Present Estates and Future Interests Flashcards
Present possessory estates
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
Fee simple absolute
Creation = “to A” or “to A and his heirs”
Duration = forever
Future interest in grantor = none
Future interest in third party = none
Fee simple determinable
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
Fee simple subject to condition subsequent
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
Fee simple subject to an executory interest
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
Fee Tail
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)
Life estate (1)
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)
Life estate (2)
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
Life estate (3)
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
Defeasible fees
Fee simples with a condition attached
Absolute restraints on alienation are
void
Life tenants rights and duties
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
Life tenant’s duty not to commit waste and exploitation of natural resources
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
Future interests in transferor (reversionary)
1) possibility of reverter
2) right of entry
3) reversion
Possibility of reverter
Accompanies Fee simple determinable
Right of entry
accompanies fee simple subject to condition subsequent
Reversion
accompanies estates other than FSD or FSSCS
Future interests in transferees
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
Remainders
Future interest in third person that becomes possessory on the natural expiration of the preceding estate
- vested or contingent
Contingent remainder
1) created in unborn or unascertained persons OR
2) subject to condition precedent OR
3) both
Vested remainders
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
Indefeasibly 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
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
Vested remainder subject to open
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