Property Flashcards
Fee simple absolute: Language toFee simple absolute:F create
“to A and his heirs”; “to A”
Fee simple absolute: Duration
Absolute ownership of potentially infinite duration
Fee simple absolute: transferability
Devisable, descendible, alienable
Fee simple absolute: future interest
None
Fee Tail: Language to create
“To A and the heirs of his body”
Fee Tail: Duration
Lasts only as long as there are lineal blood descendants of grantee
Fee Tail: transferability
Passes automatically to grantee’s lineal descendants
Fee Tail: Future interest
Reversion (if held by grantor); Remainder (if held by third party)
Fee simple determinable: language to create
“To A so long as…”; “to A until…’; “to A while…”
Fee simple determinable: Duration
Potentially infinite, so long as event does not occur
Fee simple determinable: Transferability
Alienable, devisable, descendible, subject to condition
Fee simple determinable: Future interest
Possibility of reverter (held by grantor); if state condition is violated forfeiture is automatic
Fee simple subject to condition subsequent: language to create
“to A, but if X event happens, grantor reserves the right to reenter and retake” Must carve out right of reentry.
Fee simple subject to condition subsequent: Duration
Potentially infinite so long as the condition is not breached and, thereafter, until the holder of the right of entry timely exercises the power of termination
Fee simple subject to condition subsequent: Transferability
Alienable, devisiable, descendible, subject to condition
Fee simple subject to condition subsequent: Future interest
Right of entry/power of termination (held by grantor); Called right of reacquisition in NY; Does not automatically terminate, must be cut short at the grantor’s option if the stated condition occurs
Fee simple subject to an executory limitation: Language to create
“To A, but if X event occurs, then to B”
Fee simple subject to an executory limitation: Duration
potentially infinite so long as stated contingency does not occur
Fee simple subject to an executory limitation: Transferability
Alienable, devisable, descendible, subject to condition
Fee simple subject to an executory limitation: Future Interest
Executory interest (held by third party); Automatically forfeited in favor of party other than grantor
Life estate: language to create
“To A for life”; “To A for the life of B”
Life estate: Duration
Measured by life of some transferee or by some other life (pur autre vie)
Life estate: Transferability
Alienable, devisable, and descendible if pur autre vie and measuring life is still alive
Life estate: Future interest
Reversion (grantor); Remainder (third party)
Definition: Devisable
Can pass by will
Definition: Descendible
Can pass by statutes of intestacy
Definition: Alienable
Transferable inter vivos
Fee simple absolute: distiniguishing characteristics
(1) Absolute ownership of potentially infinite duration
(2) Devisible, descendible, alienable
(3) no accompanying future interest
Defeasible Fees: two important rules of construction
(1) Words of mere desire are insufficient (“for the purpose of”, “with the hope of”)
(2) Absolute restraints on alienation are void (not linked to any reasonable time limited purpose)
Life tenant’s entitlements (life estate)
(1) all ordinary uses and profits from the land
(2) must not commit waste
Voluntary or affirmative waste
Overt conduct that causes a drop in value (willful destruction)
Four exceptions where voluntary waste is allowed (PURGE)
(1) PU: Prior use (land was for exploitation)
(2) R: Repairs (can use natural resources for repairs and maintenance)
(3) G: Grant
(4) E: Exploitation (land is suitable only to exploit; see, e.g., a quarry)
Permissive waste or neglect
Land falls into disrepair
Life tenant’s obligations regarding permissive waste or neglect
(1) maintain the premises in reasonably good repair
(2) Pay all ordinary taxes on the land
Ameliorative waste (MBE)
Life tenant must not engage in acts that will enhance the property’s value unless all future interest holders are known and consent
Ameliorative waste Life tenant (NY)
Life tenant may make reasonable improvements unless remaindermen object
Possibility of reverter
Fee simple determinable
Right of entry/power of termination
Fee simple subject to condition subsequent
Reversion
Future interest arising in a grantor who transfers an estate of lesser quantum than she started with (other than FS determinable or subject to condition subsequent)
How to determine third party’s future interest
(1) distinguish vested remainders from contingent
(2) distinguish three kinds of vested remainders from each other
(3) Distinguish from executory interests
Vested remainder
Both created in an ascertained person and is not subject to any condition precedent
Contingent remainder
(1) unascertained person
(2) subject to a condition prescedent
Future interest subject to a condition precedent (NY)
Remainder subject to a condition precedent
Contingent remainders: Rule of destructibility
(1) At common law, was destroyed if still contingent at time the preceding estate ended
(2) Today, has been abolished (springing interest)
(3) abolished in NY
Contingent remainders: Rule in shelly’s case
(1) “To A for life, then, on A’s death, to A’s heirs”
(2) Historically, present and future interests merge giving A a fee simple absolute (rule of law not rule of construction)
(3) Applies even in the face of contrary grantor intent
(4) Today, virtually abolished, instead creates (i) life estate in A; (ii) as yet unknown heirs have contingent remainder; (iii) O has reversion
(5) Rule has been abolished in NY
Contingent remainders: Doctrine of worthier title
(1) O, who is alive, conveys “To A for life, then to O’s heirs”
(2) without doctrine, A has life estate and O’s heirs have a contingent remainder, because O is still alive and a living person has no heirs
(3) Under rule, contingent remainder in O’s heirs is void. Instead A has life estate and O has a reversion
(4) rule of construction, not rule of law
(5) abolished in NY w/r/t transfers taking effect after September 1, 1967
Indefeasibly vested remainder
The holder of this remainder is certain to acquire an estate in the future, with no strings attached; This future interest can pass by will or intestee
Vested remainder subject to complete defeasance/vested remainder subject to total divestment (NY: “remainder vested subject to complete defeasance”)
(1) Remainderman exists
(2) not subject to any condition precedent
(3) Right to possession could be cut short by a condition subsequent (shifting executory interest granted in 3rd party; springing if against grantor)
Vested remainder subject to open
(1) remainder is vested in a group of takers at least one of whom is qualified to take
(2) each class member’s share is subject to partial diminution because additional takers can join in (closed if no others can join class)
Vested remainder subject to open: Rule of convenience
Class closes when any member can demand possession
Womb rule
A child in the womb at time of death will share
Executory interest
A future interest created in a transferee which is not a remainder and which takes effect by either cutting short some interest in another person (shifting) or in the grantor or his hiers (springing)
Shifting executory interest
Follows defeasible fee and cuts short someone other than the grantor
Springing executory interest
Right to cut grantor short
NY: distinction between executory interests and contingent remainders
Both called remainders subject to condition precedent
Rule against Perpetuities
Certain kinds of future remainders are void if there is any possibility that the given interest may vest more than 21 years after the death of a measuring life
Rule against Perpetuities: four step
(1) determine the future interest
(2) Identify the conditions precedent to the vesting of the suspect future interest
(3) find measuring life
(4) Will we know, with certainty, within 21 years of death of our measuring life, if our future interest holder can or cannot take, if not interest is void
Rule against Perpetuities: applicable future interest
(1) applies to contingent remainders, executory interests; certain vested remainders subject to open
(2) does not apply to: any future interest in grantor or indefeasibly vested remainder or subject to complete defeasance
Rule against Perpetuities: Find measuring life
Look for person alive at the date of the conveyance and ask whether that person’s life or death is relevant to the condition’s occurrence
Rule against Perpetuities: Test it
Will we know, with certainty, within 21 years of the death of the measuring life if our future interest holder can or cannot take?
Rule against Perpetuities: gift to open class that is conditional on the members surviving to an age beyond 21
Violates RAP; bad as to one, bad as to all
Rule against Perpetuities: shifting executory interests
An executory interest with no limit on the time within which it must vest violates the RAP
Rule against Perpetuities: Charity to charity exception
Shifting executory interest rule doesn’t apply to gifts from one charity to another
Rule against Perpetuities: “wait and see”
Reform rule: validity of interest is determined on the basis of the facts as they exist at the end of the measuring life; doesn’t apply in NY
Rule against Perpetuities: Uniform rule against perpetuities
Allows for 90 year vesting period as alternative
Rule against Perpetuities: cy pres doctrine
“as near as possible” court may reform in a way that most closely matches grantor’s intent while still complying with RAP; doesn’t apply in NY
Rule against Perpetuities: NY special rules
(1) where it would be invalid b/c of dependance on attaining age in excess of 21, reduced to 21
(2) Woman over 55 cannot have a child
(3) Suspension rule applies (applies RAP to restrictions to the power to sell or transfer); Interest is void if it suspends the power to sell or transfer for longer than lives plus 21
Joint Tenancy: defined
2 or more own with a right of survivorship (you get the other’s stake when they pass)
Tenancy by the entirety: defined
Protected marital interest between married parties w/survivorship
Tenancy in common: definied
2 or more own with no right of survivorship