Real Property (DONE) Flashcards
What is a fee simple determinable, and how is it created?
FSD ends automatically upon the occurrence of a stated event.
Makes the grantor a holder of a future interest of possibility of reverter.
Created by DURATIONAL words: “so long as”, “during”, “while”, “until”
What is a fee simple subject to condition subsequent?
FSSCS does not end automatically, but gives the grantor the right of reentry to reclaim the land upon the occurrence of a stated condition.
Created by CONDITIONAL words: “but if”, “provided”, “however”, and “upon condition that”.
What is a fee simply subject to executory limitation?
FSSEL ends automatically on the happening of some condition but it is different because possession will then pass to ANOTHER GRANTEE giving them the future interest, rather than the grantor.
Life estate
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What is a life estate pur autre vie?
A life estate where the measuring life is the life of someone other than the life tenant.
If the life tenant dies before the measuring life dies, life estate passes to the life tenant’s estate until the measuring life dies.
What are the rights and duties of the life tenant?
All the life tenant can do is maintain the estate, and that means continues the normal use of the land in its present condition.
If the life tenant does more than or less than merely maintaining the estate, then the life tenant is guilty of waste.
What is voluntary waste?
Any AFFIRMATIVE ACT beyond the right of maintenance that causes harm to the premises.
Life tenant can only continue the normal use; any change of use is voluntary waste, and life tenant is liable to the holder of the future interest.
What is permissive waste?
Where tenant has failed to maintain the estate. This involves INACTION, NOT ACTION.
What are the three things a tenant can do to avoid permissive waste?
1) Repair: Life tenant must keep property in repair, but is only responsible for ordinary repairs, not improvements or replacement.
2) Taxes: Life tenant pays all taxes on the property. (Note: holder of future interest must make sure taxes get paid, because a tax sale terminates the future interest)
3) Interest on a Mortgage on the entire property: Life tenant pays any interest on any mort- gage that encumbers the entire fee simple. For example, the life tenant takes title to property already subject to a mortgage when held in Fee Simple. Does the holder of the future pay anything?
What is the “changed conditions” exception to the waste rule?
If changed conditions have made the property relatively useless in its current use, the life tenant can tear it down without liability to the holder of the future interest.
What are the classifications of future interests?
1) Reversion
2) Possibility of Reverter
3) Right of Entry (or Power of Termination)
What is the reversion interest?
The interest kept by the Grantor then he gives a Grantee LESS than the durational estate the Grantor had (
e.g.,:
O to A for life. A has life estate, O has a reversion in fee simple.
Is the reversion interest ever subject to RAP?
No
What is the possibility of reverter interest?
Whenever Grantor gives a fee simple determinable, Grantor keeps a Possibility of Reverter. That present possessory estate and future interest always go together.
Remember, the Fee simple determinable ends auto- matically when the condition happens. This means that the Possibility of Reverter does not have to do anything to be entitled to take possession.
Is the possibility of reverter subject to RAP?
No
What is the right of entry?
This interest is labeled the Right of Entry or the Power of Termination. Both labels refer to the same future interest.
Whenever Grantor gives a fee simple subject to a condition subsequent, Grantor keeps a Right of Entry. That present possessory estate and future interest always go together.
Grantor must EXPRESSLY reserve a right of entry, and a failure to do so results in the condition being ignored.
Is the right of entry subject to RAP?
No
What effect does the language “for the purpose of” have on a conditional conveyance?
No effect, because these are not magic words indicating a desire to forfeit title. This will be construed as creating a covenant rather than a condition.
What is a vested remainder interest?
Nothing stands in the way of its becoming possessory on the expiration of the estate that comes before it. We have an ascertainable person and there is no express condition precedent.
What is a vested remainder subject to open?
There is no condition to be satisfied before taking possession, but this remainder is conveyed to a class of people. There is at least one member who will take, but the size of his share is unknown because the class remains open and future persons may qualify as members of the class (e.g., future children).
What is a contingent remainder?
Something has to happen or be known before the remainder can become possessory.
What is a vested remainder subject to divestment?
A future interest is vested subject to divestment if something could occur that would divest the remainder of an interest. For example, “From O to A for life, then to B, but if A stops growing corn, then to C”: B would have a vested remainder subject to divestment because he could be divested of his interest by an act of A before the interest becomes possessory.
What is an executory interest?
The executory interest operates to divest or cut short the estate that comes before it; it does not come into possession at the natural expiration of the earlier estate.
If a future interest in a grantee is not a remainder, it must be an executory interest.
If a future interest in a grantee cuts short an earlier estate, it must be an executory interest.
Holder of an executory interest cannot sue life tenant for waste.
What is a shifting executory interest?
If an executory interest operates by taking title from one grantee and giving it to another grantee, it is called a shifting executory interest.