Class Notes (1,034,984)
AUS (35,182)
MU (389)
(10)
All (1)
Reference Guide

Permachart - Marketing Reference Guide: Defeasible Estate, Leasehold Estate, Future Interest

4 pages316 viewsFall 2015

Department
LAW
Course Code
LAW 253
Professor
All
Chapter
Permachart

This preview shows page 1. to view the full 4 pages of the document.
l e a r n r e f e r e n c e r e v i e w
TM
permacharts
ESTATES
Property Law
Property Law
FREEHOLD
• No established termination date
• At common law, owner of freehold estate is said to have seisin
Fee simple estate created by grant to a person and heirs
• Inheritance does not end on grantee’s death
Fee tail estate created by grant to person and heirs of the body
• Inheritance by grantee’s lineal descendants
Life estate created when grant did not include any words of inheritance
• Ends upon death of grantee or whomever was used as the measuring life
NON-FREEHOLD
• All have ascertainable termination dates
• Include tenancy for a term, periodic tenancy, and tenancy at will
• Estates without additional provision for termination are absolute
QUALIFIED ESTATES
• An estate is determinable if condition is incorporated into its
duration
• It is subject to condition subsequent if grant states that upon
occurrence of a specified event it may be reclaimed by the
grantor
• If title is to pass to a third person rather than revert to the
grantor, then estate may be subject to an executory limitation
EXECUTORY INTEREST
• If defeasible estate is conveyed to grantee and property goes to third
person upon occurrence of event, then future interest in third person is
called a shifting executory limitation
• Future interest which goes directly from grantor to third person in the
future is called a springing executory interest
FUTURE INTERESTS
• If owner of an absolute estate conveys away determinable estate, then
he or she retains a possibility of reverter
• If owner conveys an estate subject to a condition subsequent, then he or
she retains a power of termination
DESTRUCTIBILITY
• At common law, a contingent remainder was destroyed if it had not
become a vested remainder when supporting estates ended
• Merger of a preceding estate into a vested future interest led to the
destruction of any intervening contingent remainders
• All other future interests were indestructible
DOCTRINE OF WORTHIER TITLE
• At common law, an inter vivos gift of future interest to the heirs of the
grantor was void
• A testamentary devise of an estate to a person who would otherwise
take the same by descent if the testator had died intestate was also void
MARITAL ESTATES
PERPETUITIES
• Rule voids any contingent interests which could possibly vest or
fail to vest more than 21 years after end of life in being at
creation of interest
• Contingent remainders must either become vested remainders
or fail
• Executory interests must take possession or fail in less than that
time
• A remainder subject to open must be closed and vested as to
every member within the time period or else the entire class gift
is void
• Exception includes interests given to charities
REMAINDER
• Future interest created in a third person
• Takes effect upon natural termination of preceding estate
Vested if given to an established person and subject to no
condition precedent, other than natural termination of the prior
interest
Contingent if taker is unknown or there is a condition precedent
Defeasible when subject to subsequent conditions, when it may
be divested
REVERSION
• Future interest retained by grantor whenever he or she gives
away estates smaller than held
• It takes effect only upon natural termination of the prior estate
• Always vested, although it may be subject to divestment, with
no special creating language
• Grantor may retain both a reversion and a possibility of reverter
or a power of termination when he or she conveys an estate
which is both defeasible and smaller than estate held
SHELLEYS CASE
• At common law, if a freehold estate was given to a person and a
remainder was given to the heirs, then the remainder was
treated as being in the ancestor over the heirs
• Remainder might become vested rather than contingent and
may also merge with the preceding freehold estate
• Rule does not apply when one interest was legal and the other
equitable
DEEDS
Contents Must be signed by the grantor • Wording must indicate intent to transfer title to property • It must identify the grantee and suitably
describe the property • Parol evidence may resolve descriptive ambiguities • For internal inconsistencies, monuments prevail over
courses and distances, which prevail over names and quantities
Delivery Deed passes title only when delivered • Grantor manifests intent that completed legal act has occurred • If grantor intends title
of Deed to pass in the future, then there is no delivery, except where deed transfers future interest in the land and it is delivered with an
unconditional present intent • In two party transactions, an attempted conditional delivery of deed means either that there is no
delivery or that title passes absolutely and without condition
Dower Common law right of wife to life estate in one-third of all
property of which her husband had been seised at some
time during marriage and which was inheritable by her issue
Curtesy At common law, upon marriage, a husband acquired legal
life estate in all property of which his wife was seised
PROPERTY LAW • A-853-21© 2003-2013 Mindsource Technologies Inc.
w w w . p e r m a c h a r t s . c o m
You're Reading a Preview

Unlock to view full version


Loved by over 2.2 million students

Over 90% improved by at least one letter grade.