Real Property Flashcards
Types of Interest
(1) Present Possessory Estate Interest; (2) Future Interest; (3) Concurrent Interest; (4) Landlord-Tenant (non-freehold estates); (5) Assignment/Subleases; (6) Non-possessory interests
Ownership - Present Possessory Estate Interest
(1) Fee Simple Absolute (FSA); (2) Defeasible Fees; (3) Life Estates (LE)
Fee Simple Absolute
absolute ownership (lasts forever); devisable, descendible, alienable
Defeasible Fees
(1) Fee Simple Determinable; (2) Free Simple Subject to Condition Subsequent; (3) Fee Simple Subject to Executive Limitation
Fee Simple Determinable
ends at stated event, automatically reverts to grantor
- Durational - so long as, during, until
- Characteristics - devisable, descendible, alienable
- Grantor retains possibility of reverter
Fee Simple Subject to Condition Subsequent
can be terminated by grantor upon happening of a stated event
- To A, upon condition that, or provided that, but if, or if it happens that
- Characteristics - devisable, descendible, alienable
- Grantor retains right of entry or termination
Fee Simple Subject to Executory Interest
ends at stated event, then passes to TP
- “T o A but if stated event happens, to B”
- Characteristics - devisable, descendible, alienable
- Termination is automatic and future interests in third party
Life Estate
measured by the life of one or more persons
(1) Life of Grantee;
(2) Life Estate Per Autre Vie;
(3) Waste
LE (life of grantee)
“To A for life”
- Reversion in grantor or remainder or executory interest in 3rd party
- Life tenant entitled to ordinary uses but cannot commit waste
LE (per autre vie)
measured by life other than grantee - “A for life of B”
- Reversion in grantor or remainder or executory interest in 3rd party
Waste
(1) Affirmative / Voluntary
(2) Permissive / Neglect
(3) Ameliorative
Affirmative / Voluntary Waste
actual overt conduct that decreases value of estate
Permissive / Neglectful Waste
failure to protect / preserve land
Ameliorative Waste
change that economically benefits land
Future Interests (Grantor)
(1) Possibility of Reverter; (2) Right of Reentry; (3) Reversion
Possibility of Reverter
follows fee simple determinable
Right of Reentry
power to terminate follows fee simple subject to condition subsequent
Reversion
interest when grantor transfers an estate lesser than he had
Future Interests (Grantee or Third Party)
remainder (contingent / vested) OR executory interest
Vested Remainders (types)
- Vested Remainder;
- VR Subject to Condition Subsequent; OR
- VR Subject to Open
Vested Remainder
created in known person, not subject to condition sub
Vested Remainder Subject to Condition Subsequent
remainderman’s interest could be cut short by cond sub
Vested Remainder Subject to Open
remainder’s interest subj to diminution b/c more can join
Contingent Remainders (issues)
(1) Rule of Destructibility; (2) Merger Rule; (3) Rule in Shelly’s Case; (4) Doctrine of Worthier Title
Contingent Remainder
created in unknown person, sub to cond precedent, or both
Rule of Destructibility
(CL) condition remainder destroyed if condition at time E ends. Results in FS absolute. (Today) - rule gone, heirs hold E subject to springing exec interest
Merger Rule
destroy contingent remainder when one acquires all present & future interests except contingent remainder
Rule in Shelly’s Case
remainder to only grantee’s heirs of a life estate in grantee is not recognized; heir’s interest abolished, grantee takes in fee simple
Doctrine of Worthier Title
remainder in grantor’s heirs becomes reversion in grantor
Executory Interests (types)
(1) Shifting Exec Interest; OR
(2) Springing Exec Interest
Shifting Executory Interest
3rd person’s interest cuts short interest in other
Springing Executory Interest
TP’s interests cuts short interest in grantor or heirs
Rule Against Perpetuities (RAP)
certain future interests void if there is any possibility that interest vests more than 21 years after death of a measuring life in being at the time of creation
RAP (applicable to)
contingent remainders, executory interests, vested remainders subject to open (class gifts), options to purchase (not attached to leasehold), rights of first refusal, and powers of appointment
RAP Reform
RAP reform (wait and see) USRAP (90 year vesting period)
Fertile Octogenarian
presumption that person is fertile no matter age
Unborn Widow Rule
widow not determined until death, so disposition to issue of widow violates RAP
Class Gifts
if interest of any class member may vest too remotely, class gift fails
Charities
gift from one charity to another will not violate RAP
Concurrent Interests (types)
(1) Joint Tenancies;
(2) Tenancy in Common;
(3) Tenancy by Entirety
Joint Tenancy (four unities)
“T-TIP” – (1) Time, (2) Title, (3) Interest, and (4) Possession
Joint Tenancy
i. When one co-tenant dies, interest automatically passes to surviving JT
ii. Interest is transferrable but not devisable or descendible
iii. Termination - inter vivos sale or conveyance, partition
Tenancy in Common
i. descendible, devisable, and transferable with no right of survivorship
ii. each co-tenant owns individual part, right to possess whole, presumption of TIC
Tenancy by Entirety
i. marital estate, must be married, right of survivorship
ii. creditors of one spouse cannot reach tenancy and unilateral conveyance invalid
Rights and Duties of Co-Tenants
right to possess whole, profit from own use, no waste
i. Must share net from 3rd party rent, profits from exploitation of land
ii. Each co-tenant responsible for fair share of taxes/mortgage interest payments
iii. Entitled to contribution for reasonably necessary repairs, need notice
iv. No affirmative right to improvements unless partition
LL-Tenant (types of leaseholds)
(1) Tenancy for Years; (2) Periodic Tenancy; (3) Tenancy at Will; (4) Tenancy at Sufferance
Tenancy for Years
fixed length, written, ends at termination date, no notice
Periodic Tenancy
continues until termination by notice, express agreement, implication, or operation of law