Real Property - July (2022)

Question 1

Who is responsible for paying property taxes on the family home between Wanda and Frank?

Answer 1

Wanda is responsible for the payment of property taxes.

This is despite her limited income.

Question 2

What is a life tenant’s responsibility regarding property?

Answer 2

A life tenant must:
* Not commit waste
* Maintain general upkeep
* Make reasonable repairs
* Pay property taxes

Question 3

What interest did Wanda receive in the family home?

Answer 3

Wanda received a life estate in the family home.

This was given via devise in Oscar’s will.

Question 4

Who inherited the remainder interest in Wanda’s life estate after Adele’s death?

Answer 4

Frank inherited the remainder interest in the family home.

Adele left her entire estate to Frank.

Question 5

What is a fee simple determinable?

Answer 5

A fee simple determinable is a property interest granted with durational language such as ‘so long as’ or ‘until’.

Question 6

What happens when a condition in a fee simple determinable is violated?

Answer 6

The property automatically reverts back to the holder of the possibility of reverter.

Question 7

What is a possibility of reverter?

Answer 7

A possibility of reverter is the future interest that accompanies a fee simple determinable.

Question 8

Does the Rule Against Perpetuities apply to reversionary interests that vest in the grantor?

Answer 8

No, the Rule Against Perpetuities does not apply to reversionary interests that vest in the grantor.

Question 9

What condition must be met for Frank to retain ownership of the apartment building?

Answer 9

At least four apartments must be rented to below-median-income families.

Question 10

What happens to the possibility of reverter when it is transferred?

Answer 10

It remains valid upon transfer according to the Rule Against Perpetuities.

Question 11

When did Wanda own the apartment building?

Answer 11

Wanda owned the apartment building on February 1, 2021.

Question 12

True or False: The possibility of reverter can be freely devised and transferred.

Answer 12

True

Question 13

Fill in the blank: A life tenant must not commit _______ to impair the interests of their remaindermen.

Answer 13

waste

Question 14

What did Oscar retain upon conveying the apartment building to Frank?

Answer 14

Oscar kept a possibility of reverter.

Question 15

What is the effect of the Rule Against Perpetuities on interests in land?

Answer 15

It voids any condition that vests too far in the future, typically over 21 years.

Question 16

What was Frank’s action that triggered the possibility of reverter?

Answer 16

Frank terminated all leases of the tenants in the building.

Question 17

What did Wanda inherit from Oscar’s will?

Answer 17

Wanda inherited the possibility of reverter in the apartment building.