real property Flashcards
Grantor’s future interests (flow chart)
Grantor’s future interests (table)
Reversion
Holder: Grantor
Present Interest: Transferee
Present Estate: Life estate or term for years
Elements:
1. Present interest terminates upon either
(a) death of life estate holder, or
(b) end of term, or
(c) termination of lease
Language to create: Durational
Ex: “To A for life,” “To A for 50 years”
Indefeasibly vested remainder
Holder: Remainderman
Present Interest: 3P
Present Estate: Life estate or term for years
Elements:
1. Present interest terminates upon either
(a) death of life estate holder, or
(b) end of term
Language to create: “then to”
Ex: “To A for life, then to B”
Vested remainder subject to open
Holder: Remaindermen
Present Interest: 3P
Present Estate: Life estate or term for years
Elements:
1. Present interest terminates upon either
(a) death of life estate holder, or
(b) end of term
2. remainder is held by class and at least one member is ascertainable
3. Class is open when more members can join
4. Class closes when either (a) no one can join or (b) a member can take possession of the estate
Language to create: “then to”
Ex: “To A for life, then to B’s children”
Example of when no one new can join a vested remainder subject to open
Ex:
- “To A for life, then to B’s children”
- C is B’s child
- B dies, C is still alive
~ the class has closed, now it’s an IVR
Vested Remainder Subject to Divestment
Holder: Remainderman
Present Interest: 3P
Present Estate: Life estate or term for years
Elements:
“1. Present interest terminates upon either
(a) death of life estate holder, or
(b) end of term
2. Occurrence of event divests other second 3P’s (first in line future interest) of future interest”
Language to create: “then to…but”
Ex: “To A for life, then to B, but if B dies before A, to C”
Contingent Remainder
Holder: Remainderman
Present Interest: 3P
Present Estate: Life estate or term for years
Elements:
1. Present interest terminates upon either
(a) death of life estate holder, or
(b) end of term
2. either (a) beneficiary is not ascertainable or (b) condition precedent before remainder vests
Language: “then to” or conditional
Ex: “To A for life, then to the heirs of B”
Ex: “To A’s children who are alive when I do”
Ex: “To A for life, then to B if B does not before A, otherwise to C”
covenant of marketable title
- contained in contract
- seller must deliver title at closing reasonably free from defects in both fact & law (not perfect title)
marketable title defects may include
- unpaid mortgage or lien
- covenant or easement that restricts use of the land
- title acquired by adverse possession until the adverse possession quiets title
- existing condition on the land that violates a zoning ordinance
when does covenant of marketable title manifest itself
only at date of closing
majority rule for covenant of marketable title
seller may use proceeds of the sale to correct defect so title is marketable
Quitclaim deed
as-is deed (no warranties/covenants), buyer cannot sue, seller conveys whatever interest they have
big picture, what is the seller warranting in a general warranty deed
there are no defects in the chain of title
big picture, what is the seller warranting in a special warranty deed
no defects have occurred during their ownership
