Present Interests and Estates

Question 1

What are the three categories of present possessory estates:

Answer 1

FSA; Defeasible Fee; Life estate

Question 2

What is Fee Simple Absolute?

Answer 2

• Creates indefinite ownership
• words of creation: To A; To A and his heirs
• no accompanying future interest

Question 3

What are the three defeasible fees?

Answer 3

Fee Simple Determinable; Fee Simple Subject to Condition Subsequent; Fee Simple Subject to Executory interest

Question 4

What is a defeasible fee?

Answer 4

An estate the is subject to forfeiture upon a condition occuring

Question 5

Fee Simple Determinable:

Answer 5

• Words of creation: To A as long as…

- Future interest is possibility of reverter to the grantor, which happens automatically

Question 6

Fee Simple Subject to Condition Subsequent:

Answer 6

• Words of Creation: “To A, but if X happens then O reserves the right to re enter”
• Future interests: grantor has right of re-entry, but must expressly reserve this right (re-entry not automatic)

Question 7

Fee Simple Subject to an Executory Interest:

Answer 7

• Fee Simple Absolute, followed by a future interest to a third party (not the grantor)
• Words of creation: “To A, but if X happens, then to B”
• Future interest: shifting executory interest

Question 8

What is a life estate?

Answer 8

Present interest measured by the life of a person (ex: To A for life); can also be our autre vie, which is measured by the life of a person other than the grantee (ex: to A for B’s life)

Question 9

What is the accompanying future interest of a life estate?

Answer 9

• If held by the grantor= reversion

- if held by a third party = remainder

Question 10

What are the three classifications of future interests held by people other than the grantor?

Answer 10

(1) Executory interests; (2) contingent remainders; (3) vested remainders

Question 11

What is a contingent remainder

Answer 11

(1) created in unascertainable person; or (2) subject to condition precedent; or (3) both
- “to A for life, then to B’s first child”; to A for life, then if B graduates highschool, to B”

Question 12

What is a Vested Remainder?

Answer 12

(1) ascertainable person; (2) not subject to condition precedent
- Indefeasibly vested remainder
- Vested remainder subject to total divestment
- Vested remainder subject to open

Question 13

Indefeasibly Vested Remainder

Answer 13

Not subject to any conditions (to A for life, remainder to B)

Question 14

VR Subject to Total Divestment:

Answer 14

• Remainderman is subject to a condition subsequent
• if the condition subsequent occurs, remainders possession may be cut short
• “To A for the life, then B, but if B marries, then to C and his heirs”

Question 15

Vested Remainder Subject to Open:

Answer 15

• Created in a class of persons + at least one group member exists
• subject to diminution (i.e. the more people who join class, the smaller shares of the class get)
• “To A for life, then to B’s children”

Question 16

When does a class close?

Answer 16

when some member of the class can call for distribution of their share

Question 17

Executory interests

Answer 17

• Shifting: always follows defeasible fee and cuts short a third party’s interest
• Springing: Cuts short the grantor’s interest

Question 18

Example of a shifting executory interest

Answer 18

To A, but if B returns from Canada, to B and his Heirs

Question 19

Example of a springing executory interest

Answer 19

To A, if she becomes a lawyer

Question 20

What is the affect of a RAP violation?

Answer 20

Only the conveyance that violates RAP is stricken

Question 21

A life tenant’s duty not to conduct permissive waste includes:

Answer 21

keeping the property in repair, pay real estate taxes, and pay interest on mortgage on the property