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Fee Simple Determinable. A fee simple estate that will end automatically when some
specified event happens. Nothing further is required. It automatically reverts back to the
grantor. The future interest created is called a possibility of reverter.
Words Creating. Words of duration.
Future Interest -- Possibility of Reverter.
Statute of Limitations. Normally a long time.
Fee simple determinable subject to an executory limitation.
Words: But if.
Future: Executory Interest.
A fee simple determinable is constructed using words of during,
such as “for as long as,”and the property reverts back to the grantor (through the grantor’s
future interest in a possibility of reverter) if the grantee partakes of the proscribed
activity.
Words Creating. durational “while” “until” “during” “so long as”
Fee Simple Subject to a Condition Precedent. This fee simple does not automatically end.
It can be divested (cut short) at the grantor's election when a stated condition happens. If
the future event happens the grantor will get its fee simple absolute back if the grantor
explicitly enters a right of entry.
Fee Simple Subject to a Condition Subsequent.
Words Creating. Words of condition.
Future Interest -- Right of Entry.
Power to exercise
Ejectment. used to recover possession of the land. This used to be an
exclusive remedy for the possessor to recover land but has become available for owners
too.
Quiet title is a lawsuit to establish a party's title to property
Statute of Limitations. Normally starts upon occurrence of stated event and is normally a
short period.
A fee simple subject to a condition subsequent is constructed using words of
condition,such as “upon the condition that,” and the grantor holds a future interest in a
right of entry should the grantee partake of the proscribed activity.
Words Creating. Condition, "provided, however …," or "but if …," or "but
in the event …," or "on condition that …."
Fee Simple Subject to an Executory Limitation. This is a fee simple that automatically
divests in favor of a third person upon the occurrence of the stated event. The grantee
holds subject to divestment.
Words Creating. “But if.”
Statute of Uses.
A fee simple subject to an executory interest takes the place of a future interest in the
grantor of a possibility of reverter (determinable) or a right of entry (subject to a
condition subsequent). A fee simple subject to an executory interest instead goes to a
third party named in the granting instrument, upon the occurrence of the proscribed
event.
Words Creating. Either durational/conditional to third person.
A fee tail was invented to keep land in the family. The fee tail lasts as long as the grantee
or any of his descendants survives, and it is inheritable only by the grantee's descendants.
A fee tail is constructed using words like “to A and the heirs of A’s body,” and is nolonger
recognized as a viable estate. States will generally change a fee tail into a fee simple
absolute.
Fee Tail.
Words Creating. “To A and the heirs of his body.”
Death Without Issue.
Modern. Most states convert a fee tail to a fee simple absolute.
Life Estate per autre vie. Where measuring life is that of another person other than
the grantee. A life estate pur autre vie is devisable and inheritable. Barney's heirs will
inherit a possessory estate for the remainder of Wilma's life. { pur auter vie for the life of
another}
Future Interests for Life Estates. An estate that will or may become a possessory estate in
the future but it does not entitle the owner to present possession.
Possibility of Reverter. estate will return to the grantor if a condition is violated
pertaining to a future interest from a fee simple determinable
Right of entry. grantor has the power of termination when an estate will return to
the grantor if a condition is violated and the grantor decides to reclaim the estate; if
grantor specifies, grantor resumes possession of land.
Reversion. grantee is given a possessory interest in a property from grantor with
the understanding that the interest will "revert" back to grantor
Escheat to Government. Returns the land back to the government
toprevent ownerless land.
Remainder for Third Person. a future interest in a third party that vests
upon the natural conclusion of the grant to the original grantee, Follows Naturally
Words Creating. “To A for life, remainder to B.”
Also applies to a term of years, “To A for ten years, then to B.”
Vested Remainder. Vesting means granting a person an
immediate right to present or future enjoyment of property. Vested open remainder
subject to RAP. a class gift to "the children of vested remainderman" remains open until
remainderman's death.
Contingent Remainders. contingent remainder, i.e., one that
is limited to an unascertained person. The remainder is contingent because the takers are
not ascertained at the time of the conveyance.
Special Rules for Contingent Remainders. property can't
vest because the beneficiary is unknown or the beneficiary is subject to a condition
precedent which has not yet occurred
Destructibility of Contingent Remainders. contingent
remainder had to vest prior to the termination of estate
Rule of convenience. the class closes when one in
the class can call for distribution
Doctrine of merger. If a life estate and a reversion (or
vested remainder) was acquired by the same person, then any intervening contingent
remainder, if existed, was destroyed.
The Rule in Shelley’s Case. If a grantee acquires a life
estate and a remainder if given to the grantees heirs, then the grantee gets a fee simple
absolute.
Wait and See Statutes.
Doctrine of worthier title. person devises property to his
heirs, the devise is void and the heirs take by descent or it is better to descent than to
devise.
Contingent Remainders are subject to Rule Against
Perpetuities. See below
Executory Interests. is any future interest held by a third party that isn't a remainder
Rule Against Perpetuities. Life of person plus 21 years. If there is a possibility (even
remote) that the interest would not vest beyond the measuring life of a person plus 21
years, then the rule applies and the interest is void.
Special Situations.
Fertile Octogenarian (>80 year old male) or Unborn
Widow. makes a future interest in property void unless it can be logically proven that the
interest must either vest or fail due to the Rule Against Perpetuities. Both are legal
fictions that could remotely happen, i.e., that a male in their 80, 90 could father a child
and a child could be born by a widow.
Class Gifts. is considered vested only when every
member has a vested interest or is in possession.
Judged in Advance. common-law
version of the Rule requires that the validity of the interest be judged at the time it is
created, not at the time the interest actually vests.
Duties.
No Waste.
Reasonable Repairs.
Alienability. Could convey a lesser estate, for example, a term of years.
Executory Interests are subject to the Rule Against Perpetuities and are any interest in a
third party that follows a fee simple estate or otherwise cuts short (divests) a preceding
estate is an executory interest (executory interest cuts short the preceding estate).
Rule Against Perpetuities to all reversionary interest (possibilities of
reverter, rights of entry, and reversions) are vested and not subject to the Rule Against
Perpetuities.
Charity-to-charity exception to the Rule Against Perpetuities applies only if the gift shifts
from one charity to another. If the gift shifts from a private to a charitable use or from a
charitable to a private use, the Rule Against Perpetuities applies and the interest may not
be valid.
2. LAND OWNERSHIP.
Adverse possession the possessor must show an actual entry giving exclusive
possession that is open, notorious, and visible; adverse and under a claim of right or color
of title; and continuous for the statutory period
Actual Possession which is Open, Notorious and Visible
Uses land in typical manner of owner of land.
Hostile. Without Owner’s Consent and under a claim of right or color of
title
Bad faith possessor, minority view, Bona Fide belief that possessor
has title
Exclusive use
Continuous. Scope of Interest Obtained Requirements
Possession for at least Statutory Period. Usually 15 Years or
Longer.
Interruption by owner.
Tacking
No privity
Land-Sale Contract.
Formation. Must have Statute of Frauds, and if no sufficient land sale contract in
writing, which has an adequate description of the land and signed by the party to be
charged, then possible exception to SOF under part performance.
Statute of Frauds. land contract that not in writing are barred from the
court and restrictions must be in writing.
Exception.
Part Performance.
Satisfaction by Memorandum. Will satisfy SOF if the
memorandum contains names of the parties, land to be conveyed, purchase price and the
signature of the party to be charged (against whom enforcement is sought).
For a valid deed, must have four major components. The landlord cannot sell an
estate greater than he owns
parties must be identified
sufficient words of transfer. Description of Delivery of Deed. Words or conduct which
evidence intention to make deed presently operative to vest title in grantee.
adequate description of the property.
River movement is either accretion or avulsion, determines river
boundaries of property; increase and decrease accretion (changes boundaries); avulsion
sudden change, doesn’t change boundaries
grantor signature
Risk of loss and equitable title. During the time between making of the contract
for sale and the closing various bad things can happen—the property can be destroyed or
damaged, or one or both of the parties may die. The common law reacted to these
possibilities by creating the notion of equitable title (or equitable conversion).
Risk of loss goes with possession: Many states have enacted statutes that
make the risk of loss go with possession. See, e.g., Cal. Civ. Code, §1662 and the
Uniform Vendor and Purchaser Risk Act. Thus, despite equitable title, if the seller
remains in possession he assumes risk of loss.
Fraud. If fraud or deceit is employed to procure the initial certificate of title it can
be set aside by the true owner or, alternatively, the registered owner will be held to hold
in constructive trust for the true owner
Constructive trust. wrongdoing and ground to impose a constructive trust
Performance concerned with Formation.
Statute of Fraud. Contracts or memorandum if it must be in writing
Exception.
Part Performance
Satisfaction by Memorandum. Will satisfy the SOF if it contains the
names of the parties land to be conveyed, purchase price and the signature of the party to
be charged.
Performance. SOF and look for issues related to Title, Tender, and Time is of the Essence,
which are .
Title / Implied Warranty of Marketable Title.
Defects. The important defects include:
Reasonably Free from Defects.
Quitclaim Deed.
Merges into Deed.
Marketable title -- reasonably free of doubt has no unreasonable risk of litigation
Color of Title. refers to a claim to title which appears valid, but may be
legally defective.
Tender. A party seeking specific performance must normally first tender
performance, unless there is an anticipatory repudiation.
Time is of the Essence. If there is a clause in the contract expressly
requiring timely performance, it will generally be enforced.
Formation Exceptions.
Part performance.
Acts by Vendor.
Acts by Purchaser.
Possession Plus Payment.
Improvements.
Unequivocally Referable Requirement.
Remedies / Risk of Loss. Both the Buyer and Seller may be entitled to
damages or specific performance. Specific performance elements are definite and certain
contract terms, feasibility, inadequate legal remedy, mutuality, and defenses.
Remedy. If specific performance:
1. An inadequate legal remedy.
2. Definite and certain contract terms.
3. Feasibility of fashioning a remedy.
4. Mutuality. And
5. No applicable defenses.
Risk of Loss.
Equitable Conversion.
Uniform Act.
Mortgages and Covenants for Title in Warranty Deed. Land-sale contract has met the
requirements of a valid contract, then it is often necessary to discuss post-closing issues
related to mortgages and covenants for title in warranty deed
Sale of Mortgaged Property.
Sale Subject to Mortgage.
Assumption.
Foreclosure.
Judicial Foreclosure. a judgment by a court to foreclose on a mortgage or deed of trust,
orders the real property to be sold to pay the debt
Private Foreclosure Sale. at which the property is sold to pay off the unpaid balance of
the loan.
Deeds.
Quitclaim Deed.
Warranty Deed.
Covenants for Title in Warranty Deed. Post-closing stage. Covenants of title in a
warranty deed protect only against title defects, and do not include a covenant for fitness
for intended use. Promises about state of ownership.
Seisin and Conveyance. Seisin: A person is seised if he holds an estate of freehold and
either has possession of the land or a tenant holds possession for him.
Against Encumbrances.
Quiet Enjoyment and Warranty.
Present Versus Future Covenants.
Present Covenants. Present covenants are breached when the covenant of
seisin, the covenant of the right to convey, and the covenant against encumbrances
Future Covenants. Future covenants are not breached until the grantee is actually or
constructively evicted, and include the covenant to quiet enjoyment, the covenant of
warranty, and the covenant of future assurances.
Statute of Limitations.
Enforcement.
Present Covenants.
Future Covenants.
Damages.
777
General Warranty Deed has 6 items which warrants the title sale.
a. Covenant of seisin: The grantor promises that he owns what he is conveying by
deed.
b. Covenant of right to convey: The grantor warrants that he has the power or
authority to convey the property.
c. Covenant against encumbrances: The grantor warrants that there are no liens,
mortgages, easements, covenants restricting, or other encumbrances upon title to the
property other than those specifically excepted in the deed.
d. Covenant of general warranty: The grantor warrants that he will defend against
lawful claims of a superior title and will compensate the grantee for any loss suffered by
the successful assertion of a superior title.
e. Covenant of quiet enjoyment: The grantor warrants that the grantee will not be
disturbed in his possession or enjoyment of the property.
2. Special warranty deed: A special warranty deed contains the same six covenants
as the general warranty deed except the grantor warrants against defects of title that arose
during the grantor's holding of the title and not defects arising before the grantor's
ownership.
Third-Parties.
Prescription. Prescription where a holder of the easement uses someone else to use the
easement for a period of statute of limitations
Estoppel. Where a holder of the easement stops making use of the
easement and a third party detrimentally relied on the stopped use
Estoppel by Deed (Personal Estoppel). if a grantor purports to
convey an estate that he does not own, his subsequent acquisition of the estate inures to
the benefit of the grantee
Licenses. A right to use licensor’s land which is revocable at the will of the licensor
(example, entry into a theater)
No Statute of Frauds.
Exception to Revocability.
Oral License Acted Upon.
Equitable servitudes and covenants. running with the land are Restrictions on the Use of
Land owned by Another. Common law, enforcement by an injunction, then equitable
servitude. Enforce by a covenants and/or contract principles then damages. SOF (Statute
of Frauds. restriction in writing are barred from the court and restrictions must be in
writing except Implied Negative Recipicle Servitude, divide large estates into smaller
estates)
Equitable Servitudes.
Touch and Concern. (Running with Land) the Burden or benefit must deal
with the land.
Intent. If the intent of the dominant and serviant estate, if touch and
concern then intent
Notice to Subsequent Purchaser.
Actual Notice.
Recording notice.
No Privity.
Relief. Injunction
Covenants Running with Land. vertical and horizontal privity of estates for
burdens to run, and vertical privity for benefits to run
Touch and Concern (Running with Land) the Burden or benefit must deal
with the land.
Horizontal Privity. Privity when the original parties entered into the agreement
with the party sharing some interest in the land independent of the covenant
Vertical Privity. Privity between the original party to the covenant and the
subsequent owner.
Running with the land. is a nonpossessory interest and can either
be an agreement between landowners to do something (affirmative) or to refrain from
doing something (restrictive); however, a covenant can be terminated if the original
purpose of the covenant is lost
Intent. Is the intent of the dominant and serviant estate, if touch and concern then
intent
Notice to Subsequent Purchaser.
Actual Notice. Notice to Subsequent Purchaser.
Inquiry notice.
Constructive notice. Recording.
Privity. A covenant that doesn’t run with the land is personal and does not touch
and concern the land.
Privity between Promisor and Promisee / Horizontal Privity, then
Running of Burden.
Running of Benefit.
Privity between Litigants / Vertical Privity then only
Running of Burden.
Defenses: Merger, release, abandonment, Estoppel, or Changed circumstances
Private Nuisance. unreasonable interference of the use and enjoyment of land. Lateral
and subjacent support issues relate normally when there is some kind of digging /
building, or some type of mining, within the fact pattern.
Substantial Interference.
Unreasonableness.
Remedies.
Lateral Support. landowner is strictly liable if the landowner changes the land so as to
withdraw lateral support. The excavating adjacent landowner is strictly liable for
damages caused by the excavation even if the land would have subsided in its natural
state.
Building.
Subjacent Support. if land would not have subsided but for a structure, then the normal
strict liability standard does not apply, a NEGLIGENCE standard thus applies
Structures Existing.
Subjacent support: This right becomes an issue only if the surface is owned by one
person and the right to mine underground is owned by another. The underground miner is
strictly liable for damages caused to land or structures resulting from withdrawal of
subjacent support
Water Rights / Riparian Rights. Depending on the state, the riparian doctrine is that
reasonable use allowed (eastern US) or natural uses prevail over artificial, first in time is
first in line (western US, state determines)
Streams and Lakes.
Common Law Riparian Rights. under which those who own land next to
water have rights to use the water.
Prior Appropriation Doctrine (western states). "first in time is first in line."
right to use scarce water from rivers and streams
Ground Water.
Air Rights.
Airplane Flights.
Direct Over-Flights.
Adjacent Areas.
Tall Buildings.
Right to Sunlight.
Joint Tenancy. Two or more people own a single, unified interest in property.
Four entities at same time: time, interest, title, possessory
Right of Survivorship
Possession.
Equal Shares.
Creation. Single instrument, and must be created in both or all joint tenants at the
same time.
Language Used. "To A and B as joint tenants with right of survivorship."
Severance.
Conveyance by one Joint Tenant.
Contrary to common law, which viewed leases as a severing conveyance, most
jurisdictions today hold that a lease by one joint tenant does not sever the joint tenancy. A
corollary to that conclusion is that a lease from one joint tenant endures no longer than
the life of the lessor joint tenant, even if the leasehold term purports to be longer.
Three or More Joint Tenants.
Tenancy by the Entirety. Common law, conveyance to two persons who are
husband and wife.
Usually Abolished.
No Severance.
Divorce.
Relations Between Co-Tenants. difficulties between themselves, possible issues:
Possession.
No Duty to Account.
Ouster.
Depletion.
Payments made by one tenant.
Partition.
Defenses
Implied reciprocal negative servitudes
Support Rights.
Water Rights. Using the reasonable use doctrine and domestic use is preferred over other
uses, a domestic use can be established at any time, and it is permissible even if it
interferes with existing non-domestic uses.
` Common reasonable use theory, downstream owners cannot enjoin an upstream
owner's use unless it substantially interferes with their needs.
Air rights relate to airplane flights, building height and availability of sunlight.
The Taking Clause. the taking clause, taking / regulation distinction, zoning, regulation of
subdivision and growth, historical and environmental preservation and eminent domain.
Compensable Taking v. Regulation.
Zoning.
Legal Limits on Zoning.
Exclusionary Zoning.
Historical and Environmental Preservation.
Eminent Domain. Eminent domain is also sometimes an issue, and remember to discuss
the public use and just compensation sub-issues of eminent domain.
Public Use.
Just Compensation.
The Takings Clause.
Compensable Taking v. Regulation.
Substantial Advancement of Legitimate State Interests.
Broad Range of Legitimate Interests.
Tight Means-End Fit.
Deprivation of All Use.
Physical Use.
Diminution in Value.
Zoning.
Use Zoning.
Density Controls.
Legal Limits on Zoning.
Constitutional Limits.
Takings Clause.
Procedural Due Process.
Equal Protection.
Exclusionary Zoning.
Equal Protection Law.
Effect vs. Purpose.
Standing.
Federal Statutory Suits.
Effect vs. Purpose.
Historical Preservation.
Districts and Landmarks.
Environmental Preservation.
Urban Park Land.
Wetlands and Coastlands.
Eminent Domain.
Public Use.
Just Compensation.
Highest and Best Use.
Executory Interests
To A for life, then to B and her heirs five years after A's death
A has a life estate in possession; O has a reversion in fee simple
subject to an executory interest; B has a springing executory
interest in fee simple absolute that will vest in possession five
years after A's death. See Note on Vesting. "To A" are words of
purchase; "for life" are words of limitation indicating that the
duration of A's estate is limited to A's lifetime. Because the O has
not transferred all of its estate to A, there are rights remaining in
O, a reversion in fee simple. The words, "five years after my
death," indicate that O does not intend B to have possession and
enjoyment of her estate immediately when A dies. Since B's
estate can not take effect as soon as A dies, it can not be a
remainder. Being a future interest in someone other than O (the
transferor), it must be an executory interest. Because B's estate
will cut short the fee simple estate in O, it is a springing
executory interest. It "springs" from O's estate at a future date
without the need for a new transfer of title from O because of an
earlier conveyance by O
Springing Executory Interest - Example 2
To A for life, then to B and her heirs, but if but if B should die
under the age of 25, to C and his heirs
A has a life estate in possession, B has a vested remainder in fee
simple subject to complete defeasance by an executory interest in
fee simple absolute in C. B's remainder is vested because (1) it can
become possessory immediately upon A's death, no matter B's age. B
need not reach 25 to take possession. However, if B does not reach
25, whether before or after A's death, C's executory interest will vest.
"To A" are words of purchase; "for life" are words of limitation showing
that the duration of A's estate is limited to A's lifetime. Because O has
not transferred all of its estate to A, there are rights remaining in O
which are transferred to B as the remainder. "To B" are words of
purchase, "and her heirs," words of limitation indicating that B will
enjoy the full estate, the fee simple absolute, when A dies. B's estate is
vested because B must do nothing else before A dies to enjoy the
estate. "[B]ut if B should die under the age of 25" are words of
condition. Because the happening of the condition will terminate a
future interest or possessory estate presently vested in B, the condition
that B not reach 25 is a condition subsequent as to B's interest. That is,
it will operate to cut off the interest B owns. This same condition is a
condition precedent to C's enjoying the estate; it must be satisfied
before C can claim the interest. "To C" are, again, words of purchase
indicating that C may take an interest or estate if B dies before
reaching the age of 25; "and his heirs" are words of limitation
indicating that, if C ever does take the estate C (or a transferee from C)
will hold the estate in fee simple absolute. If B dies before reaching 25
while A is alive, the executory interest in C will divest or cut off B's
vested remainder. If B is under 25 when A dies, B's interest will vest in
possession as a fee simple estate. However, should B then die before
reaching 25, C's executory interest will cut short B's estate and C will
have possession of an estate in fee simple absolute. C's executory
interest is a shifting executory interest because the title to the future
interest or the estate after A's death can shift from B to C. A vested
remainder subject to complete defeasance is always followed by a
shifting executory interest in another person. Other examples of
springing executory interests include:
Must benefit touch and Split Yes Split Yes Generally no. But split
concern land? (re in gross) for certain cases.
Horizontal privity? Required Split Not required Not required Not required
Vertical privity? Required Relaxed test (only Not required Not required Not required
AP cannot pass it)
Notice? Required for buyers Not required Required Not required Required for buyers
under race-notice or for buyers under statutes for burden
notice statutes (actual/construct.) to run
FI/3rd parties
PE (Present FI/G (future
Estates) interest/grantor)
1. FSA (entire bundle of sticks) None None
2. FT (only valid in 4 states) Reversion ---
3. LE, life estate Reversion (remainder in the Remainder (vested and
grantor) contingent)
4 a. FSD, fee simple Possibility of Reverter ---
determinable (“for so long as”) (automatically kicks back to
grantor)
b. FSSCS, fee simple subject Right of Entry (must ---
to condition subsequent (“on the affirmatively take back property,
condition of”) not automatic like FSD)
c. FSSEI, fee simple subject to --- Executory Interest
executory interest
Subject to rule against perpetuities
***
"No conveyance of real property shall be good and effectual in law or equity against
subsequent purchasers for value and without notice, unless the same be recorded
according to law."
The recording statute is a "notice" statute, because it protects all subsequent purchasers
without actual knowledge of a prior interest
"Every conveyance of real estate which shall not be recorded shall be void as to any
subsequent purchaser for value and in good faith, whose conveyance shall be first duly
recorded."
race-notice statute; it protects a subsequent purchaser for value who has no notice of the
prior interest ("in good faith"), only if the subsequent purchaser records her interest
before the prior interest is recorded.