Ownership

Question 1

4 ways property can be transferred (aka alienated)

Answer 1

1. Sale
2. Gift
3. Devise (transfer by will)
4. Intestate Succession (transfer by dead person with no will)

Question 2

Two kinds of ownership interests

Answer 2

1. Present interest

2. Future interest

Question 3

If a grant of property is ambiguous, what is the default type of interest created?

Answer 3

FEE SIMPLE ABSOLUTE - we presume someone conveys the MOST they have

Question 4

Fee simple determinable

Answer 4

Limited by DURATIONAL language (while, during, until)

“O to A SO LONG AS the land is used as a farm”

Question 5

Fee Simple Subject to Condition Subsequent

Answer 5

Limited by CONDITIONAL language (but if, provided that, on the condition that)

“O to A but if the land isn’t farmed, to B.”

Question 6

Possibility of Reverter

Answer 6

Future interest of the grantor in a fee simple determinable.

AUTOMATIC after the durational period ends.

“O to A so long as the land is used as a park.” O has a possibility of reverter

Question 7

Right of Entry

Answer 7

Future interest of the grantor in a fee simple subject to condition subsequent.

NOT automatic. must be reclaimed

O to A but if the land is not used as a park, O may reenter and retake.” O has a right of reentry.

Question 8

Fee Simple Subject to Executory Interest

Answer 8

Ends when an event happens and the future interest is in a third party

“O to A, but if liquor is served, then to B”

Question 9

When does a life estate end?

Answer 9

When the measuring life dies

Question 10

Can life estates be transferred?

Answer 10

Sure, while the measuring life is still alive.

O to A for life. A transfers to B. B has the property until A dies, then back to O.

Question 11

Who can be the measuring life?

Answer 11

Anyone.

O to A for life. A is measuring life.

O to A for B’s life. B is measuring life (“life estate pur autre vie”)

Question 12

Reversion

Answer 12

when possession of the land goes back to the grantor after a life estate ends

O to A for life. O has a reversion

Question 13

Remainder

Answer 13

When possession of the land goes to someone else after a life estate ends

O to A for life, then to B. B has a remainder.

Question 14

3 kinds of waste

Answer 14

1. Affirmative
2. Permissive
3. Ameliorative

Question 15

Affirmative Waste

Answer 15

Waste caused by:

1. Voluntary conduct
2. Which causes a decrease in value

Question 16

Permissive Waste

Answer 16

Waste caused by:

1. Neglect toward the property
2. Which causes a decrease in value

Question 17

Ameliorative waste

Answer 17

someone in possession of a property:

1. changes the use of the property
2. and increases value

(ex: renovation, fixing a fence)

Question 18

2/3 types of remainders

Answer 18

1. Vested
2. Contingent
   3ish. Vested subject to open (class gifts)

Question 19

RAP applies to WHICH kind of remainders?

Answer 19

1. Contingent remainders
2. Vested remainders subject to open

RAP DOES NOT APPLY TO VESTED REMAINDERS

Question 20

Vested remainder

Answer 20

Interest that is:

1. given to an ascertained grantee (someone who can be identified)
2. AND not subject to a condition precedent

Both must be present. If not, its a contingent remainder (either party is unknown yet or condition hasnt been satisfied yet)

Question 21

What happens to a vested remainder if the holder dies?

Answer 21

It passes to the holder’s heirs

Question 22

What happens if a contingent remainder does not vest before it becomes a present interest?

Answer 22

It reverts back to the grantor - grantor has a reversion

Question 23

Vested remainder subject to open

Answer 23

1. Remainder in a class gift
2. At least one person in the class is vested (if not, its just a contingent remainder)
3. But full class membership is unknown

O to A for life, then to A’s children who reach 21. A has a 25yo B and an 18yo C. B’s interest is a vested remainder subject to open. C’s in

Question 24

If/when does a vested remainder subject to open close?

Answer 24

When all members of the class are identified

Question 25

Rule of Convenience

Answer 25

If a class gift does not have an express closing date, the Rule of Convenience closes the class when any member of the class becomes entitled to immediate possession. "O to A for life, then to B's children." B has 1 child. Class closes when A dies. A way to avoid RAP!

Question 26

Doctrine of Worthier Title

Answer 26

Prevents remainders in the grantor's heirs by creating a presumption in a reversion to the grantor. O to A for life, then to my heirs = O to A for life. O has a reversion. (Not applicable in PA)

Question 27

Rule in Shelly's case

Answer 27

Prevents remainders in the grantee's heirs by merging to create a fee simple. O to A for life, then to A's heirs = fee simple to A

Question 28

Executory Interest - 2 kinds

Answer 28

future right in a third party that cuts short a prior vested interest 1. springing executory interest 2. shifting executory interest

Question 29

Springing executory interest

Answer 29

Divests the grantor O to A for life, then to B one year after A's death. (A has life estate. B has a springing executory interest) O to A after she is admitted to the bar. (A has a springing executory interest, O has a FS subject to exec interest).

Question 30

Shifting executory interest

Answer 30

Divests the grantee O to A for life, but if used for commercial purposes, to B. A has FS subject to executory interest. B has shifting executory interest.

Question 31

Basic RAP question

Answer 31

Will this property be vested within 21 years after all named people (lives in being) have died? so if an executory interest (O to A so long as property is used as a farm, then to B) goes on forever, invalid under RAP

Question 32

All or Nothing Rule (RAP)

Answer 32

If the gift to anyone in the class is void under RAP, then the gift is void as to everyone

Question 33

Two exceptions to All or Nothing Rule

Answer 33

1. transfers of a specific dollar amount to each class member 2. Transfers to a subclass that vests at a specific time

Question 34

Exceptions to RAP

Answer 34

1. Charity to charity gift 2. Wait and See approach 3. Cy Pres