Real Property Flashcards
(104 cards)
Fee Simple Absolute
A fee simple absolute is the largest estate that can be held. It is freely devisable, descendible, and alienable. Here,
Defeasible Fees
A defeasible fee is a fee simple estate that can be terminated upon the happening of a stated event.
Defeasible Fees - Fee Simple Determinable (Possibility of Reverter)
A fee simple determinable terminates upon the happening of the state event, and will AUTOMATICALLY revert back to the grantor. Here,
*Key words: so long as, until, during, while
Defeasible Fees - Fee Simple Subject to Condition Subsequent (Right of Entry)
A FSSCS is an estate where the grantor reserves the right to re-enter and terminate the estate upon the happening of the stated event. This right to terminate is called the “right of entry” and must be expressly reserved. Here,
*Key words: but if, provided that, on condition that
Defeasible Fees - Fee Simple Subject to Executory Limitation (Executory Interest)
A FFSEL will automatically terminate upon the happening of the stated event, and the interest in the property will be granted to a 3rd party, who is the owner of an executory interest.
Springing - cuts off grantor
Shifting - cuts off previous interest holder
Fee Tail
A fee tail limits the succession of estate to the lineal heirs of the grantee. The fee tail is abolished in most jurisdictions and has been replaced by the fee simple absolute.
*Key words: to A and the heirs of his body
Life Estate (Reversion)
A life estate is one that is measured by the life of a specific person. Here,
Life Tenant Duties (Waste)
The holder of a life estate is entitled to the normal use and profits of the property but has a duty to maintain the value for the future interest holders by not engaging in any form of waste.
Life Tenant Duties - Affirmative Waste
Affirmative waste is when the tenant purposely does something that reduces the value of the property. The life tenant must continue the normal use of the land and not exploit natural resources unless consumption is considered normal use. Harvesting crops is allowed. Here,
Life Tenant Duties - Permissive Waste
Permissive waste occurs when the tenant allows the property to fall into disrepair because of a lack of substantial upkeep of the property. The life tenant has a duty to maintain/repair but no duty to replace/upgrade. This includes not paying taxes and mortgage interest. Here,
Life Tenant Duties - Ameliorative Waste
Ameliorative waste occurs when the tenant does something that improves the value of the property, but without the consent of future interest holders. However, life tenant can make changes if the property is relatively worthless because of a changed condition. Here,
Grantor Future Interest - Possibility of Reverter
A possibility of reverter is granted concurrent with a fee simple determinable, and must be expressly reserved by the grantor. This means that the property will automatically revert back to the grantor upon the stated condition. Here,
Grantor Future Interest - Right of Entry
A right of entry is granted concurrent with a FSSCS and gives the grantor the permission to re-enter and terminate the estate if the stated condition occurs. The estate does not automatically revert, but rather the grantor must re-enter the land and re-take possession. Here,
Grantor Future Interest - Reversion
A reversion exists with a life estate where the grantor leaves himself with some interest in land. Here,
3rd Party Future Interest - Remainder
A remainder is a future interest granted to a 3rd party that follows naturally and immediately at the expiration of all previous estates. A remainder waits its turn and cannot cut short an estate and must be explicitly granted at conveyance.
Indefeasibly Vested Remainder
A vested remainder is a remainder created in a known person and NOT subject to a condition precedent or divestment. All vested remainders are fully transferable during life. Here,
Vested Remainder Subject to Open (Divestment)
A VRSTO is a remainder that is usually granted to a class of people that is certain to become possessory, but is uncertain as to the amount of class members that will share the interest. The class closes whenever any member of the class is entitled to a distribution. Here,
Vested Remainder Subject to Complete Defeasance
A VRSCD is a vested remainder that is subject to condition subsequent, and may, upon the stated condition, fully exclude the 3rd party of all interest in the property. Here,
Contingent Remainder
A contingent remainder is a remainder that is subject to a condition precedent. And will only become possessory (indefeasibly vested) upon the happening of that stated event. Here,
Contingent Remainder - Destructibility
The rule of destructibility states that if a contingent remainder fails to vest before the preceding estate expires, it is terminated. However, most states have abolished this rule and simply convert the contingent remainder into a springing executory interest. Here,
Contingent Remainder - Doctrine of Worthier Title
The doctrine of worthier title states that a remainder in the grantor’s heirs becomes a reversion in the grantor. Here,
Contingent Remainder - Rule of Shelley’s Case
The Rule in Shelley’s Case states that if the same instrument created a life estate in A, a remainder interest in A’s heirs, the remainder is not recognized and A is awarded a fee simple absolute. Here,
3rd Party Future Interest - Executory
An executory interest is one that will cut short the interest in another person (shifting) or the interest of the grantor (springing) upon the occurrence of the stated event. Here,
Rule Against Perpetuities
The rule against perpetuities states that an interest must vest, if at all, within 21 years after the death of a measuring life. Applies only to contingent remainders, executory interest, and vested remainders subject to partial divestment.