present and future estates Flashcards
Fee Simple Absolute
the largest possible estate in land, denoting the aggregate of all possible rights that a person may have in that parcel of land.
“and their heirs”
if ambiguous then fee simp ab
Life Estate
An estate where the party owns the property for the duration of their life. A freehold estate
where the duration is measured by the life or lives of one or more human beings.
entitled to beneficial use of the land, but he may not act to impair the value of the
estates and interest owned by others on the same land.
not responsible for the damage caused by other to the land.
tenant may
recover damages from third parties, for such damages, limited to the amount of interest of the life
tenant.
A trial court can order the sale of encumbered property appreciating in value IF
the sale is necessary for the interests of all affected parties. A trial court can order a judicial sale of land
encumbered by a future interest where the sale is necessary for the preservation of all interests in the land.
“Necessity” arises from (1) property deteriorating in value & (2) income insufficient to pay taxes and maintain
property.
Reversion
grantor of life estate or terms of year etc, not fee simple
goes right back to grantor no waiting
def: future interest retained by the grantor when the
grantor transfers less than a fee interest to a third person
transferable , devisable, and descendible
reversion passes to grantors heirs if he dies
possibility of reverter
A future interest in the grantor that follows a fee simple (or a life estate) determinable.
At strict common law, a possibility of reverter could descend through intestacy but could not be
devised or transferred inter vivos.
Under the modern trend, a possibility of reverter is transferable, devisable, and descendible to third party
vests automatically when the condition fails
rights of reentry
A future interest in the grantor that follows a fee simple
(or a life estate) subject to a condition subsequent.
The right of entry does NOT vest automatically when the condition fails, the grantor must reclaim the property
(SOL) does not begin to run against a right of reentry
until the grantor attempts to exercise the right. min view when condition occurs
=Under strict Common Law, a right of reentry could descend through intestacy but could not be
devised or transferred inter vivos.
= Under the Florida Rule, a right of reentry is transferable, devisable, and descendible.
=Under the Majority rule, rights of reentry are descendible, devisable in some states, but not
transferable inter vivos.
*If O fails to reserve expressly a right of reentry, if and when liquor is served, O may be
powerless to reclaim the property.
absolute vs defeasible
ab =It cannot be divested nor will it end upon the occurrence of any futur event.
Defeasible Fee Simple - It will terminate prior to its natural end point upon the occurrence of
some specified future event. Primarily used to control the use of the land after it has been
transferred; used to control behavior not related to any particular part of land.
fee simple determinable
A fee simple determinable is a fee simple estate created to continue until some
specified event occurs, and with the future interest held by the grantor. The estate
terminates automatically when the stated even happens.
so long as, during, while, until
Fee Simple Subject to Condition Subsequent:
A fee simple subject to a condition subsequent is a fee simple estate that may be
terminated upon the happening of a named event by the grantor or his successors
in interest. The estate continues until the grantor or future interest holder exercises
his right of entry or power of termination.
but if, on the condition that, subject to
Fee Simple Subject to Executory Limitation:
When grantor transfers what appears to be a fee simple subject to condition
subsequent and in the same instrument creates a future interest in a 3rd party
rather than in himself. Distinction based on the type of future interest following it.
Subjected to executory interest.
Fee Simple Subject to Executory Interest
FUTURE INTEREST transferee A fee simple subject to executory interest is a fee simple estate, whereupon the
happening or (non-happening) of a named event or condition, ownership is passed
from the grantee to someone other than the grantor. The future interest created in
the third party is an executory interest.
shifting or springing
An executory interest cannot fall in automatically at the natural
termination of the previous estate An executory interest is transferable, descendible, and devisable.
* RAP: An executory interest is subject to RAP.
random
A covenant is preferred over a defeasible estate, because the
award is money damages rather than forfeiture.
■ A fee simple subject to a condition subsequent is preferred over a
fee simple determinable, because in the former forfeiture is not
automatic.
shifting
An executory interest where the right to possession
shifts from one grantee to another grantee.
springing
An executory interest where the right to
possession springs from the grantor to the grantee.
example 1
O conveys Blackacre to A and his heirs, but if A sells or transfers the property, then to B and his heirs.”
In this example, A has a present possessory estate, a fee simple absolute ownership interest in the property. However, A’s ownership interest is limited by the executory limit that if A sells or transfers the property, then the ownership of the property will automatically transfer to B and his heirs.
B has an executory interest in the property because his ownership interest will only arise if A violates the executory limit. B does not have any present interest in the property unless A violates the condition.
O, the grantor, does not have any future interest in the property in this example since the conveyance creates a fee simple absolute estate in A with a limitation.
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