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Flashcards in Real property Deck (195)
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1

Freehold Estates: What are the three species of defeasible fees?

Fee simple determinable
Fee simple subject to condition subsequent
Fee simple subject to an executory limitation.

2

What is a fee simple determinable?

Language: Clear Durational Language - language providing that upon the happening of a stated event, the land is to revert to the grantor
Automatic!
Duration: Potentially infinite, so long as event does not occur.
FI: Possibility of reverter (held by grantor).
FSDPOR: Fee Simple Determinable, Possibility Of Reverter.

3

NY term:
Fee simple determinable

"Fee on limitation"

4

What is a fee simple subject to condition subsequent?

To A, but if X event happens, grantor reserves the right to reenter and retake."
Grantor must carve out right of entry.
Not automatic - must exercise right!
Duration: Potentially infinite, so long as event does not occur.
FI: Right of entry/power of termination (held by grantor)

5

NY term:
Fee simple subject to condition precedent

Fee on condition

6

NY term:
Right of entry / power of termination

Right of re-acquisition

7

What is a fee simple subject to an executory limitation?

To A, but if X event occurs, then to B."
Duration: Potentially infinite, so long as stated contingency does not occur.
FI: Shifting Executory interest (held by third party).
(Just like FSD, only now, if the condition is broken, estate is automatically forfeit in favor of someone other than O, grantor.)

8

Life estate: Future interest?

Reversion - if to Grantor
Remainder - if to 3rd party

9

What is a remainder?

Future interest in GRANTEE (not O)
Preceding estate of known fixed duration (life estate / number of years)
Never after defeasible fee. Doesn't cut off prior transferee. Not executory interest.

10

Vested remainder

Created in ascertained person. No CP.

11

3 types of vested remainder

Indefeasibly vested
Vested subject to complete defeasance
Vested subject to open

12

1. Indefeasibly vested remainder

Certain to acquire. No conditions.
If predeceases condition - to heirs (CL)

13

2. Vested remainder subject to complete defeasance / total divestment

Condition subsequent. (If CP would be a contingent remainder)
Remainderman's possession could be cut short by a condition subsequent.

14

NY term:
Vested remainder subject to complete defeasance

"Remainder vested subject to complete defeasance"
(just switched some words around)

15

How to distinguish between CP and CS

CP: before - "if, then" - might not happen --> contingent remainder
CS: after "provided that" - will happen but might not continue --> vested remainder subject to complete defeasance

16

3. Vested subject to open

Class/category not yet closed
At least one already qualified to take (if not -->contingent)
Closes when max membership set, persons born afterwards are excluded
(i.e. whenever any member can demand possession)
Fetus included.

17

Contingent remainder

Created in unascertained/unborn person(s) OR subject to CP.

18

NY term:
Contingent remainder AND executory interest are both called:

Remainder subject to CP.

19

Abolished rule:
"Destructability of contingent remainders"

If still contingent when previous estate ended --> remainder destroyed.
Instead: Grantor with contingent remainder's springing executory interest.

20

Abolished rule (everywhere):
"Shelley's case"
"To A and then to A's heirs"

Becomes FSA.
Instead: Becomes life estate + contingent remainder + O reversion if no heirs.

21

Abolished rule (in NY):
"Rule of worthier title"
Life estate to A then to O's heirs.

No remainder in grantor's heirs. becomes reversion to O.
[Abolished only in NY]

22

2 types of executory interest

Cuts short interest in O or heirs: "springing"
Cuts short interest in 3rd party: "shifting" -- always follows defeasible fee.

23

When are absolute restrains on alientation voided?

When not linked to reasonable time-limited purpose
(Must state TIME and PURPOSE)

24

Tenant entitlement in life estate?

Entitled to all ordinary uses and profits from land.
Must not commit "waste" (i.e. injury to future interest holders)

25

Three types of "waste"

Voluntary/affirmative
Permissive
Ameliorative

26

Voluntary/affirmative waste

"Actual overt conduct which causes diminution of value"
Cannot consume/exploit natural resources

27

4 types of permitted "voluntary waste"

PURGE:
Prior Use (was already used for exploitation / open mines)
Repairs
Granted right to do so
Land suitable only for Exploitation

28

Permissive waste

Must maintain in good repair and pay ordinary taxes.
(to extent of income from land;
to extent of fair rental value - if no income)

29

Ameliorative waste

Not allowed to enhance value!
EXC: All remaindermen are known and they CONSENT.
*NY* Reasonable improvements OK unless remaindermen OBJECT (default - allowed)

30

RAP
Paula's 4-step test

1. Identify future interest
2. Identify CP to vesting
3. Idenify measuring life
4. Certainty after death + 21y?