Estates and Future Interests Flashcards
(41 cards)
What are freehold interests?
Present possessory interests
Freehold estates include interests that provide the holder with current rights to the property.
How is real property transferred by deed?
A living person may transfer real property by a deed, complete transfer is a grant or conveyance.
What is a devise in the context of property transfer?
Complete transfer called a devise, from testator (or testatrix) to devisee.
What happens to property if someone dies intestate?
Property is distributed according to state statutes.
Define Fee Simple Absolute.
O to A and her heirs; holder has all rights in the bundle of sticks, duration potentially infinite.
What are the characteristics of a Fee Simple Absolute?
- Freely alienable
- Devisable
- Descendible
What does the modern approach presume about conveyances?
We presume that a grantor intends to convey a fee simple unless specific words of limitation are used.
What is the core policy on property law regarding Fee Simple?
Freedom of alienation; restraints that limit future transfers are void against public policy.
What is a disabling restraint?
Prevents the transferee from transferring her interest; e.g., ‘O conveys to B and any conveyance by B is void.’
What is a forfeiture restraint?
Leads to forfeiture of title if the transferee attempts to transfer interest; e.g., ‘O conveys to B but if he ever tries to sell then to D.’
What is a promissory restraint?
Stipulates that the transferee promises not to transfer her interest; e.g., ‘O conveys to B and B promises that she will not sell the estate.’
What is the exception for partial restraints?
May be valid if reasonable in scope, duration, and purpose.
What rule applies if the terms of a will are ambiguous?
The will shall be interpreted as passing a fee simple unless expressed otherwise.
What is a Fee Simple Defeasible?
An estate that may end upon the occurrence of some future event.
Define Fee Simple Determinable.
Automatically ends when a certain event occurs, giving the right of possession back to the transferor.
What is the language associated with Fee Simple Determinable?
- So long as
- While
- Until
- During
What is the possibility of reverter?
Can only be retained by the transferor and automatically becomes possessory upon the happening of the condition.
What is a Fee Simple Subject to a Condition Subsequent?
Created in the transferee that may be terminated by the transferor when a certain condition occurs.
What are the conditional words associated with Fee Simple Subject to a Condition Subsequent?
- Provided that
- But if
- On the condition that
What happens if a condition occurs in Fee Simple Subject to a Condition Subsequent?
The estate does not end automatically, but the transferor has the power to terminate it by re-entering.
What is a conditional reentry clause?
A clause allowing the transferor to reclaim property if a specified condition is not met.
What is a Life Estate?
O to A for life; a present possessory estate lasting for the duration of a specified person’s life.
What is the doctrine of waste?
Imposes a duty on the life tenant to use the property without significantly injuring the rights of future interest holders.
What is voluntary waste?
An affirmative act that significantly reduces the value of the property.
