Present and Future Interests

Question 1

Present interests

Answer 1

Interests that allow a present or current right to possess property

Fee simple absolute, life estate, fee simple determinable, fee simple subject to a condition subsequent, leasehold estates

Question 2

Fee simple absolute

Answer 2

gives holder full possessory rights and has potentially infinite duration. grantor does not retain any interests

fee simple absolutes are fully alienable

ex: “To A” or “To A and her heirs”

Question 3

Life estate

Answer 3

Estate that is measured by life, not time. restraints on alienation are valid

Can be express, implied or pur autre view

Future interests that follow life estates are either reversion or remainder

ex: “To A for life”

Question 4

Fee simple determinable

Answer 4

estate will be cut short in favor of the grantor automatically upon the happening of a condition (for so long as, until, while, during)

always goes with future interest of possibility of reverter

ex: “To A for so long as A is in college” → A has a FSD. O has a possibility of reverter

Question 5

Fee simple subject to a condition subsequent

Answer 5

If condition occurs, grantor has the power to retake the estate by entering. estate ends only when grantor enters the property

Future interest will be right of entry, which grantor must expressly reserve otherwise he gives away a fee simple absolute

Look for conditional language plus a right of entry
- ex: “To A, but if A smokes, O reserves a right of entry”

Question 6

Fee simple subject to an executory interest

Answer 6

An estate that, upon the happening of an event, is automatically divested in favor of a third person rather than the grantor

Look for durational or conditional language, but it will go to B instead of O

Question 7

Future interests

Answer 7

Gives one a right to possess property in the future (does not mean one will)

Held by grantor: reversion, possibility of reverter, right of entry
Held by grantee: remainder (vested, contingent), executory interest (shifting, springing)

Question 8

Reversion

Answer 8

When grantor transfers less than what he has (eg life estate) other than when he transfers a fee simple determinable or fee simple subject to a condition