Present Estates Flashcards

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1
Q

What sort of language will a fee simple absolute use?

A

“To A and his heirs” or “To A…”

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2
Q

What is the transferability of a fee simple absolute?

A

Devisable

Descendible

Alienable (during holder’s lifetime)

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3
Q

Can you put a direct restraint on alienation of a fee simple?

A

No, these are void

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4
Q

What is a fee simple determinable with the possibility of remainder?

A

It is a potentially infinite estate, provided a stated event does not occur

Look for language like: “To A, so long as,” or “until…”

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5
Q

If the states event happens during the grant of fee simple determinable with the possibility of remainder, what happens to the estate?

A

The possibility of reverter materialises and the estate goes back to the GRANTOR

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6
Q

Is the fee simple determinable with the possibility of remainder transferable?

A

Yes, it’s divisible, descendible and alienable, but subject to the grantor’s condition

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7
Q

What is a fee simple subject to condition subsequent?

A

Potentially infinite estate, provided the condition is not breached.

For this estate you need clear durational language, stating which event needs to occur; AND if the event does occur, a statement that the grantor has the right of re-entry onto the land.

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8
Q

What is the difference between a fee simple determinable with the possibility of remainder and a fee simple subject to condition subsequent?

A

Both come with a condition and both hold a right to revert to the grantor if the condition is not met. However, FSSCS only reverts if the grantor exercises their right of reentry. It’s not automatic

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9
Q

What is a fee simple subject to executor?

A

It’s a potentially infinite estate, but if a condition occurs, the estate goes to a third party (rather than back to grantor)

Look for language like “To A, but if X moves back from Canada, then to X”

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10
Q

What is a life estate?

A

“To A for life”

This is a life estate measure by the life of the transferee (A) or the life of another.

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11
Q

Under the doctrine of waste, what is the tenant usually entitled to?

A

The life tenant is entitled to ordinary uses and profits from the land. But they cannot sell it the natural resources or tear down structures

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12
Q

What is voluntary/affirmative waste?

A

Actual over conduct/destruction that causes a drop in the value of the property

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13
Q

In which circumstances is the tenant permitted to commit voluntary/affirmative waste?

A

P U R G E

Prior use (land previously exploited under grant—subject to open mines doctrine)

Reasonable repairs and maintenance

Grant (express)

Exploitation (land only suitable for that)

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14
Q

What is permissive waste?

And what are the T’s obligations?

A

When life tenant neglects the land.

Tenant has a duty to carry out maintenance and repairs to a reasonable standard. But not to replace.

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15
Q

What is ameliorative waste?

A

The tenant cannot engage in acts that enhance the land’s value unless all future interest holders know and consent.

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16
Q

What are the three future interests possible of creation in the GRANTOR?

A

Possibility of Reverter

Right of re-entry

Reversion

17
Q

What are the three types of future interest capable of creation for a third party transferee?

A

A contingent remainder

A vested remainder: (1) indefensibly vested remainder; (2) vested remainder subject to complete defeasance; and vested remainder subject to open.

An executory interest (springing and shifting)

18
Q

What do remainders ALWAYS follow?

A

A preceding estate of known, fixed duration

19
Q

What is a remainder?

A

A remainder is a future interest

Created in a grantee

That is capable of becoming possessory upon the expiration or a prior possessory estate

Created in the same conveyance as when the remainder is created

20
Q

What is a contingent remainder?

Language used for a contingent remainder?

A

A remainder created in an unascertainable or unknown person

OR

That is subject to an as of yet unmet condition precedent.

E.g. “To A for life, then to B’s first child.” A is alive and B doesn’t get have children

21
Q

If a remainder exists with no condition precedent, it is what?

A

A vested remainder

22
Q

What is an indefensibly vested remainder?

Which other estate might convert to it?

A

The holder is known and certain to acquire the estate in the future, with no strings attached.

If the grantee satisfies the condition precedent attached to the contingent remainder, the third party grantee will then have an indefensibly vested remainder

23
Q

What is a vested remainder subject to complete defeasance?

A

A condition subsequent still attached and must be complied with for the transferee to take the estate.

24
Q

What is a vested remainder subject to open?

A

A future estate created in a class of person that is still open (like if B has more children)

25
Q

For the purposes of a vested remainder subject to open, when does the class close?

A

When the grantor dies, because that’s when the current class could demand possession

Or if B died, because then they couldn’t have more children.

26
Q

What estate does a shifting executory interest always follow?

A

A defensible fee and it will cut short the current holder’s right

27
Q

What is the effect of a springing executory interest?

A

It cuts short the grantor’s interest (rather than a third party)

28
Q

What is the Rule Against Perpetuities?

A

If there is a possibility that the given interest may best more than 21 years after the death of a measuring life, then the future interest = void

29
Q

To which estates does the RAP apply?

And that means it does not apply to which estates?

A

Applies only to:
—Contingent remainders
— Executory interests
— Vested remainders subject to open

Does NOT apply to:
— Indefensibly Vested Remainders
— Vested Remainders Subject to Total Divestment/Complete Defeasance
— Interests capable of creation in the grantor

30
Q

What is the “Wait and See” or “Second Look” doctrine?

A

Consider whether the interest actually vested at the end of the 21 year Perpetuities period. If it did in fact vest, it’s good. If not, it is void.

31
Q

What is the rule under the Uniform Statutory Rule Against Perpetuities?

A

It provides for an alternative 90 year beating period

32
Q

What is the Cy Pres doctrine?

A

If a disposition of property violates the RAP, a court may reform the gift to match the grantor’s intent and get it as close as possible to what the grantor would have wanted.

Only applies to trusts.

33
Q

If the grantee holds an indefensibly vested remainder and then dies, who takes their right?

A

It passes by will or through intestacy

34
Q

If a grantor coveys the following right: “To D for life and then to B if she becomes a licensed attorney.” What estate does B have?

If B never becomes an attorney what happens?

If B does become an attorney, what happens?

A

B has a Contingent Remainder because it’s subject to an unsatisfied condition precedent

If B never becomes an attorney, the life estate will revert back to Grantor.

If B does become an attorney, they then have an Indefensibly Vested Remainder and take the land with no further strings attached.

35
Q

A third party executory Interest that follows which type of interest will often violate the RAP?

A

The three defeasible fees.

36
Q

If a gift is made to an open class of people, conditioned on those members surviving to a certain age, will this typically violate or not violate the RAP and what’s the exception?

A

Usually violate the RAP

But if the age contingent links back to the parents, then it might be ok.

37
Q

For the purpose of assessing when the RAP rule begins to run, when does the 21 year period start for making gifts under a Will?

A

From the date of death, not execution.

38
Q

Which of the following are subject to the RAP?

  1. Option contracts
  2. Rights of first refusal
A

Option contracts are subject (unless for a current leasee)

Rights of first refusal are not.