Present and Future Interests

Question 1

What are the Present Interests

Answer 1

1. Fee Simple Absolute (FSA)
2. Life Estate
3. Defeasible Fees

Question 2

What are the defeasible fees?

Answer 2

1. Fee simple determinable
2. Fee simple subject to condition subsequent
3. Fee simple subject to executory limitation

Question 3

Fee Simple Absolute

Answer 3

Unlimited in duration

Question 4

How is a FSA created?

Answer 4

“To A” or “To A and her heirs”

Question 5

Life Estate

Answer 5

Transfer of the possession of real property for a life-time
GRANTOR HAS “REVERSION”

Question 6

Language to create a life estate?

Answer 6

“to A for life”, “to A for B’s life”

Question 7

Responsibilities of Life Estate Holder

Answer 7

Must not commit waste in any way that impacts the property value

Question 8

Fee Simple Determinable

Answer 8

Transfer of property right with an included condition that specifies the time span for possession in relative terms
GRANTOR HAS “POSSIBILITY OF REVERTER”

Question 9

Language to Form a Fee Simple Determinable

Answer 9

“To A so long as” or “until (Clear Durational Language)”

Question 10

Fee simple subject to condition subsequent

Answer 10

Transfer of real property that specifies a condition that will allow the grantor to retake
Rude, non-automatic termination
GRANTOR HAS “RIGHT OF ENTRY” OR “POWER OF TERMINATION”

Question 11

Language to Create a Fee simple subject to condition subsequent

Answer 11

“to A, but if X event occurs, [provided that, on condition that..] grantor reserves the right to reenter and retake

Question 12

Fee simple subject to executory limitation

Answer 12

transfer of real property interest that specifies an event or condition that will transfer the property to a third party
Polite, automatic transfer at the meeting of the condition or event
GRANTOR HAS NOTHING; THIRD PARTY HAS “SHIFTING EXECUTORY INTEREST”

Question 13

Language to create a Fee simple subject to executory limitation

Answer 13

“to A, but if X event occurs, then to B” or To A, but if X event occurs, B may reenter and retake”

Question 14

Vested Remainder

Answer 14

A remainder vested in an ascertained person AND not subject to condition precedent.

Question 15

Types of Vested Remainders

Answer 15

1. indefeasibly vested remainders
2. vested remainder in an open class
3. vested remainder subject to divestment

Question 16

Indefeasibly Vested Remainders

Answer 16

CERTAIN TO BECOME POSSESORY
Ex: “to A for life, remainder to B” A and B are alive

Question 17

Vested Remainder in an open class

Answer 17

granted to a class that more people can be added to.
Ex: “to A for life, then to B’s children.” A is alive and B has two children

Question 18

Vested Remainder subject to divestment

Answer 18

May be divested by an executory interest before it becomes possessory
Ex: “To A for life, remainder to B, but if B dies under the age of 25, to C” A is alive and B is 20.

Question 19

Contingent Remainders

Answer 19

In an unascertained person OR subject to ondition precedent
Ex: “To A for life, then to B’s first child” A is alive, B has no children. OR “To A for life, then to those children of B who survive A.” A is alive.

Question 20

Categories of Exectuory Interests

Answer 20

1. Shifting Executory Interests
2. Springing Executory Interests

Question 21

Shifting Executory Interest

Answer 21

Cuts short a grantee’s interests

Question 22

Springing Executory Interest

Answer 22

cuts short a grantor’s interests