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Fee simple determinable <-> possibility of reverter
Fee simple subject to condition subsequent <-> right of entry
Fee simple subject to an executory interest <-> executory interest
Life estate and waste
exploitation of natural resources limited to 1) necessary for repair or maintenance, 2) land is suitable only for such use, 3) expressly or impliedly permitted by grantor, 4) open mines doctrine (only for life estates)
failure to protect or preserve the land as to 1) land and structures in a reasonable state of repair, 2) pay interest on mortgages, 3) pay ordinary taxes on land, 4) pay special assessments for public improvement of short duration.
- Ameliorative waste: change that benefits the property economically
- -can alter if: FMV not diminished AND EITHER remaindermen do not object OR a substantial change in neighborhood conditions has deprive the proeprty in its current form of reasonable productivity or usefulness.
Future reversionary interests (in grantor)
Possibility of reverter: follows fee simple determinable
Right of entry: follows fee simple subject to condition subsequent
Reversion: if goes back to the grantor on the natural end of a previous estate
Remainders (in grantee)
future interest in a third person that can become possessory on the n atural expiration of the preceding estate.
Indefeasibily vested remainder:
remainder created in existing and ascertained person AND NOT subject to a condition precedent
Vested remainder subject to open:
vested reaminder in a class of persons that is certain to become possessory, but subject to diminution
by birth of additional people in the class.
Vested remainder subject to total divestment:
vested remainder subject to a condition subsequent (comma rule)
- Contingent remainder: remainder created in 1) unborn or unascertained persons OR 2) subject to a condition precedent
- -"alternative contingent remainders" if split between two people
Destructibility of contingent remainders and related doctrine of merger
Traditional rule that if a contingent remainder had not vested by the end of the preceding freehold estate then the contingent remainder was destroyed
Abolished in most states
Related doctrine of merger: When one person acquires all the present and future interests in land before a contingent remainder then the contingent remainder is destroyed.
3 special rules with remainders
Destructibility of contingent remainders
Rule of Shelley's case
Doctrine of worthier title
Rule of Shelley's Case
If an instrument creates a life estate in A and then remainder to A's heirs then the remainder in A's heirs was not recognized.
Example: to A for life, then to B for life, then to A's heirs. B has a vested remainder.
This is abolished in most states.
Doctrine of worthier title
A remainder in grantor's heirs becomes a reversion in the Grantor
This is a rule of construction and generally not abolished if grantor has clearly manifested intent.
Future interest in third parties that either divest a transferee's preceeding freehold estate (shifting) or follow a gap in possession or cut short a grantor's estate (springing)
Class of beneficiaries
- Rule of convenience: A class closes when some of the members in the class can call for distribution of their share of the class gift.
- -Watch for "all of A's children that survive me"
Survival is usually not necessary for issue of surviving childern to still take.
Common pitfalls of Rule Against Perpetuities
Executory interest following a defeasible fee:
"so long as X happens" where X could last indefinitely
Age contingency beyond age 21 in open class
woman capable of bearing children regardless of age. Usually defeats grandchildren's future interest
- Options and rights of first refusal: other than options to purchase by current lessee
- Unborn widow or widower: widow may not be a live in being as could marry later.
Rule against restraint on alienation
- disabling: attempted transfers are ineffective
- forfeiture: attempted transfers forfeit the interest
- promissory: attmepted transfer breaches a covenant
Allowed if 1) limited time
and 2) reasonable purpose
- Other valid restraints:
- 1) forfeiture restraint on transferability of future interest
- 2) reasonable restrictions on commercial transactions
- 3) rights of first refusal
- 4) restrictions on assignment and sublease of leaseholds
Joint tenancy (with right of survivorship)
- Created upon four unities of:
- 1) time, 2) title, 3) same interest, 4) possession
- Sever through
- 1) intervivos conveyance: judgment liens do not foreclose UNLESS foreclosed upon.
- 2) contract to convey: courts split on whether executory contract splits or need to actually pass title.
- 3) partition: voluntary agreement, partition in kind, forced sale
Types of leaseholds
Terms of years
Tenancies at will
Tenancies at sufferance
Lease hold-over doctrine
1) may evict
- 2) bind to new periodic tenancy
- -For non-residential usually held to year to year if term more than a year
- -For residential usually held for month to month
- -Have a rent increase if tenant on notice there will be one
Duties of landlord and tenant remedies
Duty to deliver possession of the premises
Implied warranty of habitability
Leases: Duty of Quiet Enjoyment
Implied covenant that neither the landlord nor a paramount titleholder will interfere with the tenant's quiet enjoyment and possession AFTER LEASE HOLD STARTED.
- Landlord's breach of the covenant of quiet enjoyment by:
- 1) rendering the premises uninhabitable
- 2) landlord was notified and failed to remedy within a reasonable time
- 3) tenant must vacate
Implied Warranty of habitability
This is a nonwaivable implied warranty for residential leases
- 1) terminate the lease
- 2) make repairs and offset by cost of future rent
- 3) abate rent by the value of defects
- 4) remain in possession and sue for damages.