Reversion/ Reverters/ Remainders

Question 0

Possibility of Reverter

Answer 0

Accompanies only the FSD;
If the terminating event occurs, grantees estate automatically terminates and reverts back to O.
Only transferable to heirs.

Question 1

Define: reversion

Answer 1

Follows a future interest and allows O to have a retained interest; O has not given away all the sticks in the bundle.

Question 2

Two types of remainders

Answer 2

Vested remainders

Contingent remainders

Question 3

Define: remainder

Answer 3

A future interest which follows a finite estate and waits PATIENTLY for the NATURAL termination of the preexisting finite estate.

Question 4

Requirements of vested remainder:

Answer 4

1) an ascertained person
2) No condition precedent to vesting
3) can be subject to partial or complete divestment
4) cannot follow a contingent remainder

Question 5

Requirements of contingent remainder

Answer 5

1) a future interest

2) either given to an unacertained person or subject to a condition precedent

Question 6

Condition precedent vs condition subsequent

Answer 6

Condition precedent: an express condition is one which applies before the point in time when the interest is o become possessory. (A condition which could occur or which must be satisfied before the interest can become possessory).

Condition subsequent is where an express condition is one which applies to the time period after the interest the interest becomes possessory. (A condition which qualifies how long the possession May last).