Present Estates & Future Interests

Question 1

How is a fee simple absolute created?

Answer 1

To A or To A and his heirs

Question 2

What are the characteristics of a FSA?

Answer 2

Devisable by will, transferable, and descendable through intestacy

Question 3

Does a living person have heirs?

Answer 3

No

Question 4

What is a defeasible fee?

Answer 4

Fee simple with a catch

Question 5

What are the three defeasible fees?

Answer 5

1) fee simple determinable
2) Fee simple subject to condition subsequent
3) fee simple subject to executory interest

Question 6

How is a FSD created?

Answer 6

To A + duration language (for as long as, while, during, until)

Question 7

If the stated condition is violated in a FSD forfeiture is ____

Answer 7

automatic

Question 8

What does the grantor (O) have in a FSD?

Answer 8

PoR

Question 9

What are the distinguishing characteristics of a FSD?

Answer 9

Transferable, devisable, and descendable

Question 10

How is a FSSCS created?

Answer 10

1) Use of conditional words (upon condition that, provided that, but if, if it happens that)

2) an explicit statement of the grantor’s right to re-enter

Question 11

What does the grantor have in a FSSCS?

Answer 11

A right of entry

Question 12

What happens if the condition in the FSSCS occurs?

Answer 12

The grantor may or may not terminate

Question 13

How is a FSSEI created?

Answer 13

look for a third party

“To A, but if X event occurs, then to B”

Question 14

What does the grantor have in a FSSEI?

Answer 14

A shifting executory interest

Question 15

Are words of desire, hope, aspiration, or motivation sufficient to form a DF?

Answer 15

No e.g., for the purpose of, with the hope of, with the expectation (all are just FSA)

Question 16

Are conditions that restrict a transferee’s right to transfer okay?

Answer 16

No, and it gets crossed out (“as long as A never attempts to sell”)

Question 17

Are conditions that violate public policy allowed?

Answer 17

No e.g., penalizing marriage or encouraging divorce

Question 18

What is a fee tail

Answer 18

to A and the heirs of his body (limited to lineal heirs)

Question 19

How is a life estate created?

Answer 19

to A for life (but it cannot specify a number of years, then it is a term of years)

Question 20

What is a life estate pur autre vie?

Answer 20

LE based on the life of another (To A for the life of B)

Question 21

What FI does O have in a LE?

Answer 21

reversion

Question 22

The life tenant must not commit ___

Answer 22

waste

Question 23

What are the duties of a life tenant?

Answer 23

1) preserve the land and structure in a reasonable state of repair
2) pay ordinary taxes
3) pay interest on mortgage (not principle)
4) NOT obligated to insure

Question 24

What are the possible FI in O?

Answer 24

POR, right to entry, and reversion

Question 25

What are the possible FI in third parties?

Answer 25

1) contingent remainder 2) vested remainder 3) executory interest (shifting/springing)

Question 26

What are the two circumstances that create a CR?

Answer 26

1) created in an unborn or unascertained person OR 2) Subject to condition precedent (look for language before the grant to the third party)

Question 27

What are the three VR?

Answer 27

1) Indefeasibly VR 2) VR subject to total divestment 3) VR subject to open

Question 28

IVR

Answer 28

VR not subject to divestment, third person is certain to acquire the estate To A for life, remainder to B; B is alive

Question 29

VRSTD

Answer 29

Third party's rights could be cut short by a condition subsequent

Question 30

VRSO

Answer 30

created in a group of people where more may join the class (B's children, B is still alive)

Question 31

A shifting executory interest always follows a ____ and cuts short someone other ___

Answer 31

defeasible fee; than the grantor

Question 32

A springing executory interest cuts short the interest of ____

Answer 32

the grantor, O

Question 33

What interests does RAP apply to?

Answer 33

CR, EI, VRSO

Question 34

Find the measuring life

Answer 34

Look for who is alive at the date of conveyance and is relevant to what will happen in the future