Property for BAR Flashcards
Fee Simple Absolute:
“To A and his heirs.”
“To A.”
Duration: Absoluate ownership of potentially infinite duration.
Transferability:
Devisable
Descendible
Alienable
NO FUTURE INTEREST
Fee Tail
“To A and the heirs of his body.”
duration: Lasts only as long as there are lineal blood descendants of grantee.
Transferability: Passes automatically to grantee’s lineal descendants.
Future Interest:
Reversion (if held by grantor)
Remainder (if held by 3P)
Defeasible Fee (3 types)
1) Fee Simple Determinable
‘To A so long as…”
‘To A until…’
“To A while…”
(language providing that upon happening of a state event, the land is to refer to the grantor)
If stated condition violated forfeiture is automatic.
*You may convey less than what you started with, but you can’t convey more (can’t always get what you want, Mick Jagger).
Duration: potentially infinite, so long as event does not occur.
Transferability: Devisable Descendible Alienable Subject to Condition.
Future Interest: Possibility of Reverter (held by grantor)
FSDPOR
Fee Simple Determinable Possibility of Reverter
Frank Sinatra Didin’t Prefer Orville Redenbacher
Defeasible Fee Type 2
Fee Simple Subject to Condition Subsequent
‘To A, but if X event happens, grantor reserves right to reenter and retake.”
Grantor must carve out right of reentry.
Grantor’s perogative to choose to terminate or to look the other way. Estate NOT automatically ended, but can be cut short at grantor’s option if stated condition occurs.
Duration: potentially infinite, so long as condition is not breached and thereafter, until the holder of the right of entry timely exercises the power of termination.
Transferability: Devisable Descendible Alienable Subject to Condition.
Future Interest: Right of Entry/Power of Termination (held by grantor)
Defeasible Fee Type 3
Fee Simple Subject to an Executor limitation
‘To A, but if X event occurs, then to B.”
Just like fee simple determinable except if condition broken, estate automatically forfeighted to someone other than Grantor.
Potentially infinite, so long as stated contingency does not occur.
Transferability: Devisable Descendible Alienable Subject to Condition.
Future Interest: Executory interest, held by 3P
Life Estate
‘to a for life.’ (A is known as life tenant).
‘To A for the life of B.”
*NEVER in terms of years.
Life tenant entitled to all ordinary uses and profits from the land, but life tenant MUST NOT commit waste (must not harm future interest holders).
Duration: measured by life of transferee or by some other life (put autre vie)
Transferability:
Alienable
Devisable,
Descendible….if pur autre vie and mesaring life is still alive .
Future Interest: Reversion (if held by grantor). Remainder (if held by 3P).
Words of mere desire, hope, or intention are insufficient to create a defeasible fee.
Instead, A gets fee simple absolute (when grantor intended defeasible fee but used ‘purpose’ ‘hope’ ‘expectation’ language.
Absoluate restraints on alienation are void.
absolute ban on sell or transfer that is not linked to a reasonable time limited purpose not allowed.
‘to a so long as she never attempts to sell’ = void. A gets fee simple absolute, O gets nothing.
Voluntary or Affirmative Waste is
Overt conduct that causes a drop in value
*Beiber trashes yard doing donuts, breaks out windows of house.
Life Tenant must not consume or exploit natural resources (timber, oil, minerals) unless one of four exceptions apply…
PURGE Exceptions…
PURGE:
PU: Prior Use (prior to grant, land was use for exploitation)
R: Repairs (consume resoruces for repairs and maint.)
G: Grant (tenant may exploit minerals if granted right)
E: Exploitation (land is suitable only to exploit, quarry)
Open Mines Doctrine…
if mining done on land before life estate began, life tenant may continue to mine, but is limited to mines already open. can’t open new mines.
PERMISSIVE waste or neglect occurs when land falls into disrepair due to pattern of neglect.
Life tenant must Maintain the premises in reasonably good repair.
obligated to pay all ordinary taxes.
Ameliorative Waste
Must not engage in acts that will enhance the property’s value unless all future interest holders are known and consent.
3 Future interests (6 totalFuture interests) capable of creation in the grantor:
1) Possibility of Reverter (Fee Simple Determinable)
2) Right of Entry/Power of Termination (Fee Simple Subj. to Condition Subsequent)
3) Reversion (back-up, default) when grantor transfers an estate of lesser duration/quantum than start with, other than the 2 mentioned herein.
If future interest held by someone other than grantor, must be 1 of 3 future interests….
1) Vester Remainder (indefeasbily vested remainder; vested remainder subj to complete defeasence; vested remainder subj to open).
2) Contingent Remainder
3) Executory Interest (i - shifting or springing)
Remainder…
future interest in grantee
capable of becoming posessory upon expiration of a prior posessory estate
created in the same conveyance in which the remainder is created
Remainderman is sociable, polite.
Waits for present estate to naturally end (life estate or term of years).
Always accompanies preceding estate of FIXED DURATION.
Preceding estate usually a LIFE ESTATE OR TERM OF YEARS.
REMAINDERMAN NEVER FOLLOWS A DEFEASIBLE FEE.
Remainder vested if
BOTH Created in an ascertained person and is NOT subject to any condition precedent.
Remainder is Contigent if
created in an unascertained person OR subject tot a condition precedent, or both.
Rule of Destructability of Contigent Remainders
Common Law: continent remainder destroyed if still contingent, at time the preceding estate ended. (O gets fee simple absolute)
Today: Destructability rule abolished.
To A for life, and if B has reached 21, to B. (A dies and B is only 19). Common law, O gets fee simple. Today: O holds the estate subject to B’s springing execturoy int.
The Rule in shelley’s case
Applies in one setting: O to A for life then on A’s death, to A’s heirs. A is alive.
Common law: present and future int merge to give A fee simple absolute. Applies even in face of contrary grantor intent.
TODAY: rule of shellye’s case abolished.
O to A for life then on A’s death, to A’s heirs. A is alive.
A has life estate. A’s unknown heirs have a contigent remainder. O has a reversion.
Doctrine of Worthier Title - viable in most states today.
When O is alive, tries to crate a future int in his heirs (to A for life then to O’s heirs)
Grantor’s intent controls and will be honored.
If Doctrine of Worthier title did not apply, A has life estate and Os heirs have contigent remainder.
Due to Doc of Worthier title, Contigent remainder in Os heirs void. A has life estate and O has reversion.
Promotes free land transfer.
Indefeasibly vested remainder (1 of 3 vested remainders)
Holder of remaidne is certain to acquire setae in future with no strings attached.