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53 Cards in this Set

  • Front
  • Back
What are the four categories of freehold estates?
(1) fee simple absolute
(2) fee tail
(3) defeasible fees
(4) life estate
What language is used to create a fee simple absolute?
"To A" or "To A and his heirs"
Is the fee simple absolute freely divisable, descendible, or alienable?
Yes to all three.
How long does the fee simple absolte last for?
Infinite duration.
Are there any accompanying future interests to the fee simple absolute?
No. A living person has no heirs.
What language is used to create a fee tail?
"To A and the heirs of his body."
Fee tails are virtually abolished in the US today. Thus, what happens when one tries to create a fee tail?
A fee simple absolute is created.
What are the two accompanying future interests in the fee tail?
In O, a reversion.

In 3d party, a remainder.
What language is used to create a fee simple determinable?
"To A for so long as..."

"To A during...."

"To A until..."
Is the fee simple determinable divisable, desendible, or alienable?
Yes, BUT always subject to a condition.
Can it pass by will?
Will it pass by the statutes of intestacy?
Transferable during O's lifetime?
Is there any accompanying future interest in the fee simple determinable?

possibility of reverter in O

Fee Simple Determinable w/ Possibility of Reverter (Frank Sinatra Does Not Prefer Orville Redenbacher)
What language is used to create a fee simple subject to condition subsequent?

What MUST O do?
"To A, but if X even occurs, O reserves the right to reenter and retake."

MUST use clear durational language

MUST careve out the right to reenter for O to keep power of reentry or termination.
In a fee simple subject to condition subsequent, is the estate automatically terminated when the condition occurs? What CAN happen?
No. BUT it can be cut short at O's option if the condition occurs.
Is there an accompanying future interest to the feel simple subject to condition subsequent?
Yes. Right of reentry/power of termination.
What language is used to create a fee simple subject to executory limitation?
"To A, but if X event occurs, then to B."
In a fee simple subject to executory limitation, what happens when the condition is broken?
The estate is automatically forgeigted in favor of someone other than O.
Is there an accompanying future interest to a fee simple subject to executory limitation?
Yes: shifting executory interest.
Do words of desire, hope, or intention create a defeasible fee?
No: clear durational language MUST be used.
What's the deal with absolute restraints on alientation in the context of defeasible fees?
An absolute ban on power to seel or transfer that's not linked to any reasonable time-limited purpose is VOID.
What language is used to create a life estate?
"To A for life."

Must measure in lifetime terms, NOT terms of years.
What the hell is a life estate pur autre vie?
Measure the life by a life other than O's. Ex: "To Joe for the life of Becca."
Can a life tenant commit waste? He IS the life tenant, after all.
Life tenant is entitled to all ordinary uses and profts from the land.

Life tenant must NOT commit waste; cannot hurt future interest holders.
Voluntary or Affirmative Waste
actual ownder conduct that causes decrease in value; willful acts of destructiveness
A life tenant may not consume or exploit resources on the property unless one of four exceptions occurs.

What are these four exceptions?

(1) Prior use (prior to grant, land used for exploitation)

(2) reasonable repairs

(3) grant (if granted the right)

(4) exploitation (the land is ONLY suitable for exploitation)
Permissive Waste or Neglect
land allowed to fall into disprepair
Ameliorative Waste
can't engage in acts to enhance property value UNLESS all the future interest holder are known and consent
Is there an accompanying future interest to the life estate?
Yes: reversion in O or remainder in 3d party
Future interest created in O that is capable of becoming possessory upon expiration of prior possessory estate created in the same conveyance in which the remainder is created
Does a remainder ever follow a defeasible fee?
Vested Remainder
if it is BOTH created in an acertained person AND not subject to a condition precedent
Congingent Remainder
If it is created in an unacertained person OR subject to condition precedent OR both
What happens if a condition for a contigent remainder is satisfied?
it is automatically transformed into an indefeasibly vested remainder
The Rule of Destructibility of Congingent Remainders: Common Law
destroyed if it was still contingent at the time the estate ended; would be destoyed and O or O's heirs would take in fee simple absolute
The Rule of Destrctibility of Contingent Remainders: Today
O or O's heirs hold the estate subject to a springing executory interest; when the condition occurs, the grantee takes
When does the Rule in Shelley's Case apply?
O conveys "To A for life, then to A's heirs." A is alive
The Rule of Shelley's Case: Historically
present and future interest merge, giving A fee simple absolute, even if this was contrary to O's intent (rule of law, not of construction)
The Rule of Shelley's Case: Today
A has a life estate; A's unknown heirs have congingent remainder; O has reversion since A would die w/o heirs
Indefeasibly Vested Remainder
holder is certain to acquire an estate in the future with no conditions attached
Vested Remainder Subject to Complete Defeasance
remainderman exists and is NOT subject to condition precedent, BUT his right could be cut short by condition subsequent

when conditional langauge follows language that, taken alone and set of by commas, would create a vested remainder, the condition is subsequent

ex: "To A for life, reaminder to B, provided, however, that if B dies under the age of 25, to C."
What happens when conditional language appears BEFORE language creating a remainder?
There is a condition precedent, so there is a contingent remainder
Vested Remainder Subject to Open
remainder vested in a group, at least one of whom is qualified to take possession
Open Class
if it's possible for others to enter
Closed Class
maximum membership has been met so that people after are shut out
Rule of Convenience (re: class membership)
Class closes when any member can demant possession

Exception: womb rule (period of gestation)
Executory Interest
future interest created in transferee (3d party), which is not a remainder and which takes effect either by cutting short (shifting) or in the grantor's heirs (springing)
Shifting Executory Interest
ALWAYS follows defeasible fee and cuts short someone other than O
Rule Against Perpetuities (RAP)
void if there is any possibility (however remote) that the interest may vest more than 21 years after the death of a measuring life
Measuring Life
the relevant life at the time of conveyance
Which future interests do RAP apply to?
congintient remainders

executory interests

vested remainders subject to open
Which future interests do RAP NOT apply to?
future interest created in O

indefeasibly vested remainders

vested remainders subject to complete defeasance