Property Flashcards
(118 cards)
Fee Simple Absolute
largest estate recognized; can be sold, divided, devised, or inherited and has potentially infinite duration; presumed contrary intent
Fee Simple Determinable
terminates upon happening of stated event and automatically reverts to grantor [for so long as, while, during, until]; can be conveyed but takes subject to condition; grantor has possibility of reverter
Fee Simple Subject to Condition Subsequent
grantor reserves right to terminate estate upon happening of stated event [provided that, but if, upon condition that]; grantor retains right of entry
Fee Simple Subject to Executory Interest
terminates upon happening of stated event and then passes to third party
***If purpose of condition is to penalize marriage or encourage divorce, will be struck down; if purpose to give support until marriage, valid
Fee Tail
inheritability is limited to lineal heirs [heirs of body]; most jurisdictions have abolished and creates fee simple
Life Estate
measured by life of person [life of grantee or pur autre vie – life of another]; grantor holds a reversion
Waste
life tenant entitled to ordinary uses and profits of land but cannot do anything that injures interests of remaindermen/reversioner
AFFIRMATIVE Waste
exploitation of natural resources by life tenant limited to situations when (1) necessary for repair or maintenance of land; (2) land suitable only for such use; (3) expressly or impliedly permitted by grantor;
PERMISSIVE Waste
obligated to (1) preserve land and structures in reasonable state of repair, (2) pay interest on mortgages, (2) pay ordinary taxes on land, (4) pay special assessments for public improvements of short duration – life tenant fails to do so;
AMELIORATIVE Waste
change that benefits property economically but can demolish existing buildings if (1) market value of future interests is not diminished, and either (2) remaindermen do not object OR (3) substantial and permanent change in neighborhood conditions deprived property in its current form reasonable productivity/usefulness
Remainder
future interest in third person that can become possessory on natural expiration of preceding estate; must be expressly created
Indefeasibly Vested
created in existing and ascertained person and not subject to condition precedent – right to immediate possession upon normal termination
Subject to Open
created in class of persons that is certain to become possessory but subject to diminution
Total Divestment
subject to condition subsequent
Contingent Remainder
created in unborn or unascertained persons, or subject to condition precedent
Executory Interests
future interests in third parties that either divest a transferee’s preceding freehold estate (shifting interests) or follow gap in possession or cut short grantor’s estate (springing)
Destructibility
contingent remainder destroyed if it failed to vest before or upon termination of preceding freehold estate
Rule in Shelley’s Case
if same instrument created life estate in A and gave remainder only to A’s heirs, remainder not recognized, and A took life estate and remainder
Doctrine of Worthier Title
remainder in grantor’s heirs invalid and becomes reversion in grantor [rule of construction]
Rule Against Perpetuities
no interest in property is valid unless it must vest, if at all, no later than 21 years after some life in being at the creation of interest [applies to: contingent remainders, executory interests, vested subject to open, options to purchase, rights of first refusal, and powers of appointment] LOOK FOR – executory interest following defeasible fee, age contingency beyond age 21 in open class, unborn widow or widower, administrative contingency
Rule Against Restraints on Alienation
(1) disabling restrains, under which attempted transfers are ineffective; (2) forfeiture restraints, under which an attempted transfer forfeits interest; (3) promissory restraints, under which an attempted transfer breaches a covenant disabling restraint on any legal interest is VOID; all absolute restraints on fee simples are void
Joint Tenancy
right of survivorship need 4-fold unities = time, title, interest, and possession must take identical interests at the same time, by the same instrument, with the same right to possession [joint tenancy may be severed – inter vivos conveyance; execution of mortgage in title theory state; contract to convey; testamentary disposition has no effect]
Tenancy by Entirety
marital estate akin to joint tenancy – only death, divorce, mutual agreement, or execution by joint creditor of both husband and wife can sever tenancy by entirety
Tenancy in Common
no right of survivorship; presumed