Real Property - Freehold Esates

Front 1

Fee simple absolute

Back 1

"To A" or "To A and his heirs"

You get everything.

Front 2

Defeasible fees and accompanying future interest (3 types)

Back 2

1. Fee simple determinable --> possibility of reverter
2. Fee simple subject to condition subsequent --> right of entry AKA power of termination
3. Fee simple subject to executory limitation --> executory interest (shifting or springing)

Front 3

Fee simple determinable

Back 3

Grantor must use clear durational language to create: "To A for so long as . . ." or "To A during . . ." or "To A until . . ."

If the stated condition is violated, forfeiture is automatic.

Front 4

Fee simple subject to condition subsequent

Back 4

Grantor must use clear durational language AND carve out the right to re-enter: "To A, but if X event occurs, grantor reserves the right to re-enter and retake."

The estate is NOT automatically ended when the condition occurs, but after that it can be cut short at the grantor's option.

Front 5

Fee simple subject to executory limitation

Back 5

"To A, but if X occurs, then to B." A then has a fee simple subject to B's shifting executory interest. (Shifting because it cuts short A's estate.)

This estate is just like the fee simple determinable only now, if the condition occurs, the state is automatically terminated in favor of someone _other_ than the grantor.

Front 6

Defeasible fees: two limitations

Back 6

1. Words of mere desire, hope, or intention are insufficient to create a defeasible fee. For example, "To A for the purpose of constructing a daycare center" or "To A with the hope that he becomes a lawyer" etc. do not create a defeasible fee.

2. Absolute restraints on alienation are void. Need a reasonable, time-limited purpose on restrictions of sale or transfer.

Front 7

Life estate

Back 7

An estate measured in explicit lifetime terms. (Can be a third party's life, called a life estate pur autre vie.)

"To A for life." O has a reversion, or if the property goes to a third party after A's death, then they have a remainder.

Distinguishing characteristic: life tenant's entitlements are subject to the doctrine of waste. In general, she is entitled to all ordinary uses and profits from the land, but cannot do anything to hurt the future interest holders.

Front 8

3 species of waste

Back 8

1. Voluntary (affirmative) waste: overt conduct that causes a decrease in value.

2. Permissive waste (neglect): when land is allowed to fall into disrepair.

3. Ameliorative waste: when you increase the value of the property without the consent of all future interest holders. (Honor sentimental value.)

Front 9

Voluntary waste and natural resources: PURGE

Back 9

PU: Prior use -- life tenant can continue to exploit natural resources to the extent they were being exploited prior to the grant.
Open mines doctrine: life tenant can continue mining if there was some before, but cannot open new mines--confined to the ones currently existing.

R: Reasonable repairs--life tenant may consume natural resources for repairs and maintenance.

G: Grant--the life tenant may exploit if granted the right.

E: Exploitation--if the land is only good for exploitation (e.g., a quarry) then the life tenant may exploit the natural resources.

Front 10

Permissive waste and the obligation to repair

Back 10

Life tenant must simply maintain the premises in reasonably good repair.

Taxes: must pay all ordinary taxes on the land.