Present Estates and Future Interests

Question 1

Present possessory estates

Answer 1

1) fee simple absolute
2) defeasible fee
- fee simple determinable
- fee simple subject to condition subsequent
- fee simple subject to an executory interest
3) life estate

Question 2

Fee simple absolute

Answer 2

Creation = “to A” or “to A and his heirs”

Duration = forever

Future interest in grantor = none

Future interest in third party = none

Question 3

Fee simple determinable

Answer 3

Creation = “To A and his heirs for so long as…”
- until”
- while”
- during”

Duration = as long as condition is met, then automatically to grantor

Future interest in grantor = possibility of reverter

Future interest in third party = executory interest

Question 4

Fee simple subject to condition subsequent

Answer 4

Creation = “To A and his heirs, but if…”
- upon condition that”
- provided that”

Duration = until happening of named event AND reentry by grantor

Future interest in grantor = right of entry

Future interest in third party = executory interest

Question 5

Fee simple subject to an executory interest

Answer 5

Creation = FSD or FSSCS …“then to B”

Duration = as long as condition is met then to third party OR until happening of event

Future interest in grantor = Possibility of revert or right of entry

Future interest in third party = executory interest

Question 6

Fee Tail

Answer 6

Creation = “To A and the heirs of his body”

Duration = until A and his line die out

Future interest in grantor = reversion

Future interest in third party = none (but remainder is possible)

Question 7

Life estate (1)

Answer 7

Creation = “To A for life” or “To A for the life of B”

Duration = until the end of measuring life

Future interest in grantor = reversion

Future interest in third party = (none)

Question 8

Life estate (2)

Answer 8

Creation = “To A for life, then to B”

Duration = until end of measuring life

Future interest in grantor = none

Future interest in third party = remainder

Question 9

Life estate (3)

Answer 9

Creation = “To A for life, but if…, to B”

Duration = until the end of the measuring life OR the happening of named event

Future interest in grantor = reversion

Future interest in third party = executory interest

Question 10

Defeasible fees

Answer 10

Fee simples with a condition attached

Question 11

Absolute restraints on alienation are

Answer 11

void

Question 12

Life tenants rights and duties

Answer 12

1) all ordinary uses and profits from land
2) duty not to commit waste
3) duty to keep in reasonable state of repair
4) ordinary taxes
5) interest on mortgages
6) pay special assessments

Question 13

Life tenant’s duty not to commit waste and exploitation of natural resources

Answer 13

Exploitation of natural resources limited to situations when:
1) necessary for repair or maintenance of land
2) land is suitable only for such use OR
3) expressly or impliedly permitted by grantor

Question 14

Future interests in transferor (reversionary)

Answer 14

1) possibility of reverter
2) right of entry
3) reversion

Question 15

Possibility of reverter

Answer 15

Accompanies Fee simple determinable

Question 16

Right of entry

Answer 16

accompanies fee simple subject to condition subsequent

Question 17

Reversion

Answer 17

accompanies estates other than FSD or FSSCS

Question 18

Future interests in transferees

Answer 18

1) contingent remainder
2) vested remainder
- indefeasibly vested remainder
- vested remainder subject to complete defeasance/total divestment
- vested remainder subject to open
3) executory interest
- shifting
- springing

Question 19

Remainders

Answer 19

Future interest in third person that becomes possessory on the natural expiration of the preceding estate
- vested or contingent

Question 20

Contingent remainder

Answer 20

1) created in unborn or unascertained persons OR
2) subject to condition precedent OR
3) both

Question 21

Vested remainders

Answer 21

1) created in existing and ascertained person
2) not subject to condition precedent

Three types:
- indefeasibly vested
- vested subject to total divestment
- vested subject to open

Question 22

Indefeasibly vested remainder

Answer 22

Not subject to divestment or diminution
- certain to acquire an estate in the future, with no strings or conditions attached

Question 23

Vested remainder subject to total divestment

Answer 23

Subject to condition subsequent
- AKA subject to complete defeasance
- created in known taker
- right to possession could be cut short because of a condition subsequent

Question 24

Vested remainder subject to open

Answer 24

Created in a class of persons that is certain to become possessory, but is subject to diminution
- not subject to any condition
- each group member’s share could get smaller because additional takers, not yet ascertained, may still join the class

Question 25

Class gifts

Answer 25

Share of each member is determined by number of persons in class
- vested subject to open = at least one group member exists, but more may be added
- contingent = all group members are unascertained

Question 26

Rule of convenience

Answer 26

Determines when a class closes

In the absence of express contract intent, class closes when some member of the class can call for distribution of their share (demand possession)
- exception = womb rule

Question 27

Future interests in transferees

Answer 27

Executory interests = future interests in third parties that either:
1) divest a transferee’s preceding freehold estate = shifting interests or
2) follow a gap in possession or cut short a grantor’s estate = springing interests

Question 28

Shifting executory interest

Answer 28

Always follows a defeasible fee and cuts short someone other than the grantor

Question 29

Springing executory interest

Answer 29

Cuts short the interest of O, the grantor

Question 30

Rule against perpetuities

Answer 30

Certain future interests are void if there’s any possibility that they might vest more than 21 years after a person alive at the time the grant has died

Question 31

4-step for RAP problems

Answer 31

1) determine the future interest
- ONLY applies to contingent remainders, executory interests, and some vested remainders subject to open

2) what has to happen for future interest holder to take?

3) find relevant measuring life

4) when will we KNOW if future interest holder can take?
- Will it be within 21 years of death of measuring life?