Property

Question 1

How is a Life Tenant’s financial benefit from the land calculated?

Owner occupied and non

Answer 1

occupies the property – in which case the financial benefit is measured by the *fair market rental value *of the property (e.g., reasonable rental value) or

does not occupy the property – in which case the financial benefit is measured by the income derived from the land (e.g., third-party rental income, crops grown on the land)

Question 2

What are a Life Tenant’s duties?

Answer 2

Duty to pay current charges- Life tenant must pay all current charges due during life tenancy (eg, property taxes, mortgage interest) up to financial benefit received from property

Duty to prevent waste - Life tenant must prevent affirmative waste (ie, voluntary waste), permissive waste & ameliorative waste

Duty to make ordinary repairs- Life tenant must make reasonable repairs to preserve property

Question 3

Right of Survivorship

Answer 3

Allows one joint tenant to absorb the property interest of the other joint tenant upon death

Question 4

Can a joint tenancy be devised?

Answer 4

NO

see Right of Survivorship

Question 5

Can a joint tenancy be conveyed to another?

Answer 5

NO, but the property interest can be convey during life, but will be transformed into a tenancy in common

Question 6

Fee Simple Subject to Condition Subsequent

Answer 6

If stated condition occurs, title passes automatically to the future interest holder (the grantor)

“but if” “unless”

Question 7

Fee Simple Subject to Executory Interest

Answer 7

If stated condition occurs, title passes automatically to the future interest holder (third party)

“but if” “unless”