Property Bar Exam

Fee simple determinable

A fee simple estate that automatically terminates and reverts back to the grantor upon the happening of a given event or condition (“to A for so long as he practices law”)

Fee Simple Subject to Condition Subsequent

A fee simple in which grantor retains the power to terminate grantee’s estate upon the happening of a given event or condition (“to A, but if he wins the lottery, grantor reserves the right to reenter and retake”)

Fee Simple Subject to an Executory Interest

A fee simple that automatically transfers to a third party upon the happening of a given event or condition (“To A, but if A is ever arrested, then to B”)

Life Estate

An interest that lasts only for the life of the interest holder

Reversion

future interest in grantor when a life estate does not provide for disposition of property to a third party

Remainder

future interest following a life estate that identifies a third person

Life estate pur autre vie

A life estate measured by the life of someone other than the life tenant

Doctrine of Waste

Life tenant cannot commit acts that constitute an unreasonable use of land and/or injure the interests of a future interest holder

Contingent remainders - arise if:

a) there is a condition precedent to the future interest becoming possessory, and/or b) the future interest vests in an unascertained taker

Vested Remainder

A remainder that automatically becomes possessory upon the natural expiration of the preceding life estate

Limitations of Vested Remainders

Cannot a) be subject to any condition precedent or b) vest in an unknown or unascertained person

Indefeasibly vested remainder

becomes possessory immediately upon termination of the prior estate (“to A for life, then to B”)

Vested remainder subject to total divestment

subject to some condition subsequent, such that the remainderman could be divested after taking possession (“to A for life, remainder to B; but if B weds, to C”)

Vested remainder subject to open (class gift)

remainder vested in a described class of takers, at least one of whom is capable of taking possession (“to A for life, remainder to children of B and their heirs”)

Rule Against Perpetutities

No property interest is valid unless it must vest, if at all, no later than 21 years after the death of a life in being at the time the interest was created

Tenancy in common

An estate with multiple tenants in which each co-tenant owns a distinct, undivided interest and each has a right to possession of the whole estate

Adverse Possession elements

1) Continuous for statutory period, 2) Open and notorious, 3) Actual and exclusive, 4) Hostile

Covenants

A promise to do or refrain from doing something related to land

Real covenant

A covenant concerning real property

Termination of covenant - can occur by:

Written release, merger of benefited and burdened estaets, or condemnation of burdened property