Property Future Interests
Sam--> Diane and her her heirs as long it is used as a school
"and her heirs"-fee simple, as long as-fee simple determinable, Diane will have until the occurrence of condition.
Fee Simple "magic words"
"and his/her heirs" or "O to A"
Contingent
(adj.) likely but not certain to happen, possible; dependent on uncertain events or conditions; happening by chance; (n.) a representative group forming part of a larger body
If O conveys to X for life, but if X marries Britney Spears, then to Y
3rd party-X has executory interest, Y-shifting executory interest?
Fee Simple Determinable
A fee simple estate qualified by a special limitation. Language used to describe limitation includes the words so long as, while, or during. Reverts back to transferor when certain condition occurs or fails to occur
Right of Entry
A future interest associated with the fee simple subject to a condition subsequent in which the grantor may elect to end the interest after the grantee breaches a condition under which it was granted.
Executory Interest
A future interest associated with the fee simple subject to an executory condition wherein the interest may return to a party other than the grantor when there is a breach of a condition to which it was granted.
Contingent Remainder
A known future interest in real property, provided some condition specified in the deed occurs.
Life Estate Pur Autre Vie
A life estate in one person with another person serving as the measuring life. Example To X for the life of Y
O convey "to A for life, then to B
A life estate, vested remainder in life estate if alive,contigent if not alive/ascertainable yet
O conveys to "A for life, and then to B"
A-life estate B-indefeasibly vested remainder in life estate, O reversion
O conveys to A for life, then to G for life
A-life estate, G-vested remainder in life estate, O-reversion
Fee Simple Subject to Condition Subsequent
An estate which is subject to a power in the original grantor, or the grantor's heirs, to terminate the estate upon the happening of an event. Back to court. Words are "provided that" "but if" "on condition that"
Homer--> Apple Inc for the life of Marge
Apple Inc-Life Estate Per Autre Vie Marge-Reversion
O devises "to C, but if C ever drinks alcohol, then to D and her heirs"..
C-fee simple subject to executory limation, shifting interest in executory limitation-D
O devises, "to C, but if C ever drinks alcohol, then to D and her heirs."
C-fee simple subject to executory limitation, D-shifting executory interest, D's heirs-shifting executory interest.
O conveys "to C for life, then to D and his heirs if D lives to the age of 30."
C-life estate, D- defeasible contigent remainder in fee simple
Divestment
Can be cut off
Remaindors
Come after natural expriation of prior estate, cann ot divest prior estate, capable of becoming possessory, must be entitled to possession, even if nots guaranteed
To B for life, then to B's heirs
Creates a fee simple in B and B's heirs..Called Shelley's Case
O conveys "to D for 6 mos"
D-Term of years, O-reversion
Sam-->Diane and her heirs to be used as a bar
Diane has a fee simple, nothing that could possibility cut short the estate
Sam--> Diane, but if poetry books are sold on the premises, then Sam shall the right to re-enter and retake the estate
Diane-FSSC because estate can cut short if express condition is broken Sam-right of entry
Sam-->Diane so long as the estate is not used a bar
Diane-fee simple determinable, Sam-possibility of reverter..
If transferor does not exercise right of re-entry in FSSC then
Doctrine of laches will apply and Sam will be forever barred from exercising re-entry
Life Estate
Does not have magic words, any combination of words
O conveys to E for so long as the land is used as a library
E-fee simple determinable, O-possibility of reverter
Step 3 Who has the future interest?
Executory Limitation, Possibility of Reverter,
O conveys "to F for life, then to G for life"
F-life estate, G-vested remainder in life estate, O-reversion
Difference between fee simple determinable and fee simple subject to condition subsequent
FSD-durational, event last a duration, conditional-one single occurrence interrupts
What type of estate has a right of entry as a future interest?
FSSC
Difference between fee simple determinable and fee simple subject to condition subsequent
FSSC-estate can be short if condition broken FSD-estate automatically end upon the happening of a stated event
What type of estate has possibility of reverter as future interest?
Fee Simple Determinable
To find a remainder
Find the estate and then decide if its end naturally or cuts short
Step 1: What is the
First Estate: What is the first estate? Fee simple (If O gives a fee simple absolute, nothing can come after) Fee Tail Fee Simple Determinable Fee Simple Subject to Condition Subsequent Fee Simple Subject to Executory Limitation Life Estate Term of years
Contingent remainder
Have condition precedent (meaning before you can get estate, this must have to happen)..Example: A children's, A is 2, can't know whose A children are
Step 4-How will future interest become possessory?
If natural end of other estate:
Sam-->Diane and her heirs, provided that, if the property is not used as a school, Sam shall have the right to re-enter and reclaim the land
If property is not used as a school, Sam can re-enter and retake the land. Before Sam exercises right to enter, Diane rightful owner
What types of estates have a reversion as a future interest?
Life Estate waith nothing following, fee tails, term of years
Mario--> Yoshi for life, then to Yoshi's heirs
Mario to Yoshi in life estate, contigent remainder in fee simple in Yoshi's heirs means that Yoshi also has a fee simple. Mario has a reversion
Ted--> Marshall and his children
Marshall and his children-fee simple, when no magic words, fee tail assumed
Ted--> Marshall and the heirs of his body by Lilly
Marshall-fee tail Special (by lily). Ted-Reversion
Ted--> Marshall for life, then to his first child (Barney) for life, then to Barney's first born child. Fact Barney has no children
Marshall-life estate, Barney's-vested remainder in life estate, Barney's child-contingent remainder in life estate, Ted-reversion
Mr E--> Marshall for life, then to Marshall's nephews and the heirs of their body that are female. /MARSHALL HAS NO NEPHEWS
Marshall-life estate, Marshall's nephews-vested remainder in fee tail special Mr. E-reversion
Who gets future interest in fee simple?
No one, goes completely to X
If it is a devise, O is dead before anything happens so
No reversion
Doctrine of Merger
Occurs when successive vested estates owned by the same person, two estates merge into larger estate unless separated by 3rd party
What does Sam have in FSD?
Possibility of reverter
Future interest in O
Possibility of reverter, right of entry, executory limitation
O conveys to Jane for life provided that she keep the property in pristine condition, and at death, to Laura"
Problem with this is if Jane uses as dump, Laura can't take it. O can cut off Jane's holdings if she doesn't keep it in pristine condition. Provided that-words of condition, makes this life estate determinable. O has right of entry
Fee Simple Subject to Condition Subsequent Magic Words
Provided that,
Reversion
Return to grantor
O give R life estate, then retains:
Reversion
What does O-conveyor-have in a life estate?
Reversion
When the transferror gives less than whole estate, they retain:
Reversion
Conveyance means the future interest can be:
Reversion Possibility of reverter Right of entry Remaindor Executory Interest
When condition happens in FSSC what does O (conveyor) have?
Right of entry, power of termination
Diane--> Sam and his heirs until Boston becomes a state.
Sam has a fee simple determinable-"until Boston becomes a state" means his estate will end upon occurrence of event. Diane has possibility of reverter
Diane--> Sam his heirs on condition that poetry books are not sold on premises
Sam-FSSC, Diane-right of entry..estate can be cut short if condition broken
Shelley's Case
Same document - conveys grantee life estate - remainder to that grantee's heirs - then conveyance to heirs is read as a conveyance to grantee - does not apply in most jurisdictions
Fee simple determinable magic words
So long as, while
Contingent A remainder is contingent if EITHER
Subject to condition precedent Created in an unascertained person
Ted--> Marshall and the heirs of his body
Ted to Marshall in fee tail. Ted-Reversion
What if future interest is in 3rd party?
Then it is remainder
Fee Tail Magic Words
To X and heirs of body
Estate for years
To X for 99 years
Is the interest vested or contingent?
Vested-can point to them, contingent-not their--children not yet born"
Second step
What is the first estate? What does X have?
Step 3
Who has future interest-go back to grantor-(reversion, right of entry, possibility of reversion) 3rd party-executory interest
Present Possessory Estate
Who is holding estate right now
How will future interest become possessory?
Will it end naturally (remainder) or cut off (executory)?
O conveys "to X for life, then to Y and her heirs"
X-life estate, Y and her heirs-vested remainder in fee simple
O conveys "to X for life, then to Y and her heirs, but if Y smokes during her lifetime, then to Z
X-life estate, Y-fee simple subject to executory limitation, Z-shifting interest in fee simple subject to executory limitation
O conveys "to X for life, then to Y and her heirs
X-life estate, Y-vested remainder in fee simple
O conveys "to X for life, then to the children of Y and their heirs." Y has one child (Z) at this time.
X-life estate, children of Y and their heirs-vested remainder subject to open
Does Shelley's rule apply here? Mario-->Yoshi for life, then to Luigi for life, then to Yoshi's heirs
Yes-Yoshi-life estate, Luigi-vested remainder in life estate, Yoshi heirs-contigent remainder in fee becomes Yoshi-vested remainder in fee simple (because comes after Luigi)
So if Yoshi has a life estate, and his heirs have a vested remainder in fee simple, then
Yoshi has a fee simple absolute because that is the largest estate you can have
Mario to Yoshi in life estate, then to Luigi in life estate, then to Luigi in fee simple. What does each one have after Shelley's case applies?
Yoshi-life estate, Luigi-vested remainder in life estate Luigi-vested remainder in fee simple, ((his heirs conveyance is becomes his)
Mario to Yoshi in life estate, then to Luigi in life estate, then to Luigi in fee simple. What does each one have before Shelley's case applies?
Yoshi-life estate, Luigi-vested remainder in life estate, Luigi's heirs-contingent remainder in fee simple, Mario-reversion
Fee Simple Subject to Executory Limitation
a) "To A, but if X event occurs, then to B" Involves 3rd party
For right of entry you must____
act on it, does not divest immediately
Possibility of reverter
always comes after fee simple determinable, automatic does not have to take action
1st step in future interest
ask if devise or conveyance, if it devise, o must die and no reversion
Vested remainder
assigned to an ascertained person, know who the person is, can point to him. "To life, then to X" X gets a remainder in the estate
But if devise, O's heir can have:
can have a remainder or an executory interest. O cannot have a reversion, right of entry, or possibility of reverter
Indefeasibily vested remainder
cannot be taken away, come after life estate with no conditions
Defeasible Fee Simple
estate that will continue forever or may come to an end upon the natural occurrence of a stated future event
Types of remainder
indefeasible-cannot be made void, nothing can interrupt and take. Subject to open-class can get bigger (A's children) Subject to divest/executory limitation-meaning that A lose can interest before she has it
If devise then
no reversion
indefeasible
not capable of being undone or voided
If future interest in 3rd party then it is remainder if
nothing interrupts between 1st party and 2nd