Real Property

Question 1

What is a Present Possessory Estate?

Answer 1

An interest that gives the holder the right to PRESNT possession.

Question 2

What is a Fee Simple Absolute?

Answer 2

The largeste estate recognized by law. It can be sold, divided, devised, or inherited and has an indefinite or potentially infinite duration.

Question 3

What is presumed int he absence of express contrary intent in a grant of real property?

Answer 3

Fee Simple Absolute

Question 4

What are the different typed of defeasible fees?

Answer 4

Fee SImple Determinable

Fee Simple Subject to Condition Subsequent

Fee Simple Subject to an Executory Interest

Fee Tail

Life Estate

Question 5

What are the words of creation for a Fee Simple Determiniable?

Answer 5

For so long as

While

During

Until

Must limit the DURATION

Note: Expressions of motive do not count!!!

Question 6

What is the correlative future interest in the grantor of a Fee Simple Determinable?

Answer 6

Possibility of Reverter

This is AUTOMATICALLY retained

It is transferable, descendible and devisable

Question 7

What are the words of creation for a Fee Simple Subject to Condition Subsequent?

Answer 7

Upon condition that

Provided that

but if

If it happens that

The language reserves the right of the grantor to terminate the estate upon the happening of a stated event.

Question 8

What is the correlative furture interest in the grantor of a Fee Simple Subject to Condition Subsequent?

Answer 8

Right of Entry

It must be EXPRESSLY RESERVED

Transferable Inter Vivos? Court Split

Most States = Devisable

Descendible

Question 9

If a conveyance contains both duration language and a power of termination, what kind of Present Possessory Estate is presumed?

Answer 9

Fee Simple Subject to a Condition Subsequent because the forfeiture is OPTIONAL at the grantor’s election rather than automatic.

Policy disfavors forfieture of estates

Question 10

What are the words of creation for a Fee Simple Subject to an Executory Interest?

Answer 10

The Language of a Fee Simple Determinable and a Fee Simple Subject to Conditon Subsequent, but instead of future interest in the grantor, future interest is in a THIRD PARTY.

Question 11

What are the words of creation for a Fee Tail?

Answer 11

To A and the Heirs of his body

An attempt to create this will result in a Fee Simple

Question 12

What are the words of creation for a Life Estate?

Answer 12

Measured by the life or lives of one or more persons.

This need not be the life of the grantee.

Question 13

Life Estate Pur Autre Vie

Answer 13

Life Estate measured by the life of another

This also results when the Life Tenant conveys their interest in a life estate to another.

Question 14

Can a Life Estate be defeasible?

Answer 14

Yes, follow same rules as a Fee Simple.

Question 15

Future interest in a Life Estate?

Answer 15

To A for Life = Reversion to the Grantor

To A for life, them to B = Remainer in B

To A for life, but if…., to B = Reversion in Grantor, Executory Interest in B

Question 16

May a future interest holder sue for damages or to enjoin acts that may damage their future interest?

Answer 16

Yes

Question 17

Exploitation of Natural Resources by a life tenant is generally limited to situations:

1) Necessary for repair or maintenance of the land
2) If the land is suitable only for such use
3) It is expressly of impliedly permitted by the Grantor

What kind of Waste is this?

Answer 17

Affirmative (Voluntary) Waste

*Open mines doctrine* = If mining was done on the land prior to life estate, the life tenant can continue mining but only on the mines that are already open

Question 18

What 4 conditions must a tenant meet to not commit permissive waste of the property?

Answer 18

1) Preserve the land and structures in a reasonable state of repair
2) Pay interest on mortgages (BUT NOT PRINCIPAL)
3) Pay ordinary taxes on thge land
4) Pay special assessments for public improvements of short duration

Question 19

When is Ameliorative Waste okay for the Tenant to engage in?

Answer 19

1) The market value of the future interests is not diminished, and EITHER
2) The remaindermen do not object; OR
3) A substantial and permanent changes int he neighborhood conditions (e.g. changes from residential to 90% industrial) has deprived the property in its current for f reasonable productivity or usefulness.

Question 20

When a life tenant renunciates their interest, who gets the keys?

Answer 20

Generally the future interest following the life estate.

Question 21

What is a reversionary interest?

How does it arise, law or expressly reserved?

Can holder sue for Waste?

Answer 21

An interest left in a grantor who conveys less than they own.

Arises by law does not have to be expressly reserved

Alienable

Devisable

Inheritable

Holder can sue for waste and tortious damage to their reversionary interest.

Question 22

Are reversionary interests subject to the Rule Against Perpetuities?

Answer 22

NO! They are vested already!

Question 23

What possessory interest may a Remainder never follow?

Answer 23

Fee Simple

Because a remainder cannot “cut short” a preceding estate

Question 24

What are the requirements for a remainder?

How does a remainder arise? Law or Created?

Answer 24

A future interest in a 3rd person;

that can become possessory on the natural expiration of the preceding estate;

It cannot divest a prior estate;

and it cannot follow a time gap after the preceding estate

Must be expressly created in the instrument creating the preceding possessory estate.

Question 25

Indefeasibly Vested Remainder

Answer 25

Created in an existing and ascertained person, and not subject to a condition precedent. Right to immediate possession upon normal termination of the preceding estate. Not subject to divestment or diminution

Question 26

Vested remainder subject to open

Answer 26

A vested remainder created in a class of persons that is certain to become possessory subject to diminution (birth of additional children) to A for life, then to t he children of B. A and B are living and B has one child, C. C has a vested remainder subject to open.

Question 27

Vested remainder subject to total divestment

Answer 27

Vested remainder that is subject to a condition subsequent To A for life, then to B and his heirs; but if B dies unmarried, then to C and his heirs. A = LE B = Vested Remainder subject to complete divestment by C = Executory Interest When language is ambiguous, go with this rather than contingent remainders or executory interests.

Question 28

When are contigent remainders created?

Answer 28

Subject to a Condition Precedent Unborn or Unascertained Persons

Question 29

When does the doctrine of merger come into play?

Answer 29

When one person later acquires immediately successive estates. If the life estate and the next vested interest were created by the same instrument, there is NO MERGER!

Question 30

Can a contingent remainder be destroyed?

Answer 30

Not in most states. To A for life, then to B if she reaches 21. If A dies before B reaches 21, B's interest would be converted to an executory interest upon A's death because it will divest O's reversionary estate when B turns 21. Common law = yes they can be destroyed

Question 31

What is the Rule in Shelley's Case?

Answer 31

If the same sintrument created a life estate in A and gave the remainder only to A's heirs, the remained was not recognized, and A took the life estate and the remainder. Abolished in most states.

Question 32

What is the Doctrine of Worthier Title?

Answer 32

A remainder in the grantor's heirs is invalid and becomes a reversion in the grantor. This is treated as a rule of construction only.

Question 33

What is a Shiting Executory Interest?

Answer 33

An interest that DIVESTS a transferee's preceding freehold estate To A for life, then to B and his heirs; but if B predesceases A, then to C and his heirs. C has a shifting executory interest because it divests a transferee's preceding estate.

Question 34

What is a springing executory interest?

Answer 34

An interest that either follows a gap or cuts short a grantor's estate To a And his heirs when A marries B A has a springing EI because it cuts short the grantor's estate.

Question 35

Are Executory interests subject to Rule Against Perpetuities?

Answer 35

NO! They are vested. Also not destructible

Question 36

Are vested remainders transferable? Descendible? Deviasable?

Answer 36

YES YES YES

Question 37

Are Contigent remainders transferable? Descendible? Devisable?

Answer 37

Common law not transferable inter vivos, most courts today hold they are freely transferable Yes Yes Provided survival is not a condition to the interest's taking

Question 38

Are executory interests transferable? Descendible? Devisable?

Answer 38

Common law not transferable inter vivos most courts hold they are freely transferable. Yes Yes Proved survival is not a conditoon to the interest's taking.

Question 39

Are future intersts that are transferable subject to invountary transfer?

Answer 39

YES! Reachable by creditors

Question 40

Class Gift

Answer 40

Class gift of a remainder may be: Vested subject to open (Where at least one group member exists) or Contingent (Where all group members are unascertained)

Question 41

When does the class close under the rule of convenience.

Answer 41

In the absence of express contrary intent, a class closes when one member of the class can call for distritbution of their share of their share of the class gift.