Real Property Flashcards
Estates in Land
Possessory interest in land
May be a present possessory interest - present estates, OR
Future Interests - becomes possessory in the future
Fee Simple Absolute
Present Possessory Estate
“full ownership of real property” - Created with language: “To A” or “To A and his heirs” (and his heirs language was necessary at common law, but not required today
- Infinite duration
- Freely transferable, devisable by will, and descendible through intestacy
Defeasible Fees
Fee simple estates (uncertain or potentially infinite duration) that can be terminated upon the happening of a stated event
- To be defeasible has to be capable of forfeiture
- Subject to the Rule Against Perpetuities (unless property is to revert to the grantor)
Three Types
- Fee Simple Determinable
- Fee Simple Subject to Condition Subsequent
- Fee Simple Subject to an Executory Interest
Fee Simple Determinable
Terminates upon the happening of a stated event and automatically reverts to the grantor (possibility of reverter)
Creation: Durational language (i.e. “to A for so long as, to A while, to A during, to A until…)
Transferable, devisable by will, and descendible through intestacy always subject to the attached condition
Example: Paul conveys Blackacre “to Ringo so long as the premises are used as a recording studio.”
Possibility of Reverter
Accompanying Future Interest in Grantor to a Fee Simple Determinable
The estate automatically reverts back to the grantor upon the happening of the stated event
FSDPOR
Fee Simple Subject to Condition Subsequent
Estate in which the grantor reserves the right to terminate the estate upon the happening of a stated event, meaning the state does not automatically terminate - the grantor must take some action
Creation:
- Use of conditional words (“upon the condition that, provided that, but if, and if it happens that”)
- An explicit statement of the grantor’s right to re-enter
Most courts hold that the right of entry is not transferable inter vivos, but are devisable by will, and descendible through intestacy
Example: B conveys “To S, but if S ever serves alcohol on site, B reserves the right to re-enter and retake”
Fee Simple Subject to an Executory Interest
Terminates upon the happening of a stated event and then passes to a third party rather than back to the grantor or giving the grantor a right to terminate
Third Party has an executory interest
Creation: look for a third party who will take upon forfeiture of a fee simple estate
If the condition occurs, the estate is automatically forfeited in favor of someone other than the grantor
Example: To A and his heirs for so long as liquor is not sold on the premises; in that event, to B. B has an executory interest
Rules of Construction for Defeasible Fees
Words of desire, hope, or intention do not create a defeasible fee
Absolute Restraints on Alienation are Void (Example: O conveys “to A so long as she never attempts to sell” - in this case, the language of restraint is void, and A is left with a fee simple absolute)
Conditions and Limitations Violating Public Policy are Void - i.e. condition to penalize marriage or encourage divorce will likely be struck down
FLORIDA DISTINCTION: Rules of Construction
FL Statute limits the duration of reverters or forfeiture provisions to 21 years from the date of the deed conveying the realty
Life Estate
Ownership interest for life
Created:
- For the life of the grantee (To A for life)
- Life Estate Pur Autre Vie (life of another - To A, for the life of B) Also results if when a life tenant conveys their life estate to another
- Example: A, the holder of the life estate, conveys their interest to B. B has a life estate for the life of A)
Future Interests: If held by O - Reversion, if held by a third party - Remainder
Life Estates: Rights and Duties of the Life Tenant
Doctrine of Waste: life tenant is entitled to all ordinary uses and profits from the land, but must not commit waste
- Voluntary Waste: affirmative, actual, overt conduct causing a drop in value
- May not consume or exploit natural resources on the property
- Exception: If mining was done on the property before the life estate began, then the life tenant may continue to mine ONLY IN MINES ALREADY OPEN
- Permissive Waste - failure to take reasonable measures to protect land (neglect)
- FL DISTINCTION: if a life tenant makes improvements, generally they cannot demand that the owner of the remainder pay any part of the cost unless they expressly agreed otherwise. But a life tenant may complete improvements begun by the donor of the estate and demand contribution from the remainderman
Voluntary Waste
Voluntary Waste: affirmative, actual, overt conduct causing a drop in value
May not consume or exploit natural resources on the property
Exception: If mining was done on the property before the life estate began, then the life tenant may continue to mine ONLY IN MINES ALREADY OPEN
Permissive Waste
Permissive Waste - failure to take reasonable measures to protect land (neglect)
FL DISTINCTION: if a life tenant makes improvements, generally they cannot demand that the owner of the remainder pay any part of the cost unless they expressly agreed otherwise. But a life tenant may complete improvements begun by the donor of the estate and demand contribution from the remainderman
FLORIDA DISTINCTION: Waste and Improvements
If a life tenant makes improvements, generally hey cannot demand that the owner of the remainder pay any part of the cost unless they expressly agreed otherwise
But - a life tenant may compete improvements begun by the donor of the estate and demand contribution from the remaindermen
Ameliorative Waste
Change that benefits the property economically.
A life tenant may not engage in acts that will enhance a property’s value unless all future interest holders are known and consent
Today: a life tenant may alter or demolish existing buildings if:
- the market value of the future interests is not diminished and EITHER
- the remindermen do not object OR
- A substantial and permanent change in the neighborhood conditions has deprived the property in its current form of reasonable productivity or usefulness
FLORIDA DISTINCTION: Waste
A life tenant may not permanently reduce the value of the estate of the remaindermen and cannot acquire an interest adverse to that of the remaindermen. While a life tenant may be a purchaser at a sale to satisfy an encumbrance, the life tenant who allows the property to be sold for taxes or the satisfaction of an encumbrance cannot acquire a title adverse to the remainderman or revisioner by purchasing at the sale themselves or through and intermediary.
Future Interests
An estate that will or may give the owner possession in the future.
A present, legally protected right in property - not expectancy
Six Categories of Future Interests (see additional cards)
Adverse Possession and Future Interests
Future Interest: Definition
A future interest gives its holder the right or possibility of future possession of an estate.
Present, legally protected right
6 Categories of Future Interests
Future Interest in Transferor
- A possibility of Reverter
- A right of entry
- a reversion
Future Interests In Someone Else
- A contingent remainder
- A vested remainder (three types)
- A executory Interest (two types)
Reverter (Possibility Of)
Accompanies the Fee Simple Determinable - automatic reversion if the condition of the fee simple determinable is breached
Automatically retain a possibility of reverter.
Possibility of reverter is transferable, devisable by will, and descendible by intestacy
Right of Entry
Accompanies the Fee Simple Subject to Condition Subsequent
Power of termination - if the stated event occurs then the transferor has the right to terminate the estate, but it’s not automatic - the grantor must take some action
Not transferable inter vivos (generally and in most states) but are devisable and descendible
Transferable (Alienable) Inter Vivos
Means the interest is transferable within the holders lifetime (see/gift/or otherwise transfer)
Devisable
Passing by will (capable of being passed by will)