Present/Future Interests

Question 1

Fee Simple Absolute

Answer 1

Potentially infinite duration

Transferable/Devisable/Descendible

Question 2

Fee Simple Determinable - FSDPOR

Answer 2

Terminates: upon happening of stated event
Associated interest [included without express words]: possibility of reverter (automatic reversion to O)
Words of creation: for so long as, while, during, until
Transferable/Devisable/Descendible

Question 3

Fee Simple Subject to Condition Subsequent - FSCCS - ROE

Answer 3

O reserves right to terminate the estate upon happening of a stated event
Words of creation: upon condition that, provided that, but if, if it happens that AND explicit statement of O’s right of entry
O DOES NOT HAVE TO EXERCISE ROE BUT HAS THE OPTION.
NOT Transferable; BUT Devisable/Descendible

Question 4

EXAM! if elements of both durational language AND power of termination, court will likely construe as FSSCS - preference for non-automatic estate forfeitures.

Question 5

Fee Simple Subject to Executory Interest

Answer 5

If FS estate terminates upon happening of stated interest –> passes to a third party rather than going back to O, TP has executory interest.

Upon stated condition, estate will automatically jump to the TP.

Question 6

Life Estate

Answer 6

LE is measured by the life/lives of one or more persons.

Life tenant is entitled to all ordinary uses/profits from land. LT must not commit waste. Life tenant is obligated to preserve the land and structures in a reasonable state of repair; pay ordinary taxes on the land; pay interest on mortgages; pay special assessments of short duration.

Question 7

Life Estate Pur Autre Vie

Answer 7

LE measured by the life of someone other than grantee.

Question 8

Reversions –> estate left in O who conveys less than they own
(always vested/not subject to RAP)

Question 9

Remainder - future interest in a TP (not O)

Must be expressly created in the instrument preceding the possessory estate. Remainders are either vested or contingent

Question 10

Contingent Remainders

Answer 10

If:

(1) it’s created in unborn or unascertained persons; or
(2) it’s subject to a condition precedent, or BOTH.

Question 11

Vested remainders:

Answer 11

Existing and ascertained person; AND

Not subject to a condition precedent

Question 12

Indefeasibly vested remainder

BEST FUTURE INTEREST - CERTAIN!

Answer 12

Vested remainder not subject to divestment

Holder = CERTAIN to acquire an estate in the future.

Question 13

Vested Remainder Subject to Total Divestment

Answer 13

Vested remainder subject to a condition subsequent.

Condition COULD cut off possessor’s interest.

Question 14

Vested Remainder Subject to Open

Answer 14

Created in class of persons certain to become possessory but subject to diminution (each group member’s share could get smaller)

(i.e. to A for life then to B’s children)

Question 15

Executory Interests

Answer 15

Future interests in TPs that either divest a transferee’s preceding estate (shifting) or follow a gap/cut short O’s estate (springing)

Question 16

Shifting Executory Interest

Answer 16

Always follows a defeasible fee and cuts short someone other than O.

“To A, but if B returns from CAN, to B and his heirs”
B- shifting exec int.
A -FS subject to B’s shifting exec int.

Question 17

Springing Exec Int

Answer 17

Cuts short the interest of O

“To A, if and when she becomes a lawyer.”
A - springing exec int.
O - FS subject to A’s exec int.

Question 18

RAP Steps

Answer 18

1) Determine the interests
NOTE: RAP doesn’t apply to POR, ROE, and Reversion, Indefeasibly Vested Remainders, or Vested Remainders subject to total divestment.

2) How does the future interest holder take?
3) find the measuring life
4) When will we know if future interest holder can take?