Present Estates and Future Interests

Question 1

Present Possessory Freehold Estates

Answer 1

fee simple absolue

defeasible fee
- fee simple determinable
- fee simple subject to a condition subsequent
- fee simple subject to an executory interest

life estate

Question 2

Fee simple absolute

Answer 2

indefinite

freely transferable, devisable, and descendible

Question 3

Fee simple determinable

FSD PR

Answer 3

Terminates upon the happening of a stated event

automatically reverts to grantor

Future interest - possibility of reverter

Expressions of motive does not create a condition

Transferable, devisable, descendible - but always subject to the condition

Question 4

Possibility of reverter

Answer 4

Transferable, devisable, descendible

Question 5

Fee simple subject to condition subsequent

FSCS RE/PT

Answer 5

Grantor reserves the right to terminate upon the happening oof the stated event

does not automatically terminate

Future interest - right of reentry and power tot terminate

Question 6

Right or reentry and power to terminate

Answer 6

Must be expressly reserved

Not transferable intervivos but is devisable and descendable

Question 7

Fee simple subject to an executory interest

FSEI EI

Answer 7

Terminates upon the happening of a stated even and passes to a third party instead of grantor

Future interest - executory interest

Question 8

Restraints on alienation

Answer 8

conditions that create and absolute restraint on alienation that is not linked to any reasonable time-limited purpose is void

Question 9

Fee tail

Answer 9

inheritability is limited to lineal heirs

to A and the heirs of his body

Abolished and creates a fee simple

Question 10

Life estate

LE R

Answer 10

Measured by the life of the grantee or life of another

life term and not term of years

Future interest - reversion if held by grantor, remainder if held by third party

Question 11

Future interests

Answer 11

In grantor
- possibility of reverter
- right of reentry
- reversion

In third party
- contingent remainder
- vested remainder
- executory interest

Question 12

Vested remainders - three types

Answer 12

Indefeasibly vested remainder

Vested remainder subject to total divestment

Vested remainder subject to open

Question 13

Executory interest - two types

Answer 13

Shifting executory interest

springing executory interest

Question 14

Contingent remainder

Answer 14

Created in unborn or unascertained person

subject to a condition precedent
- condition before language creating remainder

Question 15

Heirs

Answer 15

A living person has no heirs

Question 16

Vested remainder subject to total divestment

Answer 16

Subject to a condition subsequent

Question 17

Vested remainders subject to open

Answer 17

created in a class of persons that is still open to increase or decrease

one is qualified to take already, otherwise contingent remainder

rule of convenience - the class closes when some member of the class can call for distribution

womb rule - persons in gestation at the time the class closes are included in the class

Question 18

Executory interest

Answer 18

In a third party

Shifting - Divests a transferee’s preceding freehold

Springing - follows a fap in possession or cuts short a grantor’s estate

Question 19

Rule against perpetuities

Answer 19

Future interest is void if there is any possibility that the interest might vest more than 21 years after a person alive at the time of the grant has died

measuring life- one connected with the vesting of the interest

• contingent remainders
• executory interests (EI with no time limit always violates)
• vested remainders subject to open

Destroys only offending interest