Property Law: A. Present & Future Estate

Question 1

Present Estates:

What is fee simple absolute?

Answer 1

Fee simple absolute is a conveyance of absolute ownership of real property (meaning there’s no condition place on it).
The property is freely devisable (which means one can leave it in their will). It is descendible (owner can pass it to
their descendants), and alienable (Grantor can transfer the property during their lifetime).

Question 2

What is a Defeasible fees?

Answer 2

Defeasible fee is a conveyance of property with a condition on it. The grantor will use express conditional language to indicate that the conveyance will be terminated upon the occurrence or non-occurrence of an event or condition.
The grantee will have a present possessory interest in the property, but reserves a future interest in the property in favor of either the grantor or a third party.

Question 3

What are the three types of defeasible fees?

July 2010, essay 5

Answer 3

1. Fee simple determinable
2. Fee simple subject to a condition subsequent
3. Fee simple subject to executory limitations

Question 4

What is a Fee simple determinable

Answer 4

A fee simple determinable is a conditional conveyance that allows the grantor to retain a possibility of reverter.

Question 5

How is a fee simple determinable created?

Answer 5

Fee simple determinable is created when the grantor uses words of duration in the conveyance to indicate that the interest being conveyed will automatically terminate if a specified condition occurs.

Question 6

What are the words of duration in a fee simple determinable?

Answer 6

The words of durations are (i.e. so long as, during, while, the property shall revert)

Question 7

What is a fee simple subject to a condition subsequent?

Answer 7

A fee simple subject to a condition subsequent is a conditional conveyance that allows the grantor to retain a right of re-entry.

Question 8

How is a fee simple subject to a condition subsequent created?

Answer 8

Fee simple subject to a condition subsequent is created when the conveyance expressly states that the interest being conveyed is subject to the grantor’s right of re-entry if a specified condition occurs. If the condition occurs, the grantee’s present interest in the property will be lost ONLY if the grantor affirmatively exercises his right to re-entry and re-takes possession of the land.

Question 9

What is a fee simple subject to executory interest?

Answer 9

Fee simple subject to executory interest is a conditional conveyance of real property, in which a third party ( not the grantor or heirs) will be entitled to the property upon the occurrence of a specified condition.

Question 10

How is a fee simple subject to executory interested created?

Answer 10

Fee simple subject to executory interest is created when the grantor uses words such as” to person X. so long as ( or but if) to person Y.

Question 11

What happens if the deed language is ambiguous as to which defeasible fee is meant?

Answer 11

If the deed language is ambiguous, the courts will construe the language in accordance with the grantor’s intentions. If it’s unclear whether a fee simple determinable or a fee simple subject to a condition subsequent in intended, courts will typically favor a fee simple subject to a condition subsequent.

Question 12

What is a Life Estate?

Answer 12

A life estate is a conveyance of real property where a specified life-tenant is entitled to possession of the property during their lifetime, and upon the life-tenant’s death the property transfers outright to another party (as specified in the deed).

Question 13

The person who takes the property after the life-tenant’s death is known as what?

Answer 13

The person who takes after the life-tenant’s death is known as the remainderman.

Question 14

What is a life-tenant responsible for?

Answer 14

The life-tenant is responsible for ordinary expenses and taxes relating to the property during their lifetime.

Question 15

Can a life-tenant commit waste?

Answer 15

No. A life-tenant cannot commit waste (causing the property to decrease in value).

Question 16

What is a Statute of limitations in a fee simple determinable or fee simple subject to a condition subsequent?

July 2010, essay 5

Answer 16

An interest in a fee simple determinable or fee simple subject to condition subsequent last through the applicable statute of limitations period for that interest.
An action for possession can be brought anytime within the statutes of limitations (usually a set number of years after the cause of action accrues).

Question 17

What are the 4 Future Estates

Answer 17

1. Reverter
2. The right of re-entry
   Reverter and the right of re-entry is connected to the occurrence of a condition for a defeasible fee
   conveyance.
3. Vested remainders
4. Contingent remainders

Question 18

What is a Reverter

July 2010, essay 5

Answer 18

A possibility of reverter creates a future interest of possession in the grantor if a specified condition occurs. if such condition occurs, the present possessory interest in the grantee will automatically terminate and vest in the grantor.

Question 19

What is a right of re-entry?

July 2010, essay 5

Answer 19

Right of re-entry creates a future interest in the grantor, wherein the grantor has the right to re-enter and take the property if a specified condition occurs. The present interest in the property is lost ONLY IF the grantor exercises that right. ( The present possessory interest does not automatically terminate upon the occurrence of the specified condition).

Question 20

What is a vested remainder?

July 2010, essay 5

Answer 20

A vested remainder is a future interest in land that is given to an identifiable person with no conditions.

Question 21

What is a contingent remainder?

July 2010, essay 5

Answer 21

A contingent remainder is a future interest in land that is conditional upon the occurrence or non-occurrence of a specified event.

Question 22

What is the majority and minority view in future remainders?

July 2010, essay 5

Answer 22

In most jurisdictions, a future remainder interest is devisable, and passes to that person’s heirs. when the remainder is conditioned on survivorship (ie. my surviving or living children), the majority view is that the person holding the remainder interest must survive the life tenant to be entitled to the interest, while the minority view is that the person need only to survive the testator.