Property Flashcards
O to A
Fee Simple Absolute
O to A for so long as . . .
Fee Simple Determinable
A to B, provided that in the event that . . . ., then A has the power to terminate B’s estate
Fee Simple Subject to a Condition Subsequent
A to B, so long as B . . . , and if he does not, then to C.
Fee Simple Subject to Executory Interest
A to B and the heirs of his body
Fee Tail
A to B for life
Life Estate
Freehold Estates vs. Non-Freehold Estate
Freehold estate last indefinitely - can exist forever or for a lifetime.
Non-freehold estate is limited in duration (i.e., 50 years)
Types of Defeasible Estates
Fee Simple Determinable
Fee Simple Subject to a Condition Subsequent (FSSCS)
Fee Simple Subject to Executory Interest
Fee Simple Absolute
O to A.
Lasts forever. Holder has all possible rights that a person can have (i.e., unimpeded right to sell or convey all/part of the land, etc.)
Transferability: All 3
If the owner dies without a will or heirs, the property escheats (returns) to the state.
Durational Language
(1) For so long as
(2) During
(3) Until
(4) While
Fee Simple Determinable
Durational language.
Terminates automatically when the named future event occurs.
Upon termination, estate returns to the grantor.
Fee Simple Subject to a Condition Subsequent
Conditional language.
Does not terminate automatically when the named future event occurs.
Grantor’s power of termination must be explicitly stated, otherwise this is treated as fee simple absolute. And grantor’s only remedy is to sue for a broken covenant (formal promise).
Fee Simple Subject to Executory Interest
Durational or Conditional language. Involves a third party’s interest.
A terminating event happens and then property passes onto the third party.
Fee Tail
Estate that descends to the grantee’s children only. Treated as fee simple absolutes.
Life Estate
Lasts for the duration of the grantee’s life
Life Estate Pur Autre Vie
If the duration of the estate is measured by the life of someone other than the grantee (i.e. 2+ people, etc.)
If life estate and conveyance has more than one measuring life, the coveyance lasts as long until . . .
the death of the survivor (longer-living person)
Possibility of Reverter
Future interest in the grantor that follows a fee simple determinable estate or life determinable estate
Not subject to RAP
C/L: Can transfer through intestacy only
Modern Law: Can transfer through all 3
Power of Termination
Future interest for the grantor when grantor creates a defeasible estate or fee simple subject to a condition subsequent estate.
Must be spelled out in the conveyance.
Once the named event occurs, property doesn’t automatically revert. The grantor must exercise the right of reentry and take affirmative steps to retake the property.
Not subject to RAP
C/L: Can transfer through intestacy only
Modern Law: Cannot transfer through inter vivos (gift)
Which is more preferred - fee simple subject to condition subsequent OR fee simple determinable?
FSSCS because we want to avoid any automatic forfeitures
Reversionary Interest
Future interest retained by the grantor when grantor transfers less than a fee interest to a third party. (i.e., after life estate or term estate)
C/L: Can transfer through intestacy only
Modern Law: All 3
Not subject to RAP
Remainder vs. Executory Interest
Remainder is a future interest that is intended to take effect after the natural termination of the preceding estate
Executory interest cuts short preceding estate before it would have naturally terminated
Contingent Remainder
Remainder hasn’t vested - we don’t know who it is
Vested Remainder
A remainder has vested if it
(1) is created in an ascertainable person; and
(2) Not subject to any condition precedent, other than termination of the preceding estate
Vested Remainder Subject to Total Divestment
Vested remainder but could be terminated on the happening of a future event
Vested Remainder Subject to Open
Remainder that has been made to a class and has (1) at least one member who is ascertainable and who has satisfied any of the conditions precedent to vesting
But other members can join the class
Class opening in an inter vivos conveyance
Class opens at the time of conveyance.
Class opening in a testamentary conveyance
Class opens upon the death of the testator
Rule of Convenience
To avoid the problem in which if any member of a class could claim in a way that violates RAP, and the entire gift failing –> Courts will interpret such that the class closes as soon as one member of the class becomes entitled to immediate possession of the property.
Shifting Executory Interest
Shifts interest from grantee to another grantee
Springing Executory Interest
Shifts interest from grantor to a grantee
