Term
| Rule Against Perpetuities |
|
Definition
No interest in property is valid unless it MUST vest, if at all, not later than 21 years after some life being and creation of the interest
Applies to:
contingent remainders
vested remainders subject to open
executory interests |
|
|
Term
| Present Possessory Interests |
|
Definition
1. Fee Simple Absolute (ADD)
2. Fee Simple Determinable
3. Fee simple subject to condition subsequent
4. Fee simple subject to executory interest
5. Fee tail (ignore)
6. Life estate |
|
|
Term
| Fee Simple Determinable (durational) |
|
Definition
Interest terminates and returns to grantor AUTOMATICALLY
This is called a POSSIBILITY of Reverter |
|
|
Term
| Fee Simple Subject to Condition Subsequent |
|
Definition
| Event creates a grantor right of entry |
|
|
Term
| Life Estate Pur Autre Vie |
|
Definition
Measured by the life other than grantee
Also results when life tenant conveys estate to another
(b/c life estate is measured by grantor of life estate) |
|
|
Term
|
Definition
| A life tenant is entitled to any ordinary uses and profits of the land but cannot do anything that injures a future interest |
|
|
Term
| Waste @ Life Tenant: Affirmative |
|
Definition
= exploitation of natural resources
Exceptions:
1. Necessary for repair or maintenance
2. Suitable only for use
3. Expressed or implied by grantor |
|
|
Term
| Waste @ Life Tenant: Permissive |
|
Definition
Life Tenant must preserve the land and structures
Pay mortgages and taxes |
|
|
Term
| Waste @ Life Tenant: Ameliorative |
|
Definition
| Benefits Property's Value |
|
|
Term
|
Definition
Gives holder the right or possibility of future possession of an estate
Future interests are a present legally protected property right |
|
|
Term
| Possibility of Reverter and Right of Entry |
|
Definition
PoR:
Fee Simple Determinable
"To A so long as"
Automatic
Transferable, descendible, devisable
R of E:
Fee simple subject to condition subsequent
"To A so long as .. . , then O have a right of entry
Grantor must exercise right
Descendible and devisable |
|
|
Term
|
Definition
Future interests in a third person that becomes possessory on a natural expiration of prior estate
Does not divest prior estate or follow time gap
Example: To A for life, then To B and his heirs |
|
|
Term
| Transferability of Remainders and Executory Interests |
|
Definition
Vested remainders are fully transferable, descendible, and divisable
Most courts hold that contingent remainders and executor interests are freely transferable
Are descendible and divisable |
|
|
Term
| Doctrine of Worthier Title |
|
Definition
| Remainder in grantor's heirs becomes a reversion to grantor |
|
|
Term
|
Definition
Unborn or unascertained persons or subject
A condition is precedent if it must be satisfied before a remainderman has a right to possession |
|
|
Term
| Destructability of contingent remainders |
|
Definition
Contingent remainders destroyed if it failed to vest before or upon termination of proceeding fee hold
Modern view: transition to an executory interest |
|
|
Term
|
Definition
| When one person acquires all of the present and future interests in land except a contingent remainder, contingent remainder is destroyed |
|
|
Term
|
Definition
| Future interests in 3rd parties that either divest a transferee's preceding freehold estate or follow a gap in possession curt short a grantor's estate |
|
|
Term
| Indefeasibly vested remainder |
|
Definition
Vested = existing and ascertained person and not subject to condition present
Indefeasible = not subject to divestment of diminution |
|
|
Term
| Vested remainder subject to open |
|
Definition
| class of persons subject to diminution |
|
|
Term
| Vested remainder subject to divestment |
|
Definition
subject to condition subsequent
Example: A for life, then to B, but if B dies unmarried, C |
|
|
Term
|
Definition
Disabling= always void
Forfeiture
Promissory = covenant
Restraints on fee simple may be subject if reasonable and for a limited time
Life estate: forfeiture and promissory restraints are valid
Future interest: valid as to same type of future interest |
|
|
Term
|
Definition
Four Unities: Time; Title; Interest; Possession
+ Clear expression of right of survivorship |
|
|
Term
| Joint Tenancy: Inter vivos conveyance |
|
Definition
Inter vivos conveyance = severance
Contract to convey = severance
BUT, a will is not severance b/c of right of survivorship
Liens, mortgages, and leases do not equal severance |
|
|
Term
|
Definition
Husband and wife each have an undivided interest in the whole estate with a right of survivorship
Severance:
Death
Divorce
Mutual Agreement
Execution of a JOINT CREDITOR |
|
|
Term
| Rights and Duties of Co-Tenants |
|
Definition
Possess all portions of property but no exclusive possession of any part
Exclusive possession can equal ouster
No need to share rents and profits unless ouster
Can only encumber own interest
Right to partition: in kind or by sale |
|
|
Term
|
Definition
Pay pro rata portion of repairs and taxes
No obligation regarding improvements |
|
|
