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63 Cards in this Set

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[Question Future/Present Interests 1]
What is the present interest and future interests for Fee Simple Absolute?
Present: Absolute ownership of potentially infinite duration
Future: None
[Question Future/Present Interests 2]
How is a fee simple absolute estate created?
To A or "To A and his heirs"
[Question Future/Present Interests 3]
How can a fee simple absolute estate be transferred?
Devisable, descendible, and alienable
[Question Future/Present Interests 4]
What are the present and future interests in a Fee Tail?
Present: Lasts only as long as there are lineal blood descendants of the grantee
Future: Reversion (if held by grantor); Remainder (if held by third party)
[Question Future/Present Interests 5]
What language creates a Fee Tail estate?
To A and the heirs of his body
[Question Future/Present Interests 6]
How can a Fee Tail estate be transferred?
Only through the grantee's lineal descendants
[Question Future/Present Interests 7]
What are the present and future interests for a Fee Simple Determinable?
Present: Potentially infinite, so long as the event does not occur
Future: Possibility of Reverter (held by grantor)
[Question Future/Present Interests 8]
How is a Fee Simple Determinable estate created?
To A so long as
"To A until"
"To A while"
Look for an event or occurrence that, if occurs, would revert the land back to the grantor.
[Question Future/Present Interests 9]
How can a Fee Simple Determinable estate be transferred?
It's alienable, devisable, descendible, but subject to the condition.
[Question Future/Present Interests 10]
What are the present and future interest for a Fee Simple Subject to Condition Subsequent estate?
Present: Potentially infinite, so long as the condition is not breached and, thereafter, until the holder of the right of entry timely exercises the power of termination
[Question Future/Present Interests 11]
How is a Fee Simple Subject to Condition Subsequent estate created?
To A, but if X happens, then grantor reserves the right to renter and retake
[Question Future/Present Interests 12]
How can a Fee Simple Subject to Condition Subsequent be transfered?
It's alienable, descendable, deviseable, subject to the condition
[Question Future/Present Interests 13]
What are the present and future interests for a Fee Simple Subject to An Executory Limitation estate?
Present: Potentially infinite, so long as the state contingency does not occur. Called "fee simple subject to X's shifting executory interest"
Future: Executory Interest (held by third party)
[Question Future/Present Interests 14]
How is a Fee Simple Subject to An Executory Limitation estate created?
To A, but if X happens, then to B
[Question Future/Present Interests 15]
How can a Fee Simple Subject to An Executory Limitation estate be transfered?
It's alienable, descendable, deviseable, subject to the condition
[Question Future/Present Interests 16]
What are the present and future interests of a life estate?
Present: The life of the transferee or by some other life ("measuring life")
Future: Reversion (if held by grantor); Remainder (if held by third party)
[Question Future/Present Interests 17]
What is a life estate called if the transferee is not the measuring life?
Pur Autre Vie
[Question Future/Present Interests 18]
How can a life estate be transferred?
It's alienable, but can only be devisable or descendable if it's a pur ature vie life estate and the measuring life is still alive
[Question Future/Present Interests 19]
How is a life estate created?
To A for Life
"To A, for the Life of B" (pur autre vie)
[Question Future/Present Interests 20]
What is the status of Fee Tail in the US?
What happens if property is conveyed with its language?
Virtually Abolished; fee simple absolute
[Question Future/Present Interests 21]
What is the effect of the following conveyances
1) To A in hopes that he does X
2) To X for the purpose of
3) To Z with the expectation that
Nothing, they're all fee simple absolute.
Words of mre desire, hope, intention are insufficient to create a defeasible fee
[Question Future/Present Interests 22]
When is a "absolute restraint of alienation" enforced?
Only when linked to a "reasonably limited purpose" otherwise void
[Question Future/Present Interests 23]
What is the effect of:
1) "To A so long as she never attempts to sell it" and
2) "To A, so long as she does not attempt to sell it before 2012, when title will be clear"
1) Void, fee simple absolute to A
2) A has a fee simple determinable and O has a possibility of reverter
[Question Future/Present Interests 24]
What is a life tenant entitled to, with respect to the land?
Ordinary uses and profits of the land
[Question Future/Present Interests 25]
What must a life tenant not do?
Commit Waste, can't hurt future interest holders
[Question Future/Present Interests 26]
What are the 3 species of waste that a life tenant can commit?
1) Voluntary/Affirmative Waste
2) Permissive Waste / Neglect
3) Ameliorative Waste
[Question Future/Present Interests 27]
What does Voluntary / Affirmative Waste Mean?
Overt conduct that causes a decrease in property's value
[Question Future/Present Interests 28]
What is the life estate rule for consumption or exploitation of natural resources?
Generally: Cannot consume or explout natural resources (timber, oil, minerals), unless ("PURGE")
1) Pu: Prior Use (grantor used the land that way)
2) R: Reasonable repairs and maintenance of the property
3) G: Granted, meaning life tenant was granted the right
4) E: Exploitation, land is only suitable for exploitation
[Question Future/Present Interests 29]
What does "permissive waste" or neglect mean?
What's the standard?
Life tenant has the obligation to maintain the premises in reasonably good repair.
Commits waste if there is a "pattern of neglect"
[Question Future/Present Interests 30]
What is a life tenant's obligations for taxes?
During the life tenancy, he must pay ordinary taxes either:
a) To the extent of income or profits from the land, or
b) If there are no income/profits, to the extent of the fair-market rental value
[Question Future/Present Interests 31]
What is "Ameliorative Waste"?
Life tenant must not engage in acts that will enhance the property's value, unless all future interest holders are known and consent
[Question Future/Present Interests 32]
What are the three possible future interests of a grantor?
What creates them?
1) Possibility of Reverter (create by a fee simple determinative)
2) Right of Entry / Power of Termination (created by fee simple subject to condition subsequent)
3) Reversion (everything else: idea is O gives something less than he has)
[Question Future/Present Interests 33]
What are the three possible future interests for a transferee?
1) Vested Remainder (3 types)
2) Contingent Remainder
3) Executory Interest
[Question Future/Present Interests 34]
What is a remainder?
1) A future interest
2) Created in the Grantee
3) That is capable of becoming posessory
4) Upon expiration of a prior posessory estate
5) created in the same instrument
[Question Future/Present Interests 35]
What is the nature of a remainderman?
sociable, patient and polite
1) Always follows a known/fixed duration preceding estate (e.g. life tenant or term of years)
2) Never follows a defeasible fee
3) Meaning, can't cut short or divest a prior transferee
[Question Future/Present Interests 36]
When a remainder contingent/vested?
It's vested when
1) There are no unascertained persons (e.g. unborn persons), AND
2) There is no condition precedent
[Question Future/Present Interests 37]
How do you know if a remainder has a condition precedent?
If there is a condition in the language just before the language creating the remainder
[Question Future/Present Interests 38]
"To A for Life, then, if B graduates from college, to B"
A is alive and B hasn't graduated from college yet. Who has what interests?
A = Life Estate
B = Contingent Remainder
O = Reversion (if B never graduates)
What happens if B graduates from college and A is alive?
B's future interest is now an indefeasibly vested remainder
[Question Future/Present Interests 39]
In a contingent remainder, what happens if the preceding estate ends before the condition precedent is satisfied?
E.g. "To A for life, then, if B graduates from college, to B." A dies but B is 6 and hasn't gone to college.
Common Law: Contingent Remainder destroyed, and reverts to O or O's heirs. ("The rule of the destructibility of contingent remainders")
Modern: Destructibility rule abolished, O or O heirs hold estate subject to B's "springing executory interest"
[Question Future/Present Interests 40]
What is the Rule in Shelly's Case and how is it handled today?
Applies:
"To A for life and then to A's heirs" A is alive.
Common Law: Merges to fee simple absolute to A.
Modern: A has life estate and A's unknown airs have a contingent remainder, O has reversion
[Question Future/Present Interests 41]
What is the doctrine of Worthier Title?
Applies when O tries to create a future interest in O's heirs. E.g. "To A for life and then to O's heirs"
Outcome: O's heirs' future interest is void, A life estate, O reversion
[Question Future/Present Interests 42]
Are these a rule of construction or a rule of law? What is the effect?
1) The rule is Shelly's case
2) Doctrine of Worthier Title?
1) Rule of Law - O's intent is irrelevant
2) Rule of Construction - if O's intent is to create a future interest for his heirs, then intent is binding
[Question Future/Present Interests 43]
What is an indefeasibly vested remainder?
Holder is certain to acquire the estate, there are no conditions attached.
E.g. "To A for life, then to B"
[Question Future/Present Interests 44]
What is a vested remainder subject to complete defeasance?
issue: Does the remainderman get to keep his land?
Definition: Remainderman's right to possession could be cutoff by a condition subsequent (as opposed to a condition precedent).
E.g. "To A for life, remainder to B, provided that, however, if B dies before 25, then to C" A and B is alive
A = Life Estate
B = Vested Remainder Subject to Defeasance
C = Shifting Executory Interest
O = Reversion
[Question Future/Present Interests 45]
O conveys "To A for Life, and if B has reached 25, then to B" A and B are alive, but B < 25
A = Life Estate
B = Contingent Remainder
O = Reversion
If A dies and B is still < 25
O or O's heirs: hold it subject to B's "springing executory interest"
[Question Future/Present Interests 46]
What is a vested remainder subject to open?
Remainder is vested in a group of takers, at least on of whom is qualified to take. But each member's share is subject to partial diminution because additional takers can still join.
[Question Future/Present Interests 47]
O conveys "To A for life, then to B's children" A is alive and B has children C and D. What are the interests?
A = Life estate
C and D = Vested remainders subject to open
[Question Future/Present Interests 48]
When can a remainderman subject to open take the property?
1) At the death of the prior estate (called rule of convenience)
2) When the class is closed (e.g. mom dies, so no more children)
[Question Future/Present Interests 49]
O conveys "To A for life, then to B's children." B has children C and D. A dies. What happens to future children of C and D?
Because of rule of convenience, they don't take
[Question Future/Present Interests 50]
What is an executory interest?
A future interest created in a transferee, which is not a remainder and which takes effect by either cutting short some interest in a third person (called "shifting") or in the grantor or his heirs (called "springing")
[Question Future/Present Interests 51]
O conveys "To A, but if B moves from Canada in 2010, then to B and his heirs" A and B are alive, what are there interests?
A = Fee Simple subject to B's shifting executory interest
B = shifting executory interest
[Question Future/Present Interests 52]
O conveys "To A, if and when, she graduates from law school."
O = Fee Simple subject to A's springing executory interest
A = springing executory interest
[Question Future/Present Interests 53]
What is the rule of perpetuities?
Will any given interest vest more than 21 years after the death of a measuring life?
[Question Future/Present Interests 54]
What are the steps to a RAP problem?
1) Does RAP apply to the future interest? Applies only to: contingent remainders, executory interest, vested remainders subject to open
2) Identify the condition precedent that affects the vesting of the future interest.
3) Find a measuring life: someone alive at the time of conveyance and would affect the conditions occurrence
4) Will we know if the interest is vested within 21 years of the measuring lives? If no --> Violates RAP
[Question Future/Present Interests 55]
O conveys: "To A for life, then to the first of A's children to reach 30."
A is 70, her only child, B, is 29.
Does this violate the rule of perpituities?
1) Future interest? Contingent Remainder
2) Condition for vesting? A's first child >=30
3) Measuring Life? A (can't be B, not specific to B or B could die)
4) Any possibility that this will not vest after A's death + 21 years? Yes
B could die, and A could die while giving birth. Therefore we won't know within 21 years if A's new child reaches 30
[Question Future/Present Interests 56]
Does a gift to an open class is conditioned on the members surviving to an age beyond 21 violate RAP?
Violates RAP.
E.g. "To A for life, then to A's children that live to attain the age of 30."
[Question Future/Present Interests 57]
Does a shifting executory interest with no time limit violate RAP?
Almost always.
E.g. To A so long as the land is used for farm purposes, if the land cases to be so used, then to B
[Question Future/Present Interests 58]
How does a court reform a conveyance that violates RAP?
strike offending language
[Question Future/Present Interests 59]
What's an exception to the RAP?
Doesn't apply if conveyance between charities
[Question Future/Present Interests 60]
What is the wait and see or second look doctrine?
Under this majority reform effort, the validity of any suspect future interest is determined on the basis of the facts as they now exist, at the end of the measuring life.
[Question Future/Present Interests 61]
What does the Uniform Statutory Rule against Perpetuities do?
Allows for Common Law rule or bright-line 90-year vesting period
[Question Future/Present Interests 62]
What is cy pres doctrine?
Permits courts to reform the conveyance to effect grantor's intent while still conforming it to RAP.
[Question Future/Present Interests 63]
What do the wait and see and USRAP reforms both embrace?
1)Cy pres doctrine
2) reduces non-confirming age condition to 21