Future Interests Flashcards
(19 cards)
Reversions
- always retained by the grantor
-
Remainders
- always created in someone other than the grantor
-
Defeasible Fee Simple estates
Fee Simple Determinable
Fee Simple Subject to a Condition Subsequent
Fee Simple Subject to an Executory Limitation
- ALL can be set up so they may be divested and/or expire “early” (and thus fall short of full potential duration)
Fee Simple Determinable Termination
- ends automatically
- right to immediate possession REVERTS to grantor upon the occurrence of a stated event
- aka possibility of reverter
- “to B and his heirs until people land on Mars.”
- stated event can be thought of as both:
a “condition precedent” of the possibility of reverter,
and
a special limitation on the duration of the fee simple.
Fee Simple Subject to a Condition Subsequent Termination
- ends at grantor’s election
- land goes to grantor
- right of entry
- meets its “early” end by divestment.
Fee Simple Subject to an Executory Limitation Termination
- ends automatically
- land goes to third party
- executory interest
fee simple determinable words of conveyance
words of duration so long as while until during
Right of Entry
a future interest
retained by a grantor
when the grantor creates a fee simple on condition subsequent.
- IF the stated event occurs, and
IF the grantor elects to exercise the right of re-entry and retake possession,
THEN the grantee’s estate is cut short (“divested”)
fee simple subject to condition subsequent words of conveyance
first create a fee simple (the words “and his heirs” indicate this)
then add a condition subsequent ==> “on the condition that the land be used for residential purposes”
then create the right of re-entry for condition broken.
but if
on the condition that
provided
(without EXPRESS words of re-entry –> generally considered fee simple conveyance)
Executory Limitation
future interest in a third-party
vested remainder
remainderman’s right to immediate possession is without pre-conditions (except expiration of the the prior estate).
- “to A for life, then to B and his heirs”
contingent remainder
remainderman’s right to immediate possession is subject to a condition precedent
- to A for life, then to B and her heirs if B marries C
- can never follow a non-freehold particular estate. (term of years, periodic tenancy, tenancy at will
vested remainder SUBJECT TO DIVESTMENT
“to A for life, then to B and his heirs, but if B does not reach the age of 21, then to C and his heirs.”
- condition subsequent can cut off B’s vested remainder
“shifting” executory interest
C has:
“to A for life, then to B and his heirs, but if B does not reach the age of 21, then to C and his heirs.”
alternative contingent remainders
“to B for life, then to C and his heirs if C goes straight to college after high school, otherwise to D and her heirs”
VESTED REMAINDERS SUBJECT TO OPEN
to a class of recipients (e.g., "remainder to my children"), and at least one member of the class is born and ascertained, and other members may be added to the class later.
- “to B for life, remainder to B’s children and their heirs”
executory interest
a future interest
in someone other than the grantor
having one or more of the following features:
it directly follows a fee simple, and/or
it divests (“cuts short”) the prior estate, and/or
it directly follows possession by the grantor
springing executory interest
a future interest that causes possession of the freehold to “spring” out of the grantor
1. “to L for life, then one day after L’s death to E and her heirs” – a “gap” after the particular estate
- “to E and his heirs beginning 2 years from the date hereof” – no intervening particular estate at all
Destructibility of Contingent Remainders
when condition precedent is not met in contingent remainder
