Real Property

Question 1

What is a leasehold estate?

Answer 1

An estate that is limited in duration.

O transfers to “A for a term of 10 years.” Landlord holds a reversion following the leasehold estate.

Question 2

True or False: The grantee of a life estate is responsible for taxes?

Answer 2

True, grantee of life estate must pay all ordinary taxes to the extent of profits derived from the property.

Question 3

True or False: The grantee of a life estate is not responsible for repairs of the estate?

Answer 3

False, a life tenant has a duty to maintain the property in a reasonable state of repair (does not apply to ordinary wear and tear).

This duty is limited to the extent income is derived.

Question 4

True or False: The grantee of a life estate has no responsibility to pay mortgage interest on the estate?

Answer 4

False. The life tenant has a duty to pay the interest on a mortgage to the extent of profits derived from the property.

Question 5

What is a life estate?

Answer 5

An estate that lasts of the duration of the grantee’s life.

To A for life.

Question 6

What is a life estate purchase auto vie?

Answer 6

A life estate where the duration is measured by the life of someone else other than the grantee.

Question 7

What is a fee tail?

Answer 7

At early common law, a fee tail was a freehold estate that depended to the grantee’s lineal descendants (children) only.

“To A and the heirs of his body.”

Question 8

True or False: A fee tail is not favored under modern law?

Answer 8

True. In most states, with a fee tail, the grantee gets a fee simple absolute.

In some states, the grantee has a life estate with a remainder per stripes in the grantees lineal descendants in being at the time of the life tenant’s death.

Question 9

True or False: A fee simple subject to executory interest is subject to RAP?

Answer 9

True. A fee simple subject to an executory interest is subject to the rule against perpetuities.

Question 10

What estate granted: O conveys “to A but if the premises cease to be used for charitable purposes, then to B.”

Answer 10

Fee simple subject to an executory interest.

Question 11

What estate granted: O conveys “to A for so long as the premises are used for charitable purposes, but if the premises cease to be used for charitable purposes, then to B.”

Answer 11

Fee simple subject to an executory interest.

Question 12

What estate granted: O conveys “to A and his heirs, but if the premises are not used for educational purposes, then O has the right to reenter the premises and terminate A’s estate.”

Answer 12

Fee simple subject to a condition subsequent.

Question 13

What estate granted: O conveys “to A for life, provided, however, that if the premises are not used for charitable purposes, O may reenter and retake the premises.”

Answer 13

A life estate subject to a condition subsequent

Question 14

What is a fee simple subject to a condition subsequent?

Answer 14

An estate that may be cut short and the estate is retaken by the grantor or a third party on the happening of a named future event.

Question 15

What is a fee simple determinable?

Answer 15

A determinable estate automatically terminates on the happening of a future named event.

Question 16

What is a key distinction between a fee simple determinable and a fee simple subject to a condition subsequent?

Answer 16

Determinable - if the future event occurs, estate automatically terminates.

Condition only gives the grantor the right to take the estate, it does not automatically terminate.

Question 17

What is a fee simple absolute?

Answer 17

Largest possible estate, gives the grantee unimpeded right to sell or convey property, and unimpeded right to devise property.

Question 18

What is a reversion?

Answer 18

A future interest retained by the grantor when the grantor transfers less than a fee interest to a third person.

A reversion is transferable (by law or will).

Question 19

True or False. A reversion is subject to the rule against perpetuities?

Answer 19

False.

Question 20

What estate and does O retain a reversion: O conveys “to A for life, then to B for life, then to C for life.”

Answer 20

A, B and C have life estates, O has a reversion.

Question 21

What estate and does O retain a reversion: O conveys “to A for a term of 10 years.”

Answer 21

A has a term estate for 10 years. O has a reversion.

Question 22

What estate and does O retain a reversion: O conveys “to A for life.”

Answer 22

A has a life estate, O has a reversion. If O conveys her reversion to C, C’s interest is still defined as a reversion, even though C is a third party.

Question 23

What estate and does T retain a reversion: T devises “Blackacre to A for life.”

Answer 23

A has present possessory life estate. T’s reversion passes by the terms of T’s will or to T’s heirs bye the laws of intestacy if there is no will.

Question 24

What estate (including future interests if any): O conveys “to A for life, remainder to B and her heirs if B reaches 21.”

Answer 24

If B is 21 at the time of creation, A has a life estate and B’s vested remainder in fee simple.

If B is not yet 21, A has a life estate and B’s remainder is contingent because B has not yet fulfilled the condition precedent (B reaching 21) therefore O retains a reversion.