Property11

Front 1

Fee Tail

Back 1

limits inheritance to lineal descendants of the grantee

Mostly abolished in the US and attempt to create fee tail creates fee simple

Front 2

Life Estate

Back 2

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

Front 3

How can a life estate be created?

Back 3

Creation can be expressed or implicit

Front 4

What are the duties and powers of the life tenant?

Back 4

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

Front 5

What is waste?

Back 5

permanent injury to the land which impairs value of the land or the future interest

Front 6

Two types of waste

Back 6

1) Permissive waste

2) Commissive waste

Front 7

Permissive waste

Back 7

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

Front 8

Commissive Waste

Back 8

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

Front 9

Can a life estate be defeasible?

Back 9

yes

Front 10

determinable life estate

Back 10

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

Front 11

What determines if a life estate can terminate automatically on the occurance of a condition/limitation?

Back 11

the intent of the transferor

Front 12

Future interests of a life estate

Back 12

1) Reversion - in transferor (no possibility of reverter)
2) Remainder - in third party
3) Executory interest - in third party

Front 13

Life estate subject to condition subsequent

Back 13

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

Front 14

Future Interests of Life Estate subject to condition subsequent

Back 14

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

Front 15

When does a life estate subject to condition subsequent terminate?

Back 15

when the owner of the future interest exercises the power or right of termination

Front 16

How is a life estate subject to condition subsequent created?

Back 16

whether it is created is dependant on the intent of the transferor
words such as provided, however, but if, on condition that, if however

Front 17

future interest

Back 17

a non possessory interest capable of becoming possessory in the future

Front 18

Types of interests

Back 18

1) Reversion
2) Possibility of reverter
3) Right of entry
4) Remainder
5) executory interest

Front 19

Reversionary Interests

Back 19

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)

Front 20

Reversion

Back 20

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

Front 21

Example of Reverter

Back 21

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.

Front 22

When does a Reversion occur?

Back 22

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

Front 23

Are Reversions alienable?

Back 23

yes

Front 24

Is a Reversion subject to the rule against perpetuities?

Back 24

no

Front 25

Possibility of Reverter

Back 25

a future interest in the transferor which might become possessory estate upon the automatic termination of a fee simple determinable

Front 26

How is a possibility of Reverter created?

Back 26

by a fee simple determinable. It arises by operation of law when transferee receives estate subject to a special limitation

Front 27

How is the possibility of reverter different from a reversion?

Back 27

It is different because it is contingent (not certain to become possessory) and deals with whole estate, not "lesser" part

Front 28

Is the possibility of a Reverter subject to the rule against perpetuities?

Back 28

no

Front 29

What if the purpose of the reverter becomes impossible or nominal because of changed circumstances?

Back 29

the possibility of reverter is extinguished

Front 30

Is the possibility of a reverter alienable?

Back 30

at common law it is not
today it is

Front 31

power of termination/right of re-entry

Back 31

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

Front 32

How is the power of termination/right of re-entry created?

Back 32

MUST:
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

Front 33

Is power of termination/right of re-entry subject to the Rule Against Perpetuities?

Back 33

No

Some states have statutes limiting duration to 30 yrs

Front 34

Is the power of termination/right of re-entry Alienable?

Back 34

yes, by inter vivos transfer in some jurisdictions

not alienable in common law

always alienable when inciden to a reversion

Front 35

Is th power of termination/right of re-entry inheritable?

Back 35

yes

Front 36

Non-Reversionary Interests

Back 36

created in persons other than the transferor or his successors (remainders, executory interests)

Front 37

Remainder

Back 37

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

Front 38

Remainders always follow life estates
Example

Back 38

“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.

Front 39

Requirements of Remainders

Back 39

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)

Front 40

Can a Remainder follow a fee simple?

Back 40

no

Front 41

Is a vested Remainder subject to the Rule against perpetuities?

Back 41

no

Front 42

Is a contingent Remainder subject to the rule against perpetuities?

Back 42

yes

Front 43

Why is the classification of a vested remainder or contingent remainder important?

Back 43

1) doctrine of worthier title
2) rule against perpetuities

Front 44

vested remainder

Back 44

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

Front 45

2 Elements for Vested Remainders

Back 45

1) no conditions precedent

2) Person holding it has been bornd and his identity is ascertained

Front 46

3Types of Vested Remainders

Back 46

1) Remainders indefeasibly vested
2) Remainders vested subject to open
3) remainders vested subject to complete defeasance

Front 47

Remainder indefeasibly vested

Back 47

is one which is certain to become possessory

Front 48

remainder subject to open

Back 48

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

Front 49

Example of remainder subject to open

Back 49

“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.