Fee Simple Absolute (FSA): Alienable Inheritable Devisable X s - - PowerPoint PPT Presentation

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Fee Simple Absolute (FSA): Alienable Inheritable Devisable X s - - PowerPoint PPT Presentation

Jan 29, 2023 268 likes •791 views

Fee Simple Absolute (FSA): Alienable Inheritable Devisable X s FSA t g Crea5on of a Fee Simple Absolute: - O conveys the land to A and her heirs Words of Purchase? Words of Limita>on? A s FSA t g What about: - O

slide-1
SLIDE 1

tg X’s FSA Fee Simple Absolute (FSA):

  • Alienable
  • Inheritable
  • Devisable
slide-2
SLIDE 2

Crea5on of a Fee Simple Absolute:

  • O conveys the land to A and her heirs
  • Words of Purchase?
  • Words of Limita>on?

tg A’s FSA What about:

  • O conveys the land to A forever
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SLIDE 3

tg X’s FSA Fee Simple Absolute (FSA) – FUTURE INTEREST No Future Interest

  • nothing leA
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SLIDE 4

Fee Tail (FT):

  • Not Freely Alienable
  • Modified Inheritable
  • Not Devisable

tg X’s FT Ex

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SLIDE 5

Crea5on of a Fee Tail:

  • O conveys the land to A and heirs of her body

What about:

  • O conveys the land to A and male heirs of her body

tg A’s FT Ex

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SLIDE 6

Fee Tail (FT) – FUTURE INTEREST: tg X’s FT Ex Reversion to Grantor

  • inherent in conveyance

O’s Reversion

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SLIDE 7

Reversion:

  • Alienable
  • Inheritable
  • Devisable

What does Reversion become?

  • Fee Simple Absolute

tg X’s FT Ex O’s Reversion

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SLIDE 8

Life Estate (LE):

  • Alienable
  • Not Inheritable
  • Not Devisable

tg X’s LE Ex

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SLIDE 9

Crea5on of a Life Estate:

  • O conveys the land to A for life

What about:

  • O conveys the land to A

tg A’s LE Ex

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SLIDE 10

Life Estate (LE) – FUTURE INTEREST: tg X’s LE Ex Reversion to Grantor

  • inherent in conveyance

O’s Reversion

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SLIDE 11
  • Contested por>on of EO -- Sec. 3(c)
  • How does court get involved?
  • What do the courts order? (what is a TRO?)
  • How do they differ?
  • How are they enforced?
  • Hypos (???) – is this compliance?

– No access to counsel at Dulles airport – Detaining Green Card holder at JFK – Removing Green Card holder at DFW – Removing refugee with Visa at Logan

  • What if they are not complied with?
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SLIDE 12

Fee Simple Determinable (FSD):

  • Alienable
  • Inheritable
  • Devisable

tg X’s FSD

  • Automa5c !
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SLIDE 13

Crea5on of a Fee Simple Determinable:

  • O conveys the land to A and her heirs un=l the

land is farmed What about:

  • O conveys the land to A un=l the land is farmed
  • O conveys the land to A and her heirs while the

land is not farmed tg A’s FSD

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SLIDE 14

Fee Simple Determinable (FSD) – FUTURE INTEREST: tg X’s FSD Possibility of Reverter (P/R) to Grantor:

  • Inherent in grant
  • Automa>c

O’s P/R

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SLIDE 15

Possibility of Reverter (P/R):

  • Not Alienable
  • Inheritable
  • (Most Likely) Not Devisable

What does Possibility of Reverter become?

  • Fee Simple Absolute

tg X’s FSD O’s P/R

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SLIDE 16

Fee Simple on Condi5on Subsequent (FS/CS):

  • Alienable
  • Inheritable
  • Devisable

tg X’s FS/CS

  • Requires Re-entry/Not Automa5c !
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SLIDE 17

Crea5on of a Fee Simple Condi5on Subsequent:

  • O conveys the land to A and her heirs, but if the land is

farmed, then O and her heirs may renter and claim the land What about:

  • O conveys the land to A and her heirs as long as

the land is not farmed tg A’s FS/CS

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SLIDE 18

Fee Simple on Condi5on Subsequent (FS/CS) – FUTURE INTEREST: tg X’s FS/CS Right of Entry (R/E) to Grantor:

  • Inherent in grant, but usually explicit
  • Requires actual re-entry (Power of Termina=on)

O’s R/E

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SLIDE 19

Right of Entry (R/E):

  • Not Alienable
  • Inheritable
  • Not Devisable

What does Right of Entry become?

  • Fee Simple Absolute

tg X’s FS/CS O’s R/E

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SLIDE 20

Mahrenholz v. County Board of School Trustees

  • W.E. and Jennie -> Hu]on School in 1941
  • “this land to be used for school purpose only; otherwise to

revert to Grantors herein”

  • W.E. and Jennie convey surrounding to Jacqmain in July 1941
  • Also convey revisionary interest in school land
  • W.E. dies intestate July 18, 1951
  • Jacqmain convey all to Mahrenholz on Oct. 9, 1959
  • Jennie dies intestate February 18, 1969
  • Harry only legal heir
  • School Board starts to use land for storage purposes in 1973
  • Harry convey all to Mahrenholz on May 7, 1977
  • Recorded on Sept. 7, 1977
  • Harry disclaims all interest on Sept. 6, 1977
  • Releases in favor of school district
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SLIDE 21

Mahrenholz v. County Board of School Trustees tg School’s ??? Whose ???

  • “this land to be used for school purpose only;
  • therwise to revert to Grantors herein”
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SLIDE 22

Mahrenholz v. County Board of School Trustees

  • Words of Limita=on à FSD
  • Express Condi=on à FS/CS
  • North v. Graham – “said tract of land above described

to revert to the party of their first part whenever it ceases to be used or occupied for a mee>ng house or church” – FSD

  • Latham – “their successors and assigns forever, for

the uses and purposes hereinaAer men>oned and for NONE other” – FS/CS

  • McElvain – “This tract of land is to be used for mill

purposes, and if not used for mill purposes the >tle reverts back to the former owner” – FS/CS

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SLIDE 23

Mahrenholz v. County Board of School Trustees

  • Court decides a FSD, overturns lower court
  • If a FSD, what is the future interest created?
  • Possibility of Reverter
  • Automa>c
  • Only inheritable (in Illinois)
  • What impact does it have on transfers?
  • Prior to possible non-school use
  • AAer possible non-school use
  • Was the limita>on triggered?
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SLIDE 24

Future Interest in Grantee:

  • 2. Must be capable of taking effect immediately

upon expira>on of preceding estates; and

  • No Gap
  • No Springing Interests

Remainders:

  • 3. Cannot take effect before expira>on of

preceding estate.

  • No Culng Short
  • No ShiAing Interests
  • 1. Must follow an expirable estates;
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SLIDE 25
  • O-> A and her heirs as long as A mines the land,

then to B and her heirs

  • O-> A and her heirs, but if A stops mining the land,

B and her heirs can enter and claim the land

  • O-> A for life, then to B and her heirs
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SLIDE 26
  • O-> A for life, then four years later, to B and his

heirs

  • O-> A for life, then to B and the heirs of her body
  • O-> A for life, but if B is 18, to B and her heirs
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SLIDE 27

Classifying the Remainder:

  • 2. No condi>on other than expira>on of

preceding estate Vested Remainder

  • 1. Remainderman is born and

ascertainable; and

  • Otherwise-

Con5ngent Remainder

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SLIDE 28

The Remainder: Vested Remainder:

  • Alienable
  • Inheritable
  • Devisable

Con5ngent Remainder:

  • Not Alienable
  • Inheritable
  • Devisable
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SLIDE 29
  • O-> A for life, and then to B’s heir and her heirs
  • O-> A for life, and then if B is 21 or older, to B and

her heirs

  • O-> A for life, then to B and her heirs
  • O-> A for life, but if B is 21 or older, then to B and

her heirs

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SLIDE 30

GiNs to a Class 0->A for life, then to A’s children and their heirs 0->A for life, then to T’s grandchildren and their heirs Vested Remainder Subject to Open

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SLIDE 31

Future Interest in Grantee:

  • 2. Must be capable of taking effect immediately

upon expira>on of preceding estates; and

  • No Gap
  • No Springing Interests

Remainders:

  • 3. Cannot take effect before expira>on of

preceding estate.

  • No Culng Short
  • No ShiAing Interests
  • 1. Must follow an expirable estates;
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SLIDE 32

Classifying the Remainder:

  • 2. No condi>on other than expira>on of

preceding estate Vested Remainder

  • 1. Remainderman is born and

ascertainable; and

  • Otherwise-

Con5ngent Remainder

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SLIDE 33
  • O-> A for life, and then if B is 21 or older, to B and

her heirs

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SLIDE 34

One More Present and Future Interest:

  • AAer 1536

O-> A and her heirs, but if A does not mine the land, then to B and her heirs

  • B/4 1536 – A FSA – invalid remainder
  • A has a Fee Simple on Executory LimitaDon
  • B has an Executory Interest in Fee Simple
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SLIDE 35

Fee Simple on Executory Limita5on (FS/EL):

  • Alienable
  • Inheritable
  • Devisable

Executory Interest (EI):

  • Not Alienable
  • Inheritable
  • Devisable

Present and Future Interests:

slide-36
SLIDE 36
  • No Such Things as Ves>ng
  • Not Destroyable

Executory Interest:

  • Automa>c
  • O-> A and her heirs as long as A mines the land,

then to B and her heirs

  • A FS/EL
  • B EI/FSA
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SLIDE 37
  • O-> A and her heirs, as long as the land is not use

for commercial purposes, then to B and his heirs

  • A FS/EL
  • B EI/FSA
  • ShiNing Executory Interest
  • O-> A for life, then four years later, to B and his

heirs

  • A LE*
  • O Reversion
  • B EI/FSA
  • Springing Executory Interest
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SLIDE 38
  • O->A for life, then to such of A’s children as aRain

the age of 21 (assume A has no children at >me of grant)

  • A LE
  • A’s Children CR/FSA
  • O Reversion
  • If A dies with two children, 4 and 8

Abolishment of the Doctrine of Destruc5on of Con5ngent Remainders:

slide-39
SLIDE 39
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SLIDE 40

Baker v. Weedon

  • Marries Lula
  • who has Florence and Dele]e
  • Florence has Henry, Sarah, and Louise
  • Dele]e adopts Dorothy
  • Then marries Ella
  • who has Rachael
  • Then Anna
  • “I give and bequeath to my beloved wife, Anna Plaxico

Weddon all of my property both real, personal and mixed during her natural life and upon her death to her children, if she has any, and in the event she dies without issue then at the death of my wife Anna Plaxico Weedon I give, bequeath and devise all of my property to my grandchildren, each grandchild sharing equally with the other.”

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SLIDE 41

tg AW’s LE Ex AW Children’s CR/FSA JW’s Grandchildren CR/FSA Baker v. Weedon

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SLIDE 42
  • Affirma>ve Waste
  • Permissive Waste
  • Ameliora>ve Waste
slide-43
SLIDE 43

Woodrick v. Wood

  • “I devise and bequeath to my beloved wife,

Catherine Dorothy Wood, a life estate in my marital property located at 6207 Dora Blvd., Independence, Ohio, and all my other real

  • estate. Upon the death of my wife,

Catherine Dorothy Wood, I direct that the property * * * be bequeathed one-half (50%) to my son, Sheridan George Wood, and one-half (50%) to my daughter, Patricia

  • C. Woodrick.”
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SLIDE 44

tg Catherine’s LE Ex Patricia & Sheridan’s VR/FSA Woodrick v. Wood

slide-45
SLIDE 45

Rule Against Perpetui5es (RAP or Rule)

  • No interest is good unless it must vest,

if at all, not later than twenty-one years aSer some life in being at the crea=on

  • f the interest
  • Absolute Certainty
  • Ini>al (Ex Ante) Certainty
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SLIDE 46

Rule Against Perpetui5es (RAP or Rule)

  • Life in Being (LIB) – someone alive at the >me of

grant

  • Perpetui=es Period (PP) – Life in Being + 21 years
  • Valida=ng Life (VL) – the life in being where,

during that life + 21 years, the con>ngent interest is certain to vest or not

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SLIDE 47
  • O->A for life, then to B and his heirs if B aRains the

age of 30

  • O->A for life, then to A’s first child to reach 25
  • O->A for life, then to B and his heirs if B survives A
  • Similar to Baker v. Weedon
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SLIDE 48
  • O->A for life, then to B and her heirs as long as the

land is farmed

  • O->A for life, then to A’s children for their lives,

then to B if B is then alive, and if B is not alive, to B’s heirs Rule does not apply to interest in grantor Rule applies to vested remainders subject to

  • pen
  • must close w/in PP
slide-49
SLIDE 49
  • O->A for life, then to B as long as the land is

farmed, then to C and her heirs Rule applies to executory interests

  • must become possessory w/in PP
  • O-> B and his heir, but if the land is not farmed,

then to C and her heirs

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SLIDE 50

Symphony Space, Inc. v. Pergola ProperDes, Inc.

  • Dec. 31, 1978, Deed for the property from

Broadwest to Symphony ($10 at closing);

  • Lease from Symphony to Broadwest for en>re

building except theatre for rent of $1 per year and for the term Jan. 1, 1979 to May 31, 2003, unless terminated earlier

  • 25-year, $10,000 mortgage with Symphony as

mortgagor to Broadwest as mortgagee, with full payment due on Dec. 31, 2003

  • Op>on agreement from SS to BW, “at any >me

aAer July 1, 1979, so long as the No>ce of Elec>on specifies that the Closing is to occur during any of the calendar years 1987, 1993, 1998, and 2003”.

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SLIDE 51

Symphony Space, Inc. v. Pergola ProperDes, Inc.

  • Why violate the RAP?
  • Should apply to commercial op>ons?
  • Difference with preemp>ve rights?
  • What about presump>on conveyance is draAed to

be valid?

  • Cy Pres
  • Wait and See Approach
  • USRAP