Real Property Review

Question 1

Fee Simple Absolute

Answer 1

Created: “To A” or “To A and his heirs”

Distinguishing characteristics: This is absolute ownership of potentially infinite duration. It is freely descendible, devisable and alienable.

Future interest: None

Question 2

Bruce Willis rule of property

Answer 2

A living person has no heirs

Question 3

Fee Tail

Answer 3

Created: “To A and the heirs of his body”

Distinguishing characteristics: Virtually abolished in U.S. today. Historically, the fee tail would pass directly to grantee’s lineal blood descendants.

Future interest: In O, the grantor, reversion. In third party, remainder.

Note: Today, the attempted creation of a fee tail creates instead a fee simple absolute.

Question 4

Fee Simple Determinable

fee simple subject to defeasance

Answer 4

Created: “To A so long as…” or “To A during…” or “To A until…” Grantor must use clear durational language. If the stated condition is violated, forfeiture is automatic.

Distinguishing characteristics: Is devisable, descendable, and alienable…but always subject to the condition.

Future interests: The possibility of reverter

Question 5

Frank Sinatra Didn’t Prefer Orville Redenbacher

Answer 5

Fee Simple Determinable

Possibility of Reverter

Question 6

Fee Simple Subject to Condition Subsequent

Answer 6

Created: “To A, but if X event occurs, grantor reserves the right to re-enter and retake.” Grantor must

1) Use clear durational language; AND
2) Carve out the right to re-enter.

Distinguishing characteristics: This estate is NOT automatically ended, but it can be cut short at the grantor’s option if the stated condition occurs.

Future interest: Right of Entry, synonymous with power of termination

Question 7

Fee Simple Subject to Executory Limitation

Answer 7

Created: “To A, but if X occurs, then to B”

Distinguishing characteristics: This estate is just like the fee simple determinable only now, if the condition is broken, the estate is automatically forfeited in favor of someone other than the grantor.

Accompanying future interest: Shifting Executory Interest

Question 8

Life Estate

Answer 8

Created: “To A for life” - this is an estate that must be measured in explicit lifetime terms and NEVER in terms of years.

Distinguishing characteristics: 1) the life tenant is entitled to all ordinary uses and profits from the land; and 2) the life tenant must not commit waster/hurt the future interest holder.

Accompanying future interest: Reversion

Question 9

Life Estate pur autre vie

Answer 9

Pur autre vie = For the life of another

Created: “To A for the life of B” - this is an estate that must be measured in explicit lifetime terms and NEVER in terms of years.

Distinguishing characteristics: 1) the life tenant is entitled to all ordinary uses and profits from the land; and 2) the life tenant must not commit waster/hurt the future interest holder.

Accompanying future interest: Remainder

Question 10

Voluntary or Affirmative Waste

Answer 10

Overt conduct that causes a drop in value.

Question 11

Permissive Waste, or Neglect

Answer 11

This occurs when the land falls into disrepair. The life tenant must simply maintain the premises in reasonably good repair.

Question 12

Ameliorative Waste

Answer 12

The life tenant must not engage in acts that will enhance the property’s value, unless all future interest holders are known and consent.

Question 13

Possibility of Reverter

Answer 13

Accompanies only the fee simple determinable.

Question 14

The Right of Entry

also known as the Power of Termination

Answer 14

Accompanies only the fee simple subject the condition subsequent.

Question 15

Reversion

Answer 15

A reversion is the future interest that arises in a grantor who transfers an estate of lesser quantum than she started with (other than fee simple determinable and fee simple subject to condition subsequent).

Question 16

Remainder

Answer 16

A remainder is a future interest created in a grantee that is capable of becoming possessory upon the expiration of a prior possessory estate created in the same conveyance in which the remainder is created. Cannot cut short or divest a prior transferee.

Question 17

Vested Remainder

Answer 17

A remainder is vested if it is both created in an ascertained person and is not subject to any condition precedent.

Question 18

Contingent Remainder

Answer 18

A remainder is contingent if it is created in an unascertained person or is subject to a condition precedent, or both.

Question 19

The Rule of Destructibility of Contingent Remainders

Answer 19

At common law, a contingent remainder was destroyed if it was still contingent at the time the proceeding estate ended.

*Has been abolished

Question 20

The Rule in Shelly’s Case

Answer 20

“To A for life, then, on A’s death, to A’s heirs.” A is alive.
The present and future interests merge giving A fee simple absolute.

*Has been abolished

Question 21

The Doctrine of Worthier Title

Answer 21

Applies when O, who is alive, tries to create a future interest in his heirs.

Question 22

Indefeasibly Vested Remainder

Answer 22

The holder of this remainder is certain to acquire an estate in the future, with no strings attached.

Question 23

Vested Remainder Subject to Open

Answer 23

A remainder is vested in a group of takers, at least one of whom is qualified to take. But each class member’s share is subject to partial diminution because additional members can still join in.

Question 24

Executory Interest

Answer 24

It is a future interest created in a transferee (a third party) , which is not a remainder and which takes effect by either cutting short some interest in another person (“shifting”) or in the grantor or his heirs (“springing”).

Question 25

Shifting Executory Interest

Answer 25

Always follows a defeasible fee and cuts short someone other than the grantor.

Question 26

Springing Executory Interest

Answer 26

Cuts short O, the grantor.

Question 27

Rule Against Perpetuities

Answer 27

Certain kinds of future interests are void if there is any possibility, however remote, that the given interest may vest more than 21 years after the death of a measuring life.

Does not apply to future interest in O, the grantor, indefeasibly vested remainders or vested remainders subject to complete defeasance.

Question 28

Joint Tenancy

Answer 28

Two or more own with the right of survivorship.

Question 29

Tenancy by the Entirety

Answer 29

Between married parties with right of survivorship.

Question 30

Tenancy in Common

Answer 30

Two or more own with no right of survivorship. Favored.