Real Property

Front 1

Fee Simple Absolute

Back 1

"To A and his heirs."
"To A"

An ownership, of potentially infinite duration.

Devisable, descendible, alienable

No future interest

Front 2

Fee Tail

Back 2

"To A and the heirs of his body"

Lasts only as long as there are lineal blood descendents of grantee

Passes automatically to grantee's lineal descendants

Reversion (if held by grantor); Remainder (if held by third party).

Front 3

Defeasible Fees:

A. Fee simple determinable

Back 3

"To A so long as..."
"To A until..."
"To A While..."

(language providing that upon the happening of a stated event, the land is to revert to the grantor)

Potentially infinite, so long as an event does not occur.

Front 4

Defeasible Fees:

B. Fee Simple subject to condition subsequent

Back 4

"To A. but if X event happens, grantor reserves the right to reenter and retake."

Grantor must carve out right of reenttry.

Potentially infinite, so long as the condition is not breached and, thereafter, until the horlder of the right of entry timely exercises the power of termination.

Alienable, devisable, descendible, subject to condition.

Future Interest: Right of Entry/Power of Termination (held by grantor).

Front 5

Defeasible Fees:

C. Fee Simple subject to an executor limitation

Back 5

"To A, but if Z event occurs, then to B."

Potentially infinite, so long as stated contingency does not occur.

Alienable, devisable, descendible, subject to condition.

Future Interest: Executory Interest (held by third Party

Front 6

Life Estate

Back 6

"To A for Life."
To A for the life of B"

Measured by life of transferee or by some other life (pur autre vie)

Alienable, devisable, and descendible if pur autre vie and measuring life is still alive.

Future Interest: Reversion (if held by grantor); Remainder (if held by third party).

Front 7

4 Categories of Freehold esates

Back 7

1. Fee Simple Absolute;
2. Fee Tail
3. Defeasible Fees (of which there are three species); and
4. The Life Estate

Front 8

Must know three things regarding present estates.

Back 8

1. What language will create the estate?

2. Once identified, what are the estate's distinguishing characteristics?

In other words, is the estate devisable, meaning, can it pass by will?

Is it descendible, meaning, will it pass by the statutes of intestacy if its holder dies intestate (without a will)?

Is the estate alienable, meaning, is it transferable inter vivos, or during the holder's lifetime.

3. Which future interests, if any, is the estate capable of?

Front 9

Fee Simple Absolute

Back 9

This is absolute owership of duration. It is freely, devisible, descendible, and alienable.

Front 10

A living person has

Back 10

No heirs

Front 11

The Fee Tail

Back 11

virtually abolished in the us. Historically, the fee tail would pass directly to: grantee's lineal blood descendants no matter what.

Front 12

Today, the attempted creation of a fee tail creates

Back 12

fee simple absolute

Front 13

Fee Tail's accompanying future interests

Back 13

In O, the grantor, it was called reversion

In a third party (someone other than O), it was called remainder.

Front 14

The Defeasible Fees: 3 Types

Fee Simple Determinable:
what kind of language must the grantor use?

Back 14

Grantor must use clear durational language.

If the stated condition is violated, forfeiture is automatic.

Front 15

Mick Jagger Rule of Property

Back 15

You may convey less than what you started with, but you can't convey more. In other words, you don't always get what you want!

Front 16

Fee Simple Determinable's Accompanying future interest

Back 16

The possibility of reverter in the grantor.

Front 17

Frant Sinatra Conveys property to "Oville Redenbacher, so long as popcorn is never made on the premises."

Classify the interests:

FSDPOR

Back 17

Frank
Sinatra
Did not
Prefer
Orvil
Redenbacher

Orville has: fee simple determinable.
Frank has: possibility of reverter.

Front 18

The Fee Simple Subject To Condition Subsequent:

Back 18

To A, but if X occurs, grantor reserves the right to re-enter and retake."

Must use clear durational language and care out the right to re-enter.

Front 19

Ross conveys "to Rachel, but if coffee is ever consumed on the premises, grantor reserves the right to re-enter and retake."

RACHEL HAS?

Back 19

Rachel has: fee simple subject to condition subsequent.

Ross has: right of entry - synonymous with power of termination.

Front 20

The Fee Simple Subject To Condition Subsequent:

Distinguishing characteristics

"bobby brown"

Back 20

This estate is not automatically terminated, but it can be cut short at the grantor's option, if the stated condition occurs.

It's my perogative

Front 21

The Fee Simple Subject To Condition Subsequent:

Accompanying future interest?

Back 21

Right of entry, synonymous with power of termination.

Front 22

The Fee Simple Subject to Executory Limitation:

Back 22

"To A, But if X event occurs, then to B"

Front 23

"To A, But if X event occurs, then to B"

Back 23

The Fee Simple Subject to Executory Limitation:

Front 24

The Fee Simple Subject to Executory Limitation: Example: "To Barry Manilow, but if Manilow ever performs music on the premisis, then to Mandy." Barry has: Mandy has:

Back 24

Barry: fee simple subject to Mandy's shifting executory interest; Mandy: shifting executory interest

Front 25

If condition is broken, the Fee Simple Subject to Executory Limitation, the estate is

Back 25

automatically forfeited in favor of someone other than the grantor

Front 26

What kind of future interest does a Fee Simple Subject to Executory Limitation have?

Back 26

Shifting executory interest

Front 27

A present estate (usually abbreviated as estate) is

Back 27

a legal interest that entitles its owner to the immediate possession of real or personal property.

Front 28

A future interest is

Back 28

a legal interest that does not currently entitle its owner to immediate possession, but that may become a present estate in the future.

Front 29

Three main variables are used in classifying an estate:

Back 29

(1) freehold or nonfreehold?
(2) absolute or defeasible? and
(3) legal or equitable

Front 30

The law traditionally recognized six basic types of estates:

Back 30

three freehold estates (fee simple, life estate, fee tail) and three nonfreehold estates (term of years tenancy, periodic tenancy, and tenancy at will). Today we view freehold estates as forms of “owning” land, while nonfreehold estates are merely forms of “leasing” land.

Front 31

Fee simple

Back 31

is a freehold estate whose duration is potentially infinite. It roughly corresponds to the layperson’s understanding of “ownership.”

The most common form is fee simple absolute, the largest aggregation of property rights recognized under American law.

At one time, it was necessary to use special language to create a fee simple (e.g., “to A and his heirs”), but today informal language such as “to A” will suffice in most states.

Front 32

The fee tail is a largely-obsolete freehold estate whose duration is measured by the lives of the lineal descendants of a designated person.

Back 32

For example, if O granted Greenacre “to A and the heirs of his body,” this created an estate that would endure as long as A’s bloodline continued.

Front 33

Life Estate

Back 33

The life estate is a freehold estate whose duration is measured by the lives of one or more specified persons.

For example, a grant “to A for A’s life” creates a life estate in A for as long as he lives. Alternatively, the duration may be measured by the life of a person other than the grantee (e.g., “to A for B’s life”); this is called a life estate pur autre vie.

Front 34

Life estate (“To A for life” “to A for the life of B”)

Back 34

Never measured by time or years.

Front 35

Freehold Estates: Absolute or Defeasible?

Back 35

Each freehold estate is either absolute or defeasible. Most estates are absolute, meaning that their duration is restricted only by the standard limit that defines that category of estate.

For example, if O conveys Greenacre “to A,” then A owns a fee simple absolute. This estate may endure forever, consistent with the basic definition, and will end—if at all—only by escheat. A defeasible estate is subject to a special provision that may end the estate prematurely, if a particular event occurs, e.g., “to A, but if A ever smokes cigars, then to B.”

Front 36

Fee Simple Absolute

Back 36

The fee simple absolute is the most complete property interest known to the law. It is an estate of infinite duration that can be freely transferred, devised, or inherited. No one other than the fee simple owner has an ownership interest in the property. The use of property held in fee simple absolute is subject only to zoning regulations, easements, and restrictive covenants. Continued ownership of such property is subject only to liens, mortgages, title by adverse possession, and the power of the state to take the property by eminent domain.

Front 37

Defeasible Fees Simple

Back 37

Any estate can have a condition placed upon it, which will result in a defeasance of the estate if the stated contingency comes to pass. Such estates are called qualified (or defeasible) estates because the estate owner does not have an absolute right to retain possession of the estate for the granted period.

Front 38

Defeasible Fees - two important rules of construction: Words of mere desire, hope, or intention are insufficient to

Back 38

create a defeasible fee and courts disfavor restrictions on the free use of land. Thus courts will not find a defeasible fee unless clear durational language is used.

Front 39

Words of mere desire, hope, or intention are insufficient to create a defeasible fee. Example: A is vested with a fee simple absolute, and NOT a defeasible fee:

Back 39

To A for the purpose of constructing a day care center; To A with the hope that he becomes a lawyerl to A with the expectation that the premises will be a Blockbuster store.

Front 40

Absolute restraints on alienation are void. Example: O conveys: "To A so long as she never attempts to sell." A has? O has?

Back 40

A has: fee simple absolute. O Has: Nothing!

Front 41

Absolute restraints on alienation are void. Example: O Conveys: "To A so long as she does not attempt to sell until the year 2012, when clouds on the title will be resolved." A has? O has?

Back 41

A has: Fee simple determinable. O has: possibility of reverter.

Front 42

The fee simple determinable

Back 42

automatically expires at a stated time, immediately giving the holder the right to possession. For example, if O grants land “to A for so long as used as a park,” and the park use ceases, then title immediately revests in O.

Front 43

The fee simple subject to a condition subsequent

Back 43

does not automatically expire when the triggering condition occurs; rather, the future interest holder must take affirmative action to end the estate. For instance, if O grants land “to A, but if not used as a park, then the land shall return to me,” and the park use ceases, O must take action to end A’s estate, such as by filing suit against A.

Front 44

the fee simple subject to an executory limitation

Back 44

automatically expires when a stated event occurs, but gives the right to possession to a transferee (e.g., “to A, but if the land is not used as a park, then to B”). Defeasible life estates may also be created, but are less common.

Front 45

Restrictions on Transfer: Rule Against Restraints on Alienation

Back 45

Any total or “absolute” restraint on alienation of a fee simple is null and void

Front 46

Restriction on Use: Waste

Back 46

A person who holds an estate subject to a future interest may not commit waste.

Front 47

Affirmative waste occurs when

Back 47

the voluntary acts of the present estate owner significantly reduce the value of the property (e.g., destroying a valuable house).

Front 48

Permissive waste stems from

Back 48

inaction: the failure of the estate owner to exercise reasonable care to protect the estate (e.g., failing to fix a leaky roof).

Front 49

Life Estate - "to A for life" A is known as a?

Back 49

Life Tenant

Front 50

Life estate must be measured in?

Back 50

Explicit lifetime terms, and NEVER in terms of years

Front 51

O conveys: "To A for life" A has? A is Known As?

Back 51

A has a life estate. A is known as a life tenant.

Front 52

Life estate pur autre vie = a life estate measured by a life?

Back 52

Other than the grantee

Front 53

O conveys: "to Madonna for the life of David Letterman." Madonna has? O has?

Back 53

Madonna has a life estate pur autre view. O has a reversion. At the end of David's life, the estate reverts back to O or O's heirs.

Front 54

Is it permissible for a life tenant to sell her interest?

Back 54

Yes. But remember the Mick Jagger rule: you can't convey more than you've got.

Front 55

Life tenant's entitlements are rooted in the important doctrine of

Back 55

Waste

Front 56

The life tenant is entitled to:

Back 56

All ordinary uses and profits of the land

Front 57

The life tenant must not

Back 57

Commit waste. Must not hurt the future interest holders.

Front 58

Three species of waste

Back 58

1. Voluntary or affirmative waste.
2. Permissive Waste, or neglect.
3. Ameliorative waste.

Front 59

Voluntary or affirmative waste

Back 59

overt conduct that causes a drop in value. Destructive willful act.

Front 60

Voluntary waste and natural resources - General Rule:

Back 60

The general rule: the Life tenant must not consume or exploit natural resources on the property (such as timber, oil, or minerals), unless one of four exceptions applies PURGE

Front 61

PURGE

Back 61

PU: Prior Use, meaning that prior to the grant, the land was used for exploitation. Here the life tenant may continue to exploit, unless otherwise agreed.
R: Repairs. The life tenant may consume natural resources for reasonable repairs and maintenance.
G: Grant. The life tenant may exploit if granted that right.
E: Exploitatation, meaning land is suitable only to exploit.

Front 62

Permissive waste, or neglect occurs when

Back 62

land is allowed to fall into disrepair

Front 63

Permissive waste - The life tenant must maintain

Back 63

the premises in reasonably good repair

Front 64

Permissive Waste - A life tenant' s obligation to pay taxes

Back 64

To the extent of income or profits from the land. If not income or profit, the life tenant is required to pay all ordinary taxes to the extent of the premises fair rental value.

Front 65

Ameliorative Waste

Back 65

life tenant must not engage in acts that will enhance the property's value, unless: all future interst holders are known and consent

Front 66

A life estate's accompanying future interest?

Back 66

If held by O, the grantor, it is called a reversion. If held by a third party, it is a remainder

Front 67

Future Interests - There are 6 categories classified based on ?

Back 67

whether they are retained by the grantor or instead by a transferee

Front 68

There are 3 Future Interests Capable of Creation by the Grantor

Back 68

1. The Possibility of Reverter
2. The Right of entry (power of termination).
3. The Reversion.

Front 69

The possibility of Reverter: Accompanies only the

Back 69

Fee simple determinable FSDPOR

Front 70

The Right of Entry, also known as the Power of Termination: It accompanies only the

Back 70

Fee simple subject to condition subsequent

Front 71

The Reversion: (fall back)

Back 71

A reversion is the future interest that arises in a grantor who transfers an estate of lesser quantum than she started with, other than a fee simple determinable or a fee simple subject to condition subsequent.

Front 72

Examples of Reversion

Back 72

O, The holder of a fee simple absolute, conveys: "To A for life." - O has conveyed less than what she started with. She has a reversion.

Front 73

To A for 99 years.

Back 73

O, the holder of a fee simple absolute, conveys: To A for 99 Years. O has conveyed less than what she started with. She has a reversion.

Front 74

Future Interests in Transferees. If future interest is held by someone other than the grantor, it has to be either

Back 74

1. A vested remainder (of which there are 3 species: (i) the indefesasibly vested remainder, (ii) vested remainder subject to complete defeasance, and (iii) the vested remainder subject to open).
2. A contingent remainder; OR
3. An executory interest (of which there are two species: (i) the shifting executory interest, and (ii) the springing executory interest).

Front 75

Three Tasks in assessing Future Interests in Transferees:

Back 75

1. Distinguish vested remainders (of which there are three kinds), from contingent remainders.
2. Distinguish the trhee kinds of vested remainders from each other; and
3. distinguish all remainders from executory interests.

Front 76

What is a remainder?

Back 76

A remainder is a future interest created in a grantee that is capable of becoming possessory upon expiration of a prior possessory estate created in the same conveyance in which the remainder is created.

Front 77

Remainderman is

Back 77

Sociable, patient, and polite.

Front 78

Remainderman is patient and polite, meaning:

Back 78

Remainderman never follows a defeasible fee. Waits patiently for the preceeding estate to run its natural course.

Front 79

Remainderman cannot cut short or divest a prior trasnferee. In other words, if your present estate is a defeasbible fee, your future interest is?

Back 79

NOT a remainder, Instead, it will be an executory interest.

Front 80

Remainders are either?

Back 80

Vested Or Contingent

Front 81

Vested Remainder if

Back 81

It is both created in an ascertained person and is not subject to any condition precedent.

Front 82

Contingent Remainder if

Back 82

It is created in an unascertained person or is subject to a condition precedent, or both.

Front 83

A condition is a condition precedent when it appears

Back 83

before the language creating the remainder or is woven into the grant to remainderman.

Front 84

To A for life, if B graduates from college, to B." A is alive. B is now in high school. Before B can take he must graduate from college. He has not yet satisfied this _____?

Back 84

Condition precedent.
B therefore has: a contingent remainder.
O has a reversion (if B never graduates, O or O's heirs take).

Front 85

To A for life, if B graduates from college, to B." A is alive. B is now in high school. If B graduates from college during A's lifetime: B's contingent remainder automatically is

Back 85

transformed into an indefeasibly vested remainder.

Front 86

To A for life, and, if B has reached the age of 21, to B." A is alive, B is 19 years old. Again B must satisfy a condition precedent before B can take. B therefore has:

Back 86

a contingent remainder.