Present and Future Estates

Question 1

A Fee Simple Determinable

Answer 1

A fee simple determinable is limited by specific durational language (e.g. “so long as” “until”). It terminates automatically upon the happening of a stated condition and full ownership of the property is returned to the grantor (or his successor in interest). The grantor retains a possibility of reverter.

Question 2

A Fee Simple Subject to Condition Subsequent

Answer 2

A fee simple subject to condition subsequent is limited in duration by specific conditional language (“provided that” “but if”). Upon occurrence of the stated condition, the present fee simple will terminate if the grantor affirmatively demonstrates an intent to terminate. The grantor must explicitly retain the right to terminate the fee simple subject to condition subsequent in the conveyance.

Question 3

Reversionary Interests

Answer 3

If a future interest is held by a transferor, it must be a possibility of reverter, a right of reentry, or a reversion

Question 4

Future Interests in Transferees

Answer 4

If a future interest is held by someone other than the grantor, it must be a contingent remainder, a vested remainder, or an executory interest

Question 5

Contingent Remainder

Answer 5

A remainder is contingent if it is created in unborn or unascertained people or if its subject to a condition precedent

Question 6

Vested Remainder

Answer 6

A vested remainder is one created in an existing and ascertained person and is not subject to a condition precedent

Question 7

Rule Against Perpetuities

Answer 7

RAP provides that certain kinds of interests are void if there is any possibility that the interest might vest more than 21 years after a person alive at the time of the grant dies. It applies only to contingent remainders, executory interests, bested remainders subject to open, options to purchase, and rights of first refusal