Property Flashcards
Fee Simple Absolute
largest estate recognized by law. May be sold, divided, devised, or inherited and has an indefinite or potentially infinite duration.
Fee Tail
an estate where inheritability is limited to lineal heirs. Created by the words “to A and the heirs of his body.”
Most jurisdictions have abolished the fee tail and any attempt to create on results in a fee simple.
Defeasible Fees
fee simple estates that can be terminated upon the happening of a stated event.
Fee Simple Determinable
terminates upon the happening of a stated event and automatically reverts to the grantor. Created by durational language, “for so long as …while…during…or until.”
Fee simple subject to a condition subsequent
an estate in which the grantor reserves the right to terminate the estate upon the happening of a stated event. (estate does not automatically terminate) Created by, “upon condition that, provided that, but if, and it it happens that.”
Fee simple subject to executory limitation:
estate that terminates upon the happening of a stated event and then passes to a third party rather than reverting to the grantor or giving the grantor a right to terminate, the third party has an executory interest.
Life Estate
usual life estate is measured by the life of the grantee. “To B after the life of A”
Life Estate Pur Autre Vie
A life estate measured by a life other than the grantees
Two general rules for life estate:
(1) Life tenant is entitled to: all ordinary uses and profits from the land
(2) The life tenant must not do anything to hurt the future interest holder.
Voluntary or affirmative waste:
This is overt conduct that causes willful destruction and a drop in value.
Life tenant MUST NOT consume or exploit natural resources on the property (such as timber, oil, or minerals), unless
PURGE
PU: Prior Use: Prior to the grant, the land was used for exploitation.
R: Repairs: The life tenant may consume natural resources for repairs and maintenance.
G: Grant: The LT may exploit if granted that right
E: Exploitation: This land is suitable only to exploit.
Permissive waste
Neglect- must maintain the premises in reasonably good repair.
LT obligated to:
1. Preserve the land and structures in a reasonable state of repair;
2. pay interest on mortgages
3. Pay ordinary taxes on the land and
4. Pay special assessments for public improvements of short duration.
Ameliorative Waste
The LT must not engage in acts that will enhance the property’s value unless all future interest holders know and consent.
Ameliorative Waste Rules Common law/ Modern Law
Common Law: was actionable at common law
Modern Law: LT may alter or even demolish existing buildings if:
1. MV of the future interests is not diminished; and either
2. The remaindermen do not object; or
3. A substantial and permanent change in the neighborhood condition has deprived the property in its current form of reasonable productivity or usefulness.
What is the life estate’s accompanying future interest?
If held by O, the grantor, it is called a reversion. If held by a third party, it is called a remainder.
The possibility of reverter:
accompanies only the:
1. Fee Simple determinable
The right of entry accompanies only:
subject to the condition subsequent
The reversion
the future interest that arises in a grantor who transfers an estate of a lesser quantum duration than she started with, other than a fee simple determinable or a fee simple subject to condition subsequent.
What are the future interests capable of creation in the grantor:
- Possibility of Reverter
- The right of entry
- The reversion
Future interests in transferees
- Vested Remainder
- Contingent remainder
- Executory interest
What is a remainder?
a future interest created in a grantee that is capable of becoming possessory upon the expiration of a prior possessory estate created in the same conveyance in which the remainder is created.
Remainder man always accompanies a preceding estate of known fixed duration. That preceding estate is usually a life estate or a term of years.
A remainder is vested if:
it is both created in an ascertained person and is not subject to any condition precedent.
A remainder is contingent if:
it is created in an unascertained person or is subject to a condition precedent, or both
What is a Contingent Remainder subject to a condition precedent?
A condition is precedent if it must be satisfied before the remainderman has a right to possession.
When is a contingent remainder created in an unascertained person?
Remainder created in unborn or unascertained persons is contingent because until the remainderman is ascertained, no one is ready to take possession if the preceding estate ends.
The Rule of Destructibility at common Law:
At common law, a contingent remainder was destroyed if it was still contingent a the time the preceding estate ended.
The Rule of Destructibility at Modern Law:
The destructibility rule has been abolished.
Thus if B has not met the condition by the time of A’s death O or O’s heirs hold the estate subject to B’s springing executory interest.
Does MD follow the rule of destructibility?
No, it has been abolished. Follows the Modern Law.
The rule in Shelly’s Case at common law:
At common law, if the same instrument created a life estate in A and gave the remainder only to A’s heirs, the remainder was not recognized, and A took the life estate and the remainder.- The present and future interests merge giving A a fee simple.
The rule in Shelly’s Case at Modern Law:
Rule has been virtually abolished. Thus when O conveys “To A for life, then to A’s heirs” O has a life estate and A’s yet unknown heirs have a contingent remainder. O has a reversion, since A could die without heirs.
Doctrine of Worthier Title
Doctrine is viable in most states. Applies when O who is alive, tries to create a future interest in his heirs.
Ex: O who is alive, conveys, “To A for life, then to O’s heirs.”
o If Doctrine did not apply:
• A has a life estate
• O’s heirs have a contingent remainder because O is still alive and a living person has no heirs.
o If Doctrine does apply:
• The contingent remainder in O’s heirs is void
• A would have a life estate an O has a reversion.
What is an indefeasibly vested remainder?
The holder of this remainder is certain to acquire an estate in the future, with ____
What is a vested remainder subject to complete defeasance?(vested remainder subject to total divestment)
Vested remainder with strings attached…
His taking is not subject to any condition precedent however, his right to possession could be cut short because of condition subsequent.
What is a vested remainder subject to open?
A remainder is vested in a group of takers, at least one of whom is qualified to take.
**Each class member’s share is subject to partial diminution because additional members can join.
What are the two executory interests?
- Shifting executory interest: Always follows defeasible fee and cuts short someone other than grantor.
- Springing executory interest: Ex: O conveys “To A if and when he marries. A is unmarried
• A has a springing executory interest
• O has a fee simple subject to A’s springing executory interest.
