Real Property Flashcards
For a fee simple absolute, what is the:
- Language to create
- Duration
- Transferability
- Future interest
Language to create
- “To A and his heirs.”
- “To A.”
Duration
- Absolute ownership of potentially infinite duration
Transferability
- Devisable
- Descendible
- Alienable
Future interest
- None
For a fee tail, what is the:
- Language to create
- Duration
- Transferability
- Future interest
Language to create
- “To A and the heirs of his body.”
Duration
- Lasts only as long as there are lineal blood descendants of grantee
Transferability
- Passes automatically to grantee’s lineal descendants
Future interest
- Reversion (if held by grantor)
- Remainder (if held by third party)
- Possibility of reverter (held by grantor)
What are the different types of defeasible fees?
- Fee simple determinable
- Fee simple subject to a condition subsequent
- Fee simple subject to an executor limitation
For a fee simple determinable, what is the:
- Language to create
- Duration
- Transferability
- Future interest
Language to create
- “To A so long as …”
- “To A until …”
- To A while …”
Duration
- Potentially infinite, so long as event does not occur
Transferability
- Devisable, subject to condition
- Descendible, subject to condition
- Alienable, subject to condition
Future interest
- Possibility of reverter (held by grantor)
For a fee simple subject to condition subsequent, what is the:
- Language to create
- Duration
- Transferability
- Future interest
Language to create
- “To A, but if X event happens, grantor reserves the right to reenter and retake.”
Duration
- Potentially infinite, so long as the condition is not breached and, thereafter, the holder of the right of entry timely exercises the power of termination
Transferability
- Devisable, subject to condition
- Descendable, subject to condition
- Alienable, subject to condition
Future interest
- Right of entry/power of termination (held by grantor)
For a fee simple subject to an executor limitation, what is the:
- Language to create
- Duration
- Transferability
- Future interest
Language to create
- “To A, but if X event occurs, then to B.”
Duration
- Potentially infinite, so long as stated contingency does not occur.
Transferability
- Devisable, subject to condition
- Descendible, subject to condition
- Alienable, subject to condition
Future interest
- Executory interest (held by third party)
For a life estate, what is the:
- Language to create
- Duration
- Transferability
- Future interest
Language to create
- “To A for life.”
- “To A for the life of B.”
Duration
- Measured by life of transferee or
- Measured by some other life (i.e., pur autre vie)
Transferability
- Devisable, if pur autre vie and measuring life still alive
- Descendible, if pur autre vie and measuring life still alive
- Alienable, if pur autre vie and measuring life still alive
Future interest
- Reversion (if held by grantor)
- Remainder (if held by third party)
What do the fee simple determinable and the fee simple subject to condition subsequent share?
What is their distinction?
They both must have:
- Clear durational language
But just the fee simple subject to condition subsequent needs:
- Explicit right to reenter
In the following example, what does A have? Why?
“To A for the purpose of constructing a daycare center.”
Fee simple absolute
The restriction is not based on clear durational language
Courts disfavor restrictions on free land use
So a court would not find this to be a defeasible fee
In the following examples, what do A and O have? Why?
- “To A so long as she does not attempt to sell.”
- “To A so long as she does not attempt to sell until 2016, when coulds on the title will be resolved.”
- A has a fee simple absolute; O has nothing.
- Absolute restraints on alienation are void.
- A has a fee simple determinable; O has a possibility of reverter.
- Resonable, time-limited restraints on alienable are valid.
In the following example, what does A have? Why?
“To a for life, but in no event more than 10 years.”
A has a term of years
To have a life estate, it must be measured in explicit lifetime terms, and never in terms of years
What are the two important rules regarding life estates?
- The life tenant is entitled to ordinary uses and profits from the land
- The life tenant cannot commit waste
What are the different types of waste?
-
Affirmative waste
- Willful destruction that causes a drop in value
-
Permissive waste (i.e., neglect)
- Neglect that allowed the land to fall into disrepair
-
Ameliorative waste
- Actions that enhance the property’s value
What is the rule regarding waste and natural resources?
A life tenant cannot commit affirmative waste, which includes consuming or exploiting natural resources (e.g., timber, oil, minerals, etc.), unless:
“PURGE”
- Prior Use
- Life tenant may consume or exploit if:
- Prior to thegrant, the land was exploited
- Parties have not agreed otherwise
- Open mines doctrine is followed
- Life tenant may consume or exploit if:
- Repairs
- Life tenant may consume or exploit if:
- For purporses of repairs or maintenance
- Life tenant may consume or exploit if:
- Grant
- Life tenant may consume or exploit if:
- Granted the right to do so
- Life tenant may consume or exploit if:
- Exploitation
- Life tenant may consume or exploit if:
- The land is only suitable for exploitation (e.g., quarry)
- Life tenant may consume or exploit if:
What is the rule regarding a life tenant’s obligation to repair?
What about paying taxes?
- The life tenant is only obligated to maintain the premises in reasonably good repair
- The life tenant is obligated to pay all ordinary taxes on the land, to the extent of either:
- Income and profits from the land
- The land’s fair rental value (if no income or profits)
Why is a life tenant prohibited from committing ameliorative waste?
Can a life tenant ever commit ameliorative waste?
Property honors sentimental value
Ameliorative waste is only allowed if:
- All future interest holders are known and consent
What are the future interests capable of creation in the grantor?
Explain the accompanying present estates
- Possibility of reverter
- Accompanies fee simple determinable
- Right of entry/power of termination
- Accompanies fee simple subject to condition subsequent
- Reversion
- Accompanies any estate transfer of some lesser amount than what the grantor started with, other than those listed above
What are the future interests capable of creation in transferees?
What are their sub-types?
- Vested remainder
- Indefeasibly vested remainder
- Vested remainder subject to complete defeasance
- Vested remainder subject to open
- Contingent remainder
- Executory interest
- Shifting executory interest
- Springing executory interest
What present estates does the remainder accompany?
What present estated does the remainder never accompany?
How do you remember this?
Remainders accompany:
- Life estate
- Term of years
Remainders never accompany:
- Defeasible fees
Remember:
- Jack Johnson is a patient and polite remainderman
- He waits for the present estate to naturally end
- He never gets in the way of the present estate
When is a remainder vested?
When is a remainder contingent?
It is vested if both:
- Created in an ascertained person
- Not subject to any condition precedent
It is contingent if either:
- Created in an unascertained person
- Subject to a condition precedent
What is the old common law rule of destructibility relating to contingent remainders?
What is the modern common law rule?
Old rule
- At common law, a contingent remainder was destroyed if it was still contingent at the time the preceding estate ended
Modern rule
- At common law, a contingent remainder is not destroyed if it is still contingent at the time the preceding estate ends
- If that happens, the estate reverts back to the grantor (or his heirs), who holds it subject to the contingent remainderman’s springing executory interest
What is the R__ule in Shelley’s Case?
What type of rule is it (i.e., of law or construction)?
What is the modern approach?
The Rule in Shelley’s Case
- If O conveys “To A for life, then to A’s heirs”
- The present and future interests merge
- A has a fee simple absolute
- A’s heirs have nothing
- O has nothing
It is a rule of law (i.e., still applies even if contrary intent)
Modern approach (including Virginia)
- If O conveys “To A for life, then to A’s heirs”
- The present and future interest do not merge
- A has a life estate
- A’s heirs have a contingent remainder
- O has a reversion
What is the Doctrine Against Worthier Title?
What type of rule is it (i.e., of law or construction)?
What is the modern approach?
The Doctrine Against Worthier Title
- If O is alive
- And conveys “To A for life, then to O’s heirs”
- A has a life estate
- O’s heirs have nothing
- O has a reversion
It is a rule of construction (i.e., doesn’t apply if contrary intent)
- So if in addition to using the above language, O clearly intended to create a contingent remainder in his heirs, then that intent is binding
Modern approach
- It still applies in most states, but
- IT DOES NOT APPLY IN VIRGINIA
When is a remainder indefeasibly vested?
What happens if the holder of the remainder predeceases the holder of the present estate?
When the holder is certain to acquire the estate with no strings attached
The indefeasibly vested remainder passes by will (devises) or intestacy (descends)