Real Property--Present Estates And Future Interests

Front 1

Fee Simple Absolute

Back 1

To A and his heirs...to A
-absolute ownership of infinite duration
-devisable, descendible, alienable

Front 2

Fee tail

Back 2

A and the heirs of his body
-passes directly to lineal blood descendants
-Now creates fee simple absolute
-reversion to the grantor, or remainder to someone else named

Front 3

Fee simple determinable

Back 3

Words of duration "so long as" "during" "until"
-must use clear durational language
-forfeiture is automatic if condition met
-devisable, descendable and alienable subject to the condition
-Future interest accompaniment: Possibility of reverter
-FSDPOR

Front 4

Fee simple subject to condition subsequent

Back 4

but if...grantor reserves the right to reenter
*need clear durational language AND carve out the right to reenter
-Future interest accompaniment: right of entry=power of termination

Front 5

Fee Simple Subject to Executory Limitation

Back 5

words of duration & executory limitation
*like FSD, condition is broken estate us automatically forfeited in favor of someone other than grantor
-Shifting executory interest

Front 6

Defeasible Fee rules

Back 6

*clear durational language must be used...words of mere desire or hope are insufficient to create a defeasible fee
*no absolute restraints on alienation (ablute ban on the power to sell or transfer that is not linked to any reasonable time limit

Front 7

Life Estate

Back 7

Estate that must be measured in explicit life time terms and NEVER in terms of years
*To A for life
*Accompanied by reversion
*PER AUTRE VIE: measured by the life other than that of the grantee

Front 8

Life Tenant

Back 8

*entitled to all ordinary uses and profits from the land
*must not commit waste and must not harm future interest holders

Front 9

Affirmative Waste

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*Voluntary/Affirmative Waste: Overt conduct that causes a drop in value
-Cannot consume or exploit natural resources UNLESS
1) PRIOR USE of the land was for exploitation (open mines)
2) REASONABLE REPAIRS: can exploit natural resources for reasonable repairs and maintenance
3) GRANT: can be granted the right
4) EXPLOITATION--land is only suitable for exploit

Front 10

Permissive Waste

Back 10

Due to life tenant's neglect, the land is allowed to fall into disrepair
*LT must maintain the premises in reasonably good repair
*LT must pay all ordinary taxes to the extent of income or profits from the land, and for all ordinary taxes to the extent of premises fair rental value

Front 11

Amelioriative Waste

Back 11

LT must not engage in acts that will enhance the property's value unless all of the future interest holders are known and consent

Front 12

Accompanying LE Future interest

Back 12

held by grantor=reversion
held by third party=remainder

Front 13

Possibility of Reverter

Back 13

Only accompanies FSD
Future interest in grantor

Front 14

Right of Entry

Back 14

Only accompanies FSSCS
Future interest in grantor

Front 15

Reversion

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*future interest that arises in a grantor who transfers an estate of lesser quantum than she started with (other than FSC; FSSCS)
*future interest in grantor

Front 16

Vested Remainder

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Future interest created in a grantee that is capable of becoming possessory upon the expiration of a prior possessory estate in the same conveyance in which the remainder is created
*created in an ascertained person
*not subject to any condition precedent

1) indefeasibly vested remainder (condition of contingent remainder met)
2) vested remainder subject to complete defeasance
3) vested remainder subject to open

Front 17

Contingent Remainder

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*created in an unascertained person or is subject to a condition precedent or both
-condition precedent=language appears before the language creating the remainder

Front 18

Destructability of Contingent Remainder

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Common Law: contingent remainder was destroyed if it was still contingent at the time the preceding estate ended
Today: Rule abolished. Reversion will trigger and grantor (or heirs) will take subject to springing executory interest

Front 19

Rule in Shelley's Case

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To A for life, then on A's death, to A's heirs...
*present and future interests merge to create FSA in A

Front 20

Rule in Shelley's cont.

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*Rule of law, not construction (trumps intent)
*been abolished=now A has LE; A's unknown heirs have a CR; O has a reversion

Front 21

Doctrine of Worthier title

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*rule of construction not law (grantor intent trumps)
*where grantor has made a conveyance of less than a complete interest in real property with remaining interest in his heirs, such a contingent remainder is void, leaving a reversion to the grantor

Front 22

Vested Remainder

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1) indefeasibly vested remainder=certain to acquire an estate in the future with no conditions attached
2) Vested remainder subject to complete defeasance: not subject to any condition precedent, but interest could be cut short by condition subsequent
3) Vested remainder subject to Open=remainder is vested in a group of takers, at least one of whom is qualified to take, but additional takers can still join the class.
-Class closes whenever max membership has been met or rule of convenience (any member can demand possession) (womb rule)

Front 23

Executory Interest

Back 23

Future interest created in a transferee, which is not a remainder and which takes effect by cutting short some interest in another person (shifting) or in the grantor or his heirs (springing)

Front 24

RAP

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A future interest is valid relative to the Rule Against Perpetuities if it vests or fails to vest within 21 years of a life in being at the time of conveyance
*applies to contingent remainders, executory interests, vested remainders subject to open
*A gift to an open class that is conditioned on the members surviving beyond 21 violates
* no limit on executory interest
*charity to charity exception

Front 25

Wait and See or second look

Back 25

Validity of any suspect future interest is determined on the basis of the facts as they now exist, at the end of the measuring life

Front 26

USRAP

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Codifies common law rap and provides for a 90 year vesting periios
*cy pres=court will reform a disposition as closely to grantor intent while still abiding by the RAp
-Redueces any offensive age contingency to 21 years