Future Interests

Front 1

How can property be transferred (alienated)

Back 1

1. sale; 2. gift; 3. devise (will); 4. intestate succession

Front 2

What are the 2 types of ownership interests?

Back 2

Present interest and future interest

Front 3

What is a freehold

Back 3

estate that 1. immobile (either land or some interest derived from or affixed to land) and 2. for an indeterminate duration (as opposed to a leasehold)

Front 4

What are the present interests

Back 4

1. Fee simple absolute

2. Defeasible fees (possibility of reverter; subject to condition subsequent; subject to executory interest)

3. Life estates

Front 5

What is the default estate and why?

Back 5

fee simple because one assumed that the grantor conveys the most that he or she has.

Front 6

What is a fee simple absolute

Back 6

Absolute ownership of potentially infinite duration.

1. Free alienable

2. has no accompanying future interest

Ex: Conveys to B (or to B and his heirs)

Front 7

How does a fee simple terminate?

Back 7

It doesn't unless owner dies intestate without heirs - then it escheats to the state

Front 8

What are the types of Fee Simple Estates

Back 8

ADES

1. Absolute

2. Determinable

3. Subject to Executory Interest

4. Subject to a condition subsequent

Front 9

What is a defeasible fee

Back 9

Ownership of a life estate of potentially infinite duration but may be terminated by the occurrence of an event.

a present fee simple estate that is limited in duration by X,Y,Z

Front 10

What is a fee simple determinable

Back 10

A present fee simple estate that is limited by specific Durational Language

WUDS

While

Until

During

So long As

Keep the WUDS on the DL

Front 11

What future interest is associated with a fee simple determinable

Back 11

Possibility of Reverter

Front 12

What is a possibility of reverter

Back 12

Future interest held by the Grantor following a Fee Simple Determinable.

Interest vests AUTOMATICALLY after durational period end.

-freely alienable

Ex: Conveys B to X, so long as the land is used a public park.

Front 13

What is a fee simple subject to condition

Back 13

A PRESENT fee simple that is limited in duration by specific Conditional language

BOP

- But if

-On condition that

-Provided that

Front 14

What future interest is associated with a condition subsequent

Back 14

Right of reentry

Front 15

What is a right of reentry

Back 15

A future interest that is conditioned on the happening of a future event, which if happens, gives the grantor, his heirs, or assigns, a future interest, called a right of renentry

- Only terminates oif grantor affirmatively demonstrates intent to terminate.

Front 16

What are the differences between fee simple determinable vs subject to condition subsequent

Back 16

1. Durational vs Conditional Language

2. Determinable estate terminates AUTOMATICALLY. Condition subsequent requires the grantor to exercise his power.

If ambiguous, courts will attempt to construe it as a condition subsequent

Front 17

What is a fee simple subject to executory interest (limitation)

Back 17

Present fee simple estate that is limited in duration by either

-conditional language OR

-Durational language,

such that it will terminate upon the occurrence of the specified condition, and

-TITLE will pass to a THIRD PARTY

- present fee simple Terminates AUTOMATICALLY

Front 18

What is a life estate

Back 18

a present possessory estate that is limted in duration by a life of a human being

- subject to RAP

Front 19

What is divest

Back 19

To cut short/terminate a prior interest

Front 20

Is a life estate transferrable

Back 20

Yes, including leasing, selling, or morgaging or granting easements. BC terminates with persons life, can't pass property by will or intestate succession of said person

Front 21

What future interests are associated with a life estate?

Back 21

If it goes back to the grantor, a reversion

If it goes to a third party, a remainder

Front 22

Who is responsible for the mortgage?

Back 22

Life tenant: interest of mortgage

Remainderman: mortgage itself

Front 23

What is waste

Back 23

CoA to protect the interests of another who is in privity of estate in the same land.

Affirmative

Permissive

Ameliorative

Front 24

What is the remedy for waste

Back 24

Damages for past waste

Injunction to prevent future waste

Front 25

Who can assert a waste claim?

Back 25

A mortgagee or a concurrent tenant to protect its future interest

Remainderman or grantor with reversionary interest may enter upon the land to inspect for waste and seek an injunction o prevent waste.

Front 26

What is a affirmative waste

Back 26

Waste caused by voluntary conduct which causes a DECREASE in value

Front 27

What is a permissive waste

Back 27

Waste caused by NEGLECT which cause a DECREASE in value

Front 28

What is ameliorative waste

Back 28

Changes to the property that actually INCREASE the property's value.

Front 29

How do you spot a waste problem

Back 29

1. multiple parties with simultaneous interests

2. change in the value of the property b/c of action/inaction of party in possession

3. Will waste substantailly change interst taken by the party out of possession

Front 30

Where does the doctrine of waste apply?

Back 30

Landlord/tenant

Co-tenant out of possessions vs. tenant in possession

mortgagee (bank/lender) vs Mortgagor(borrower)

Front 31

Vested vs Contingent

Back 31

To be vested:

1. Ascertainable grantee AND

2. Not subject to a condition precedent (condition hat has to be satisfied for the interest to vest; eg. To a for life, then to B if B survives A)

-Vested remainders can be left by will

Front 32

What are the two types of executory interests?

Back 32

1. Springing Executory Interest (divests grantor)

2. Shifting Exec. Int. (divests grantee)

Front 33

Who is a remainderman

Back 33

When possession goes to a third party after the life estate ends.

CANNOT follow a vested fee simple

Front 34

What is a vested subject to open

Back 34

1. Vested remainder is a class gift

2. full class membership is unknown

3. at least one person in the class must be vested

- subject to RAP

Front 35

What is the rule of convenience

Back 35

Closes the class when any member of the class becomes entitled to immediate possession of the property

Ex: O conveys to A for life, then to Ben's children" Ben has one child, when will the class close? When A dies

Front 36

What is the doctrine of Worthier Title

Back 36

Prevents against remainder in Grantor's heirs and

2. creates a presumption in a reversion to the grantor

Front 37

What is Shelley's Case

Back 37

Prevents against remainders in Grantee's heirs

and

2. uses Doctrine of Merger to create a fee simple

Front 38

What is an interest held by a third party that follows a fee?

Back 38

Executory interest

Remainders NEVER follow fees

Front 39

RAP

Back 39

Future interests are valid only if they must vest or fail by the

end of a life in being,

plus 21 years

Front 40

When to see if RAP applies

Back 40

1. Contingent remainders

2. Executory interests

3. Vested remainders subject to open

Front 41

When, what, who (RAP)

Back 41

1. When are interests created:

a. intervivos- time of grant

b. by will- at time of testators death

2.

Front 42

Validating life

Back 42

Person who tells us whether or not the interest vests within the perpetutities period (lifetime plus 21 years)

-must be alive at time of conveyance

-if no validating life, interest is no good and we strike it.

Front 43

RAP violations

Back 43

Strike out the violating interest as if the interest was never created in the first place

Front 44

RAP and class gifts

Back 44

All or nothing: if the gift to any member of the class is void under RAP, then it's void to the entire class.

Front 45

Exceptions to class gift rule

Back 45

1. See rule of convenience above

2. Transfers of a specific dollar amount to each class member

3. transfers to a subclass that vest at a specific time