Property Bar Bri Outline Lecture 1. Future Interests A.

Future Interests capable of creation in O, the grantor o 1) The Possibility of Reverter Accompanies only the Fee Simple Determinable (FSDPOR) To A so long as popcorn is not made on the premises A would have a Fee Simple Determinable O would have a possibility of reverter o 2) The right of Entry (Power of Termination) Accompanies only the Fee Simple Subject to Condition Subsequent To R but if coffee is ever consumed, O has the right to re enter o 3) Reversion Catch all Arises whenever the grantor has something left over, after conveying a present estate Whenever the grantor has conveyed an estate of lesser duration than she started with, other than one of the Defeasible fees, her future interest has to be called a Reversion O owns a FSA, O conveys to B a life estate o Os left over is a reversion Any leftover that O has conveyed to him or his heirs B. Future Interests capable of creation in the transferee (someone other than O) o 1) Remainder Remainder is the patient future interest that waits for the preceding estate to end before it becomes possessory REMAINDERS NEVER FOLLOW DEFEASIBLE FEES To A for Life then to B o B Has a remainder Always wait for the preceding interest to take its natural course Remainders are either Vested or Contingent Vested o Must meet two requirements 1) When Created in a known taker 2) Not subject to a condition precedent o To A for Life then to B B has a vested remainder, B is alive and there are no strings attached as prerequisites to Bs taking Contingent o One of two circumstances 1) When created in a yet unknown taker, OR 2) When subjected to condition precedent o To A for Life, then to Bs first child B has no children B has a contingent remainder o Taker that has not been ascertained o 2nd way is by subjecting them to a condition precedent

To A for life, and then if B graduates from College, To B A has a life estate B is still in high school o Because B hasnt yet graduated from college, B has a contingent Remainder o It is contingent because it is subject to a condition precedent

Vested Remainders o If the remainder is vested and not contingent, created in a known taker not subject to a condition precedent o ASK: Which category of vested remainder is this? o 1. Indefeasibly Vested Remainders If the holder is known AND not subject to any conditions To A for Life, then to B o 2. Vested Remainder Subject to Complete Divestment Synonymous to Vested remainder subject to complete defeasance How do you know if you have one of these? The Taker exists (not waiting for him to be born) and not subject to a condition precedent Not something that he has to do to be eligible to BA o While not subject to a condition precedent, Subject to a Condition Subsequent A condition subsequent is some eventuality that if it manifests will divest the remainderman of his interest, take it all away o To A for Life, then to B, but if B dies under 25, to C A is alive and B is only 20 B has a vested remainder subject to complete divestment If B dies under 25, Bs estate and heirs lose everything and instead C takes o 3. Vested Remainder Subject to Open The Remainder is vested in a group or category or class of takers, at least one of whom is eligible to take To A for life then to Bs Children o A is alive, B has two children, C and D What do C and D have? Vested remainder subject to open They have remainders that are vested to a group Whenever there is a group eligible, ask if the class is open or closed? o A Class is open when others can still join o A Class is closed when no one else can join Class closes whenever any member can demand possession To A for life then to Bs Children When would the class close?

When A dies because that is when the children can demand possession, any one of the children will be in demand to possession

Methodical Future Interest that has been created in someone other than the grantor o 1) One of two categories Remainder Waiting for the preceding estate to live its course, you are not benefiting from an earlier takers forfeiture Executory Interest o 2) Executory Interest Take effect by cutting short another or benefitting from anothers forfeiture Executory Interests are either Shifting or Springing Shifting Executoy Interest o Always follows a Defeasible fee and cuts short someone other than O o To A but if B returns from Canada next year, to B A has a potentially limitless time that they have the land however it might be interrupted from B B has a shifting executory interest o Why Doesnt B have a remainder? Because Remainders never follow Defeasible Fees o A has a Fee Simple Subject to Bs Shifting Executory Interest If the future interest follows a Defeasible fee and if that other is someone other than O it is a shifting executory interest Springing Executory Interest o Cuts short O, the grantor o O conveys to A if and when he marries A is not married A has a springing executory interest When A does get married, A has the power to cut off O Rule Against Perpetuities Certain Future Interests are VOID if there is a chance that the interest might vest more than 21 years after the death of a measuring life o Technique for applying RAP 1) Classify your future interests RAP applies only to certain contingent remainders, executory interests and Vested remainders subject to open