RAP, BFP, Recording Acts

O to A for life

A: LE
O: reversion

O to A for 5 years

A: 5 year term
O: reversion

O to A for life, then to B and his heirs

A: LE
B: Vested remainder in FSA

O to A for life, then to B for life, then to C and his heirs.

A: LE
B: Vested remainder in LE
C: Vested remainder in FSA

to A for life, then to B and his heirs, then to C and his heirs.

A: LE
B: Vested remained in FSA
C: Nothing

O to A for life, then to A's surviving children. (A's daughter B is alive at the date of the conveyance.)

A: LE
"A's surviving children": Contingent remainder in FSA
O: reversion

O to A for life, then to B if B survives A, otherwise to C and her heirs.

A: LE
B: ACR in FSA
C: ACR in FSA

O to A so long as Blackacre is used for church purposes.

A: FSD
O: Possibility of reverter

O to my children for their lives, then to my grandchildren who reach the age of 21. (O has two grandchildren at UT Law School, and many more who are younger.)

O's children: LE
O's grandchildren:
If any are currently 21, then vested remainder subject to open in FSA
If not contingent remainder in FSA and O has reversion

O to A for life, then to B, but if B does not survive A by five years, then to C.

A: LE
B: FSSEL
C: Executory interest

O to A for life, then to A's children (A's daughter B is alive at time of conveyance)

A: LE
A's children: Remained in FSA vested subject to open

O to A for life, then A's children (A has no children at time of conveyance)

A: LE
A's children: Contingent remainder in FSA
O: Reversion

O to A for life, then to B if B survives A.

A: LE
B: contingent remainder in FSA
O: reversion

O to A for life, then to B if B survives A, with the additional fact that C (a trespasser) moves onto Blackacre shortly after O conveys to A. Twenty-five years later, A and B are both still alive, and C is still in possession.

A: LE
B: contingent remainder in FSA
O: reversion
C: AP claim but can only acquire what A had (LE for A's life) so cannot be hostile to B as long as A is alive (C can succeed against A and B has no COA against C)

O to A for life, then to A's surviving children. A has two children, D and E.

A: LE
A's surviving children: Contingent remainder in FSA
O: reversion

O to A for life, then to A's children. A has two children, D and E.

A: LE
A's children: Remainder in FSA vested subject to open

O to the University of Texas, so long as it is used as a football stadium.

UT: FSD
O: Possibility of reverter

O to the University of Texas, but only for use as a football stadium, and if it is no longer used for this purpose, O or his successors may reenter and retake the premises.

UT: FSSCS
O: Right of reentry

O to the University of Texas, but if ever the land is no longer used for a football stadium, then to Texas A&M.

UT: FSSEL
A&M: Executory interest
Executory interest not valid under RAP (UT would have FSA or FSD)

O to my daughter A and her heirs, but if A ever marries, then to B.

A: FSSEL
B: Executory interest
(very suspect - if spiteful interference then will give A FSA)

O to A for life, then to B for life, then to C for life, then to D for life, then to Texas A&M.

A: LE
B: vested remainder in LE
C: vested remainder in LE
D: vested remainder in LE
A&M: FSA

O to the University of Texas Law School, but if my son A fails to graduate on schedule with the Class of 2020, then to Texas A&M Law School.

UT Law: FSSEL
A&M: Executory interest

T leaves Blackacre by will "to A for life, then to the first of A's children to reach the age of 21." (A is alive and childless at T's death.)

A: LE
A's first child to reach age of 21: Contingent remainder in FSA
T: reversion

O to "my son A for life, then to his surviving widow for her life, then to my surviving grandchildren."

UNBORN WIDOW
A: LE
Surviving widow: contigent remainder in LE

Surviving grandchildren: contingent remainder in FSA - RAP INVALID
O: Reversion

A holds a life estate in Blackacre. In exchange for $100,000, A conveys to B "Blackacre in fee simple absolute, forever." The price is a fair one, and B has no reason to believe that A does not own what he purports to sell. A dies, and Remainderman attempts to evict B. What result?

B has LE for A’s life w/o equitable claims

A owns Blackacre. B learns that a highway is being built nearby and offers to buy the property from A. A asks, "Why are you interested?" B makes fraudulent misrepresentations to A and succeeds in buying Blackacre for $5,000. In reality (as B is aware and A is not), Blackacre is worth at least $50,000. B sells the property to C for $50,000 before A discovers what has happened. A attempts to recover Blackacre from C. What result?

C wins (C is BFP)

A owns Blackacre and Whiteacre, adjacent lots. A agrees to sell Blackacre to B. By a clerical error, the deed describes a tract that includes both Blackacre and Whiteacre. B resells Blackacre to C, copying the property description from the A/B deed. No party is aware of the mistake, and A (not B) is occupying Whiteacre. A discovers the error two years later and seeks to recover Whiteacre from C. What result?

If C has inspected the lot: A wins because C had notice
If C relied on deed: C wins because no notice (A may have AP claim)

Student's $20 bill is stolen by Roommate, who uses the money to buy beer and cigarettes at the convenience store. Student later accuses Roommate, and Roommate admits what happened. Student goes to the store and attempts to retrieve his stolen $20. It happens that Student sometimes writes little messages on the back of his currency, and in this case he is able to prove that one $20 bill in the store's cash register is the one that Roommate stole. What result?

Store wins. Money rule

A, the owner of Blackacre, grants a mortgage on the property to Bank as security for a loan. What can Bank do to protect itself against a potential C who might buy Blackacre from A without notice of Bank's interest?

Recording Act

A owns Blackacre. B learns that a highway is being built nearby and offers to buy the property from A. A asks, "Why are you interested?" B makes fraudulent misrepresentations to A and succeeds in buying Blackacre for $5,000. In reality (as B is aware and A is not), Blackacre is worth at least $50,000. B sells the property to C for $50,000 before A discovers what has happened. A begins a lawsuit against C, and the facts of B's fraud against A are on the front page of the newspaper. Learning about the situation in this way, D sees an investment opportunity: D buys Blackacre from C for $25,000. A amends his pleadings so that he is now suing both C and D. What result?

D wins. Shelter rule because C was BFP

O conveys Blackacre "to B for life, then to B's surviving children for their lives, then to B's surviving grandchildren in fee simple absolute."

B: LE
B's surviving children: contingent remainder in LE
B's surviving grandchildren: contingent remainder in FSA - RAP INVALID
O: Reversion
Savings clause: "provided, however, that on the date 21 years after the death of the last to die among B and all children and grandchildren of B who are alive today (the "termination date"), the interests of B's surviving children (if not previously terminated) shall immediately terminate, and Blackacre shall be transferred to the grandchildren of B who are alive on the termination date."

T's will directs his executor to convey Blackacre "to my son A if he is still living 30 years after the date of my death."

T: Defeasible fee
A: Executory interest in FSA
T: Reversion

T's will leaves Blackacre "to my son A and his heirs, but if A ever takes another drink of whiskey, then to my daughter B and her heirs."

A: Fee simple subject to executory limitation
B: Executory interest in FSA

O conveys Blackacre "to A for life, then to A's son B for his life, then to C and his heirs, but if at any point the land is no longer used for farming, it shall go to D and his heirs."

A: Defeasible LE subject to executory limitation
B: Vested remainder in defeasible LE subject to executory limitation
C: Vested remainder in fee simple subject to executory limitation
D: Executory interest in FSA - RAP INVALID

T's will leaves Blackacre "to A for life, then to B for life, then to C for life, then to D and his heirs."

A: LE
B: Vested remainder in LE
C: Vested remainder in LE
D: Vested remainder in FSA

T's will says, "to A for life, then to B for life if B survives A, then to C for life if C survives B, then to D and his heirs"? Assume that A, B, C, and D are all alive at the date of T's death.

A: LE
B: Contingent remainder in LE
C: Contingent remainder in LE
D: Vested remainder in FSA

O conveys Blackacre "to A for life, then to A's son B for life, then to A's first grandchild to reach the age of 21."

A: LE
B: Vested remainder in LE
A's first grandchild to reach 21: Contingent remainder in FSA - INVALID (if there are no grandchildren who are 21 on O's death)
O: Reversion

O conveys Blackacre inter vivos "to A for life, then to my grandchildren who graduate from the UT Law School." O has two children and two grandchildren, X and Y, ages 22 and 25, both of whom are enrolled in this Property class!

A: LE
Grandchildren who graduate from UT Law: Contingent remainder in FSA - INVALID
O: reversion

O places $10 million in trust with the First National Bank. O directs the Bank as follows: "This trust is for the benefit of legal education in Texas. If all of my grandchildren who apply to UT Law School are admitted and permitted to graduate, the Trustee shall pay UT Law the entire principal of the trust. If any of my grandchildren applies and is not admitted, or attends UT but fails to graduate, the Trustee shall pay the entire principal of the trust to SMU Law School." On the date the trust is created, O is 75 years old and has no surviving children. O has five grandchildren, aged between 10 and 20, none of whom has yet applied to law school.

O: Defeasible fee
UT Law: ACR in FSA - INVALID
SMU Law: ACR in FSA - INVALID
O: Reversion

T's will leaves Blackacre "to my children for their lives, then to my grandchildren who reach the age of 21." T is survived by two unmarried children, A and B. There are no grandchildren yet.

Children: LE
Grandchildren who reach age of 21: Contingent remainder in FSA
T: Reversion

T's will leaves Blackacre "to my children for their lives, then to my grandchildren who reach the age of 35." T is survived by two unmarried children, A and B. There are no grandchildren yet.

Children: LE
Grandchildren who reach age of 35: Contingent remainder in FSA - RAP INVALID (A and B are measuring lives)
T: Reversion

T's will leaves Blackacre "to my grandchildren who reach the age of 21." T is survived by two unmarried children, A and B, but there are no grandchildren yet.

T's estate: defeasible fee
Grandchildren who reach age of 21: Contingent remainder in FSA
T: Reversion
(A & B are measuring lives)

T's will leaves Blackacre "to A for life, then to any of A's children who reach the age of 30." As it turns out, however, A predeceases T. At T's death, A's children are 2, 10, 18, and 19.

T's estate: defeasible fee
A's children who reach age of 30: Contingent remainder in FSA (A's children are their own measuring lives)
T: Reversion

T's will directs his trustee to "accumulate principal until 21 years following the death of the survivor of A, B, C, D, and E, then distribute it to my direct descendants then living."A, B, C, D, and E are five healthy babies, unrelated to T, each identified by name, address, and social security number

T's estate: Defeasible fee
Direct descendants then living: executory interests (Last to die of A, B, C, D, E is measuring life)

O to A for life so long as A keeps a vegetable garden, and if A does not keep a vegetable garden then to B for the rest of A's life, and in any case to C at the end of A's life.

A: LE subject to executory limitation
B: Executory interest for A's life
C: Vested remainder in FSA

O to A for life, then to B. C adversely possesses while A is alive.

C: LE for A's life (S/L will restart when A dies)
B: Vested remainder in FSA

O conveys "to A for life, then to A's surviving children for their lives, then to A's grandchildren for their lives, then to B and his heirs."

A: LE
A's surviving children: Contingent remainder in LE
A's grandchildren: Contingent remainder in LE - RAP INVALID
B: Vested remainder in FSA

T's will leaves property "for my grandchildren who reach the age of 30." The residuary clause of the will leaves "all the residue of my property, real or personal, to the Baylor Law School." T survived by children A and B (both in their 60s) and grandchildren ages 19, 32, 35

Gift to grandchildren is invalid bc class gift is invalid if interest might vest remotely as to any member.

T's will directs his trustee to pay income "to my sister A for life, then to A's children for their lives; and on the death of the surviving child, to distribute the principal to A's grandchildren then living."A is an 80-year old widow who dies 2 weeks after T. A's children, B and C, are 55 and 53 years old.

FERTILE OCTOGENARIAN
A: LE
A's children: Vested remainder in LE
A's grandchildren then living: Contingent remainder in FSA - INVALID

AK has two children, Cassie and Thad. He sets up an inter vivos trust in which he directs his trustee to "(i) pay trust income to my children for their lives; (ii) thereafter pay the income to my grandchildren for their lives; then(iii) at the death of my last surviving grandchild, distribute the trust principal to my direct descendants then living."

Children: LE
Grandchildren: Contingent remainder in LE - INVALID (AK is measuring life)
Direct descendent then living: Contingent remainder in FSA - INVALID

AK has two children, Cassie and Thad. He sets up a testementary trust in which he directs his trustee to "(i) pay trust income to my children for their lives; (ii) thereafter pay the income to my grandchildren for their lives; then(iii) at the death of my last surviving grandchild, distribute the trust principal to my direct descendants then living."

Children: LE
Grandchildren: Contingent remainder in LE
Direct descendent then living: Contingent remainder in FSA - INVALID (Cassie and Thad are measuring lives)

O conveys Blackacre inter vivos "to UT Law School, but only so long as they teach their students the Rule Against Perpetuities; and if they ever stop teaching this valuable doctrine, then to my lineal descendants who are UT graduates." When O dies a few years later, the RAP is still being taught at UT. O's will leaves "all the rest and residue of my property, both real and personal" to Baylor Law School.

UT Law: Fee simple subject to executory interest
Lineal descendants who are UT grads: Executory interest
Baylor Law: Possibility of reverter

No recording acts: O sells Blackacre to A, then sells same land to B, unaware of prior sale to A

A>B>O. O can’t sell anything to B because he doesn’t have title after selling to A. (nemo-dat)

No recording acts: O mortgages Blackacre to A. Then O sells Blackacre to B, who has no notice of A mortgage.

B>A>O. B is a BFP

O sells Blackacre to A. After, O sells same land to B, unaware of sale to A. B records deed. A records deed

Race - B

Notice - B

NR - B

O sells Blackacre to A. After, O sells same land to B, aware of sale to A. B records deed. A records deed

Race - B

Notice - A

NA - A

O sells Blackacre to A. A records deed. Later, O sells Blackacre to B, unaware of sale to A. B records deed

Race - A

Notice - A

NR - A

O sells Blackacre to A. Later, O sells Blackacre to B, who is unaware of prior sale to A. When A hears about sale, he races to courthouse and records. Then B records

Race - A

Notice - B

NR - A

O conveys to A. Then, O conveys to B, who is unaware of A’s deed. B records. A records. Then B conveys to C. A sues C.

Race - C (shelter rule)

Notice - C

NR - C

O conveys to A, who does not record. Forger conveys to B, who is unaware of A’s deed. Forger gives B a deed signed “O” and B records. B conveys to C, also unaware of A’s deed. C records. B records. A sues C

Race - A (nemo dat)

Notice - A

NR - A

Notice Type

A conveyance of real property or an interest in real property or a mortgage or deed of trust is void as to a creditor or to a subsequent purchaser for a valuable consideration without notice unless the instrument has been filed for record as required by law.

The unrecorded instrument is binding on a party to the instrument, on the party’s heirs, and on a subsequent purchaser who does not pay a valuable consideration or who has notice of the instrument.

Race Type

No conveyance of land ... shall be valid to pass any property interest as against lien creditors or purchasers for a valuable consideration ... but from the time of registration thereof in the county where the land lies.

Notice-Race Type

Every conveyance of real property or an estate for years therein, other than a lease for a term not exceeding one year, is void as against any subsequent purchaser or mortgagee of the same property, or any part thereof, in good faith and for a valuable consideration, whos conveyance is first duly recorded ... (Cal. Civ. Code § 1214.)

An unrecorded instrument is valid as between the parties thereto and those who have notice thereof. (Cal. Civ. Code § 1217.)