Property Estate Examples
O conveys Blackacre "to A and her heirs so long as the premises are not used for sale of beer, wine, or liquor, and if beer, wine, or liquor is sold on the premises O retains a right to re-renter to premises."
"so long as"= fee simple determinable "right to re-enter"= fee simple subject to condition subsequent Ambiguous conveyance- can't analyze fully Has condition been breached? -Determine whether when A opened restaurant and served dishes cooked with wine or flamed with brandy breached the condition -If breached- automatic forfeiture -If it was fee simple subject to condition subsequent, the statute of limitations on O's right to re-entry begins to run when the condition occurs 3 issues: Has condition been breached? What kind of defeasible fee created? What kind of consequences of the breach?
By general warranty deed A conveys Blackacre to B for $20,000. B conveys Blackacre to C for $15,000. O, true owner, ousts C. The jurisdiction holds that present covenants are breached, it at all, when made, and the chose in action is not assigned to subsequent grantees. -Deed from B to C is a general warranty deed -C sues B and recovers $15,000
-B can sue A for $15,000= actual loss
By general warranty deed A conveys Blackacre to B for $20,000. B conveys Blackacre to C for $15,000. O, true owner, ousts C. The jurisdiction follows the Rockafellor Rule. -Deed from B to C is a general warranty deed -C has not sued B nor settled with him
-B cannot sue A for breach of covenant of seisin -C has to sue A for breach of that covenant. C can also sue B because B gave a general warranty deed -But what if B is insolvent or otherwise judgment-proof?
By general warranty deed A conveys Blackacre to B for $20,000. B conveys Blackacre to C for $15,000. O, true owner, ousts C. The jurisdiction holds that present covenants are breached, it at all, when made, and the chose in action is not assigned to subsequent grantees. -Deed from B to C is a general warranty deed -C has not sued B nor settled with him
-B has contingent liability to C of $15,000 because B gave C a general warranty deed -C cannot sue A on breach of covenant of seisin because the jurisdiction follows the majority rule
By general warranty deed A conveys Whiteacre to B for $15,000. By quitclaim deed, B conveys Whiteacre to C for $12,000. By general warranty deed, C conveys Whiteacre to D for $20,000. O, true owner, ousts D at time land is worth $24,000. -C
-C cannot sue B on any covenants because B gave a quitclaim deed. -If D sues C and recovers, C can recover 15K from A. Until then, D has the benefit of future covenants. -The benefit of A's present covenant is in B under the majority rule and in D under the Rockafellor rule. Under the Rockafellor rule, if D sues C and recovers on the present covenant, then D's chose in action gets reassigned to C. Then, C can sue A on breach of the present covenant.
By general warranty deed A conveys Blackacre to B for $20,000. B conveys Blackacre to C for $15,000. O, true owner, ousts C. The jurisdiction follows the Rockafellor Rule. -Deed from B to C is a quitclaim deed
-C has to sue A for breach of covenant of seisin because under the rule of Rockafellor, the chose in action of B is impliedly assigned to C. -B cannot sue A. -C cannot sue B for any warranty breaches because B gave C a quitclaim deed.
By general warranty deed A conveys Blackacre to B for $20,000. B conveys Blackacre to C for $15,000. O, true owner, ousts C. The jurisdiction follows the Rockafellor Rule. -Deed from B to C is a general warranty deed -C sues B and recovers $15,000
-C sued B and recovered 15k. C's chose in action (which was exclusively in C under the Rockafellor rule) gets reassigned by operation of law from C to B -B can now sue A for 15K
O Conveys Blackacre "to A, B, and C as joint tenants"; "A conveys interest to D, B dies intestate, leaves H as heir"
-Conveyance to D doesn't break up the joint tenancy -Combined tenancy in common -D- tenant in common for his share -Does not destroy joint tenancy between B & C- they continue being joint tenants -1/3 tenant in common interest held by D, relative to the other 2
By general warranty deed A conveys Whiteacre to B for $15,000. By quitclaim deed, B conveys Whiteacre to C for $12,000. By general warranty deed, C conveys Whiteacre to D for $20,000. O, true owner, ousts D at time land is worth $24,000. -D
-D can sue C on PC for 20k-the purchase price. -D can sue A on FC for 15K-the purchase price paid by original grantee. -D can sue A in Rockafellor jurisdiction on PC for amount recited in deed. Facts do not disclose this amount. Probably nominal. -D cannot sue B because B gave a quitclaim deed. -In a majority jurisdiction, the chose in action against A for breach of the PC stays with B.
Take title to a house before getting married- "in A and B as tenants by the entirety."; not married yet
-If joint tenancy, and A conveys interest to C- severs joint tenancy -If not joint, then just tenants in common -Can request a partition -This can't be tenancy in entirety because not married when they took title
T devises Blackacre "to A and B as joint tenants for their joint lives, remainder to the survivor."
-Right of survivorship- not a future interest, nor a presently existing legal interest -A is free to convey his interest and blow apart joint tenancy, right of survivorship is gone -When tenants in common, neither one on their own can reach into future interest and destroy it
O Conveys Blackacre "to A, B, and C as joint tenants"; "When B dies, survivorship passes to C"
-Right to survivorship prevails, no other right can prevail over it -D- 1/3, C- 2/3= tenants in common -Can't revive the joint tenancy -If B had died with a will, leaving interest to H: wouldn't make any difference: right of survivorship works the same whether the property is going by a will or by an intestate statute
By general warranty deed A conveys Blackacre to B for $20,000. B conveys Blackacre to C for $15,000. O, true owner, ousts C. The jurisdiction holds that present covenants are breached, it at all, when made, and the chose in action is not assigned to subsequent grantees. -Deed from B to C is a quitclaim deed
-likely can recover nothing -B has no liability to C because B gave C a quitclaim deed -C cannot sue A on breach of covenant of seisin because the jurisdiction follows the majority rule -C can sue A on breach of covenant of quiet enjoyment because future covenants run with the land to all successors in interest of the grantee
O conveys Whiteacre "to A and her heirs, and A promises, on behalf of her heirs and assigns forever, that Wiseacre shall be used solely for agricultural purposes?
A- fee simple absolute -Covenant not condition
O conveys Greenacre "to A and her heirs"
A- fee simple absolute Heirs have nothing, no interest Only hope of inheritance- expectancy interest
O conveys Blackacre "to A and her heirs so long as Blackacre is used for residential purposes only"
A- fee simple determinable O- possibility of reverter in fee simple absolute
O conveys Whiteacre "to A and his heirs, provided that if the land is not organically farmed, then O or his heirs may enter and reclaim the land. " The land is being organically farmed.
A- fee simple subject to condition subsequent O- right of reentry
O conveys Blackacre "to A and her heirs, but if Blackacre is used for any purpose other than agricultural purposes, then O has the right to re-enter and take possession of the land"
A- fee simple subject to condition subsequent O- right of reentry in fee simple absolute
O conveys Whiteacre "to A and his heirs; but if A ever drinks alcohol or alcoholic beverages, then to B and her heirs."
A- fee simple subject to executory limitation B- executory interest
O conveys "to A for 10 years, then to such of A's children as attain age 21." A has 2 children, X (20), & Y (17)
A- leasehold X & Y- contingent remainder in fee simple O- reversion in fee simple X turns 21, Y under 21 X- vested remainder in fee simple subject to partial divestment and subject to open Y- shifting executory interest in fee simple X dies at 22, Y is 19 X's land transmissible to heirs Y- shifting executory interest in fee simple
O conveys "to A for life, then to A's children who shall reach 21"; B is now 17
A- life estate B- contingent remainder -When turns 21, vested remainder Subject to open- other children can join in -Subject to partial divestment
O conveys Blackacre "to A for life, then if B reaches 21, to B and her heirs." B is 20.
A- life estate B- contingent remainder in fee simple absolute O- reversion
O conveys "to A for life, then to B and her heirs if B attains the age of 21 before A dies."; B is 15 at time of conveyance
A- life estate B- contingent remainder in fee simple absolute O- reversion if B does not reach age 21 during A's life Once B reaches 21 during A's life B- vested remainder in fee simple absolute Reversion disappears
O conveys Whiteacre, "to A for life, then to B and his heirs if B marries W, but if B does not marry W, then to C and his heirs." B has not married.
A- life estate B- contingent remainder in free simple absolute C- alternative contingent remainder in fee simple ? O- reversion
O conveys Whiteacre "to A for life, and one day after A's funeral to B and his heirs."
A- life estate B- executory interest in fee simple absolute O- reversion
O conveys Blackacre "to A for life, then to B forever."
A- life estate B- remainder -In 1600- life estate -In 2018- fee simple absolute O- reversion
O conveys "to A for life, and in the event of A's death to B and her heirs"
A- life estate B- vested interest in fee simple absolute -No condition other than termination of preceding estate B conveys her interest back to O O- vested remainder
O conveys "to A for life, then to B and her heirs, but if A is survived at his death by any children, then to such surviving children and their heirs"; A alive with two children, C & D
A- life estate B- vested remainder C & D- executory interest
O conveys "to A for life, then to B for life, then to C and her heirs"
A- life estate B- vested remainder for life C- vested remainder in fee simple absolute "then to C and her heirs if C survives A and B" A- life estate B- vested remainder for life C- contingent remainder in fee simple absolute O- reversion -If C doesn't survive A and B
O conveys "to A for life, then to B for life, then to C's heirs."; all alive, C unmarried with 2 children, X & Y
A- life estate B- vested remainder for life C's heirs- contingent remainder in fee simple absolute O- reversion in fee simple absolute
O conveys Blackacre "to A for life, then to B for life."; O's will gives all property to C
A- life estate B- vested remainder for life C- reversion
O conveys "to A for life, then to B and her heirs."
A- life estate B- vested remainder in fee simple absolute No reversion If no heirs, escheats to state Never going to be a reversion after vested remainder in fee simple absolute
O conveys Blackacre "to A for life, remainder to B and her heirs"
A- life estate B- vested remainder in fee simple absolute to B B dies with no heirs, then A dies -Escheats to state
O conveys Blackacre "to A for life, then to B and her heirs so long as Blackacre is organically farmed."
A- life estate B- vested remainder in fee simple determinable O- possibility of reverter
O conveys "to A for life, then to B and her heirs; but if B marries Z, then to C and his heirs."
A- life estate B- vested remainder in fee simple subject to condition subsequent ? C- shifting executory interest in fee simple absolute
O conveys Greenacre "to A for life, then to B and her heirs, but if B changes her name, then to C and his heirs." B is known as "B".
A- life estate B- vested remainder in fee simple subject to divestment (?) C- executory interest in fee simple absolute
O conveys "to A for life, then to B and the heirs of her body."
A- life estate B- vested remainder in fee tail O- reversion In fee tail, once blood line runs out, the property reverts back to O
O conveys Whiteacre "to A for life, remainder to the heirs of B"
A- life estate Heirs of B- remainder in fee simple absolute -Contingent remainder -B has to be dead to have heirs O- reversion if A dies before B dies -Heirs still have contingent remainder -If B dies without heirs, O is in the clear -If B dies with heirs still alive, heirs interest becomes possessory
O conveys Whiteacre "to A while she lives."
A- life estate O- reversion
O conveys "to A for life, then to A's children" A has 1 child- X
A- life estate X- vested remainder in fee simple absolute subject to open Unborn children- shifting executory interest in fee simple absolute A has 2 children, X & Y; A dies -X & Y- fee simple absolute (tenants in common)
O conveys Blackacre "to A for life, then to A's youngest child living at the time of A's death and that child's heirs."
A- life estate Youngest child- contingent remainder in fee simple absolute O- reversion
O conveys "to A for life, then to such of A's children as survive him, but if none of A's children survives him, to B and her heirs"
A- life estate A's children- contingent remainder in fee simple absolute B- contingent remainder in fee simple absolute O- reversion in fee simple absolute
O conveys a sum of money "to A if she graduates from college." A not enrolled in college
A- springing executory interest in fee simple absolute O- fee simple subject to executory limitation/interest
O conveys Blackacre "to A for life, then to B if B gives A a property funeral"
B- executory interest -Not possible for B's future interest to become possessory immediately upon A's death -When A dies, property goes to O -Fee simple subject to divestment or fee simple subject to executory limitation O is divested when B gives A a proper funeral
O conveys Whiteacre "to B for life, then to the children of B and their heirs." B has two children, C and D.
B- life estate C & D- vested remainder in fee simple absolute subject to open
O conveys Greenacre "to B for life, then to C and her heirs, but if C dies without issue surviving her, then to D and his heirs."
B- life estate C- vested remainder in fee simple subject to divestment ? D- executory interest in fee simple absolute
Comparing C & D
C has to wait to be sued by D and lose that suit before he gets the benefit of the future covenant from A (FCs run with the land) and the benefit of the present covenant (in a Rockafellor jurisdiction). -This is one reason why quitclaim deeds are risky.
T devises $10,000 "to my cousin, Don Little, if and when he survives his wife."
Don- future executory interest So who has possessory estate? -1st possibility- testator specifically directed possessory estate in $10,000 to go to a specific person -2nd possibility- residuary devisee
O conveys Greenacre "to the Finger Lakes Land Trust [charity] on condition that Greenacre remains forever undeveloped and in its natural condition; in the event Greenacre is ever developed, residentially, commercially, or otherwise, then to the Land Conservancy [also charity] in fee simple absolute."
Finger Lakes Land Trust- fee simple subject to executory limitation Land Conservancy- executory interest in fee simple absolute
Majority Rule Jurisdiction for Suing on Deed Covenants in Real Estate Transactions
In a jurisdiction that follows the majority rule (non-Rockafellor jurisdiction), C cannot sue A on breach of the covenant of seisin. B is the only party who can sue on that present covenant. However, B cannot do that until C sues B and wins a judgment against or settles with B.
O conveys "to A and B for their joint lives, then to the survivor in fee simple"
Joint life estate -Expires when one of them dies Contingent remainder If they die at the same time, O has reversion
Gives notice on November 16, moves out on November 30
Month-to-month -Too short of a notice- 30 days' notice required -Notice is effective as soon as it can be- end of December -Would have to pay December rent, but not liable for rent January through March -No legitimate interest is served for subjecting the tenant for liability for January through March -Landlord would have no incentive to re-let the property
"to T for as many years as L desires"
Not a periodic tenancy or a term of year -No fixed term at outset -No successive durational periods Common Law Approach- Tenancy at Will -At the will of the landlord is necessarily at the will of the tenant -Garner Approach: Determinable Life Tenancy -Intent based -Only one party has the ability to terminate the lease -Terminable at the will of the landlord (vs. Garner where it was terminable at will of the tenant) Restatement 2nd of Property- could be a determinable fee simple (if not otherwise a term of years or a periodic tenancy) -Could get to tenancy at will conclusion by using doctrine of unconscionability (contract law) -Further fairness to tenant by not subjecting tenant to whims of the landlord -So terminable at will of either party
"to T for the duration of the war"
Not a term of years because maximum duration for a term of years has to be capable of being calculated at the outset * -War will end at a date no one knows Not a periodic tenancy because not a fixed duration that continues for succeeding periods Tenancy at will -Only thing left under a formalistic approach -One or the other party can terminate at will -Garner suggests that courts should determine and carry out the intentions of the parties -Tension between formalism (pigeonhole into the conventional categories) vs. intent based approach (can be flexible and vindicate the parties' intent and trust courts to fashion appropriate remedies and signal the lawyers the virtues of certainty)
O conveys "to A for 20 years."
O- reversion Leasehold interest- definite ending
"to T for year to year, beginning October 1"
Periodic year to year -Continues until notice is given -Under common law- have to give 6 months' notice of termination -Would terminate on September 30 -Could only terminate then -Today, in many jurisdictions, only have to give a 30-day notice -Must terminate on final day of the period not in the middle of the tenancy
"at an annual rental of $24,000 payable $2,000 per month on the first of each month"
Probably a periodic tenancy -Depends on which language you emphasize -If specify an annual rental amount= year-to year periodic tenancy: 6 months or 30 days termination requirement -If month-to-month period tenancy: notice equal to the length of the period; 30 days' notice- tenancy expiring at end of the 30 days
O conveys "to A upon her first wedding anniversary."; A alive and unmarried
Springing executory interest in fee simple absolute O- fee simple subject to executory limitation/interest
"to T for one year, beginning October 1"
Term of years -No notice necessary: terminates automatically -Possible to calculate the end of the lease from the beginning
Rockafellor Rule Jurisdiction for Suing on Deed Covenants in Real Estate Transactions
Under Rockafellor Rule, C is the only one who can sue A on breach of the present covenant. B cannot do so until C sues B and recovers. Then, what was C's chose in action is reassigned by operation of law from C to B.
O conveys "to A for life, then to A's children and their heirs, but if at A's death he is not survived by any children, then to B and her heirs"
A is alive with no children -A- life estate -A's children- contingent remainder in fee simple absolute (takers are not ascertained because not born yet) -B- contingent remainder in fee simple absolute -O- reversion If 1st future interest is a contingent remainder, the second is going to be contingent remainder as well If 2 contingent remainders in a row, there has to be a reversion A has twins- C & D -A- life estate -C & D- vested remainder in fee simple absolute -Subject to open, subject to divestment -B- executory interest in fee simple absolute -Will become possessory by divesting vested remainder in A's children -If A dies and is not survived by any children- A life estate followed by a vested remainder and executory interest will generally not carry a reversion because we will have a vested estate capable of vesting into possession and an executory interest that will divest the vested remainder C dies while A is alive, B & D still alive -D owns Blackacre and C's estate in equal shares -C's share is not divested at C's death or A's death because it is divested only if A dies without surviving children and D survives A