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33 Cards in this Set
- Front
- Back
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Fees |
• fee simple absolute : is an estate in which the owner holds its interests for an undivided and unlimited time -- 100%
• Fee simple Defeasible: a fee where the use of the land is subject to restriction. Types: 1. Fee simple determinable: is an estate which arises where the conveying instrument first creates a fee simple, but instead of making it absolute, includes a condition or limitation that would terminate the fee simple when the event in question occurs. * words: - while - during - until - for so long as NOTE : grantor has a possibility of reverter if the event happens.
2. Fee simple subject to a condition subsequent: is an estate which arises when the transferring instrument has created a fee simple but also includes a condition that either the transferor (or its successors) or a third party will have a right to enter or a power to terminate the fee when the stated condition occurs. * words: - provided - however - but if - on condition that - if however Note: grantor has a right of re-entry
Possibility of Reverter: created when a grantor transfers an estate of the same duration as his original estate, but attaches to the grant a special limitation which, when and if it occurs, will operate automatically to return the property to the grantor.
Right of re-entry: A future interest retained by a grantor after conveying an estate subject to a condition subsequent by providing in the instrument that upon the occurrence of a stated event the grantee's estate will terminate only if the grantor exercises the right to retake it. |
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Life Estate |
Life estate is an estate in land designed to last for the life of the person. - if the person whose life is designed to be the measuring standard is someone other than the life tenant, the estate is referred to as a life estate pur autre vie. Created : when a grantor transfers to another party an estate that terminates at the death of the grantee.
Type of estate: for life, other than in the original grantor.
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Remainder: |
(1) it must be a future interest created in someone other than the original grantor. (2) if it ever becomes a present estate, it must do so upon the natural expiration of all of the previous estates of limited duration which were created at the same time as the remainder interest.
* If it is cut short it is an executory interest
Natural Expiration: the death of the individual possessing a life estate or a condition= constitutes the natural expiration of the life estate.
Four Classifications: (1) absolutely vested remainders (2) vested remainders (3) contingent remainders (4) vested remainders subject to open. |
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Absolutely vested remainders |
(No conditions) First, there must be no condition precedent to the remainders becoming a present possessory estate. Second, it must always be theoretically possible to determine those parties who will get possession of the remainder should the prior possessory estates end. |
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Absolutely vested remainders |
(No conditions) First, there must be no condition precedent to the remainders becoming a present possessory estate. Second, it must always be theoretically possible to determine those parties who will get possession of the remainder should the prior possessory estates end. |
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Vested remainder subject to defeasance |
(Divestment; based on a condition) A remainder is vested in A, when throughout its continuance, A, or A and his heirs, have the right to immediate possession, whenever and however the proceeding freehold estates may determine |
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Absolutely vested remainders |
(No conditions) First, there must be no condition precedent to the remainders becoming a present possessory estate. Second, it must always be theoretically possible to determine those parties who will get possession of the remainder should the prior possessory estates end. |
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Vested remainder subject to defeasance |
(Divestment; based on a condition) A vested remainder that will be destroyed if a condition subsequent occurs. |
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Contingent remainders |
(Subject to a condition precedent) A remainder is contingent if, in order for it to come into possession, the fulfillment of some condition precedent is necessary. Ex: a remainder to unborn or unascertained people is always contingent.
- the condition has to occur before the party has the right to take the property. Ex: unborn persons |
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Vested remainders subject to open |
(Partial divestment; class gifts) A remainder to a class such as children, grandchildren, or siblings. If a remainder is vested in a class, but additional people may later qualify for membership of that class, the remainder is considered vested subject to open to allow additional people to join. |
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Executory interests |
future interests created in someone other than the original grantor (a person or other entity giving the property)
• different from remainders in that they do not await the natural expiration of all prior estates. Instead, executors interests rudely cut short or divest either a vested present or future estate created in another transferee, or present estate in the original grantor and his successors. |
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Springing executory interest |
Follows a gap in possession or divests the estate of the transferor- transferee to transferor to new transferee. |
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Springing executory interest |
Follows a gap in possession or divests the estate of the transferor- transferee to transferor to new transferee. |
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Shifting Interest |
Divests the interest of another transferee to someone else. |
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Springing executory interest |
Follows a gap in possession or divests the estate of the transferor- transferee to transferor to new transferee. |
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Shifting Interest |
Divests the interest of another transferee to someone else. |
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RAP |
" No interest shall vest, if at all, no later than 21 years after some life in being at the creation of the interest". |
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Springing executory interest |
Follows a gap in possession or divests the estate of the transferor- transferee to transferor to new transferee. |
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Shifting Interest |
Divests the interest of another transferee to someone else. |
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RAP |
" No interest shall vest, if at all, no later than 21 years after some life in being at the creation of the interest". |
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Wait and see doctrine |
Validity of interests judged by actual events as they happen, and not by possible events that might happen. Wait and see what actually happens instead of determining at time interest was created. |
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Springing executory interest |
Grantor to grantee |
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Shifting Interest |
Grantee to grantee |
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RAP |
" No interest shall vest, if at all, no later than 21 years after some life in being at the creation of the interest".
Applies to:
Executory interest Contingent remainder ... |
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Wait and see doctrine |
Let time expire between death and 21 years after the lives in being passed away. of interests judged by actual events as they happen, and not by possible events that might happen. Wait and see what actually happens instead of determining at time interest was created. |
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Cy Pres Doctrine |
Invalid interest is reformed, within the limits of the rule, approximate most closely intention of the creator of the interests. |
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USRAP |
USRAP: is a nonvested property interest which is invalid unless when the interest is created, it is certain to Vest or terminate no later than 21 after the death of an individual then alive; or the interest Either vests or terminates within 90 years after its creation.
Only applies to donative contingent interests. ---> a non-vested donative interest is one in which consideration was not paid in return.
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Estate |
An interest in land which carries with it a present right to exclusive possession |
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Possession |
Exercise of dominion and control -- the right to exclude others |
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Difference between present estate and interest |
An estate is when your right to possess has come about, as opposed to an interest that may be in the future |
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Freehold estates |
• fee tail • fee simple absolute • fee simple determinable • fee simple subject to condition subsequent • life estate |
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Freehold estates |
• fee tail • fee simple absolute • fee simple determinable • fee simple subject to condition subsequent • life estate |
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Non-freehold Estates |
(Leases) • estate for years • periodic tenancy • tenancy at will • tenancy at sufferance |
