Property Final Review Outline Flashcards
(96 cards)
Fee Simple Absolute
Fee simple absolute is the most complete estate in land.
- Freely alienable, devisable, and descendible
- Potentially infinite in duration
- Not subject to any future interest
Created by:
- “To A” or “To A and his heirs”
Fee Simple Determinable
Fee simple determinable ends automatically upon occurrence of a condition.
- Uses durational language (“so long as,” “until”)
- Future interest: Possibility of reverter in grantor
Fee Simple Subject to Condition Subsequent
Fee simple subject to condition subsequent gives grantor a right to re-enter if condition occurs.
- Uses conditional language (“but if,” “provided that”)
- Future interest: Right of entry in grantor (The grantor must take affirmative steps to reclaim the property.)
Fee Simple Subject to Executory Interest
Fee simple subject to executory interest ends automatically and transfers to a third party.
- Uses either durational or conditional language
- Future interest: Executory interest
Life Estate
Life estate is measured by the life of a person.
- Ends automatically at death of measuring life
- May be defeasible
- Future interest: Reversion (grantor) or remainder (third party)
Term of Years Tenancy
Created by: Agreement (i.e., lease)
Duration: Fixed period (e.g., 1 month, 3 years)
Termination: Ends automatically or upon breach of major covenants (e.g., rent)
Periodic Tenancy
Created by: Agreement, implication, or operation of law (e.g., holdover tenant)
Duration: Periodically renews until terminated
Termination: Ends with proper notice or breach of covenant
Tenancy at Will
Created by: Agreement or implication when possession is allowed without rent
Duration: Indefinite
Termination: At any time with reasonable notice
Tenancy at Sufferance
Created by: Tenant holds over after lease ends
Duration: Continues until landlord acts
Termination: Landlord evicts, tenant vacates, or landlord accepts rent (forms periodic tenancy)
Reversion
Reversion is a future interest retained by the grantor when a present estate is given that is less than a fee simple, and no other recipient is named.
Example:
- “To A for life” → grantor retains a reversion
Remainder
Remainder is a future interest held by a third party that becomes possessory when a prior estate (typically a life estate) ends naturally.
Types of remainders:
- Vested: Given to an ascertained person, not subject to a condition precedent
- Contingent: Either unascertained grantee or subject to a condition precedent
Vested Remainder Subject to Open
Vested remainder subject to open exists when:
- At least one class member is vested
- The class is still open to additional members
Each member’s share is subject to partial divestment as new members join the class.
Vested Remainder Subject to Complete Divestment
Vested remainder subject to complete divestment is a vested interest that may be fully lost if a condition subsequent occurs.
Example: “To A for life, then to B, but if B marries X, then to C.”
Possibility of Reverter
Possibility of reverter is a future interest retained by the grantor following a fee simple determinable.
The estate automatically returns to the grantor upon the occurrence of the specified event.
Right of Reentry
Right of reentry (also called power of termination) is a future interest retained by the grantor following a fee simple subject to condition subsequent.
The grantor must take affirmative steps to reclaim the property.
Executory Interest
Executory interest is a future interest held by a third party that takes effect by divesting:
- A prior grantee (→ shifting executory interest), or
- The grantor (→ springing executory interest)
Rule Against Perpetuities (RAP)
Rule Against Perpetuities (RAP): A future interest is valid only if it must vest or fail no later than 21 years after the death of a life in being at the time the interest is created.
Applies to:
- Contingent remainders
- Executory interests
- Class gifts (vested subject to open)
- Powers of appointment
- Options and rights of first refusal
Does NOT apply to:
- Grantor’s retained interests (e.g., reversion, possibility of reverter, right of reentry)
- Transfers from one charity to another
Common RAP violations include:
- “Survival beyond age 21” conditions
- Fertile octogenarian
- Unborn spouse
- Defeasible fee followed by an executory interest
- Conditional interest that may vest too remotely
Class Gifts and RAP:
- If RAP voids a transfer to any class member, the entire class gift fails: “bad as to one, bad as to all” rule
- Rule of Convenience: Class closes when any member is entitled to possession, preventing later members from joining and saving the gift from RAP violation
Tenancy in Common
Tenancy in common is the default form of co-ownership.
Key features:
- Each tenant has an equal right to possess the whole
- Shares may be unequal and separately transferable
- No right of survivorship
Freely:
- Alienable during life
- Devisable by will
- Inheritable via intestate succession
Joint Tenancy
Joint tenancy is a co-ownership with right of survivorship.
Requires four unities (PITT):
- Possession: equal right to possess the entire property
- Interest: equal and undivided shares
- Time: interests created at the same time
- Title: interests created in the same instrument
Alienable during life (but severs the joint tenancy)
Tenancy by the Entirety
Tenancy by the entirety is a joint tenancy held by married spouses.
Key features:
- Includes right of survivorship
- Only severable with the spouse’s consent
Presumed for married couples in some states.
Not recognized in all jurisdictions.
Rights and Duties of Cotenants
Each cotenant has the right to possess the entire property.
- No obligation to pay rent to each other (unless agreed)
- Ouster: Denial of possession → injured cotenant may seek damages or injunction
Expenditures and income:
- Contribution allowed for necessary taxes and mortgage payments
- No contribution for repairs (but may recover in accounting/partition)
- No contribution for improvements, but may recover value added on sale
Partition
Partition is the division of concurrent property interests.
Can be:
- Voluntary: by mutual agreement
- Involuntary: by court action
Types:
- Partition in kind (preferred): physical division of property
- Partition by sale: if physical division is impracticable or unfair
Cotenants may agree not to partition, but the agreement must be:
- Clear and
- Reasonable in duration
Conflict of Laws
In cases involving real property, the forum court will apply the law of the situs (i.e., the law where the property is located) except:
- When a document that conveys or transfers an interest in land specifies the applicable law
- When property is acquired during marriage (in which case the law of the spouses’ domicile when the property was acquired determines whether the property is marital or separate property) or
- For collateral issues (e.g., fraudulent transfer of land), where the law of the state with the most significant interest may apply.
Statute of Frauds – Leases
A lease longer than one year must satisfy the Statute of Frauds:
Writing must:
- Identify the parties and premises
- State the duration of the lease
- State the rent to be paid
- Be signed by the party to be charged