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