Real Property Flashcards
Fee Simple Absolute
A conveyance of absolute ownership of real property.
The property is freely devisable, descendible, and alienable.
Fee Tail
A conveyance of real property to a person AND their heirs.
*Most states have abolished fee tail ownership.
What is a Fee Simple Defeasible, and when is it created?
A conveyance of property that has conditions placed on it.
It is created when the grantor uses express conditional language to indicate that it will be terminated upon the occurrence/non-occurrence of an event or condition.
What are the three types of Fee Simple Defeasibles?
Fee Simple Subject to a Condition Subsequent – reserves a future interest in the grantor (right of re-entry). But if, on condition that, provided that.
Fee Simple Determinable – reserves a future interest in the grantor (possibility of reverter). As long as, while, until, during.
Fee Simple Subject to Executory Interest – reserves a future interest in a third-party.
Life Estate
A conveyance of real property where a specified life-tenant is entitled to possession of the property during their lifetime.
Upon the life tenant’s death, the property transfers outright to another party (the remainderman).
Possibility of Reverter
Creates a future interest of possession in the grantor upon the occurrence of a specific condition.
(Property automatically vests to the grantor upon occurrence of the condition).
Right of Re-entry
Creates a future interest in the grantor, wherein the grantor has the right to re-enter and take the property upon the occurrence of a specific condition.
Tenancy in Common
The default estate created by a conveyance/bequest of real property to two or more people.
No Right of Survivorship.
*Each tenant has an undivided interest and the right to use and enjoy the entire property.
Joint Tenancy Creation
4 conditions must concurrently exist when the tenants take their interests:
1) Time- JT’s must take their interest at the same time;
2) Title- JT’s must receive their conveyance through the same instrument;
3) Interest- JT’s must take equal and identical interests; and
4) Possession- JT’s must have equal possessory rights.
(alienable but not devisable or descendible).
Vested Remainder
A remainder that automatically becomes possessory upon the natural expiration of the preceding estate.
Limitations- Vested Remainders cannot:
a) Be subject to any condition precedent; or
b) Vest in an unknown or unascertained person.
Indefeasibly vested remainder
Becomes possessory immediately upon termination of the prior estate (to A for life, then to B).
Vested remainder subject to total divestment
subject to some condition subsequent, such that the remainderman could be divested after taking possession (to A for life, remainder to B; but if B weds, to C).
Vested Remainder subject to open (class gift)
remainder vested in a described class of takers, at least one of whom is capable of taking possession (by virtue of being alive) (to A for life, remainder to children of B and their heirs”; B has one child, who has a vested remainder subject to open {because B may have more heirs}.
Open vs. Closed class
class stays open to allow for future members and closes when no new members can be created (life tenant dies).
Rule of Convenience- class closes whenever any member can call for distribution of her share.
Contingent Remainder
A remainder will be contingent if it is either:
a) Subject to a condition precedent, or
b) Created in favor of an unascertained or unborn person.
Contingent Remainder Subject to Condition Precedent
remainder’s taking is contingent on the occurrence of some event or condition.
-Once the event or condition occurs, the interest automatically becomes an indefeasibly vested remainder (to A for life, then to B and his heirs when B gets married…If B is unmarried at the time of the conveyance, A has a life estate, B has a contingent remainder (because marriage is a condition precedent), and grantor has a reversion in case B is not married when A dies; If B gets married he has an indefeasibly vested remainder).
Contingent Remainder Subject to unborn or unascertained persons
A remainder is contingent if it is created in favor of unborn or unascertained persons (to A for life, then to B’s heirs…If B has no children at the time of the conveyance, remainder is contingent because heirs of B cannot be ascertained until B dies).
Rule of Destructibility
At common law, a contingent remainder is destroyed if it remains contingent (the condition not satisfied) when the preceding estate ends
(O grants to A for life, then to B once he goes to law school; A dies and B has not gone to law school…At common law, B gets nothing; at modern law, a reversion to grantor or grantor’s heirs until grantee satisfies the condition).
Merger (Shelly’s Rule)
Arises when a conveyance attempts to give a life estate to grantee with remainder to grantee’s heirs.
At common law, the two estates merge (“to A for life, then to A’s heirs”…and A is alive)
Common Law- remainder merges and A has a fee simple absolute.
Modern rule- A has a life estate and his heirs have contingent remainders; O has a reversion because A could die without heirs.
Doctrine of Worthier Title
Arises when grantor creates a life estate in another but creates a future interest in grantor’s heirs.
(O grants “to A for life, then to O’s heirs”)
Under the doctrine, the contingent remainder in O’s heirs is void; A instead has a life estate and O has a reversion.
Shifting Executory Interest
Always follows a defeasible fee.
Cuts short someone other than the Grantor
(to A, so long as the property is used for storage. But if used for any other purpose, to B)
-A has a fee simple subject to an executory interest
-B has a shifting executory interest- If A stops using the property for storage, A’s interest is cut short (not the grantor’s).
Springing Executory Interest
Cuts short the interest of the Grantor or his heirs.
(To A, if and when he gets married)
A has an executory interest
Grantee has a fee simple subject to an executory interest; If A gets married, possession springs from Grantor to A.
Under what circumstances can an out-of-possession co-tenant collect rent from an in-possession co- tenant (who is in exclusive possession of the property)?
When:
* There is an agreement stating as such; OR
* The co-tenant seeking rent was wrongfully ousted.
When is a co-tenant entitled to reimbursement from other co-tenants for improvements made to the property?
ONLY IF there is a separate agreement stating as such.
BUT, if the property appreciated due to the improvements, only the improving co-tenant is entitled to the increase in value.
