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Possessory Estates: Defeasible Estates

what transferor future interest means n/a Transferability common law Transferee (3r person! Transferabilit y common law E"ample

Present possessory interest

Language in grant to O and his heirs

and his heirs words of limitation

Transferabilit y common law devisable alienable inheritable devisable alienable inheritable

Transferor s Future interest none

fee simple absolute

n/a

n/a

n/a

to A and his heirs

fee simple determinabl e

(s.o.l. starts clocking when condition broken)

urational language: while until so long as during in the time that con ition subse$uent: but if! on the condition that! provided that however con it' lang' ( transferee has e"ec' interest to A for life

possibility of reverter

(language oesnt ha#e to be e"plicit!

automatic re#ersion to grantor upon the happening of a certain event (condition broken)
(ma last foreva if no broken cond.)

not alienable devisable inheritable

(may be e#isable with release only to person with present possessory interest)

executory interest

not alienable devisable inheritable

to A and his heirs so long as he uses land for farming

to A so long as she farms! but if not! to "avid.

fee simple subject to condition subsequent

(s.o.l. starts clocking when transferor takes formal action)

devisable alienable inheritable

right of entry

(language oesnt ha#e to be e"plicit!

if con ition is bro%en! grantor has to actuall enter land and bring action for e&ectment
(ma last foreva if no broken condit.)

not alienable not devisable inheritable

executory interest

not alienable devisable inheritable

to A and his heirs provided that he uses the land for farm

f.s.s.t. executory limitation

(s.o.l. starts when condition is broken)

devisable alienable inheritable

not alienable none

(interest is held with the transferee)

right of entr to transferee

executory interest

not alienable devisable inheritable

devisable inheritable alienable devisable inheritable vested rem. contingent rem. e%ecutor intrst

to A and heirs provided that used for farm! but if not# to $

alienable

Life estate

reversion not devisable

estate reverts back to grantor at the end of the

&look to other chart

to A for life

'

&modern law! all the present and future interests are alienable! devisable! and inheritable (e%cept for life estate ( same as common law)

not inheritable

life of A

revisions fee simple eterminable ) transferee has e%ecutor interest* to A so long as she farms! but if not! to "avid. future interest held b a third part when there is an e%ecutor interest instead of the transferor* not alienable! devisable! inheritable (have either possibilit of reverter O+ e%ecutor interest , not both * cant have remainders following fee simple determinable (statute of limitations starts clocking ) as soon as the condition is broekn fee simple sub-ect to e%ecutor limitation ( (statute of limitations starts clocking ) as soon as the condition is broken fee simple sub&ect to con ition subse$uent ) O./0 followed b right of entr * conditional language and future interest is held b a third part ! then the present possessor interest is called a fee simple sub-ect to e%ecutor limitation ) and then future interest is called e%ecutor interest (and its nor alienable! devisable! and inheritable) (statute of limitations starts clocking as soon as something formal is done to show that he is aware a condition is broken life estate can be held b third part ) vested remainder ) a! d! in! (no reversion after that)! contingent remainder ) not alienable! devisable! inheritable present posessor / lang / a d i / transferor / transferor interest / a d i / transferee 1rd part / a d i / e%ample alienable the holder of the fee simple absolute can sell the propert devisable the person can name a taker of the propert in their will inheritable if the holder of a fee simple absolute fails to name a taker in their will! then the laws of the state will determine who gets the propert ) based on the laws of intestac
(2ommon law: if it -ust sa s to A that is a life estate* in order for it to be a fee simple absolute! must have words of limitation and his heirs (3odern law: if we see to A assume that it is a fee simple (distinction between fee simple determinable and fee simple sub-ect to condition subse4uent are the conse4uences that follow , future interest (land alwa s has to belong to someone (common law conte%t: future interest is not alienable! so the onl wa to get the land is with a release release is the process of selling the future possessor interest to another part (modern law conte%t: all future interests are alienable! devisable! and inheritable

&modern law! all the present and future interests are alienable! devisable! and inheritable (e%cept for life estate ( same as common law)

Fee simple eterminable (fee simple given as a gift (i.e. 3one to school for school purposes! 5o 6 and heirs for faming) does not count as a fee simple determinable! -ust a gift. (fee simple determinable is created b durational language (possibilit of reverter is the future interest married to fee simple determinable* it is the onl future interest possible following fee simple determinable (once the condition is broken (no longer defeasible estate) and estate automaticall reverts to grantor! grantor then has a fee simple absolute (third part (i.e. heirs) can be given e%pectanc interest! but not an present or future interest if -ust part of words of limitation (statute of limitations clock starts to run as soon as the condition is broken

Fee simple sub&ect to con ition subse$uent )fee simple is not automaticall terminated! but ma be cut short b the grantor when the stated condition happens* unless and until the actual entr is made! a fee simple continues (grantor has right to re(enter and take the premises (with an e-ectment action) once the condition is broken (third part (i.e. heirs) can be given e%pectanc interest! but not an present or future interest if -ust part of words of limitation (when a grant is ambiguous! the court will name it a fee simple sub-ect to condition subse4uent statute of limitations clock starts to run when grantor takes formal action of right of entr (not when condition is broken)

Fee simple sub&ect to e"ecutory interest (future interest in a transferee that onl takes effect b divesting another interest (1rd part ) (transferor and transferee (1rd part ) cannot simultaneousl have future interests

octrine of latches: if O is aware that a condition has been broken and has right of entr ! and O sits on his rights too long and doesn7t make an formal move! then the land will be given to the part that broke the condition (like adverse possession) (idea of rewarding productivit on land* give incentive for owners to protect their land and future interests to land hypo: O conve s land to A and her heirs so long as land not sued for sale of alcohol! and if alcohol is sold on land! O has right to re(enter premises. A7s restaurant for '' rs on land and gives complimentar mimosa on 8un and cooks with brand . $ bu s restaurant and in ear '' wants to build a bar. *s argument for a #erse possession: 5his grant was given as a fee simple determinable (( so long as is the durational language. 2ondition was broken a long time ago bc A used alcohol in cooking and gave alcohol awa on 8un. .othing is free! so that was part of the lunch package alcohol was sold. After '9 ears! 8tatute of limitations passed and O did not come onto land and bring action for e-ectment. :ith doctrine of latches! now $ can adversel possess land. (tacks on A7s time on the land) +s counter: 5his grant was given as a fee simple sub-ect to condition subse4uent based on the conditional language. 5he statute of limitations does not

&modern law! all the present and future interests are alienable! devisable! and inheritable (e%cept for life estate ( same as common law)

start clocking until O does something formal to acknowledge that the condition has been broken. ;n such a case! $ has not been in possession of the land long enough to adversel possess it. Life estate Doctrine of waste: , %in s of waste '. affirmative waste ) holder of the life estate takes actions that end of decreasing the value of the propert <. permissive waste ) owner of the life estate fails to take action and as a result decreases value of the propert (passive with prop management) (i.e. person given land as gift! builds a house there! roof leaks with water! part doesn7t do an thing! but could have done something to preserve propert ) liable for decreased value of propert ) +pen min s octrine: /ife estate holder is entitled to use the propert as the person before him did he does not necessaril have to improve the value of the propert ! he -ust cannot decrease its value. As long as the propert value is not decreased! it does not matter how he uses the land. modern courts do a straightforward economic anal sis (numbers are controlling) to see if the land was improved and made profits (then it is ok)

&modern law! all the present and future interests are alienable! devisable! and inheritable (e%cept for life estate ( same as common law)

/urrent state

Future interest in Transferee

Future -nterests: .emain er -nterests that follow Life Estate Transferability Future interest in Elements of remain er Transferor common law devisable alienable inheritable devisable alienable inheritable nothing '. given to ascertained person <. not sub-ect to condition precedent

E"ample

Life estate

Vested remainder in fee simple absolute Vested remainder subject to open OR Vested remainder subject to partial divestment Contingent remainder

to A for life! then to $ and his heirs.

Life estate

nothing

'. given to ascertained person <. sub-ect to condition subse4uent! ma be other takers

to A for life! then to children of $ and their heirs. $ has one child.

Life estate

devisable inheritable not alienable

reversion
(until contingent becomes vested)

'. no takers are ascertained <. interest is contingent upon some event other than life estate ending

to A for life! then to children of $ and their heirs. $ has no children.

Life estate

Alternative contingent remainder

devisable inheritable not alienable

reversion
(until contingent becomes vested)

'. no takers are ascertained 1. two potential takers have simultaneous future interests! onl one will become vested ) both sub-ect to condition precedent '. given to ascertained person! A <. no condition precedent 1. $7s e%ecutor interest onl fulfilled b divesting prior estate =. onl follows a vested interest! not contingent life estate ends when person dies
(if A sells life estate to $! its still measured b A7s life time span)

to A for life! then to $ and her heirs if $ marries 2! but if $ doesn7t marr 2! to " and his heirs. to A for life! then to $ and her heirs! but if $ doesn7t marr 2alvin! to " and his heirs. to A for life

Life estate

Executory interest

devisable inheritable not alienable

nothing

Life estate Life estate

none

alienable not divisible not inheritable

reversion

vested remainder sub-ect to divestment

&modern law! all the present and future interests are alienable! devisable! and inheritable (e%cept for life estate ( same as common law)

future interest ) gives legal rights to its owner ) it7s a presently existing interest that ma become possessor in the future
0este remain er '. given to an ascertainable person <. is not sub-ect to a condition precedent* as soon as the previous estate ends! the possessor interest is fulfilled* chosen person gets the estate law favors vested interests rather than contingent #este remain er sub&ect to open ) if to A for life! then to $7s children and their heirs. At the time of grant! $ has child 2. ;n < ears! $ has another child ". 27s future interest of vested remainder sub-ect to partial divestment has been partiall divested ) he will get smaller share now bc of ". /ontingent remain er '. given to an unascertainable person (not sure of the takers) <. made contingent on some event happening other than the natural termination of the previous estates considered condition precedent once the contingenc is fulfilled! then the contingent remainder becomes a vested remainder (certaint ) when life estate is followed b a contingent remainder! the grantor has a reversion future interest bc not sure of an takers* once it becomes vested! no future interest for the grantor to A and his heirs ) and his heirs are -ust words of limitation* don7t confer legal future interest to A for life! then to heirs of $ ) to the heirs are named as takers ) the have contingent remainders Destructibility of contingent remain ers (at common law) ) if the life estate ends before the contingenc is met! then estate reverts back to grantor and the contingent remainder future interests are destro ed (no longer e%ist) E"ecutory interest '. future interest in a transferee that onl takes effect b divesting another interest (1rd part ) <. follows a vested remainder or defeasible interest! but not a contingent remainder

&modern law! all the present and future interests are alienable! devisable! and inheritable (e%cept for life estate ( same as common law)

.e#ersion ) interest remaining in the grantor or successor ) who transfers a vested estate of a lesser 4uantum than that of the vested state which he has ) revert , come back ) ma or ma not be certain that future interest of reversion will become possessor (i.e. to A for life O7s reversion is fulfilled when A dies* to A for life then to $ and $7s heirs if $ outlives A. if $ does not outlive A! O7s reversion is fulfilled! but if $ outlives A! O7s reversion is unfulfilled.) Possibility of .e#erter ) grantor7s future interest when he carves out a fee simple determinable* future interest is possibilit of reverter (automatic if condition is broken! but if condition not broken! grantor7s future interest ma never become possessor ) ) once the condition is broken and automaticall reverts to grantor! then title of land is fee simple absolute .ight of entry ) grantor7s future interest after he transfers a fee simple sub-ect to condition subse4uent and has power to cut short/terminate the estate if the condition is broken* grantor has future right of entr (ma not become possessor if the condition is not broken) ) not automatic transfer back to grantor ) he must take formal action )can7t have reversion and vested remainder in the same time because if there is a vested remainder! it does not revert back to grantor ) is definitel going to be fulfilled b the vested remainder part (e%pectanc interest confers no legal interest (person must be dead in order to have an heir (unborn children have contingent remainder until the are born ) in which case the continue have contingent remainder if there is a condition to be met (i.e. turning <' ears old)

+ule against perpetuities ) (people who create trusts or legal estates will tie the land for an indeterminate period of time* make the future of the land uncertain propert law wants certaint so has the rule (if we look at contingent remainder or e%ecutor interest and it would take lives in being > <' ears (appro%. ?9 ears) ) then its invalid. (if it takes more than ?9 ears for an interest to vest! then the interest is invalid (and we cross it out) (came up with the lives in being > <' rs ) based on issue that when person comes up with estate ) grantor probabl wont figure out past the lives of his kids and grandkids. @rantor can7t reach out to control land ears after death ) gets ?9 ears. (rule is in place to prevent grantors to attach stuff to assets for more than ?9 ears 5o A so long as the land is used for farming ) if it is not! then to $. ($ has e%ecutor interest) (if land ceases to be farmed in 199 rs! then e%ecutor interest is invalid. 5o 8arah for life! then to $ if an person steps foot on 3ars. (contingent remainder) &modern law! all the present and future interests are alienable! devisable! and inheritable (e%cept for life estate ( same as common law)

contingent remainders and e%ecutor remainders are sub-ect to the rule of perpetuities (but vested remainders are not)

Rent Control Pros - provides affordable housing; protects tenants; stops poor tenants from being priced out of the system; reduces homelessness; reduces likelihood of slums; allows tenants personhood in apartments - i.e. you get attached to a place and make it a home, stops people from moving every year/end of every lease term, so it fosters community Cons - reduces supply of housing (landlords may choose to leave market ; puts burden of affordable housing on !!s instead of on govt; results in inefficient use of property; attracts more consumers to an already over-saturated/competitive market; gives !!s no incentive to maintain or improve their property (pre-war bldgs with shitty old kitchens - while habitable, not necessary up to market standards . o Pros: " #rovides low cost housing " #rotects tenants$ ability to remain in an apartment " %ransfers wealth / political power to tenants & w/o rent control, poor tenants are priced out of the system and therefore cannot vote to change the system. " #rovides greater tenants 'personhood( interest in the apartment & sentimental attachment to home means apartment should not be treated like other commodities. o Cons: " Reduces supply & landlords may leave the market, new landlords may not enter the market, and tenants hang on to apartments )ust because they have them " Creates lost surplus / inefficient ('dead weight loss( & some landlords cannot charge what the apartment is worth (the lose the difference between the apartment$s *+, and the rent control price ; some tenants cannot find apartments for prices they$re willing to pay (% needs a - bedroom, while . has a bedroom but only needs a / bedroom; . won$t give it up due to rent control so % has to get a / bedroom " 0nefficient use & people who could pay more pay less and people who need less space take more space " 1ttracts consumers who wouldn$t otherwise enter the market to a market with less supply " %reats apartments different from every other commodity (regular 2/3 " !andlords convert rental units into condos / commercial property " +akes landlords responsible for what the government should be responsible (possible 'taking " !andlords have no incentive to maintain / improve the property

&modern law! all the present and future interests are alienable! devisable! and inheritable (e%cept for life estate ( same as common law)