Property Flashcards
Fee simple absolute
“To A”
Devisable, descendible, alienable
No future interest
Fee tail (VIRTUALLY NEVER TESTED)
“To A and the heirs of his body”
Passes automatically to grantee’s lineal descendants
Future interest: reversion (if held by grantor); remainder (if held by third party)
Fee simple determinable (NY: fee on limitation)
“To A so long as,” “To A until,”
Alienable, devisable, descendible, subject to condition
Future interest: possibility of reverter (held by grantor)
Fee simple subject to condition subsequent (NY: fee on condition)
“To A, but if X happens, grantor reserves right to reenter and retake”
Alienable, devisable, descendible, subject to condition
Future interest: Right of entry/power of termination (held by grantor)
Fee simple subject to an executory limitation
“To A, but if X occurs, then to B”
Alienable, devisable, descendible, subject to condition
Future interest: shifting executory interest (held by third party)
Life estate
“To A for life” or “To A for life of B”
Alienable, devisable, and descendible if pur autre vie and measuring life is still alive
Future interest: reversion (if held by grantor); remainder (if held by third party)
Definition of devisable:
can it pass by will?
Definition of descendible:
will it pass by the statutes of intestacy if its holder dies intestate (without a will)?
Definition of alienable:
is it transferable inter vivos (during holder’s lifetime)?
Fee simple subjet to condition subsequent: language
Grantor must use clear durational language and carve out the right to re-enter (“To A, but if X occurs, grantor reserves right to reenter and retake”
Defeasible fee requires clear DURATIONAL language
Words of desire, hope, intention are insufficient to create a defeasible fee
General rule on absolute restraints on alienation
VOID. Absolute restraint on alienation is an absolute bar on the power to sell or transfer that is not linked to any reasonable time limdited purpose.
Definition of life estate pur autre vie:
Life estate measured by a life other than the grantee’s
“To A for the life of B”
LIfe estate doctrine of waste: general rule
life tenant must not commit waste (must not do anything to hurt the future interest holders)
General rule of voluntary waste and natural resources:
Life tenant must not consume or exploit natural resources on the property, unless exceptions apply
Exceptions to the general rule of life tenant and voluntary waste: (PURGE)
PU: prior use (life tenant may continue to exploit land if land was exploited before the grant)
R: repairs. Life tenant may consume natural resources for repairs and maintenance
G: grants. Life tenant may exploit if granted the right
E: exploitation (land is suitable ONLY to exploit)
General rule of permissive waste: when land falls into disrepair
Life tenant must maintain the premises in reasonably good repair
Must pay all ordinary taxes on the land to the extent of income from the land (or premises’ fair market value)
General rule of ameliorative waste (MBE)
Life tenant must not engage in acts that will enhance the property’s value, unless all future interestholders are known and consent
General rule of ameliorative waste (NY):
Life tenant may make reasonable improvements unless remaindermen object
3 future interests capable of creation in the grantor:
- possibility of reverter (only fee simple determinable)
- right of entry / power of termination: only fee simple subject to condition subsequent
- reversion
A remainder is VESTED if:
it is both created in an ascertained person and is not subject to any condition
A remainder is CONTINGENT if:
it is created in an unascertained person or is subject to a condition precedent (“To A for life, then to B’s first child”)
When the condition precedent occurs, a contingent remainder automatically transforms into:
an indefeasibly vested remainder
Contingent remainders: if grantor dies before condition precedent occurs,
remainderman still has springing executory interest
O conveys “To A for life, then to A’s heirs”.
A has life estate, A’s unknown heirs have a contingent remainder. O has reversion, since A could die w/o heirs
Doctrine of worthier title (rule against a remainder in grantor’s heirs) (MBE only):
O, who is alive, conveys “To A for life, then to O’s heirs”
The contingent remainder in O’s heirs is void. A simply has a life estate, and O has a reversion
Definition of indefeasibly vested remainder:
Holder of this remainder is certain to acquire an estate in the future, w/ no strings attached
Def. of vested remainder subject to complete defeasance / total divestment
Remainderman exists. No condition precedent. But his right to possession could be cut short because of condition SUBSEQUENT
Def: of vested remainder subject to open:
Remainder is vested in a group of takers, at lest one of whom is qualified to take. But each member’s share is subject to diminution b/c additional takers can join in
“To A for life, then to B’s children”
Vested remainder subject to open: class closes when
any member can demand possession
Def. executory interest
Future interest created in a transferee (third party), which isn’t a remainder and takes effect either by cutting short some interest in another person (“shifting”) or in the grantor or his heirs (“springing”)
Def. shifting executory interest:
Always follows a defeasible fee and cuts short someone other than the grantor
“To A, but if B returns, to B”
NY: difference between executory interests and contingent remainders?
NONE. NY has abolished the distinction. They’re both called remainders subject to a condition precedent
O conveys “To A, if and when he marries.” A is unmarried. A has:
springing executory interest
O has: fee simple subject to A’s springing executory interest
General rule of rule against perpetuities:
Certain kinds of future interests are void if there is any possibility, however remote, that the given interest may vest more than 21 years after the death of a measuring life
RAP potentially applies to these kinds of interests:
contingent remainders, executory interests, and certain vested remainders subject to open
RAP NEVER applies to
any future interests in the grantor
vested interests
RAP: gift to an open class conditioned on the members surviving to an age beyond 21?
Violates the RAP!
Bad as to one, bad as to all. If it is possible that a disposition might vest too remotely w/ even just one class member, the entire class gift is void
RAP: usually, __________ interests violate the RAP
Shifting executory interests
An executory interest w/ no time limit w/in which it must vest violates RAP
“To A so long as land is used for farming, and if it isn’t, to B” VOID
Charity exception for RAP
Gift from one charity to another will not violate the RAP
“Wait and see” / “second look” doctrine (reform of RAP):
Validity of any suspect future interest is determined on the basis of the facts as they now exist, at the end of the measuring life
This eliminates the “what if” line of inquiry
Uniform Statutory RAP:
codifies the CL RAP and provides for alternative 90 year vesting period
Both “wait and see” and USRAP embrace cy pres doctrine:
“As near as possible”
If a given disposition violates the rule, a court may reform it in a way that most closely matches grantor’s intent while complying w/ the RAP
“Wait and see” and USRAP (and NY) reduce offensive age contingency to:
21 years
NY distinction about RAP reform:
NY applies CL RAP, rejects “wait and see” doctrine and cy pres doctrine
Def: joint tenancy
2 or more own w/ the right of survivorship
Def: tenancy by the entirety
protected marital interest b/w married partners w/ right of survivorship
Def: tenancy in common
2 or more own r/ no right of survivorship
Right of survivorship in joint tenancy:
when one joint tenant dies, his share passes automatically to the surviving joint tenant
Creating a joint tenancy. 4 unities: “T-TIP”
Joint tenants must take their interests
T: at the same time
T: by the same title (same instrument)
I: with identical interests, and
P: right to possess the whole
Creating a joint tenancy: in addition to “T-TIP,” grantor must
CLEARLY express right of survivorship (b/c joint tenancies are disfavored)
To create joint tenancy, often a grantor must use
a STRAW (middleman). O conveys to straw, straw conveys back to O and X w/ right of survivorship
How to severe a joint tenancy (“SPAM”):
Sale
Partition
and
Mortgage
When joint tenant sells, even in secret, what does that make the buyer?
it disrupts the four unities, so buyer is a tenant in common
When one joint tenant sells, and there were more than two joint tenants to begin
the joint tenancy remains intact b/w the other, non-transferring joint tenants
When one joint tenant enters into K for sale of his interest to X, his interest…
is severed, from the very beginning of entering into a K
Severance of joint tenancy by partition: 3 kinds:
- Voluntary agreement
- Partition in kind (court action if best interest of all is to divide land)
- Forced sale (ct action if best interest of all is to sell land and divide proceeds proportionally)
Severance of joint tenancy by mortgage: general majority rule (including NY)
lien theory of mortgages. A joint tenant’s execution of a mortgage on his or her interest will not sever the tenancy
How to create tenancy by the entirety
It arises presumptively in any conveyance to married partners unless stated otherwise
Defeating the tenancy by the entirety by unilateral conveyance:
can’t be done! Neither tenant, acting alone, can defeat the right of survivorship by unilateral transfer to a 3rd party
“Can’t touch this”
3 features of the tenancy in common:
- Each co-tenant owns an individual part and each has a right to possess the whole
- each interest is divisible, descendable, and alienable. NO SURVIVORSHIP RIGHTS b/w tenants in common
- Presumption favors the tenancy in common
If one co-tenant wrongfully excludes another co-tenant from possession, he has committed
wrongful ouster
Rent from co-tenant in exclusive possession: general rule
Absent ouster, co-tenant in exclusive possession is not liable to other co-tenants for rent
(rent) A co-tenant who leases all or part of the premises to a third party
must account to his co-tenants, providing them their fair share of the rent income
Generally, a co-tenant cannot acquire title through adverse possession. But the rule in NY:
a co-tenant may acquire title by possession if he is in exclusive possession for 20 continuous years (theory of implied ouster)
A co-tenant who pays to repair premises gets
right to contribution for reasonable necessary repair, so long as she notified the others of the need
A co-tenant who pays to improve the premises gets
NO right to contribution for “improvements”
Def: Tenancy for years
Lease for a fixed period of time. Therefore, no notice is needed to terminate
Def: periodic tenancy
Lease whih continues for successive intervals until L or T gives proper notice of termination
Periodic tenancy can be created expressly. Can also arise by implication, in 3 ways:
- Land is leased w/ no mention of duration, but provision is made for payment of rent at fixed intervals
- Oral term of years in violation of SoF creates implied periodic tenancy measured by the way rent is tendered
- Holdover: in residential lease, if L elects to holdover a T who has wrongfully stayed on past the conclusion of the original lease, implied periodic tenancy arises measured by way rent is tendered
To terminate a periodic tenancy, usually written notice must be given. How much notice?
At CL, at least equal to length of the period itself, unless otherwise agreed
But if tenancy is from year-to-year, only 6 months’ notice
Def: Tenancy at will
Tenancy for no fixed duration
Tenancy at will is rare, b/c a payment of regular rent will cause a ct
to treat it as implied periodic tenancy