Present 1
What does it mean when someone has a present interest?
A persons owns a present interest in property if he can take possession and use the property currently, in present time.
Which present interests have natural terminations and which have unnatural terminations?
Natural terminations: fee tail & life estate
Unnatural terminations: fee simple determinable & fee simple on condition subsequent
What does it mean when someone has a future interest in property and who can hold a future interest?
A person who owns a future interest must wait until some future time to take possession of the property.
Future interests can be held by the original grantors or by 3rd parties.
Generally, what are remainders
what present interests do they follow
and what are the two main types of remainders
A future interest that a 3rd party holds that becomes possessory after the natural termination of a prior estate.
Remainders follow fee tails and life estates.
There are vested remainders and contingent remainders
Generally, what is an executory interest and what are the two types?
It's a future interest in a 3rd party that either follows a gap in time before divesting or that divests following a fee simple present interest (fee simple determinable or fee simple on condition subsequent).
Shifting & spring executory interests
What are the five present interests in freehold estates?
Fee Simple Absolute
Fee Simple Determinable
Fee Simple on Condition Subsequent
Fee Tail
Life Estate
What are the three present interests in non-freehold estates?
Term for years - "for # years"
Tenancy at will - "at will"
Periodic tenancy - month to month.
Which future interests can an original grantor have and which can 3rd parties have? (don't define them)
Original grantor can have reversion, Possibility of Reverter, and Right of Reentry.
3rd parties can have remainders and executory interests.
Define contingent remainder
A contingent remainder is when the owner is unascertained or the right to future possession is subject to a contingency/condition precedent; follows immediately after natural termination.
*A string can never end with a contingent remainder*
What are the differences between springing and shifting executory interests?
Springing: A future interest in a 3rd party that divests the original grantor; takes effect immediately after termination of preceding estate without a gap.
Shifting: A future interest in a 3rd party that divests transferor or someone other than the original grantor.
What language is commonly used in a fee simple absolute and is there a limitation to this present interest?
To A and his heirs
There is no limitation to A's interest.
What language is commonly used in a fee tail and is there a limitation to this present interest?
To A and the heirs of his body
There is no real limitation to A's interest except that the interest is intended to pass through A's lineage/descendants.
What is a reversion and what present interest does it follow?
A reversion is when the original grantor would automatically receive possession back after a natural termination.
Reversions follow life estates and fee tails.
What is the rule of destructibility of contingent remainders and what three situations/terminations must be considered when applying the rule?
Rule: A contingent remainder is destroyed if it has not vested at or before the termination of all preceding freehold estates.
3 types of terminations:
1) natural termination - ex. child not 21 and not ready/capable of taking over, then contingent remainder destroyed.
2) unnatural termination - forfeiture, renunciation, or abandonment
3) termination by merger - merger could destroy contingent remainder that is held between two interests held by the same person.
What statutes had an impact on executory interests and what impacts did they have?
Statute of Uses automatically terminated or executed executory interests Pre-1536.
Statute of Wills reinstated executory interests Post-1536.
What language is commonly used in a fee simple determinable and is there a limitation to this present interest?
To A so long as / while / during...
This interest is limited by language of duration; it can continue being A's interest until some specified event.
What language is commonly used in a life estate and is there a limitation to this present interest?
To A for life
A's interest is limited to the duration of A's life.
What is a possibility of reverter and what present interest does it commonly follow?
A possibility of reverter is when there's a chance that the property could return to the grantor automatically; cannot follow a natural termination; and has language of duration.
Reverter follows a fee simple determinable.
Name and define the three types of vested remainders
Vested remainder - interest owned by an ascertained person that is not subject to a contingency/condition precedent; becomes possessory upon natural termination of preceding estate (life estate or fee tail)
Vested remainder subject to complete divestment - vested remainder subject to a condition subsequent that may divest even before it becomes possessory.
Vested remainder subject to open - remainder given to class of people rather than specifically named people and class is still open at the time it is given.
Define/state Purefoy's 1st and 2nd aspects in relation to contingent remainders.
1st Aspect: if a grant is ambiguous where it's unknown whether grantor meant to give a contingent remainder or springing executory interest, then it automatically becomes known as a contingent remainder.
2nd Aspect: if an executory interest can take immediately after natural termination of preceding estate and can take possession as a contingent remainder, then it'll be treated as a contingent remainder.
What language is commonly used in a fee simple on condition subsequent and is there a limitation to this present interest?
To A provided that / but if / on condition that...
A's interest is limited by language of condition; it'll remain A's interest unless A doesn't abide by the condition stated.
Define alienable, devisable, and descendible.
Alienable: owner may transfer interest while alive by selling or gifting.
Devisable: owner may transfer interest by will.
Descendible: owner's interest could be inheritable, passed by intestacy.
What is a right of reentry and what present interest does it follow?
A right of reentry is when there is a chance that the property could return to the original grantor only if the grantor asserts their right; cannot follow a natural termination; has language of condition.
Right of reentry follows a fee simple on condition subsequent.
What is the Rule in Shelley's case?
If a grantor conveys a life estate in A, and by same instrument tries to create a remainder in A's heirs in fee tail or fee simple, the result is a remainder in A.
Ex: O to A for life, then to A's heirs.
Rule would cross out "A's heirs" and substitute it for "A"
What is the Doctrine of Worthier Title and what are the two branches?
1st branch: testamentary - applies to wills, but no longer exists anywhere. Ex: O to A and his heirs where A is O's only heir > O to O, transfer to A is void.
2nd branch: inter vivos - a gift between two living people, still remains as rule of law in 5 states. Ex: O transfers/gifts to O's heirs > if it's a remainder or executory interest, then O's heirs crossed out and substituted with O > O to O.