Present Estates and Future Interests Flashcards
Fee Simple Absolute
- Duration = Forever
- Created = “to A” or “to A and his heirs” (presumed intent)
- Absolute Ownership
- Freely transferable, devisable, and descendible
Fee Simple Determinable
- Duration = Terminates upon happening of a stated event and automatically reverts to the grantor
- Created = “to A so long as…” or “to A until…”
- Transferable, devisable, and descendible BUT always subject to the attached condition
Possibility of Reverter
- Reversionary future interest in fee simple determinable
- Automatically reverts to grantor upon condition
- Transferable, devisable, and descendible
Fee Simple Subject to Conditition Subsequent
- Duration = Terminates when the grantor invokes right to terminate unpon the happening of stated event (does not automatically terminate)
- Created = Conditional words + explicit statement of the grantor’s right to re-enter
- Freely transferable, devisable, and descendible BUT always subject to the condition
Right of Entry
- Future interest in fee simple subject to condition subsequent
- Does not automatically occur
- Must be expressly reserved
- Not transferable
- Devisable and descendible
Fee Simple Subject to an Executory Interest
- Duration = Terminates upon the happening of a stated event and then automatically passes to a third party
- Created = “to A, but if X even occurs, then to B”
- Freely transferable, devisable, and descendible BUT always subject to the condition
Are words of desire, hope, or intention enough to create a defeasible fee?
No, such language is merely an expression of motice. There must be clear, durational language.
Are absolute restraints on alientation valid?
No, an absolute restraint on alienation is an absolute ban on the power to sell or transfer that is not liked to any reasonable time-limited purpose. Such restraints on a fee simple are void.
Are conditions and limitations violating public policy valid?
Conditions or limitations that violate public policy are generally struck down.
Note: If the purpose is to penalize marriage or encourage divorce, it will be struck down; however, if the purpose is to give support until marriage or in the event of divorce, it will likely be upheld
Life Estate
- Duration = Measured by the life of one or more persons
- Created = Explicit lifetime terms (“to A for life”)
- Freely transferable (subject to condition upon death of original tenant)
- Not devisable or descendible
Waste
- Voluntary = actual, overt conduct that causes a drop in value
- Permissive = when tenant fails to comply with their duties (neglect)
- Ameliorative = change that benefits the property economically
What are the future interests that are capable of creation in the grantor?
- Possibility of Reverter
- Right of Entry
- Reversion
Reversion
- Estate left in a grantor who conveys less than they own. Whenever a grantor transfers an estate of lesser duration than what they started with, the future interest that arises is a reversion
- Transferable, devisable, and descendible
Contigent Remainder
- Future interest in 3rd person that becomes possessory on the natural expiration of the preceding estate
- Contingent if:
a. Created in unborn or unascertained persons; or
b. Subject to a condition precedent
Vested Remainder
- Future interest in 3rd person that becomes possessory on the natural expiration of the preceding estate
- Vested if:
a. Created in an existing and ascertained person; and
b. Not subject to a condition precedent
