Term
Restraints on Fee Simple Absolute |
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Definition
FSA must be fully alienable.
There can be no restraints on transfer of ownership of FSA.
Any attempt is VOID. |
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Term
| Life Estate Pur Autre Vie |
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Definition
A life estate measured by the life of another.
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Term
Life Estate Pur Autre Vie
(Life Tenant Dies 1st) |
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Definition
| If the life tenant dies before the measuring life dies, the life estate passes to the estate of the deceased life tenant and continues in place until the measuring life dies. |
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Term
Life Estate Pur Autre Vie
(Measuring Life Dies) |
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Definition
| Life tenant life estate terminates when the measuring life dies. |
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Term
Life Estate
(Restraint on Alienation) |
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Definition
| Modern rules allow direct restraints on life estates and can forbid a life tenant from conveying their life estate to someone else. |
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Term
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Definition
- Voluntary Waste
- Permissive Waste
- Ameliorative Waste
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Term
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Definition
Occurs when the life tenant alters the property substantially, increasing property value. |
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Term
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Definition
Generally, the Life tenant maintains the estate and may continue the normal use of the land.
Any change of use is voluntary waste for which the life tenant may be liable to a holder of future interest.
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Term
Voluntary Waste
(Depletion of Natural Resources) |
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Definition
| Constitutes waste UNLESS consumption of such resources constitutes the normal use of the land (coal mine, granite quarry, etc.) |
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Term
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Definition
Tenant must do 3 things to avoid liability for permissive waste:
- Repairs* - repairs, not replacements
- Taxes* - all property taxes
- Mortgage Debt - Interest, not Principal
*limited to rent & profit $ received from land |
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Term
| What happens if a Life Tenant fails to pay taxes on the property? |
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Definition
| Property can be sold at a tax sale which would eliminate all future interests. |
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Term
Waste
(Changed Conditions Exception) |
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Definition
| If changed conditions have made the property relatively worthless, then the life tenant can alter the property without incurring liability to the holder of the future interest. |
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Term
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Definition
The holder of seisin has title and is responsible to pay taxes on the property.
Always account for Seisin. |
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Term
| Grantor's Future Interests |
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Definition
- Reversion
- Possibility of Reverter
- Right of Entry
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Term
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Definition
| A Reversion in the Grantor arises whenever the Grantor conveys away less than the Full durational estate that the Grantor had. |
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Term
| Possibility of Reverter in the Grantor |
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Definition
Whenever the Grantor conveys a Fee Simple Determinable, the Grantor AUTOMATICALLY retains a Possibility of Reverter.
Magic Words: "So Long As", "While", "During", "Until" |
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Term
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Definition
When Grantor conveys a Fee Simple On Condition Subsequent, he keeps a Right of Re-entry.
Grantor must act to retake property.
Magic Words: "Provided, however", "But if", "on condition that" |
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Term
Transferability
(Reversions)
(Possibility of Reverter) |
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Definition
NOT subject to Rule Against Perpetuties
IS Freely Transferable on Death
IS Freely Transferable inter vivos |
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Term
| Right of Entry (Re-Entry) |
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Definition
NOT subject to Rule Against Perpetuties
IS Freely Transferable on Death
NOT Freely Transferable inter vivos
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Term
| Grantee's Future Interests |
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Definition
Vested Remainder
Contingent Remainder
Vested Remainder Subject to Open
Executory Interests |
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Term
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Definition
| A remainder is a future interest in a 3rd party Grantee that comes naturally and immediately on the termination of the preceding estate |
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Term
Vested Remainder in Grantee
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Definition
A remainder is vested if nothing stands in the way of its becoming possessory on the natural expiration of the preceding estate.
- Taker is Ascertainable
- no conditions to taking
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Term
| Contingent Remainder in a Grantee |
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Definition
A remainder is Contingent if a something must happen before the interest can become possessory.
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Term
Vested Remainder Subject to Open
(Class Gifts) |
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Definition
| Where a remainder interest is conveyed to a class of unnamed persons whose members are not yet fully known, the class remains open to allow for future persons who qualify as class members by satisfying the class description. |
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Term
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Definition
| Under a rule of convenience, the class CLOSES for a Class Gift whenever any class member is entitled to a distribution. |
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Term
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Definition
Operates to cut short the estate that comes before it.
If a future interest in a Grantee is NOT a Remainder, then it MUST be an Executory Interest. |
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Term
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Definition
- Fee Simple Determinable (Durational)
- Fee Simple Subject to Condition Subsequent
- Fee Simple Subject to Executory Interest
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Term
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Definition
- Fee Simple Determinable (Durational)
- Fee Simple Subject to Condition Subsequent
- Fee Simple Subject to Executory Interest
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Term
| Fee Simple Determinable (Durational) |
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Definition
O to A for so long as no liquor is used.
Magic Words:
So Long As
While
During
Until |
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Term
| Fee Simple Subject to Condition Subsequent |
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Definition
O to A, but if liquor is ever consumed on the premises, then O shall have right to re-enter.
Magic Words:
Provided, However
But if
on condition that |
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Term
| Fee Simple Subject to Executory Interest |
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Definition
| O to A, so long as the property is used for residential purposes; and if the property is used for something else, then to B and heirs. |
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Term
| The Rule Against Perpetuities |
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Definition
Interests must vest within 21 years after the death of someone who was alive and part of the original conveyance.
Always applies to: Executory Interests, Contingent Remainders, and Vested Remainders Subject to Open. |
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Term
Rule Against Perpetuities
(Ohio) |
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Definition
- apply Common Law RAP, if void
- Apply "Wait and See" Statute
- Cy Pres approach - invalid interest can be reformed to carry out the Grantor's intent as nearly as possible.
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Term
Rule Against Perpetuities
(Contingent Interests in Property) |
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Definition
Contingent interest in property, such as options and rights of first refusal, violate the Rule Against Perpetuities IF they could possibly be exercised outside the time period of the Rule. |
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