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9 Cards in this Set

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LIFE ESTATES
1.) Must be measured in explicit terms--NEVER in terms of years. ROMANTIC ESTATE
--Future Interests:
a. Reversion if held by grantor.
b. Remainder if held by third party.

A. Pur Autre Vie: Life of another.
WASTE
1.) Voluntary/Affirmative Waste: Actual overt conduct that causes decrease in value--willful acts of destruction. (Russell Crowe)
NATURAL RESOURCES: Life tenant must not consume or exploit unless PURGE.
a. PRIOR USE: Prior to the grant, land was used for exploitation.
b. REASONABLE REPAIRS
c. GRANT: Express permission
d. EXPLOITATION: Land suitable ONLY for this.

2.) Permissive Waste: When land is allowed to fall into disrepair or tenant fails to reasonably protect.
-Life tenant must simply MAINTAIN in reasonably good repair. (Fix holes, not replace roof.)
-Ordinary taxes

3.) Ameliorative waste: No value enhancement unless knowledge and consent of future interest holders.
FUTURE INTERESTS
Creation in Grantor
1. Possibility of Reverter: Accompanies only the fee simple. FSDPOR
2. Right of Entry: Accompanies only the fee simple subject to condition subsequent. (Bobby Brown)
3. Reversion: Arises when the grantor transfers less than she started with. (Leftovers)

Future Interests in Transferees
1. Vested remainder
a. Indefeasibly vested
b. Vested subject to complete defeasance/total divestment
c. Vested subject to open
2. Contingent remainder
3. Executory interest
a. Shifting
b. Springing
REMAINDERS
*Future interest created in a grantee that is capable of becoming possessory upon the expiration of a prior possessory estate created in the same conveyance.
*Remainders are sociable, polite and patient.
-Sociable: Never travels alone. Always accompanies a preceding life estate or term of years.
-Patient and polite: Remainder NEVER follows a defeasible fee. Remainders CANNOT cut short or divest a prior transferee. If you have a defeasible fee you DO NOT have a remainder.
VESTED V. CONTINGENT REMAINDERS
VESTED: If BOTH created in an ASCERTAINED person and IS NOT subject to any condition precedent.

CONTINGENT: Created in UNASCERTAINED person OR subject to condition precedent OR both.
-Condition PRECEDENT: When it appears BEFORE the language creating the remainder or woven into the grant.
CONTINGENT REMAINDERS
1. Rule of Destructability:
Historically--remainder destroyed if still contingent at time previous estate expires.
Today: Abolished. Grantor's heirs hold interest until condition is met. Once met, springing executory interest takes over.

2. Shelly's Case (Rule of Law--grantor's intent doesn't matter): "To A for life, then, on A's death, to A's heirs. (A is alive--no heirs yet.)
-Historically: Two interests merge giving A a fee simple.
-Today: Virtually abolished. A gets life estate. A's heirs get contingent remainder. O gets reversion (A could die without heirs.)

3. Doctrine of Worthier Title (Rule of Construction--Grantor's intent matters): Still viable. When O attempts to create a future interest in his own heirs. Contingent remainder is void.
VESTED REMAINDERS
1.) Indefeasibly vested: Certain to acquire with no conditions attached.

2.) Vested subject to complete defeasance or total divestment: NOT subject to condition PRECEDENT but interest could be cut short by condition SUBSEQUENT.
-COMMA RULE: When conditional language in a transfer follows language that, taken alone and set off by commas, would create a vested remainder, the condition is a condition subsequent.

3.) Vested subject to open: Remainder vested in a group of takers at least one of whom is qualified to take possession. Each class member's interest is subject to partial divestment because additional takers not yet ascertained can still qualify as class members.
CLASS OPEN OR CLOSED
OPEN: If possible for others to enter.
CLOSED: When maximum membership has been set.
-Class has closed when any member can demand possession. Establishes a clear bright line that is easy to apply.
-Exception: Womb Rule--A child in the womb will still belong to the class.
REMAINDERS V. EXECUTORY INTERESTS
Executory Interst: Dr. Evil. Cuts short the interest of another person (shifting) or in the grantor or his heirs (springing).

A. Shifting: ONLY follows a defeasible fee and cuts short someone OTHER than the grantor.

B. Springing: Cuts short the grantor.