Present Possessory Estates

Question 0

Defeasible Estates - List

Answer 0

Determinable
FSSubject to a Condition Subsequent
FSSubject to an Executory Interest

Question 1

Fee Simple Absolute

Answer 1

possess all possible rights in land including

“To A and his heirs” or “To A”

Question 2

Fee Simple Determinable

Answer 2

terminates automatically on the happening of a named future event.
Estate is created with a limitation BUILT IN.
Durational language used.
to A so long as the premises are used for educational purposes.

Determinable Estate is followed by a Possibility of Reverter.

Question 3

Fee Simple Subject to a Condition Subsequent

Answer 3

estate MAY be retaken by grantor on the happening of a future event.
Uses Conditional Language - but if, provided that, conditioned on
Does not automatically terminate the estate.
Created in TWO clauses with a condition stated in the second clause.

To A and his heirs, but if the premises are not used for educational purposes, then O has the right to reenter the premises and terminate A’s estate.

This is default if ambiguous language

Question 4

Fee Simple subject to an Executory Interest

Answer 4

estate AUTOMATICALLY divested in favor of a 3rd party on the happening of an event.

Either durational or conditional language may be used.
Subject to RAP

Question 5

Fee Tail

Answer 5

Created estate that descended to lineal descendants only
To A and the heirs of his body

most states today creates a Fee Simple Absolute

Question 6

Present Possessory Estates - List

Answer 6

Fee Simple - Absolute; Defeasible; Tail
Life Estate
Term Estate

Question 7

Defeasible Estates - List

Answer 7

Fee Simple Determinable
Fee Simple Subject to a Condition Subsequent
Fee Simple Subject to an Executory Interest

Question 8

Defeasible Estates Where Grantor Retains Interest

Answer 8

Fee Simple Determinable

Fee Simple Subject to a Condition Subsequent

Question 9

Determinable Fee where future interest is held by a 3rd party

Answer 9

Fee Simple subject to an executory interest

Question 10

Fee Simple Determinable Creation

Answer 10

durational language describing how long estate will last

Question 11

Fee Simple Subject to a Condition Subsequent Creation

Answer 11

using conditional language.

Question 12

Fee Simple Subject to an Executory Interest - Creation

Answer 12

Can use conditional or durational language. On the happening of an event the prior estate will terminate and the property will pass to a 3rd party

Question 13

Life Estate Measured by the life someone other than the grantee is called

Answer 13

Life Estate Per Autre Vie

Question 14

Future Interests in the Grantor - List

Answer 14

Possibility of Reverter
Right of Entry/Power of Termination
Reversion

Question 15

Future interests of a 3rd party

Answer 15

Executory Interest

Remainder

Question 16

How is the Possibility of Reverter Created

Answer 16

grantor creates a fee simple determinable.

automatic when durational language is used.

reverts automatically to grantor on the happening of event

Question 17

Transferability of a Possibility of Reverter

Common Law and Modern Trend

Answer 17

Common Law - not freely transferrable only by will or intestacy

Modern trend - freely transferrable

Question 18

Creation of a Right of Reentry

aka Power of Termination

Answer 18

CAN be created in the grantor with a FSSCS.

Not automatic, unlike FSD

Must be spelled out in the conveyance.
Failure to spell it out will result in the creation of a FSA.
Conditional language will be viewed as a contractual promise and heirs can sue on the contract.

needs to be an affirmative action taken to retake the property. Termination of the estate is not automatic.

Question 19

Transferability of Right of Reentry

Answer 19

Common Law - only by will or intestacy

Modern Law - Freely transferrable in the majority of jurisdictions

Question 20

Creation of a Reversion

Answer 20

Reversion created in grantor when he fails to give away entire estate.
A to B for Life, creates a life estate in B.
A retains a reversion.

Question 21

Executory Interst

Answer 21

Future interest created in favor if a 3rd party
cuts short the prior estate before it terminates naturally

Every future interest in a 3rd following a fee is an EI
If following less than a fee, it must cut short prior estate

Question 22

Remainder - Defined

Answer 22

Future Interest that follows naturally from termination of prior estate

Question 23

Types of Remainders

Answer 23

Contingent

Vested

Question 24

Special Types of Vested Remainders

Answer 24

Vested remainder subject to a condition subsequent A to B for Life, remainder to C so long as liquor is never served on the premises. ``` Vested Remainder Subject to Open (class gift) A to B for Life, then to the Children of C ```

Question 25

When the Class is Open based on | type of Conveyance

Answer 25

Class opens in an inter-vivos conveyance immediately the moment the conveyance is made. Testamentary Conveyance - upon the death of the testator

Question 26

Which Vested Interest is Subject to the Rule Against Perpetuities

Answer 26

Vested Remainder subject to Open. Violates the Rule if Any member of a class could potentially claim in a way that violates the Rule against Perpetuities

Question 27

Rule of Convenience

Answer 27

closes as soon as at least one member of class is entitled to immediate possession. Any class member alive and needs to fulfill the condition precedent to take, will be given an opportunity to do so.

Question 28

Doctrine of Worthier Title

Answer 28

It is worthier to take by descent than devise. A to B for life, remainder to A's heirs. remainder to A's heirs is ignored A's heirs take by will or intestacy same result.

Question 29

Waste

Answer 29

holder of less than a fee must avoid affecting a future interest

Question 30

Voluntary Waste

Answer 30

life tenant cannot intentionally or negligently damage the property

Question 31

Permissive Waste

Answer 31

life tenant must take reasonable steps to prevent damage to property. Including mortgage interest payments, taxes, or tenants share of special assessments

Question 32

Ameliorative Waste

Answer 32

life tenant increases value of property by permanently altering it.

Question 33

Ameliorative Waste at Common Law

Answer 33

Prohibited | Tenant liable for cost of returning property to original condition

Question 34

Ameliorative Waste - Modern Law

Answer 34

Tenant allowed to commit ameliorative waste if: 1. Market Value of Property is Improved AND 2. permission of the remaindermen OR 2a. a change to the property or neighborhood justifying improvment Majority Rule

Question 35

standing to Sue for Waste?

Answer 35

holder of remainder has standing to sue for waste. Vested Remaindeman - sue for damages, injunctive relief, or both. Contingent Remainderman - injunctive relief only

Question 36

Total Restraint on Alienation on a Fee and on Less than a Fee

Answer 36

Total restraint on alienation of a fee is invalid. Restraints less than a fee is allowed if reasonable.

Question 37

Partial Restraint on a Fee - Types

Answer 37

1. Purchase Option - A to B, but A reserves right to buy back property at any time during A's life. 2. Right of First Refusal - A to B, but if B attempts to sell during A's life, B must first offer property to A FIRST at same price. Both valid if reasonable.

Question 38

Rule Against Perpetuities - Defined

Answer 38

An interest must vest, or fail, no later than 21 years after a life in being at the creation of the interest.

Question 39

Rule Against Perpetuities Does NOT Apply

Answer 39

Present estates

Question 40

5 interests Subject to the Rule Against Perpetuities

Answer 40

Executory Interests Contingent Remainders Vested Remainder subject to open Purchase Option Right of First Refusal

Question 41

Steps for analyzing a RAP problem

Answer 41

1. Identify type of interest making sure rule applies. 2. can someone claim the interest 21 years after anyone currently alive is dead? 2a. If yes - interest is invalid. Strike it and analyze what remains. 2b. If no - the interest is valid.

Question 42

Concurrent Estates - List

Answer 42

Tenancy in Common Joint Tenancy Tenancy by the Entirety

Question 43

Joint Tenancy

Answer 43

Tenants hold undivided interest in property with right of survivorship.

Question 44

Tenancy in Common

Answer 44

undivided interest in property with | no right of survivorship.

Question 45

Right of Survivorship at Common Law

Answer 45

Property transferred to more than one person was presumed to be a Joint Tenancy unless stated otherwise.

Question 46

Right of Survivorship under modern law

Answer 46

Transfers to multiple parties creates tenancy in common unless specifically stated otherwise Must specifically state RoS will apply

Question 47

How to state right of survivorship applies

Answer 47

Need to specifically state that right exists. To A+B as JT's To A+B as JT's and not TiC To A+B with right of survovorship

Question 48

Joint Tenancy - 4 Unities

Answer 48

Time Title Interest Possession

Question 49

Unity of Time

Answer 49

Each JT's interest vested at the same time

Question 50

Unity of Title

Answer 50

Each JT's interest created with same instrument

Question 51

Unity of Interest

Answer 51

Each JT has equal ownership interest in the property

Question 52

Unity of Possession

Answer 52

Each JT has equal right to possession of the whole

Question 53

Modern Rule regarding the Unities

Answer 53

Unity of Time and Title are not required. | Only Interest and Possession.

Question 54

Unity Required for Tenants in Common

Answer 54

Possession

Question 55

Main differences between JT and TiC

Answer 55

TIC - no right of survivorship and unity of interest is not required - may hold differing ownership interests with a TiC

Question 56

Severing a JT

Answer 56

Inter vivos act of one of the JT's: partition action, Contract of Sale (Majority - doctrine of equitable conversion) Mortgaging the interest (Minority View - title theory)

Question 57

Mortgages - Lein Theory Jurisdiction - Majority View

Answer 57

A mortgage is a lien on property | will not sever a Joint Tenancy.

Question 58

Mortgages - Title Theory Jurisdiction

Answer 58

Mortgage viewed as title | will sever a joint tenancy into a Tenancy in Common

Question 59

Possessory Rights of Co-Tenants

Answer 59

Each is entitled to possession - may sue for damages from loss of possession or ejectment. Wrongful dispossession of a co-tenant is called ouster

Question 60

Profits produced by co-tenants and 3rd parties

Answer 60

profits are property of the producing tenant unless there has been an ouster of a co-tenant. Rents are the property of all co-tenants to their proportionate share

Question 61

Expenses of Co-Tenants - Taxes/Mortgages

Answer 61

Each responsible for proportionate share of taxes and mortgages. occupant has primary responsibility for payment and may seek contribution from other co-tenants

Question 62

Expenses - Co-Tenants - Repairs

Answer 62

No duty to repair imposed on JT's. one JT undertakes to repair - no obligation to contribute EXCEPT property is rented - expenses may be offset from rents recieved.

Question 63

Expenses - Co-Tenants - Improvments

Answer 63

No duty to make Improvements no duty to contribute to improvements made. subsequent sale- if value increased because of Improvements, JT who improved prop. is entitled to the profits from improvement

Question 64

Necessary for a Vested Remainder (2)

Answer 64

Created in an ascertainable person Not subject to condition precedent follows naturally from prior estate.

Question 65

When does the class close?

Answer 65

If one member of class could claim in violation of RAP, entire gift is void. Rule of Convenience developed to avoid harsh result. Class will close as soon as one member is eligible to take immediate possession.