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49 Cards in this Set

  • Front
  • Back
Fee Tail
limits inheritance to lineal descendants of the grantee

Mostly abolished in the US and attempt to create fee tail creates fee simple
Life Estate
an estate designed to last for the life of a person. If the person whose life is desigend to be the measuring standard is someone other than the life tenant, the estate if referred to as a life estate pur autre vie
How can a life estate be created?
Creation can be expressed or implicit
What are the duties and powers of the life tenant?
1) Must not commit waste
2) duty to make reasonable repairs
3) duty to pay all property taxes
4) duty to pay mortgage interest
5) no duty to pay principal on mortgage
6) tenant has a right to convey his portion of the estate
7) tenant has no duty to insure premises
What is waste?
permanent injury to the land which impairs value of the land or the future interest
Two types of waste
1) Permissive waste

2) Commissive waste
Permissive waste
occurs whent the life tenant fails to preserve and protect property by exercising the ordinary carae of a prudent person
1) tenatn has duty to maintain property in reasonble manner by making repairs, paying taxes
2) tenant not required to spend more than he receives from property
Commissive Waste
occurs when the life tenant damages property is permanently reduced
1) ok if justified as a reasonable exercise of the life tenant's right of enjoyment
2) drastic changes need remainderman's consent
Can a life estate be defeasible?
determinable life estate
a life estate created by an instrument thata also contains a limitation that might automatically terminate the life estate owner's interest in the property prior to the death of the measuring life
What determines if a life estate can terminate automatically on the occurance of a condition/limitation?
the intent of the transferor
Future interests of a life estate
1) Reversion - in transferor (no possibility of reverter)
2) Remainder - in third party
3) Executory interest - in third party
Life estate subject to condition subsequent
arises when the transferring instrument creates a life estate but the ownership of that life estate might not last for the life of the measuring life
Future Interests of Life Estate subject to condition subsequent
1) power of terminataion or right of re-entry - in grantor
2) executory interests with the power of termination or right of re-entry - in third paraty that has been granted by pwoer of terminaation or right of re-entry
3) Reversion after natural termination - in transferor
4) Remainder upon natural termination - in third party
When does a life estate subject to condition subsequent terminate?
when the owner of the future interest exercises the power or right of termination
How is a life estate subject to condition subsequent created?
whether it is created is dependant on the intent of the transferor
words such as provided, however, but if, on condition that, if however
future interest
a non possessory interest capable of becoming possessory in the future
Types of interests
1) Reversion
2) Possibility of reverter
3) Right of entry
4) Remainder
5) executory interest
Reversionary Interests
result when the owner of a present estate transfers some but not all of the interest he owns (basic models = reversion, possibility of reverter, power of termination)
a future interest in the transferor that is created when the transferor conveys less than its entire interest and what it keeps is not a right of re-entry or a possibility of reverter and the transferring intstrument does not identify another party who will be the next estate taker when the present estate created by the transferring document terminates
Example of Reverter
O, owning land in fee simple, conveys it “to B for life, and on B’s death to C if C survives B.” B has a life estate, C has a contingent remainder, and O has a reversion that will take in present possession at B’s death if C predeceases B.
When does a Reversion occur?
1) When grantor conveys a lesser estate than what he originally had
2) right to possession occurs automatically (no need for entry)
3) Vesting - All reversions = vested interests. It is not necessary that it is certain to become possessory, only necessaray that there be a possibility of the interest becoming possessory
Are Reversions alienable?
Is a Reversion subject to the rule against perpetuities?
Possibility of Reverter
a future interest in the transferor which might become possessory estate upon the automatic termination of a fee simple determinable
How is a possibility of Reverter created?
by a fee simple determinable. It arises by operation of law when transferee receives estate subject to a special limitation
How is the possibility of reverter different from a reversion?
It is different because it is contingent (not certain to become possessory) and deals with whole estate, not "lesser" part
Is the possibility of a Reverter subject to the rule against perpetuities?
What if the purpose of the reverter becomes impossible or nominal because of changed circumstances?
the possibility of reverter is extinguished
Is the possibility of a reverter alienable?
at common law it is not
today it is
power of termination/right of re-entry
created when the transferor transfers a fee simple subject to a condition subsequent or a life estate subject to a condition subsequent and retains for itself and its successors in the instrument the power to terminate the estate created by the instrument
How is the power of termination/right of re-entry created?
1) Fee simple subject to a condition subsequent
2) Need an express provision becauase courts are likely to hold that words of condition alone create a covenant, easement
3) words used: re-enter, terminate lease, forfeit leasae
Is power of termination/right of re-entry subject to the Rule Against Perpetuities?

Some states have statutes limiting duration to 30 yrs
Is the power of termination/right of re-entry Alienable?
yes, by inter vivos transfer in some jurisdictions

not alienable in common law

always alienable when inciden to a reversion
Is th power of termination/right of re-entry inheritable?
Non-Reversionary Interests
created in persons other than the transferor or his successors (remainders, executory interests)
a future interest in someone other than the original transferor which, if it ever becomes a present estate, will become a present estate only after the natural termination of all previous estates that are both of a limited duration and were created at the same time as the remainder interest
Remainders always follow life estates
“To A for life, and on A’s death to B and his heirs.” A has a present possessory life estate. B has a reminder in fee simple.
Requirements of Remainders
1) grantor must convey present possessory estate ot one transferee
2) Grantor must create a non-possessory estate in another transferee, by the same instrument
3) non-possessory estate must be capable of becoming possessory only on the natural expiraton of prior estate (can't divest preceding estate prior to normal expiration)
Can a Remainder follow a fee simple?
Is a vested Remainder subject to the Rule against perpetuities?
Is a contingent Remainder subject to the rule against perpetuities?
Why is the classification of a vested remainder or contingent remainder important?
1) doctrine of worthier title
2) rule against perpetuities
vested remainder
a remainder that is certain to become possessory upon the natural termination of all prior estates of limited duration. There are no conditons precedent to the remainders becoming possessory. It must also be at least theoretically possibly to determine those parties who are to receive possession upon the prior estates terminating
2 Elements for Vested Remainders
1) no conditions precedent

2) Person holding it has been bornd and his identity is ascertained
3Types of Vested Remainders
1) Remainders indefeasibly vested
2) Remainders vested subject to open
3) remainders vested subject to complete defeasance
Remainder indefeasibly vested
is one which is certain to become possessory
remainder subject to open
sometimes referred to as a class gift

a vested remainder to a group for which others may qualify for membership after the transferring document becomes effective. This is also referred to as a vested remainder subject to partial divestment
Example of remainder subject to open
“To A for life, then to A’s sons.” A has one son. The son has a vested remainder subject to open, because A can have more sons.