Present Estates and Future Interests Flashcards
Fee Simple Absolute
“To A”, “To A and his heirs”
Infinite duration
Fee Simple Determinable
- “To A for so long as…”, “To A while…”, “To A during….”, or “To A until…”
- transferable
- devisable by will
- descendible through intestacy
- always subject to the attached condition
- forfeiture is automatic
FSDPOR
Fee Simple Determinable - Future Interest: Possibility of Reverter
Possibility of Reverter
- Transferable
- Devisable by will
- Descendible by intestacy
- Future interest of FSD
Fee Simple Subject to Condition Subsequent
- An estate which the grantor reserves the right to terminate the estate upon the happening of a stated event
- “upon condition that”, “provided that”, “but if”, “if it happens that” and an explicit statement of the grantor’s right to re-enter and retake
- Right of entry in the grantor
- Not automatically terminated, grantor must elect to reenter
Fee Simple Subject to an Executory Interest
Fee Simple Determinable or Condition Subsequent and then passes to a third party rather than reverting to the grantor then the third party has an executory interest
Fee Tail
- An estate where inheritability is limited to lineal heirs
Considerations with Defeasible Fees
- Words of desire, hope, or intention do not create a defeasible fee
- Absolute restraints on alienation are void
- Conditions and limitations violating public policy are void
Life Estate
- Measured by the life or lives of one or more person
- Measured in explicit lifetime terms
- Life Estate Pur Autre Vie (Life of Another)
- Future interest held by grantor is the reversion, if by a third party is the remainder
Duties of the Life Tenant
- Preserve the land and structures in a reasonable state of repair
- Pay ordinary taxes on the land
- Pay interest on mortgages (not principal)
- Pay special assessments for public improvements of short duration
Ameliorative Waste for Life Tenant Exceptions
- The market value of the future interests is not diminished; and either the remainderman do not object, or a substantial and permanent change in the neighborhood conditions renders the property useless
Contingent Remainder
- A remainder is contingent if: (1) it’s created in unborn or unascertained persons, or (2) it’s subject to a condition precedent, or both.
Condition Precedent
- Look for the condition to appear before the language creating the remainder or for it be woven into the grant to the remainderman
Vested Remainder
- A vested remainder is one created in an existing and ascertained person and not subject to a condition precedent.
- Fully transferable, descendible, and devisable
Indefeasibly Vested Remainder
- A vested remainder not subject to divestment or diminution.
- Certain to acquire an estate in the future with no strings or conditions attached
Vested Remainder Subject to Total Divestment
- Vested remainder subject to a condition subsequent
- His taking is not subject to any condition precedent. However, his right to possession could be cut short because of the condition subsequent
Vested Remainder Subject to Open
- A vested remainder created in a class that is certain to become possessory but is subject to diminution.
Shifting Executory Interest
- In third parties always follows a defeasible fee and cuts short someone other than the grantor
- Common law are not transferable, but most courts hold that they are freely transferable
- descendible and devisable
Springing Executory Interest
- A springing EI cuts short the interest of O, the grantor
