Present Estates & Future Interests

Question 1

Present Possessory Estate

Answer 1

An interest that gives the holder the right to present possession

Question 2

3 Categories of Present Possessory Estates

Answer 2

• Fee simple absolute
• Defeasible fee
• Life estate

Question 3

Fee Simple Absolute

Answer 3

Absolute ownership of indefinite or potentially infinite duration (“To A” or “To A and his heirs”); freely transferable, devisable by will, and descendible through intestacy

Question 4

Defeasible Fees

Answer 4

Fee simple estates (uncertain or potentially infinite duration) that can be terminated upon the happening of a stated event

Question 5

Fee Simple Determinable (and Possibility of Reverter)

Answer 5

Terminates upon the happening of a stated event and automatically reverts to the grantor (possibility of reverter) (“To A for so long as…” or “To A while…”); transferable, devisable by will, and descendable through intestacy, but always subject to the attached condition

Question 6

Fee Simple Subject to Condition Subsequent (and Right of Entry)

Answer 6

An estate in which the grantor reserves the right to terminate the estate upon the happening of a state event, meaning the estate doesn’t automatically terminate - the grantor must take some action (“To A, but if X event occurs, grantor reserves the right to re-enter and retake”)

Question 7

Fee Simple Subject to an Executory Interest

Answer 7

Fee simple estate terminates upon the happening of a stated event and then passes to a third party rather than reverting to the grantor or giving the grantor a right to terminate (“To A, but if X event occurs, then to B”)