Present Interests

Question 1

Fee Simple Absolute

Answer 1

The entire estate.

O-> A and his heirs.

Question 2

Fee Simple Determinable

Answer 2

Example: O grants “To A and his heirs…” then lists one of the following durational language and a condition:

• So long as
• While
• During
• Until

Future Interest: Possibility of Reverter - Automatically goes back to grantor.

Question 3

Fee Simple Subject To Condition Subsequent

Answer 3

Example: O grants “To A and his heirs…” then lists one of the following durational language and a condition:

• provided that
• however if
• but if
• on condition that

Future Interest: Right of Entry - Grantor must take action to get back land (ejectement action, sheriff kicks out prior possessor).

Question 4

Fee Simple Subject to Executory Interest

Answer 4

Example: O grants “To A and his heirs…” then lists one either durational language or conditional language, but if condition is broken the estate goes to a third party.

Future Interest: Executory interest - subject to RAP.

Question 5

Fee Tail

Answer 5

Duration:

Future Interest in Grantor:

Future Interest in Third Party:

Example:

Question 6

Life Estate

Answer 6

Rule: Life estate tenant can doing anything they want with their esate BESIDES waste.

• Any encumbrances created by the life tenant will sieze to exist on the death of that life tenant.
• EXCEPTION: Taxes that are not paid will cut off the interest of ALL PARTIES.

Life Estate Pur Autre Vie: Life estate for the life of a third person.

Question 7

Restriction on Alienability

Answer 7

Restrictions on alienability are not allowed and are void by public policy.

Result: Cut off illegal part of the conveyance.

Question 8

Property Taxes

Answer 8

Rule: Whoever has present possessory interest of the property is responsible for the property taxes.

Question 9

Life Tenant Waste

Answer 9

1. Voluntary (Affirmative) Waste:

• Exploitation of natural resources is limited to situations where: (1) used to pay for repair and maintenance; (2) the land is suitable only for such use; (3) expressly or impliedly permitted by grantor.

**2. Permissive Waste: **Life tenant is obligated to (but these duties are limited to teh extents of income or profit from land):

• Preserve land and structures in a reasonable state of repair;
• Pay ordinary taxes on land;
• Pay interest on mortgages (not principle);
• Pay special assessments for public improvements of short duration.

3. Ameilorative Waste: Changes that benefit the property were not allowed at common law. Now, changes can be made if:

• Market value of property is not diminished; and either
• The remaindermen do not object; or
• There is a substantial and permanent change in the neighborhood condition (changed from resedential to 90% industrial) has deprived the property in its current form of reasonable productivity or usefulness.

Question 10

Open Mines Exception to Waste

Answer 10

Rule: A life tenant will not be engaged in committing waste if they are engaging in activities that are previously engaged in on the property.