PRESENT POSSESSORY INTERESTSOverview�4 major types1. Fee simple absolute2. Fee tail3. Defeasible fees4. Life estate
Things to know about eachLanguage needed to createDuration of interestTransferabilityFuture interest?
PRESENT POSSESSORY INTERESTSFee simple absolute1. Created by what language? 2. Duration?3. Transferable?4. Future interest?
1. "To A" or "To A and his heirs"2. INFINITE potentially�(absolute ownership)3. Devisable, descendible, alienable4. NONE, except in holder of interest
PRESENT POSSESSORY INTERESTSFee tail1. Created by what language?2. Duration? (hint: blood lines)3. Transferable?4. Future interest?
1. "To A and the heirs of his body"2. BLOOD LINE�Lasts only as long as there are lineal blood descendants of grantee3. AUTOMATICALLY passes to grantee's lineal descendants�not freely alienable4. REVERSION (for grantor); or Remainder (if for TP)
PRESENT POSSESSORY ESTATESDEFEASIBLE FEES�what types?1. Fee simple d_____2. Fee simple subject to c_____ s_____3. Free simple subject to an e_____ l_____
1. fee simple DETERMINABLE2. fee simple subject to CONDITION SUBSEQUENT3. fee simple subject to an EXECUTORY LIMITATION
PRESENT POSSESSORY ESTATESInterpreting language re: defeasible fees1. Clear durational language2. Absolute restraints on alienation
1. CLEAR DURATIONAL LANGUAGE needed to create a defeasible feecourts disfavor restrictions on free use of landno defeasible fee created unless there is clear durational language2. ABSOLUTE RESTRAINS ON ALIENATION ARE VOIDcannot impose absolute ban on sale or transfer of propertyrestraints must be linked to a reasonable time/purpose limitation to be enforceable
PRESENT POSSESSORY ESTATESFee simple determinable1. Language2. Duration3. Transferability4. Future interest
1. SPECIFIC EVENT reverts land to grantor"To A so long as . . . ""To A until . . . ""To A while . . . " 2. INFINITE, if stated event never occurs3. Devisable, descendable, alienable subject to the condition4. REVERTER possible (to grantor)
PRESENT POSSESSORY ESTATESFee simple subject to condition subsequent1. Language2. Duration3. Transferability4. Future interest
1. "to A, but if X event happens, grantor reserves the right to RENTER and RETAKE"2. INFINITE (potentially), so long as NO BREACH of condition, andif breach occurs, until GRANTOR TERMINATES (timely) upon breach of condition3. Devisable, descendable, an alienable subject to condition4. RE-ENTRY, or power of TERMINATION (held by grantor)
PRESENT POSSESSORY ESTATESFee simple subject to executory limitation1. Language2. Duration3. Transferability4. Future interest
1. "to A, but if X event occurs, THEN TO B"2. INFINITE (potentially), so long as stated contingency does not occur3. Devisable, descendible, and alienable subject to condition4. EXECUTORY INTEREST (held by TP)
PRESENT POSSESSORY ESTATESLife Estate1. Language2. Duration3. Transferability4. Future interest
1. LANGUAGE that creates"to A for life""to A for the life of B"2. LIFE of transferee, or another's life (pur autre vie)3. Alienable, devisable, and descendible (if pur autre vie and measuring life is still alive)4. REVERSION (for grantor), or REMAINDER (for TP)
PRESENT POSSESSORY INTERESTSLife Estates: Doctrine of WASTE1. LT entitled to all ordinary uses and profits from land, BUT2. LT must NOT commit WASTE
Bottom line: Life tenant must not HARM future interest holders
PRESENT POSSESSORY INTERESTSLife Estates: Doctrine of WASTE1. Voluntary/affirmative waste2. Permissive waste3. Ameliorative waste
1. LT must not EXPLOIT natural resources on land unless PURGEPU: Prior Use (prior to grant of LE, land was used for exploitation)R: Reasonable repairsG: Grant (granted right to exploit)E: Exploitation (is the only suitable use of land)2. LT must MAINTAIN premises in good repair3. LT must not "improve" land's value, unless ALL FUTURE INTEREST HOLDERS are known and CONSENT