Present Possessory Estates

Question 1

Fee Simple Absolute

Answer 1

Look for: no strings

Lasts: forever

Question 2

Fee Simple Determinable

Answer 2

Look for: durational language (so long as, while, during, until)

Lasts: as long as the condition is met then automatically reverts to grantor

Future interest: possibility of reverter

Question 3

Fee Simple Subject to Condition Subsequent

Answer 3

Look for: conditional words (on condition that, provided that, but if) and an explicit statement of grantor’s right to re-enter

Lasts: until the named event happens and grantor chooses to re-enter

Future interest: right of entry

Question 4

Fee simple Subject to Executory Interest

Answer 4

Look for: third party who will take upon forfeiture of a fee simple estate

Lasts: as long as the condition is met (if durational language) or until the named event happens (if conditional language)

Future interest: shifting executory interest

Question 5

Life Estate

Answer 5

Look for: explicit lifetime terms

Lasts: until the end of the measuring life

Future interest: reversion (if held by the original grantor) or remainder (if held by a third party)

Question 6

Duties of a Life Tenant

Answer 6

-Not commit waste
-Not exploit natural resources unless necessary (except open mines)
-Maintain the premises
-Pay taxes
-Pay mortgage interest
-Pay special assessments