Future Interests In Property Law: The Premise

Front 1

fee simple: what is it?

Back 1

potential to endure forever

Front 2

O grants land to A and A's heirs.

Back 2

fee simple: example grant

Front 3

life estate example

Back 3

to A for life

Front 4

fee simple absolute: three qualities

Back 4

potential to endure forever, no limitations on inheritability, cannot be divested

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words of purchase

Back 5

words that identify the person in whom the estate is created

Front 6

words of limitation

Back 6

words that describe the type of estate created

Front 7

O grants land to A in fee simple: common law vs. modern times

Back 7

at common law, these words considered to be a life estate, but presumption in moderm time is a grant of the largest estate the grantor owned. Lawyers still use the common law language anyway.

Front 8

defeasible fee defined

Back 8

a fee that can spring, shift, revert, etc. on the happening of some event

Front 9

fee simple determinable defined

Back 9

a fee simple estate that will automatically end when some specified event happens. Possibility of enduring forever.

Front 10

fee simple determinable example

Back 10

O to A so long as it doesn't sell vibrators made of vinyl. What is this?

Front 11

O to A so long as it doesn't sell vibrators made of vinyl. Who gets property if that happens?

Back 11

Example of a property grant that automatically reverts to O.

Front 12

other names for a fee simple determinable

Back 12

fee simple on a special limitation, fee simple on a conditional limitation, base fee

Front 13

To A so long as, to A until, to A while…

Back 13

words of limitation creating a fee simple determinable

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words of motive or purpose, like "to A for a hospital"

Back 14

though these words may have a subjective intent of creating a fee simple determinable, they won't be construed that way by a court

Front 15

grantor's future interest in a fee simple determinable

Back 15

definition of a possibility of reverter

Front 16

fee simple subject to condition subsequent, defined

Back 16

a fee simple that does not automatically revert but may be divested at the grantor's election when a stated condition happens

Front 17

O to A, but if vinyl vibrators are ever sold on the premises, O has a right to reenter the premises.

Back 17

Example of a fee simple subject to condition subsequent

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words of condition

Back 18

words that describe the condition upon which a grantor can exercise a right of reentry

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to A, but if x event happens… to A, upon condition that if X event happens… to A, provided, however, that if X event happens…. the grantor has a right of entry

Back 19

words of condition creating a fee simple subject to condition subsequent

Front 20

the future interest created by a fee simple subject to condition subsequent

Back 20

right of entry, defined

Front 21

construction of ambiguous grant with language indicating both a fee simple determinable and a fee simple subject to executory limitation?

Back 21

general policy is to avoid forfeiture of estates, so the preferred construction between these two options is that of a fee simple subject to condition subsequent

Front 22

O to A so long as it doesn't sell vinyl vibrators, but if A sells vinyl vibrators, O has a right of reentry.

Back 22

Despite the language indicating both a fee simple determinable and a fee simple subject to condition subsequent, the preferred construction of this example would be the fee simple subject to condition subsequent, because equity abhors a forfeiture.

Front 23

Statute of limitations on AP and the fee simple subject to condition subsequent

Back 23

Two options depending on jurisdiction. 1. The statute doesn't start running until grantor exercises right of reentry. (Laches doctrine can still cut this short, however.) 2. Statute starts running upon happening of condition, allowing grantee to take via adverse possession.

Front 24

Fee simple subject to an executory limitation, defined

Back 24

A fee simple that on the happening of a stated event is automatically divested in favor of a third person. (not possible to expressly create a right of reentry for the third party in this grant, but a grantor can instead create a fee simple subject to condition subsequent, and give the right of entry to the third party, accomplishing the same thing)

Front 25

O to A, but if Unzipped magazine is ever sold on the premises instead of Playgirl, then to B.

Back 25

Example grant for a fee simple subject to an executory limitation.

Front 26

“To A, but if X and Y marry then to B.” (Remember the 'S' word!)

Back 26

Example of shifting fee simple subject to executory limitation

Front 27

“To B after X and Y are married," nothing that this language means O has a fee simple subject to executory interest. (Remember the 'S' word!)

Back 27

Example of springing fee simple subject to executory limitation

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Life estate defined

Back 28

an estate with the duration of one or more human lives

Front 29

Life estate for the life of grantee example

Back 29

"To A for life"

Front 30

Life estate per autre vie defined

Back 30

an estate measured by the life duration of someone other than the owner

Front 31

life estate per autre vie: two means for creation

Back 31

1. the grantor expressly creates it 2. the grantee sells her life estate to someone else

Front 32

Construction of life estate left to group of people for the duration of their lives: what happens to share of property of first person to die?

Back 32

In this situation, the share typically goes to the surviving life tenants, and the remainder does not become possessory until all of the life tenants die.

Front 33

Can you combine a life estate with other types of grants?

Back 33

Life estates can be created to be determinable, subject to condition subsequent, or subject to executory limitation. For example, "O to A for life, but if A ever sells vinyl vibrators on the premises, then to B." A has a life estate subject to an executory limitation. These are all called limited life estates.

Front 34

Waste defined

Back 34

conduct by the life tenant that permanently impaires the value of the land or the interest of the person holding title or having some subsequent estate in the land.

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Affirmative/voluntary waste defined

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actively causing permanent injury to land or subsequent estate interest

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Permissive/involuntary waste defined

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allowing, but not actively causing permanent injury to land or subsequent estate interest

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Ameliorating waste defined

Back 37

Changes to land that increase the value of the subsequent estate interests. Without permission of the remainderment, often requires impending wipe out, lack of any contractual or grant provision stating otherwise, and/or a complete change to the surroundings, at least, to avoid getting sued by remaindermen.

Front 38

executory interest vs. a reverter or possibility of reverter

Back 38

the first is a future interest for a third party, the latter is the future interest for a grantor

Front 39

reverter vs. possibility of reverter vs. right of entry

Back 39

A right of entry is created by a fee simple subject to condition subsequent. The difference between a reverter and a possibility of reverter is very confusing, but usually, the possibility of reverter is just that, a possibility, whereas a straight-up reverter is guaranteed to occur. (In confusing terms, conveying an interest of the same quantum creates a reverter, and of a lesser quantum creates a possibility of reverter, with the priority of quantums going as follows, beginning with the highest: all fees simple, fee tail, life estate, leasehold.)

Front 40

remainder vs. executory interest

Back 40

These are future interests retained by third parties. A remainder never divests the prior estate (kiboshes someone else's ownership) whereas an executory interest almost always does.

Front 41

What's the alienability of reversions, possibilities of reverter, and rights of entry

Back 41

All currently transferable, descendible, and devisable, with the exception of rights of entry, which some courts have held to not be transferable inter vivos (some courts even destroyed the right upon attempt to transfer).

Front 42

A remainder is either _________ or _____________

Back 42

A _____________ is either vested or contingent.

Front 43

A vested remainder can be (three options)

Back 43

A ____________ can be indefeasible, subject to open, or subject to divestment.

Front 44

Future interests in grantees include ________, _________, and the three types of _________.

Back 44

________________ include contingent remainders, executory intersts, and the three types of vested remainders.

Front 45

Difference between a remainder and an executory interest?

Back 45

The first waits patiently for the preceding possessory estate to expire, while the latter can trigger to divest prior interest before any natural expiration. (Question was: Difference between a ____________ and ________________ ?)

Front 46

A remainder can NOT follow ____________, it can follow ________________.

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A ______________ can NOT follow any form of fee simple (e.g. subject to an executory limitation, determinable, etc.), it can only follow a fee tail, a term of years, or most commonly, a life estate.

Front 47

A remainder must be classified as (two options, and explain them both)

Back 47

A remainder must be classified as either vested or contingent. A vested remainder is created in an ascertained person AND not subject to any condition precedent. A contingent remainder is either created in an unascertained person or subject to a condition precedent. In ther words, contingent remainders are based on a contingency, vested remainders are not.

Front 48

Condition precedent (defined)

Back 48

An express condition attached to a contingent remainder. (This definition refers to a _____)

Front 49

Only one of these grants creates a possibility of reverter for the grantor. Which one is it? 1.) O to A for life, then to B, but if B does not survive A, to C. 2.) O to A for life, then to B if B survives A, but if B does not survive A, to C.

Back 49

The first grant creates a vested interest subject to divestment for B (it can be divested by C's contingent remainder), and the fact that B's remainder is vested means that it's going to end up in somebody's hands no matter what. The second grant creates alternative contingent remainders, and if neither of the contingencies are met, the property reverts to O. (If, for example, A and B die at the same time, the property goes to C in the first grant, and to O in the second.) If this all seems really nutty to you, just remember to classify the interests in sequence as you read along.

Front 50

Which construction is preferred? A vested remainder or contingent remainder?

Back 50

Vested remainders are preferred over contingent remainders.

Front 51

"O conveys to A for life, and at his death to A's children, the child or children of any deceased child to receive his or their deceased parent's share." Name the grants.

Back 51

Go in order. A gets a life estate. A's kids get a vested remainder. (It's vital that you paused at the comma to parse out that it was a vested remainder.) The part after the comma creates a contingent remainder for the grandchildren, vesting if their parents die before A. This contingent remainder thus makes A's children's vested remainder subject to divestment. Because we're dealing with a condition subsequent (the reason A's children have a vested remainder rather than a contingent one) A's children do not necessarily get divested if they die before A--if they die without children, their vested remainder will instead go to their heirs.

Front 52

Springing vs. shifting executory interests?

Back 52

Springing executory intersts spring from the grantor, shifting ones shift from a third party grantee.

Front 53

Condition precedent vs. condition subsequent?

Back 53

I had trouble with this one, but as far as I can tell, a condition precedent is part of the clause creating what will turn out to be a contingent remainder, whereas a condition subsequent comes in a later clause and serves to potentially divest the estate created in an earlier clause AND create a contingent remainder for somebody else. Or something.

Front 54

If the future interest follows a _______________, it must be an executory interest.

Back 54

If the future interest follows a fee simple, it must be an ____________ . (This is because a fee simple can potentially endure forever--for it to be divested, some condition must take place, and since remainders by definition do not divest their ancillary estate interests, the only possibility is for it to be called an ________________ .)