest, such as lessee/ lessor and life tenant / remainderman

Question 32

Types of waste

Answer 32

- Voluntary waste : results from an affirmative act that significantly reduces the value of the property. - Permissive waste: results from failure to take reasonable care to protect the estate. - Ameliorative waste : results from an affirmative act that causes a substantial change in property and increases its market value; most states dont recognize this form .

Question 33

Future interests :

Answer 33

- Retained by the transferor: * Reversion * Possibility of reverter * right of entry - Created in a transferee * Remainder

Question 34

Executory interests

Answer 34

- springing executory interest: divest - shifting executory interest : divests a transferee.

Question 35

Rules Against Perpetuities

Answer 35

No interest is good unless it must vest, if at all, no later than 21 years after some life in being at the creation of the interest. - A contingent future interest is void when created if too much time might pass before the uncertainty ends.