Estates

Front 1

Freehold Estate Basics:

Back 1

A. Freehold estates are property owned w/o restrictions & limits
B. 3 Steps

Front 2

Alienability:

Back 2

To sell while living
-MUST be a freehold estate (FSA)

Front 3

Heritability:

Back 3

Right to devise or bequeath however a person wants:
-Heirs have no legal right if person/grantor is still alive
-Requires Death

Front 4

B. 3 Steps:

Back 4

1. Can I lose it? (Defeasible or Absolute)
2. Who gets it after me? (Grantor or Grantee)
3. Look at specific wording? (Wording)

Front 5

1. Can I lose it?
(Defeasible or Absolute)

Back 5

a. If ABSOLUTE, problem done, STOP here
b. If defeasible, continue to step 2:

Front 6

2. Who gets it after me?
(Grantor or Grantee)

Back 6

a. If it goes to 3rd party grantee, it is "Subject to an Executory Interest", STOP here
b. If it does NOT go to 3rd party, & goes back to grantor, continue to step 3:

Front 7

3. Look at specific wording.
(Wording)

Back 7

a. Determinable: "While, So Long As, Until, During"
[White SUDs]
b. Subject to Condition Subsequent: "If, But If, On Condition That, Provided That"
-These words can follow directly after determinable words, so watch out!

Front 8

Types of Freehold Estates:

Back 8

A. Fee Simple Estates
B. Fee Tail Estates
C. Life Estates

Front 9

A. Fee Simple Estates

Back 9

-To "A & His Heirs"
-If the future interest is in the 3rd party, the grantor does NOT have a future interest, has executory interest

Front 10

1. Fee Simple Absolute:

Back 10

-Never lose
-Has NO future interests

Front 11

2. Fee Simple Defeasible:

Back 11

-Defeatable
-Upon happening of future event
a. F/S Determinable
b. F/S Subject to Condition Subsequent
c. F/S Subject to an Executory Limitation

Front 12

a. Fee Simple Determinable:

Back 12

-Grantor
-Future Interest: Possibility of Reverter

Front 13

b. Fee Simple Subject to Condition Subsequent:

Back 13

-Grantor
-Future Interest: Right of Re-Entry

Front 14

c. Fee Simple Subject to an Executory Limitation:

Back 14

-Grantee
-Future Interest: Springing or Shifting

Front 15

B. Fee Tail Estates:

Back 15

-"To J & The Heirs of His Body"
-States do NOT like b/c ties up property
-Common Law: Fertility runs until death (even in women)
-Definite Failure vs. Indefinite Failure

Front 16

Definite Failure:

Back 16

Measure at the end of life

Front 17

Indefinite Failure:

Back 17

Measure beyond death

Front 18

Types of Fee Tail Estates:

Back 18

1. Fee Tail Absolute
2. Fee Tail Defeasible

Front 19

2. Fee Tail Defeasible:

Back 19

Same as Fee Simple in terms of where they go when we lose them:
a. F/T Determinable
b. F/T Subject to Condition Subsequent
c. F/T Subject to Executory Interest

Front 20

C. Life Estates

Back 20

"To J For Life"
-NO Heritability
-Can sell interest in land, but once you die, the purchaser of the interest doe NOT own estate anymore
-Can't adversely possess
-Can't sell anything more than you currently have
-Measured against the original recipient

Front 21

Per Autrie Vie:

Back 21

Measured against the life of someone other than the recipient of the life estate
-"To A For The Life of B"

Front 22

Dower:

Back 22

If man dies, wife gets 1/3 of property
[1/3]

Front 23

Curtesy:

Back 23

If man had a child from wife then capable of inheriting
[ALL]

Front 24

Waste:

Back 24

Can't have waste by ommission

Front 25

Waste by Omission:

Back 25

Failed to do anything

Front 26

Waste by Commission:

Back 26

Actually have to go do something

Front 27

Types of Life Estates:

Back 27

1. Life Estate Absolute
2. Life Estate Defeasible

Front 28

2. Life Estate Defeasible:

Back 28

Same as Fee Simple in terms of where they go when we lose them:
a. L/E Determinable
b. L/E Subject to a Condition Subsequent
c. L/E Subject to an Executory Interest

Front 29

Future Interests:

Back 29

Can't transfer, only inheritable:
A. Vest in Grantor
B. Vest in Grantee

Front 30

A. Vest in Grantor:

Back 30

1. Reversion
2. Possibility of Reverter
3. Right of Re-Entry

Front 31

1. Reversion (Life Estate):

Back 31

a. Arises when an estate in grantee terminates in any other manner than a condition
b. Reverts to grantor AUTOMATICALLY after death of grantee
c. Different from PoR b/c it is a RECEIVABLE INTEREST, not a claimable one
d. Becomes possessory after estate expires naturally

Front 32

2. Possibility of Reverter (F/S Determinable):

Back 32

a. ALWAYS follows F/S Determinable
b. Grantor retains if there is a CONDITION ON THE USE of the property
c. When goes back to grantor, he gets what he stated w/

Front 33

O--> A so long as land is used for school purposes:

Back 33

-O has Possibility of Reverter if condition occurs
-Property AUTOMATICALLY reverts to O

Front 34

3. Right of Re-Entry (F/S Subject to Condition Subsequent):

Back 34

a. ALWAYS follows a F/S Subject to Condition Subsequent
b. Power of Termination
c. Arises when a CONDITION IS BROKEN
d. NOT AUTOMATIC
e. F/S SCS words TRUMP the others

Front 35

O-->A so long as Pepsi is never served on premises:

Back 35

-if Pepsi served, O has right, if he chooses to, to re-enter property & take possession

Front 36

Sometimes a Reversion & a Right of Re-Entry is Possible:

Back 36

-Landlord-Tenant lease
-End of Term Reversion
-Tenant does something wrong, landlord can re-enter

Front 37

B. Vest in Grantee:

Back 37

1. Remainder
2. Executory Interest

Front 38

1. Remainder:

Back 38

-Always follows a L/E
-Can't follow a vested F/S
-Person who takes is called Remainderman

Front 39

a. Contingent Remainder:

Back 39

-To A for life, then if P is alive at time of A's death, to P in F/S
-Condition must be met before remainder becomes possessory
-Can be destroyed if condition never met
-Remainder in an unborn or unascertained person
-Subject to partial or fill divestment

Front 40

To A for life, then to B's children:

Back 40

-At time of execution, B had no children yet
-B's unborn children have a Contingent Remainder
-Law prefers vested remainders, so express language must be used to create contingent remainders

Front 41

b. Vested Remainder:

Back 41

-Can be subject to NO divestment
-Ascertainable event & person

Front 42

3 Types of Vested Remainders:

Back 42

(1) Indefeasibly Vested
(2) Vested Subject to Total Divestment
(3) Vested Remainder Subject to Open

Front 43

2 Types of Remainders:

Back 43

a. Contingent Remainders
b. Vested Remainders

Front 44

(1) Indefeasibly Vested:

Back 44

-CERTAIN to become possessory

Front 45

(2) Vested Subject to Total (Complete) Divestment:

Back 45

-MAY vest if prior possessory interest terminates in time

Front 46

(3) Vested Remainder Subject to Open:

Back 46

-CERTAIN to vest in some but there remains a chance that others who are not ascertained may share in the estate
-Common w/ children when additional may be born

Front 47

"O to A for life, remainder to B & his heirs"

Back 47

B's remainder is indefeasibly vested b/c A is certain to die, & even if B dies before A, Remainder still vests to his heirs, so it can't be taken away

Front 48

"O to A, for life, then to B for life"

Back 48

-A has a L/E
-B has a VRSCD
-B only gets it if he outlives A
-If B dies before A, he gets nothing & it reverts back to O after A's death

Front 49

"O to A for life, remainder in B's children"

Back 49

-B has only 1 child, C, at the time
-B has VRSTO
-B is still alive to have kids & C may have to share w/ other kids subsequently born
-Class Closes upon death of B
-At B's death, whoever his children are become Vested Remainders

Front 50

2. Executory Interest:

Back 50

-Only in transferee
-Always follows an Estate Subject to an Executory Limitation

Front 51

2 Types of Executory Interests:

Back 51

a. Shifting Executory Interest
b. Springing Executory Interest

Front 52

a. Shifting Executory Interest:

Back 52

-Immediately shifts to another grantee
-Divests or cuts short some interest in another transferee/grantee (not grantor)

Front 53

"To A, but if B returns from Rome, then to B & his heirs"

Back 53

b has a Shifting Executory Interest

Front 54

b. Springing Executory Interest:

Back 54

-Divests the transferor/grantor in the future

Front 55

"To A when A marries B"

"To A when/if A becomes a doctor"

Back 55

-Grantor is not divested at time, but at some later time when A marries B
-In both examples, A has Springing Executory Interest

Front 56

Present Possessory Estates:

Back 56

Property interest in land that is currently in a person's physical possession

Front 57

Fee Simple Absolute:

Back 57

How Created: rt. given by previous owner.
Interest Owned: Estate in Perpetuity, lasts forever.
Unique Features: Highest estate recognized by law.
How Terminated: Never terminated; perpetual.

Front 58

Fee Simple Determinable:

Back 58

How Created: rt. given by grantor.
Interest Owned: Estate in perpetuity, lasts forever.
Unique Features: Terminates automatically on occurrence of an event; otherwise lasts forever.
How Terminated: Occurrence or nonoccurrence of condition sometime in future, as set out in governing instrument.

Front 59

Fee Simple On Condition Subsequent:

Back 59

How Created: rt. given by a grantor.
Interest Owned: Estate in perpetuity, lasts forever.
Unique Features: Doesn’t terminate automatically; unless condition occurs, lasts forever.
How Terminated: Grantor elects to terminate due to occurrence of condition.

Front 60

Fee Simple Conditional (Fee Tail):

Back 60

How Created: rt. given by a grantor.
Interest Owned: Estate for duration of owner’s life.
Unique Features: Assures that lands stay w/in a family from generation to generation by passing to owner’s heirs.
How Terminated: Owner’s death.

Front 61

Life Estate:

Back 61

How Created: rt. given by a grantor.
Interest Owned: Estate w/ duration measured by life of another.
Unique Features: Measuring life can be either landholder or another party.
How Terminated: Measuring life ends

Front 62

Future Interests:

Back 62

An interest in property that is not presently possessory, but will come into possession sometime in the future

Front 63

Reversion (In Grantor):

Back 63

How Created: Automatically at end of transferred estate or by express reservation by grantor after transferring title
Interest Owned: Balance of estate left after grantor transfers less than she has
Unique Features: May or may not become possessory in future; freely alienable, devisable, & descendible
How Terminated: Interest does not become possessory if prior estate given by grantor does not end

Front 64

Possibility of Reverter (In Grantor):

Back 64

How Created: Occurrence of event terminating a fee simple
Interest Owned: Balance of estate in fee simple absolute, left after grantor originally transfers less than she has
Unique Features: Landlord has the rt. to elect either eviction or creation of new tenancy
How Terminated: If landlord chooses to evict, prior tenancy ends

Front 65

Right of Re-Entry (In Grantor):

Back 65

How Created: Occurrence of condition terminating a fee simple on condition subsequent
Interest Owned: Balance of estate in fee simple absolute, left after grantor originally transfers less than she has
Unique Features: Does not go to grantor automatically; grantor must elect to enforce interest
How Terminated: If condition occurs & landlord chooses to enforce interest, prior tenancy ends

Front 66

Executory Interest (In Grantee):

Back 66

How Created: Occurrence of condition as specified by grantor
Interest Owned: Balance of estate in fee simple absolute, left after grantor originally transfers less than she has
Unique Features:
-Springing Interest: Becomes possessory upon occurrence of a condition, if no present possessory estate exists in another transferee
-Shifting Interest: Becomes possessory after divesting a present possessory freehold
How Terminated: If condition occurs, prior tenancy ends unless property is currently possessed & interest is springing (and therefore cannot divest an existing possessor)

Front 67

Remainders (In Grantee):

Back 67

How Created: Occurrence of limitation (not a condition) terminating a prior possessory estate simultaneously created
Interest Owned: An interest limited by the existence of a currently possessory estate created at the same time
Unique Features:
-Vested Remainders: No subject to RAP, possessory rt. is certain
-Contingent Remainders: Subject to RAP, rt. to take is uncertain
How Terminated: Remainder interest may never become possessory if outstanding, presently possessory estate cont. to exist

Front 68

Vested Remainders:

Back 68

-Indefeasibly Vested: Born, ascertainable person
-Subject to Open/Partial Divestment: Class of persons, w/ at least 1 living member; interests divest in part as new class members are born; class closes when:
>Person who produces class members dies; or
>Rule of Convenience

Front 69

Rule of Convenience:

Back 69

When any class member is entitled to demand possession of entitled shares; no outstanding present possessory estates/conditions precedent for any class member

Front 70

Contingent Remainders:

Back 70

-Subject to Condition Precedent: Words condition a person’s rt. to take
-Unborn, unascertained persons

Front 71

Doctrine of Merger:

Back 71

Where A has life estate & next vested estate, they merge to form a fee simple

Front 72

Doctrine of Worthier Title:

Back 72

A will get a life estate & O had a reversion; O’s heirs get nothing unless O dies w/in A’s lifetime, at which point they get O’s reversion.

Front 73

Rule Against Perpetuities (RAP):

Back 73

No interest is good unless it must vest, if at all, no later than 21 yrs. (plus a period of gestation) after some life in being at interest creation.

Front 74

Fee Simple:

Back 74

"To A & His Heirs"
-Longest Possessory Estate
-No Inherent Termination
-Alienable, devisable, & inheritable
-Words of Purchase: “To A”
-Words of Limitation: “and his heirs”

Front 75

Fee Simple Definition:

Back 75

An estate in land that represents total ownership, except that it is capable of being defeated upon the occurrence or nonoccurrence of a specified condition.

Front 76

Fee Tail Definition:

Back 76

An estate in land created by conveyance.

Front 77

Fee Tail:

Back 77

"To A & The Heirs of Her Body"
-Potentially limited duration based on lineage.
-Several inherent limitations.
-Not alienable, or devisable upon death of the entailed party.
-Words of Purchase: “To A”
-Words of Limitation: “and the Heirs of Her Body”

Front 78

Life Estate Definition:

Back 78

An interest in land measured by the life of the tenant or 3rd party

Front 79

Life Estate:

Back 79

"To A For Life"
-Most commonly related to feudal tenures.
-Limited Possessory Estate.
-Definite Termination.
-Alienable during the life of the measuring life.
-Words of Purchase: “To A”
-Words of Limitation: “For Life”

Front 80

Alienation:

Back 80

Conveyance or transfer of property

Front 81

Intestacy:

Back 81

To die w/o leaving a valid testamentary instrument

Front 82

Quitclaim:

Back 82

A deed whereby the grantor conveys w/e interest he or she may have in the property w/o any warranties or covenants as to title

Front 83

Testatrix:

Back 83

A woman who dies having drafted & executed a will

Front 84

Contingent Remainderman:

Back 84

One who has an interest in property to commence upon the termination of a present possessory interest & subject to a condition precedent

Front 85

Remainder Beneficiary:

Back 85

A person who is to receive property that is held in trust after the termination of a preceding income interest

Front 86

Determinable:

Back 86

-Required Language: “so long as” “during” “while” “until”
-Possibility of Reverter
-Automatic Termination
-Reverts to Grantor

Front 87

Subject to Condition Subsequent:

Back 87

-Required Language: “on condition that” “provided that” “but if”
-Cuts short the current estate
-Right of Reentry
-Power to Terminate
-Required Action on part of Grantor

Front 88

Subject to Executory Limitation:

Back 88

-Required Language: “so long as” “during” “while” “until” “on condition that” “provided that” “but if”
-Cuts short the current estate
-Automatic Termination
-Shifts to a 3rd Party

Front 89

Determinable Fee:

Back 89

An interest in property that may last forever or until the happening of a specified event

Front 90

Fee Simple Defeasible Estate:

Back 90

A fee simple interest in land that is subject to being terminated upon the happening of a future event

Front 91

Fee Simple Subject to a Condition Subsequent:

Back 91

An estate in land that represents total ownership, except that it is capable of being defeated upon the occurrence or nonoccurrence of a specified condition

Front 92

Reversionary Interest:

Back 92

An interest retained by a grantor of property in land transferred, which is created when the owner conveys less of an interest than he or she owns & which returns to the grantor upon the termination of the conveyed estate

Front 93

Right of Re-Entry:

Back 93

An interest in property reserved in the conveyance of a fee that gives the holder the right to resume possession of property upon the happening of a condition subsequent

Front 94

Habendum Clause:

Back 94

A clause contained in a deed that specifies the parties to the transaction & defines the interest in land to be conveyed

Front 95

Restraint Against Alienation:

Back 95

A provision restricting the transferee's ability to convey interests in the conveyed property

Front 96

Restrictive Condition:

Back 96

A promise contained in a deed to limit the uses to which the property will be made

Front 97

Use Restriction:

Back 97

A restriction on the right to utilize one's personal or real property

Front 98

Eminent Domain:

Back 98

The governmental power to take private property for public use so long as just compensation

Front 99

Reverter:

Back 99

A reversionary interest referring to an interest in land that remains in the grantor until the happening of a condition precedent

Front 100

Reversion Elements:

Back 100

-The residue of an estate left in the grantor
-Commences in possession after some estate granted out by him is extinguished
-Inheritable
-Devisable
-Alienable

Front 101

Possibility of Reverter Elements:

Back 101

-The residual estate left in the grantor after the creation of a fee simple determinable
-Upon breach, automatically cuts short the prior estate
-At common law - inalienable inter vivos; devisable, & inheritable
-Exists only in the grantor or her heirs
-Cannot exist in a transferee
-Modern law, freely alienable

Front 102

Right of Re-Entry Elements:

Back 102

-The residual estate left in the grantor after the creation of a fee simple subject to a condition subsequent
-Empowers grantor w/ the rt. to terminate the grantee’s possessory estate
-At common law - inalienable inter vivos; devisable & inheritable
-Exists only in the grantor or her heirs
-Cannot exist in a transferee
-Required grantor to make actual entry on the land
-Modern law, freely alienable by statute
-Action for ejectment now sufficient to terminate prior possessory estate

Front 103

Vested Remainders:

Back 103

Future interest limited to a person in existence & ascertained at the time the interest is created who is given the rt. to immediate possession whenever & however the preceding estate or estates terminate b/c the interest is not subject to a condition precedent.

Front 104

Vested Remainder Elements:

Back 104

-Born
-Ascertained
-NO Condition Precedent

Front 105

Contingent Remainders:

Back 105

Future interest limited to a person not in existence or unascertained at the time the interest is created who is given the rt. to immediate possession whenever & however the preceding estate or estates terminate b/c the interest is subject to a condition precedent.

Front 106

Contingent Remainder Elements:

Back 106

-Unborn
-Unascertained
-Condition Precedent