Present Estates and Future Interests

Question 1

What are the four unities required to create a joint tenancy?

Answer 1

Time, title, identical equal interests, and equal rights to possess the whole

Question 2

When may a life tenant exploit an estate’s natural resources?

Answer 2

When it is necessary for repair or maintenance, when the land is only suitable for such use, or when the grantor explicitly or impliedly authorizes such use (e.g. pre-existing use/Open Mines doctrine)

Question 3

When may a life tenant alter or demolish improvements?

Answer 3

When the alteration would not diminish the value of estate and the remaindermen do not object OR changed conditions make alteration reasonably necessary (e.g. changed neighborhood conditions deprive property of reasonable productivity/usefulness)

Question 4

What language creates a fee simple determinable, followed by a possibility of reverter?

Answer 4

Durational language

Question 5

What language creates a fee simple subject to condition subsequent, followed by a right of reentry?

Answer 5

Conditional language

Question 6

Under what circumstances can a tenancy by the entirety be terminated?

Answer 6

Death, divorce, mutual agreement, or foreclosure by a joint creditor

Question 7

What taxes is a life tenant obligated to pay on land?

Answer 7

The total income/profits generated by the land, OR if life tenant is in possession the greater of profits or the fair rental value

Question 8

What is the rule against perpetuities?

Answer 8

Future interests are void if they are not certain to vest within 21 years of the death of a person who’s life is relevant to the grant and who is alive at the time of the grant.

Question 9

When may a tenant in common share profits of the land with their other co-tenants?

Answer 9

When the profits are rent from third parties, or from exploitation of the land that reduces its value