Types of Estates

Question 1

What is a fee simple determinable, and what type of future interest does it create?

Answer 1

A fee simple containing words of duration that automatically terminates if a specific condition occurs.

FI: possibility of reverter

Question 2

What is a fee simple subject to a condition subsequent, and what type of future interest does it create?

Answer 2

A fee simple that only terminates if the grantor affirmatively exercises his right of reentry

Question 3

What is a fee simple subject to executory interest? (& FI)

Answer 3

A fee simple that reserves a future interest in a third party (not the grantor or his heirs)
FI = executory interest

Question 4

What is a life estate, and what type of FI does it create?

Answer 4

A conveyance where the life tenant is entitled to possession of property during life, and upon death the property transfers to another party
FI to grantor: reversion
FI to third party: remainder

Question 5

What is a vested remainder?

Answer 5

A future interest given to an identifiable person with no conditions

Question 6

What is a contingent remainder?

Answer 6

A future interest conditioned upon the occurrence or non-occurrence of a specific event