Quiz 2 Flashcards
- True False
O owned the fee simple absolute title to Blackacre. O deeded Blackacre “to A and A’s heirs while Blackacre is used as a farm; and if not, then to B.” Blackacre is located in a state in which all common law principles regarding the transfer of estates in land are in full force and effect. O deeded a valid executory interest to the fee simple absolute title to Blackacre to B.
FALSE: Because “all common law principles regarding the transfer of estates in land are in full force and effect,” words of inheritance must be included in a deed to convey a fee simple estate. The executory interest that O deeded to B is an executory interest to a life estate. Therefore, the last sentence is incorrect regarding the estate O conveyed to B. Furthermore, the executory interest to a life estate that O conveyed to B is valid applying the common law Rule against Perpetuities using B as the measuring or relevant life. The executory interest will vest during B’s lifetime if A or A’s successors do not use Blackacre as a farm while B is alive. The executory interest to the life estate O conveyed to B will fail to vest if Blackacre is still being used as a farm when B dies because the executory interest to the life estate will expire when B dies.
- True False
Whiteacre is a parcel of land located in the state of California. X acquired ownership of the fee simple absolute title to Whiteacre. Recently, X deeded Whitacre “to X, Y, and Z as joint tenants, not as tenants in common, with right of survivorship.” X created a valid joint tenancy between X, Y, and Z.
TRUE: The statement that “X created a valid joint tenancy between X, Y, and Z” would be false with respect to X if the common law unities of time and title had to be satisfied as to X. However, California law is applicable because “Whitacre is a parcel of land located in the state of California.” Per the statutory law of California, a person can create a joint tenancy between that person and another person or other persons without there being the common law unities of time and title between that person and the other person or persons. If necessary, review Concurrent Ownership Supplement 2.
- True False
The undivided interest in and to a possessory fee simple estate that is owned by a tenant in common is freely alienable, devisable, and descendible.
TRUE: See, page 356 of the course text. “Each tenant in common has an undivided, fractional interest in [a fee simple estate] in the property. Each [tenant in common] may transfer his [her or its] interest to another person; [the tenant in common’s undivided interest] is freely alienable, devisable, and descendible.”
- True False
O acquired ownership of the possessory fee simple absolute estate in and to the PIQ. In time, O conveyed a fee simple determinable estate in and to the PIQ to A. Subsequently, O died intestate survived by H, O’s sole heir at law, and by A. Two years later, H delivered a deed to the PIQ to A. The effect of H’s deed to A is that A became the owner of the possessory fee simple absolute estate in and to the PIQ.
TRUE: O retained a possibility of reverter to the fee simple absolute when O conveyed the fee simple determinable estate to A. H inherited the possibility of reverter to the fee simple absolute per the common law rule and per the modern law rule regarding the transferability of a possibility of reverter. H’s conveyance of the possibility of reverter to A was valid per the common law because the conveyance was a release. H’s conveyance of the possibility of reverter to A was valid per the modern law rule that future interests are transferable to the same extent and in the same manner that possessory estates may be transferred. A became the owner of the possessory fee simple estate in and to the PIQ per the merger doctrine. If necessary, review pages 314 – 320 (including Point for Discussion c on pages 319 – 320); Estates and Future interests Supplement 11 pages 6 and 7; and page 41 of the Week 3 Panels.
- True False
O owned the possessory fee simple absolute title to Blueacre. O devised Blueacre “to X for life, then to Y, provided that Y has survived X, and if Y does not survive X, then to Z upon X’s death.” O devised valid, alternative, contingent remainders to Y and Z.
TRUE: The future interests that O devised to Y and to Z are remainders because each future interest is designed to become possessory upon the expiration of X’s life estate. Each remainder is a contingent remainder because there is a condition precedent that must be satisfied for vesting. The contingent remainders are alternative contingent remainders because the same event will result in one of the remainders vesting and the other remainder being destroyed. If X dies before Y, the remainder O devised to Y will vest and become possessory and the remainder O devised to Z will be destroyed because of the failure of the contingency that Y must die before X dies for Z’s remainder to vest. If Y dies before X, the remainder O devised to Y would fail to vest because of Y not surviving X; and Z’s remainder would vest because the condition precedent to a vesting of the remainder O devised to Z will have occurred. Note that Z’s remainder would not become possessory until X dies. The common law Rule against Perpetuities is satisfied using X as the measuring life. It is certain that one of the remainders will vest and the other will fail to vest either during X’s lifetime (if Y does not survive X), or at the time of X’s death (if Y survives X).
- True False
O conveyed fee simple absolute title to the PIQ to A, B, and C as joint tenants. In time, C entered into a contract to sell C’s interest in the PIQ to D. C died prior to the time specified in the contract for D to receive a deed from C. If the jurisdiction in question adheres to the title theory, C died as a tenant in common with A and B.
FALSE: The title theory does not apply. Review page 365, Point for Discussion b and Concurrent Ownership Supplement 3. In this case, whether C died as a joint tenant or as a tenant in common would depend on whether the equitable conversion doctrine is applied to determine whether the joint tenancy regarding C’s undivided interest was or was not severed when the contract for C to sell C’s interest to D was executed. did
- True False
A owned the possessory fee simple absolute title to Redacre. A conveyed Redacre “to B for life, then to C’s heirs.” A, B, and C were alive at the time of A’s conveyance. According to the Rule in Shelley’s Case, B owns the possessory fee simple absolute title to Redacre.
FALSE: For the Rule in Shelley’s Case to be applicable, if the Rule is in force in the jurisdiction in which Redacre is located, A must have attempted to convey a contingent remainder “to B’s heirs.” Here, the contingent remainder is to “C’s heirs.” If necessary, review pp. 337 and 338 of the course text.
- True False
Orangeacre is located is land located in a state wherein the common law Destructibility of Contingent Remainders has been abolished. The modern law presumption regarding transfers of estates in land is in force in the state. O became the owner of the possessory fee simple absolute title to Orangeacre. In time, O conveyed Orangeacre “to B for life, then to the first child of M to reach 18 years of age.” M was alive at the time of O’s conveyance. M does not have any children. O transferred a valid contingent interest “to the first child of M to reach 18 years of age.”
TRUE: O conveyed a valid contingent remainder to the fee simple absolute title to Orangeacre “to the first child of M to reach 18 years of age.” The future interest is a remainder because it is designed to become possessory upon the natural expiration of B’s life estate (i.e., when B dies). It is a contingent remainder because the transferee is yet to be ascertained (a child of M) and there must be satisfaction of a condition precedent (a child of M must be the first child of M to reach 18 years of age). The contingent remainder is valid per the common law Rule against Perpetuities. The contingent interest will either vest or fail to vest within M’s lifetime or within 21 years after M dies. That is true even if the interest has not vested prior to or as of the time of B’s death. If the condition precedent has not been satisfied as of the time of B’s death, the contingent interest will be transmuted from a contingent remainder to an executory interest because the common law Destructibility of Contingent Remainders doctrine is not in force in the state in which Orangeacre is located. If necessary, review page 345 of the course text, Example 2. Also review the course material regarding the effect of the abolishment of the common law rule of destructibility.
- True False
A owned the possessory fee simple absolute title to Redacre. A conveyed Redacre “to B for life, then to C’s heirs.” A, B, and C were alive at the time of A’s conveyance. According to the Rule in Shelley’s Case, B owns the possessory fee simple absolute title to Redacre.
FALSE: See problem 7, supra.
- True False
X acquired ownership of the possessory fee simple absolute estate in Brownacre. Subsequently, X deeded Brownacre “to X, Y, and Z as joint tenants.” Brownacre is located in a state in which words of inheritance do not have to be included in a deed for there to be the conveyance of fee simple title. Applying the common law, X created a joint tenancy between Y and Z and a tenancy in common in X and Y and X and Z.
TRUE: Compare problem 2, supra. If necessary, review page 356 of the course text.
- The PIQ is located in California. O owned the possessory fee simple absolute title to the PIQ. O conveyed the PIQ “to X, Y, and Z as joint tenants, not as tenants in common, with right of survivorship.” In time, Y conveyed Y’s interest to A. Thereafter, Z leased the PIQ to T. Subsequently, X died intestate survived by H, X’s sole heir at law, and O, Y, Z, and A. X’s undivided one-third interest in and to the fee simple absolute title to the PIQ:
A. Was inherited by H.
B. Transferred to Z by right of survivorship.
C. Transferred to A and Z by right of survivorship.
D. Transferred to Y and Z by right of survivorship.
ANSWER: B
O created a valid joint tenancy between X, Y, and Z. Y’s conveyance to A severed the joint tenancy regarding the undivided one-third interest that Y conveyed to A. Although Y’s conveyance to A created a tenancy in common between A and X, and between A and Z, X and Z continued to be joint tenants with one another. Z’s lease of the PIQ to T did not sever the joint tenancy between X and Z because the no severance rule is in force in California. See pp. 362 – 365 of the course text and Concurrent Ownership Supplement 3. Because X died as a joint tenant with Z, the undivided one-third interest that was owned by X transferred to Z by right of survivorship.
Statement A is incorrect because the undivided one-third interest that was owned by X did not become part of X’s testamentary estate because of the right of survivorship in favor of Z. Hence, that interest was neither a devisable nor an inheritable interest as of the time of X’s death.
Statement C is incorrect because although A was a concurrent owner when X died, A was a tenant in common with X and A did not have a right of survivorship regarding the undivided one-third interest that was owned by X up until X’s death.
Statement D is incorrect because Y was not a concurrent owner of the fee simple estate in and to the PIQ when X died because of Y’s prior conveyance to A.
- Roseacre is land located in California. D devised Roseacre “to A for life, then to A’s surviving spouse for life, then to the children of A who survive the death of A’s surviving spouse.” At the time of D’s death, A was married to B and A and B had two children, X and Y. Which of the following persons is a validating life which satisfies the California Rule against Perpetuities regarding D’s devise to A’s children who survive the death of A’s surviving spouse?
A. B.
B. A.
C. X or Y.
D. Neither A, nor B, nor X, nor Y.
ANSWER: D
Statement A is not correct because it is possible that B will not be married to A when A dies meaning that it is possible that B will not be A’s surviving spouse if A is married when A dies. It is possible that the time at which a child of A survives the death of A’s surviving spouse would be a point in time that is beyond B’s lifetime plus 21 years after B’s death.
Statement B is not correct because it is possible that if A dies survived by a spouse, the surviving spouse might live longer than 21 years from the time of A’s death.
Statement C is not correct because neither X nor Y can be used as a measuring life because X and Y are members of a class that is subject to open (i.e., A’s children).
If necessary, review pages 342 – 345 and 347 – 352 of the course text and Estates and Future Interests Supplement 12.
- Which one of the following statements is the most accurate statement?
A. If a joint tenant delivers a mortgage against the joint tenant’s interest in the joint tenancy property to a creditor of the joint tenant, whether the joint tenancy was severed when the mortgage was delivered to the creditor depends upon whether the equitable conversion doctrine is or is not in force in the jurisdiction in which the joint tenancy property is located.
B. According to the law of California, a possibility of reverter cannot be conveyed if the conveyance is not a release.
C. A conveyance “to A and Acme Corporation as joint tenants with right of survivorship and not as tenants in common” does not create a joint tenancy between A and Acme.
D. Modernly, the common law unities of time and title do not have to exist between concurrent owners for those concurrent owners to hold title as joint tenants.
ANSWER: C
Statement C is an accurate statement in a jurisdiction where an artificial person (e.g., a corporation such as Acme) cannot be a joint tenant. However, the statement is not accurate regarding the law of jurisdictions in which a valid joint tenancy can be created between a natural person and an artificial person. Although Statement C is partially false and partially true, it is the most accurate statement when compared to statements A, B, and D because each of those statements is a completely incorrect statement.
Statement A is inaccurate because while the title theory and the lien theory apply to a joint tenant creating a mortgage to encumber the joint tenant’s undivided interest, the equitable conversion doctrine does not apply to such an event. If it is applied by a court, the equitable conversion doctrine applies when a joint tenant executes a contract to sell the joint tenant’s interest to a buyer.
Statement B is incorrect. The modern law regarding the transferability of a possibility of reverter is codified in California. The conveyance of a possibility of reverter does not have to be a release.
Statement D is incorrect. The statement suggests that the need for there to be unity of time and unity of title between concurrent owners in order for them to be joint tenants has been abolished. Modernly, unity of time and title does not have to exist in certain instances, but the common law unities of time and title still need to exist in all other instances. For example, modernly a person can create a joint tenancy in herself or himself and another or others even though there is a lack of unity of time and title between that person and the other concurrent owner or owners. The person does not have to use a “straw person” to create a joint tenancy between herself or himself and another or others. If necessary, review Concurrent Ownership Supplement 2.
- Which one of the following statements is the most accurate statement?
A. The owner of a life estate has the right to hypothecate the estate.
B. California statutory law prohibits the creation of a fee simple subject to a condition subsequent estate.
C. A person intended by a transferor to be the transferee of a contingent interest cannot be used as a measuring life to determine whether the requirement of the common law Rule against Perpetuities has or has not been satisfied.
D. Statements A, B, and C are false statements.
ANSWER: A
Statement A is accurate. The bundle of rights regarding a life estate includes the right to hypothecate the estate. If necessary, review page 28 of the Week 3 Panels.
Statement B is inaccurate. California statutory law prohibits the creation of a fee simple determinable estate and a possibility of reverter. California statutory law does not prohibit the creation of a fee simple subject to a condition subsequent and a power of termination. If necessary, review page 319, Point for Discussion b (3rd paragraph) of the course text and pages 35 and 36 of the Week 3 Panels.
Statement C is inaccurate. A transferee of a contingent interest who was alive at the time of the transfer can be used as a measuring life if the use of that person’s life is not prohibited by principles of law regarding the application of the common law Rule against Perpetuities such as prohibition against using a member of a class subject to open as a measuring life. If necessary, review pages 349 and 350 of the course text. Also, if necessary, review pages 2 and 3 of Estates and Future Interests Supplement 12.
Statement D is inaccurate because Statement A is an accurate statement.
- Which one of the following statements is the least accurate statement?
A. An act of waste that increases the value of the property is known as ameliorative waste.
B. A surviving joint tenant receives the interest of a deceased joint tenant if the decedent died intestate.
C. A contingent remainder is destroyed if the contingency is not satisfied as of the expiration of a preceding estate if the common law destructibility of contingent remainders is in force in the jurisdiction in which the subject property is located.
D. The Uniform Statutory Rule against Perpetuities does not abolish the common law Rule against Perpetuities.
ANSWER: B
Statement B is inaccurate. A surviving joint tenant receives the interest of a deceased joint tenant regardless of whether the deceased joint tenant died intestate or testate. Statement B is the correct answer because Statements A, C, and D are accurate statements. The right of survivorship in favor of a surviving joint tenant occurs whether the deceased joint tenant died testate or died intestate. If necessary, review page 356 of the course text.
Statement A is an accurate statement. If necessary, review page 308 of the text.
Statement C is an accurate statement. If necessary, review pages 340 and 341 of the text.
Statement D is an accurate statement. If necessary, review page 351, first paragraph, and the portion of Estates and Future Interests Supplement 12 that pertains to the Uniform Statutory Rule against Perpetuities.
