Present Possessory Estates Flashcards
What is a present Possessory interest?
An interest that gives the holder the right to present possession.
What are the types of PPI?
1) Fee simple absolute
2) Defeasible fee (3 types)
3) Life estate
What must you know in reference to PPI’s for the exam?
1) What language will create what estate?
2) What are the estate at issue’s distinguishing characteristics? Devisable/Descendible/alienable?
3) What future interests is the estate capable of?
What does devisable mean?
An estate can pass by will
What does Descendible mean?
Will an estate pass by intestacy?
What does alienable mean?
Is it transferable during a holder’s life time?
What is presume today absent express contrary intent?
A fee simple absolute
What is a Defeasible fees?
Fee simple estates that can be terminated upon the happening of a stated event.
What is the structure of a Defeasible fee?
1) To A
2) With a condition attached
3) Condition renders risk of estate forfeiture
How do statements of motive/purpose create a Defeasible fee?
They don’t.
What type of words create a fee simple determinable?
Words that limit the duration of the estate
Is a fee simple determinable devisable?
Yes, but it’s condition of forfeiture is still present
Devisable means transferable by will
Is a fee simple determinable Descendible?
Yes, but it’s condition of forfeiture is still present
Descendible means transferred through intestacy.
Is a fee simple determinable alienable?
Yes, but it’s condition of forfeiture is still present
If a grantor conveys a fee simple determinable, what characteristics does their possibility of reverter have?
The POR is transferrible, devisable by will, descendible by intestacy
What does a grantor reserve in a fee simple subject to condition subsequent?
The right to terminate the estate
2) upon happening of a stated event.
What is different about a grantor’s reversion in a fee simple subject to condition subsequent and a fee simple determinable?
In a fee simple subject to condition subsequent, the reversion interest called a right of entry – which by it name implies the grantor must actively excercise their reentry to take back the interest.
In a fee simple determinable, the grantor’s reversion interest is called a possibility of reverter. By it’s name, it indicates that the possibility exists the interest will automaitacally revert back to Grantor.
in a fee simple subject condition subsequent, what must the grantor do if a condition occurs that was explicit in the granting?
Nothing, they have a right of entry and may choose to reenter if they so wish.
What is true about a possibility of reverter compared to a right of entry?
1)A right of entry must be expressly reserved
2) doesn’t automatically arise.
3)Most states also hold
4)the right of entry is not alienable.
5) but is devisable and descendible.
What type of estate does policy generally disfavor?
Possibilty of reverter.
If a conveyance has both durational language and a power of termination, what will it create?
A fee simple subject to condition subsequent.
What is a fee simple subject to an executory interest?
A fee simple that is constrained by a condition, but reverts to a third party and not a grantor.
How does a third party get possession of an estate when a triggering condition occurs/is violated?
They automatically get the estate.
What do courts disfavor and how does it effect defeasible fees?
1)Courts disfavor restrictions on land use, 2)so creation of a defeasible fee
3) must use clear duration language.
What does the following example create:
“To A for the purpose of constructing a day care center”
fee simple absolute
What does the following example create:
To A with the hope of becoming a lawyer
Fee simple absolute
What does the following example create:
To A with the expectation that the premises will be used as a hardware store
Fee simple absolute
What are conditions/limitations in conveyances that are void?
Anything against public policy – if it’s to encourage divorce or penalize marriage, it will be void.
What are conditions that are not void against public policy in conveying land?
1) Giving support until marriage
2) or, in the event of divorce
What is a fee tail?
An estate where is inheritability is limited to lineal heirs.
What is true about fee tails?
Most jurisdictions have abolished them and it results in a fee simple.
How must a life estate be measured?
Explicit life time terms
What is a life estate pur ature vie?
A life estate that is measured by the life of another person other than the grantor.
How are life estate pur ature vies created?
They are created through the grantor’s language or if a life estate holder transfers their life estate to a third party
If the grantor holds a future interest after conveying a life estate, what is the future interest called?
A reversion.
If a future interest held by a third party after a grantor conveys a life estate, what is the future interest called?
A remainder.
What is a life tenant entitled to?
1) Ordinary uses of the property
2) Ordinary profits from the land
When can a future interest holder sue a life tenant?
Any time a LT does something to the life estate that injured a future interest holder.
What are the three types of waste?
1) Voluntary
2) Permissive
3) Ameliorative
What is voluntary or affirmative waste?
Waste that is:
1) Actual
2)Overt
3) Conduct
4) that causes a drop in value
If a life tenant depletes a life estates natural resources, what can that possibly constitute?
Voluntary waste.
When can a LT exploit natural resources of land?
1) Neccessary for REPAIR OR MAINTENANCE of land
2) Land is SUITABLE ONLY FOR SUCH USE
3) it was EXPRESSLY or IMPLIEDLY permitted by the granor
What is Permissive waste?
Waste that happens when life tenant fails to comply with their duties
What is the open mines doctrine?
If mining was done on land prior to life estate, life tenant can continue mining but are limited to mines already open.
What are examples of Permissive waste?
1) Allowing land to fall into disrepair
2) failing to reasonably protect land
What is permissive waste synonomys with?
Neglect.
What are duties of Life tenant?
1) preserve land/structures in reasonable state of repair
2) pay ordinary taxes
3) pay interest on mortgage
4) Pay special assessments for public improvements of short duration
If a land makes no income/profitWhat is considered the basis of ordinary taxes that life estate tenants must pay?
fair rental value
If a land generates income/profits, what portion must life tenant pay in taxes?
The total income/profits since LT aquired ownership.
If life tenant is in possession of land themselves, and it generates income, what ordinary taxes must they pay?
Which ever is greater between the fair rental value or the income/profits since LT has taken over land.
If a land has a mortgage, what must a life tenant pay of the mortgage?
They must pay interest on the mortgage, but not principle.
If a special assement for public improvement is for a long duration, what must a life tenant pay?
Cost will be apportioned between LT and future interest holder.
How sufficiently must a life tenant insure their life estate property?
They are not obligated to insure it at all
What responsibility do life tenants have for 3p torts?
NO responsibility.
What is Ameliorative waste?
It is a
1) CHANGE to the property
2) that BENEFITS the property
When can a life tenant engage in acts that will enhance the property’s value?
They can’t unless all future interest holders are
1) aware
2) give consent
In modern times, when can a life tenant alter or demolish existing building on a property?
1) THe market value of future interests is not diminished
AND EITHER
2) remaindermen do not object
OR
3) A substantial or permanent change in the neighborhood conditions (90%) kill property in its current form of reasonable productivity/usefulness
When can leasehold tenants be liable for ameliorative waste?
They can be liable even if:
1) neighborhood changed
2) market value increased as a result of amerliorative waste
If a land is practically worthless in present state, what can life tenants do?
Seek partion of sale
Put proceeds in trust for future holders with interest paid to life tenant
How does a life estate give up their interest?
They renounce it and the future interest becomes immediate possessory.
