Estates in Land

1
Estates in Land Future Interests

• Unit 3
• Defeasible Fee Simple Interests
• 2009 edition

2
Desfeasible Estates The Basic Idea

• Common law allowed a Grantor to attach strings
  to a
• grant - that enabled the conveyance to end
• prematurely.
• Two dimensions to the string
• 1. ending could be designed to be a) automatic
• or b) non- automatic
• 2. after ending land could either a) return to
• Grantor (or heirs) or b) move onto a third
  party

3
Four Defeasible Fees A Grid

• How defeased? Auto (SL) Non-Auto (CS)
• Who takes next?
• Grantor
• Third Party
• (Not G)

4
Four Defeasible Fees A Grid

• How defeased? Auto (SL) Non-Auto (CS)
• Who takes next?
• FSD
  FSSCS
• Grantor
• Third Party
• (Not G) FSSEL
  FSSEI

5
Defeasible Fee Simple EstatesFee Simple
Determinable

• Duration
• Defeasible Fee Simple which expires by operation
  of a special limitation stipulated by grantor.
• Transferability
• By deed (gift or sale)
• By will (devise)
• By intestacy (descent)
• and next owner gets a FSD too see why??

6
Fee Simple Determinable

• If properly drafted, three badges
• 1. Special Limitational Language
• so long as
• while
• until
• during PLUS
• 2. Automatic Termination (Reverter) Language
• 3. Next Taker G (or his heirs)

7
Fee Simple Determinable

• Three badges
• Example
• To A so long as she remains unmarried to B,
  however, if she marries B then As possession of
  the premises terminates and possession of the
  premises automatically reverts to G.

8
Fee Simple Determinable (FSD)

• CHARACTERISTICS PP/FS/SCD/SL
• Possessory status
• Estate Family
• Defeasibility
• Mode of Defeasance
• ASSOCIATED FUTURE INTERESTS
• Possibility of Reverter
• Reversionary G
• Automatic

9
Defeasible Fee Simple EstatesFee Simple Subject
to a Condition Subsequent

• Duration
• Defeasible Fee Simple which is cut short by
  operation of a condition subsequent stipulated by
  grantor.
• Transferability
• By deed (gift or sale)
• By will (devise)
• By intestacy (descent)

10
Fee Simple Subject to a Condition Subsequent

• If properly drafted, three badges
• 1. Conditional Language
• upon condition that
• provided that
• provided however
• but if PLUS
• 2. Non-automatic termination language gives
  Grantor the power to enter and take possession
  the premises.
• 3. Next taker G (or her heirs)

11
Fee Simple Subject to a Condition Subsequent

• Three badges
• Example
• To A on condition that she remains unmarried to
  B, however, if she marries B then the Grantor may
  enter and take possession of Blackacre.

12
Fee Simple Subject to a Condition Subsequent
(FSSCS)

• CHARACTERISTICS PP/FS/SCD/CS
• Possessory status
• Estate Family
• Defeasibility
• Mode of Defeasance
• ASSOCIATED FUTURE INTERESTS
• Power of Termination (POT) aka Right of Entry
  (ROE)
• Reversionary G
• Non-Automatic

13
Defeasible Fee Simple EstatesFee Simple Subject
to an Executory Limitation

• Duration
• Defeasible Fee Simple which expires by operation
  of a special limitation which shifts possession
  to someone other than the Grantor.
• Transferability
• By deed (gift or sale)
• By will (devise)
• By intestacy (descent)

14
Fee Simple Subject to an Executory Limitation

• If properly drafted, three badges
• 1. Special Limitational Language PLUS
• 2. Automatic Termination Language PLUS
• 3. Next taker Third Party (not G)

15
Fee Simple Subject to an Executory Limitation

• Three badges
• Example
• To A while she remains unmarried to B, however,
  if she marries B then Blackacre automatically
  vests in C.

16
Fee Simple Subject to an Executory Limitation
(FSSEL)

• CHARACTERISTICS PP/FS/SCD/SL
• Possessory status
• Estate Family
• Defeasibility
• Mode of Defeasance
• ASSOCIATED FUTURE INTERESTS
• Executory Interest (EI)
• Non-Reversionary C (TP)
• Automatic

17
Defeasible Fee Simple EstatesFee Simple Subject
to an Executory Interest (FSSEI)

• Duration
• Defeasible Fee Simple which is cut short by
  operation of a condition subsequent that shifts
  possession to someone other than the grantor.
• Transferability
• By deed (gift or sale)
• By will (devise)
• By intestacy (descent)

18
Fee Simple Subject to an Executory Interest

• If properly drafted, three badges
• 1. Conditional Language PLUS
• 2. Non-Automatic Right of Entry Language
• PLUS
• 3. Next taker Third Party (Not G)

19
Fee Simple Subject to an Executory Interest

• Three badges
• Example
• To A on condition that she remains unmarried to
  B, however if she marries B then C may enter and
  take possession of Blackacre.

20
Fee Simple Subject to an Executory Interest
(FSSEI)

• CHARACTERISTICS PP/FS/SCD/CS
• Possessory status
• Estate Family
• Defeasibility
• Mode of Defeasance
• ASSOCIATED FUTURE INTERESTS
• Executory Interest (EI)
• Non-Reversionary C (TP)
• Non-Automatic

21
Four Defeasible Fees A Grid

• How defeased? SL CS
• Who takes next?
• Grantor FSD/POR FSSCS/ROE
• Third Party FSSEL/EI FSSEI/EI
• (Not G)

22
Limitations vs Conditions Does It Matter?

• Blackacre to my dear
• wife, A, until she
• remarries but should
• she remarry, the
• premises shall auto-
• matically vest in my
• children.
• A
• Children
• G

• Blackacre to my dear
• wife, A, but if she
• remarries, my children
• may enter and possess
• the premises.
• A
• Children
• G

23
End