Present Possessory Estates Flashcards
Defeasible Fees
Fee simple estates that can be ended upon the happening of a stated event.
Fee Simple Determinable (and Possibility of Reverter)
A fee simple determinable terminates upon the happening of a stated event and automatically reverts to the grantor.
How is a fee simple determinable created?
By durational language, such as “to A for so long as…” “to A while…,” to A during…,” or “to A until…”
Accompanying Future Interest in Grantor - Possibility of Reverter (FS Determinable)
whenever a grantor conveys a fee simple determinable, they automatically keep a possibility of reverter.
Frank Sinatra Didn’t Prefer Orville Redenbacher
Fee Simple Determinable Possibility Of Reverter
Fee Simple Subject to Condition Subsequent (and Right of Entry)
Fee Simple subject to a condition subsequent is an estate in which the grantor reserves the right to terminate the estate upon the happening of a stated event, meaning the estate doesn’t automatically terminate - the grantor must rake some action.
Fee Simple Subject to an Executory Interest
When fee simple terminates upon a stated event and then goes to a third party rather than reverting back to the grantor or giving the grantor a right to terminate, the third party has an executory interest.
Life Estate
A life estate is measured by the life or lives of one or more persons.
“Romantic”
Three types of waste:
Permissive
Ameliorative
Voluntary
Affirmative (Voluntary) waste
Voluntary, or affirmative, waste is actual, overt conduct that causes a drop in value.
Permissive Waste (Neglect)
Permissive waste occurs when a life tenant fails to comply with their duties, such as by allowing land to fall into disrepair or by failing to reasonably protect the land. Synonymous with neglect.
A 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 AND
- pay special assessments for public improvements of short duration
Ameliorative Waste
Is a change that benefits the property economically. The life tenant cannot engage in acts that will enhance the property’s value unless all future interest holders are known and consent.
notwithstanding the common law’s recognition of ameliorative waste, note that today a life tenant may alter or even demolish existing buildings if:
(1) the market value of the future interests is not diminished; and either
(2) the remainderman do not object; OR
(3) a substantial and permanent change in the neighborhood conditions has deprived the property in its current form of reasonable productivity or usefulness.
Renunciation of Life Estate
If a life tenant who receives the estate by will or intestacy renounces their interest, the future interest following the life estate is generally accelerated so that it becomes immediately possessory.
