Present Estates Flashcards
What are the four categories of Present Estates?
(1) the fee simple absolute; (2) the fee tail; (3) the defeasible fees (3 sub categories); and (4) the life estate
What are the characteristics of a fee simple absolute?
(1) absolute ownership, meaning it is freely devisable, descendable, and alienable; and
(2) there is no accompanying future interest.
EX: “To A” or “To A and his heirs”
What are the 3 kinds of defeasible fees?
(1) fee simple determinable;
(2) fee simple subject to condition subsequent;
(3) fee simple subject to executory limitation.
What are the characteristics of a fee simple determinable?
(1) clear, durational language;
(2) the estate is devisable, descendable, and alienable; BUT
(3) the estate is always subject to a condition; AND
(4) the accompanying future interest is the possibility of reverter.
FSDPOR EX: "Frank Sinatra conveys Blackacre to Orville Redenbacher, so long as popcorn is never made on the premises." - Orville has: a fee simple determinable (the "so long as" language) - Frank has: the possibility of reverter
What are the characteristics of a fee simple subject to condition subsequent?
(1) clear, durational language;
(2) carve out the right to re-enter;
(3) estate is NOT automatically ended, but it can be cut short at the grantor’s option, IF the stated condition occurs;
(4) the accompanying future interest is the right of entry, which is synonymous with the power of termination.
EX: Ross conveys “To Rachel, but if coffee is ever consumed on premises, grantor reserves the right to re-enter and retake.”
- Rachel has: fee simple subject to condition subsequent - Ross has: the right of entry; therefore, if coffee is ever consumed on the property, then Ross has the discretion to either re-enter and take the property back OR ignore the condition subsequent that occurred and allow Rachel to remain on the premises. This is the power of termination.
What are the characteristics of a fee simple subject to executory limitation?
Similar to the fee simple determinable, BUT this time if the condition is broken, it does NOT revert back to the grantor, INSTEAD it is automatically forfeited in favor of someone other than the grantor.
EX: “To Barry Manilow, but if Barry ever performs music on the premises, then to Mandy.”
- Barry has: a fee simple subject to Mandy's Shifting Executory Interest - Mandy has: a shifting executory interest, which is the accompanying future interest.
What are the characteristics of a life estate?
(1) an estate measured in a explicit lifetime terms; AND
(2) NEVER in a term of years
EX: “To A for life.”
- A has: a life estate - A is known as: a life tenant - O has: a reversion (at the end of A's life, the estate reverts back to O)
What is a life estate “pur autre vie”?
A life estate measured by the life of someone other than the grantee’s.
EX: “To Madonna, for the life of David Letterman.”
- Madonna has: a life estate pur autre vie (measured by David Letterman's life) - O has: a reversion. At the end of Letterman's life, the estate reverts back to O.
Life tenants must not ________, but are entitled to _______.
commit waste; all ordinary uses and profits from the land.
What are the 3 types of waste?
(1) voluntary: willful destruction causing a drop in value of the property;
(2) permissive or neglect: occurs when land falls into disrepair from a failure to maintain;
(3) ameliorative: enhancing the value of the property where all future interest holders are unknown and without their consent (policy is to honor the sentimental value of the property)
What is the general rule for voluntary waste and natural resources?
The life tenant must not consume or exploit natural resources on the property, such as timber, oil, or minerals.
What are the four exceptions to voluntary waste and natural resources? (when can you exploit the land’s natural resources?)
PURGE:
(1) Prior Use - the land was used for exploitation prior to this grant, BUT remember,
(a) Open Mines Doctrine: if mining was done on the land before the life estate began, then the life tenant may continue to mine without opening any new mines.
(2) Repairs - life tenant may consume natural resources for repairs and maintenance.
(3) Grant - the tenant may exploit when granted the right to do so.
(4) Exploitation - the land is suitable only to exploit, such as a quarry.
