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72 Cards in this Set
- Front
- Back
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Two types of estates
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Present estates and future interests
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An estate always his this right.
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Possession.
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What are the 2 present freehold estates?
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Fee Simple Absolute and Life Estate
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What are the things to remember about a fee simple absolute?
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1. Runs forever
2. Fully alienable 3. Any attempt to put a direct restraint on alienation is void. |
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Are conditions on the exercise of a fee simple ok?
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Yes, but any attempt to limit the right of transfer is void.
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Is a right of first refusal ok?
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Yes, it's not an invalid restraint on alienation.
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Creation of a fee simple?
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Courts will presume a fee simple unless language shows a clear intent to create another estate.
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What are the key things to remember about a LIFE ESTATE?
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1. Never measured by time, but by life.
2. Can arise by implication (that must be what grantor meant) 3. Measuring life can be the life of someone other than the life estate holder (life estate pur autre vie). |
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What happens if the life tenant dies before the measuring life dies?
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Life estate passes to the estate of the life tenant until the measuring life dies.
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Are forfeiture restrictions a life estate permissible?
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Yes.
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What are the rights and duties of a life tenant?
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Waste
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What is the life tenant supposed to do?
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Maintain the estate, which means continuing the normal use of the land in its present condition.
If the life tenant does more than or less than merely maintain the estate, then life tenant is guilty of waste. |
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What are the types of waste?
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1. Voluntary waste
2. Permissive waste 3. Ameliorative waste |
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What is voluntary waste?
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Any affirmative action beyond the right of maintenance causing harm to the premises.
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If the life tenant commits voluntary waste, to whom is the life tenant liable?
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The holder of the future interest.
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What is the 'open mines' doctrine?
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Depletion of natural resources is waste unless the normal use of the land was to deplete them (farming, coal mining, etc)
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What is permissive waste?
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Where the tenant has failed to maintain.
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Tenant must do what 3 things to avoid permissive waste?
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1. Repair: keep property in repair, ordinary repairs only and not replacement
2. Taxes: pays all taxes on the property 3. Interest: pays any interest on any mortgage |
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What must the holder of the future interest watch out for in terms of taxes and interest?
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Taxes: must make sure life tenant pays taxes, b/c a tax sale terminates the future interest
Interest: holder of the future interest must pay the principal. |
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What is the limitation on the life tenant's liability?
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For repair, taxes, and interest, life tenant's obligation is limited to the amount of income received from the land or, if the life tenant is personally using the property, the reasonable rental value of the land.
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What about the life tenant and insurance?
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Life tenant DOES NOT have to insure the property.
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What is ameliorative waste?
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It's a special type of voluntary waste that occurs when the affirmative act alters the property substantially but increases the value of it.
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What is the rule if changed conditions have made the property relatively worthless in its current use?
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The life tenant can tear it down without liability to the holder of the future interest.
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What are class gifts?
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Gifts to a class of unnamed persons.
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What if members of a class predecease the testator?
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They become eliminated and do not recover--their gift lapses.
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Once the class is established when the will is executed, what happens to the class?
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The class stays open to accommodate those who later meet the definition of a class member.
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What is the Rule of Convenience?
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A class closes when any one of the class is entitled to a distribution (such as when Testator dies).
It's a rule of construction only, not a rule of law. |
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FUTURE INTERESTS
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Intro Card
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What is a future interest?
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A future possession. The interest exists now, but possession will not come until later, if at all.
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What are the two future interest topics for the exam?
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1. Classification rules
2. RAP |
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CLASSIFICATION RULES
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Intro Card
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There are 2 categories of future interests. What are Category 1 and 2?
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Category 1: Those retained by grantor --Estates grantor keeps when grantor gives less than the full interest held by grantor. (If any chance that the property might go back to the grantor, then one of these is kept)
Category 2: Those given to grantee. Any future interest given a grantee must be one of these. |
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What are the interests under Category 1?
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1. Reversion
2. Possibility of Reverter 3. Right of Entry (power of termination) |
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REVERSION?
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The interest kept by Grantor when Grantor gives less than the durational estate Grantor had.
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Is reversion certain to send property back to the grantor?
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No, it may or may not go back, depending on the circumstances set in the grant.
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What two key points should be remembered about reversions?
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1. A reversion is never subject to RAP
2. Reversions can be transferred freely. |
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POSSIBILITY OF REVERTER?
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Whenever Grantor gives a fee simple determinable, Grantor keeps a possibility of reverter.
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What is a fee simple determinable then?
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The fee simple ends automatically on the happening of some event.
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Does possibility of reverter mean "chance" of reverter?
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No, possibility of reverter is a term of art, and it goes ONLY with a fee simple determinable.
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A fee simple determinable ends when?
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Automatically when the condition happens.
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What is 'key language' to look for with a possibility of reverter?
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so long as, while, during, or until!
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RIGHT OF ENTRY (POWER OF TERMINATION)?
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When grantor gives a fee simple on a condition subsequent, then grantor keeps a right of entry.
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What exactly happens with a fee simple on a condition subsequent?
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Title does not automatically go back to grantor if the condition is violated-- grantor must exercise the right of entry.
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What is some key language used with a fee simple on a condition subsequent?
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provided however, but if, or upon condition that.
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For a fee simple on a condition subsequent on the exam, how will it be shown?
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Grantor will expressly reserve a right of entry.
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Is right of entry subject to RAP? Can it be transferred?
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No, it's not subject to RAP.
It cannot be transferred inter vivos, but it can be transferred by will or intestate succession at death. |
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CATEGORY 2
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Future interests given a grantee.
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REMAINDER?
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3 types:
1. Vested remainder 2. Vested remainder subject to open 3. Contingent remainder |
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Definition of vested remainder?
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Nothing stands in the way of its becoming possessory on the expiration of the estate that comes before it. ie. we know who will take and there are no conditions to taking.
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Vested remainder subject to open?
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Where the remainder interest is to a class whose members are not yet fully known. The class remains open to allow for future persons who qualify as members of the class
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What is another phrase for vested remainder subject to open?
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Vested remainder subject to partial divestment.
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Definition of a contingent remainder?
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Something has to happen or be known before the remainder can become possessory.
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What are the 3 situations for a contingent remainder?
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1. Condition
2. Grantee not in existence 3. Identity of exact taker unknown. |
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Contingent remainder-- Condition?
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Remainder is contingent if a condition must be satisfied before the grantee can be certain of possession.
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Grantee not in existence?
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If at time of grant the grantee is not in existence, then that interest must be a contingent remainder-- grantee's interest is contingent on grantee being born.
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Identity of exact taker unknown?
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If you can't identify, by name, the person who holds the remainder, then remainder is contingent until you can identify the taker.
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What is common to both vested and contingent remainders?
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They will become possessory, if at all, only upon the natural expiration or termination of the estates coming before them.
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FUTURE INTERESTS
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Intro Card
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What is a future interest?
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A future possession. The interest exists now, but possession will not come until later, if at all.
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What are the two future interest topics for the exam?
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1. Classification rules
2. RAP |
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CLASSIFICATION RULES
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Intro Card
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There are 2 categories of future interests. What are Category 1 and 2?
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Category 1: Those retained by grantor --Estates grantor keeps when grantor gives less than the full interest held by grantor. (If any chance that the property might go back to the grantor, then one of these is kept)
Category 2: Those given to grantee. Any future interest given a grantee must be one of these. |
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What are the interests under Category 1?
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1. Reversion
2. Possibility of Reverter 3. Right of Entry (power of termination) |
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REVERSION?
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The interest kept by Grantor when Grantor gives less than the durational estate Grantor had.
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Is reversion certain to send property back to the grantor?
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No, it may or may not go back, depending on the circumstances set in the grant.
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What two key points should be remembered about reversions?
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1. A reversion is never subject to RAP
2. Reversions can be transferred freely. |
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POSSIBILITY OF REVERTER?
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Whenever Grantor gives a fee simple determinable, Grantor keeps a possibility of reverter.
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What is a fee simple determinable then?
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The fee simple ends automatically on the happening of some event.
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Does possibility of reverter mean "chance" of reverter?
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No, possibility of reverter is a term of art, and it goes ONLY with a fee simple determinable.
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A fee simple determinable ends when?
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Automatically when the condition happens.
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What is 'key language' to look for with a possibility of reverter?
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so long as, while, during, or until!
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RIGHT OF ENTRY (POWER OF TERMINATION)?
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When grantor gives a fee simple on a condition subsequent, then grantor keeps a right of entry.
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