Present Estates and Future Interests Flashcards
Fee Simple Determinable
Property automatically reverts to the grantor when a certain event happens-
Made with: until, while, during
Accompanying future interest: possibility of reverter that’s held by the grantor
words of hope aren’t enough to create one, the possibility of reverter can’t be transferred during lifetime
Fee Simple Subject to Condition Subsequent
Grantor retains right of reentry if a given event happens but doesn’t happen automatically
Made with: but if, upon the condition that, provided that
Accompanying future interest: right of reentry
Words of hope aren’t sufficient
right of reentry can’t be transferred during lifetime
Fee Simple Subject to Executory Interest
Property Automatically transfers to a third party when a certain event happens
Made with: but if…to B, to X for so long as and if not to B
Accompanying future interest: Shifting executory interest
hope isn’t sufficient
the shifting executory interest is transferrable during life
Life Estate
can be subject to executory interest, subject to condition subsequent, determinable
No waste and must maintain premises
future interest goes to grantor if it’s not provided for
If the future interest isn’t with the grantor, then it’s a reversion
Life estate pour autre vie-measured by another person’s life
Remainder
What comes after a life estate
created in the same conveyance as the life estate
Vested Remainder
A remainder that automatically becomes possessory upon the expiration of the previous estate
Indefeasibly Vested Remainder
To A for life, then to B
Comes possessory on the termination of the previous estate
Vested Remainder Subject to Total Divestment
Subject to a condition subsequent, but subject to a condition that they can lose possession if something happens
To A for life, remainder to B, but if B weds to C
Vested Remainder Subject to Open
Class gift
Vested in a class, at least one of which could take, but there could be more people that fit that description
Rule of Convenience-class closes whenever any member can call for a distribution
Contingent Remainder
Subject to condition precedent-remainder’s taking is contingent upon the prior occurrence of some event or condition or created in favor of an unborn or unascertained person
to A for life, then to B and his heirs when B gets married
if B is unmarried at the time of conveyance, A has a life estate, B has contingent remainder (because maybe they don’t get married) and grantor has the possibility of reverter if B isn’t married when A dies
or
To A for life then to B’s heirs–it’s contingent because you don’t have heirs till you die
Things that probs don’t matter but might
destructibility-CL contingent remainder is destroyed if the condition isn’t satisfied –modern rule reversion goes to the grantor’s estate until grantee satisfies the condition
Merger (Shelley’s Rule)-gives a life estate to grantee with a remainder to intestate heirs CL-the estates merge, and it’s a fee simple absolute
Modern rule-life estate and then heirs have contingent remainders and grantor retains reversion, cause they could die without heirs
Doctrine of worthier title-grantor creates a life estate in A and then gives contingent remainder to their heirs-under worthier title it’s a reversion not a contingent remainder
Executory Interests
Cuts the interest short, indicated by phrases like but if, then to, for so long as
devisable, descendible, transferable
Shifting Executory Interest
Follows a defeasible fee or vested remainder subject to total divestment
to A for so long as they use it to raise ferrets, but if it’s used for anything else, to B
A has fee simple subject to executory interest
B has a shifting executory interest-it can cut off a person’s interest other than the grantor
Springing Executory Interest
Cuts short the interest of the grantor
to A if and when he gets married
A has springing executory interest, grantor has fee simple subject to an executory interest
Rule Against Perpetuities
Property interest must vest 21 years after the death of a life in being of the measuring life
If it’s a contingent interest, including options and rights of first refusal are subject to RAP
