Present/Future Possessory Interests

Question 1

Defeasible Fees

Answer 1

Defeasible fees: estates of potentially infinite duration that can be terminated upon occurrence of a specific event

Question 2

Fee Simple Subject to Condition Subsequent

Answer 2

Fee Simple Subject to Condition Subsequent: created when grantor keeps power to terminate grantee’s estate if a specified event happens
* Once event happens, grantee’s estate continues UNTIL grantor brings suit (exercises power of termination)

Right of Entry/Power of Termination: Grantor’’s future interest
* Can always waive right by express agreement/conduct
* Inaction not sufficient to waive right
* Laches: courts hold that if grantor doesn’t exercise right within reasonable time after event occurs, then his action is barred by laches

“Reasonable time” for laches usually based on SOL for possession of real property

Question 3

Restraint on Alienation

Answer 3

Restriction on ability to transfer property interest is VOID if it violates Rule Against Restraints on Alienation
* Rationale: prevent property from being taken out of commerce

Three Types of Restraints:
* Disabling restraints: makes any attempted transfer ineffective
* Forfeiture restraints: any attempted transfer results in forfeiture of interest
* Promissory restraints: attempted transfer breaches covenant

Any total restraint on FEE SIMPLE is VOID.
* Forfeiture/promissory restraint for limited time with reasonable purpose allowed

Question 4

Life Tenant

Answer 4

Life tenant owes duty to future interestholder to:
(i) not commit waste
(ii) not exploit natural resources on property