Property: Estates & Future Interests

What language traditionally creates a Fee Simple Absolute?

A Fee Simple Absolute is traditionally created by the language 'to A and his heirs,' though modern law presumes a fee simple absolute even without the words 'and his heirs.'

What is a Life Estate?

A Life Estate is a present possessory estate that is measured by the life of one or more specified persons (e.g., 'to A for life').

What future interest is retained by the grantor following a Fee Simple Determinable?

The grantor retains a Possibility of Reverter following a Fee Simple Determinable, which vests automatically upon the occurrence of the stated event.

What future interest is retained by the grantor following a Fee Simple Subject to Condition Subsequent?

The grantor retains a Right of Entry (or power of termination), which requires the grantor to take affirmative action to retake the property.

What future interest arises in a grantor who transfers an estate of lesser quantum than she owns?

A Reversion arises in a grantor who transfers an estate of lesser quantum (e.g., a life estate from a fee simple) without completely disposing of the remaining interest.

What are the two requirements for a remainder to be considered a Vested Remainder?

A Vested Remainder must be given to an ascertained person AND not be subject to a condition precedent.

What makes a remainder a Contingent Remainder?

A Contingent Remainder is given to an unascertained person OR is subject to a condition precedent.

State the common law Rule Against Perpetuities (RAP).

Under the Rule Against Perpetuities, no interest is good unless it must vest, if at all, not later than 21 years after some life in being at the creation of the interest.

What durational language typically creates a Fee Simple Determinable?

A Fee Simple Determinable is typically created by durational words such as 'so long as,' 'while,' 'during,' or 'until.'

What conditional language typically creates a Fee Simple Subject to Condition Subsequent?

A Fee Simple Subject to Condition Subsequent is typically created by conditional words such as 'but if,' 'provided that,' or 'on condition that.'