Present Estates and Future Interests

Question 1

Fee Simple Absolute

Answer 1

“To A”, “To A and his heirs”
Infinite duration

Question 2

Fee Simple Determinable

Answer 2

• “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

Question 3

FSDPOR

Answer 3

Fee Simple Determinable - Future Interest: Possibility of Reverter

Question 4

Possibility of Reverter

Answer 4

• Transferable
• Devisable by will
• Descendible by intestacy
• Future interest of FSD

Question 5

Fee Simple Subject to Condition Subsequent

Answer 5

• 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

Question 6

Fee Simple Subject to an Executory Interest

Answer 6

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

Question 7

Fee Tail

Answer 7

• An estate where inheritability is limited to lineal heirs

Question 8

Considerations with Defeasible Fees

Answer 8

• 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

Question 9

Life Estate

Answer 9

• 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

Question 10

Duties of the Life Tenant

Answer 10

• 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

Question 11

Ameliorative Waste for Life Tenant Exceptions

Answer 11

• 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

Question 12

Contingent Remainder

Answer 12

• 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.

Question 13

Condition Precedent

Answer 13

• Look for the condition to appear before the language creating the remainder or for it be woven into the grant to the remainderman

Question 14

Vested Remainder

Answer 14

• A vested remainder is one created in an existing and ascertained person and not subject to a condition precedent.
• Fully transferable, descendible, and devisable

Question 15

Indefeasibly Vested Remainder

Answer 15

• A vested remainder not subject to divestment or diminution.
• Certain to acquire an estate in the future with no strings or conditions attached

Question 16

Vested Remainder Subject to Total Divestment

Answer 16

• 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

Question 17

Vested Remainder Subject to Open

Answer 17

• A vested remainder created in a class that is certain to become possessory but is subject to diminution.

Question 18

Shifting Executory Interest

Answer 18

• 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

Question 19

Springing Executory Interest

Answer 19

• A springing EI cuts short the interest of O, the grantor