1. Present Estates

Question 1

What are the types of freehold estates?

Answer 1

Fee simple absolute
Defeasible fees
Life estates

Question 2

What is fee simple (absolute)?

Answer 2

Potentially indefinite duration estate

NO restraints on alienation (otherwise VOID)

Question 3

What is defeasible fee?

Answer 3

Certain duration

Capable of forfeiture/termination upon stated event

Question 4

What are the types of defeasible fees?

Answer 4

Fee simple determinable

• Automatic reversion to Grantor
• ‘To A so long as/during/until’

Fee simple subject to condition subsequent

• Grantor’s reserved right to re-enter (NOT automatic reversion)
• Must include reversion right of re-entry
• Condition subsequent must be valid (NOT discriminatory)!!!

Fee simple subject to executory interest

• Passes to TP (remainder)
• ‘To A, but if X occurs, to B’

Question 5

What is life estate?

Answer 5

Measured by life of original Grantor!!! (NOT Grantee)

Life tenant (Grantee) entitled to all ordinary uses + profits (NOT commit waste)

E.g. ‘To A for life of B’

Question 6

What are the types of waste?

Answer 6

Voluntary waste

• Avoid decrease land value
• Avoid consume/exploit natural resources on land
• UNLESS previously used/opened mines/for repairs and maintenance/expressly granted/suitable for exploitation due to poor conditions

Permissive waste

• Maintain land value
• Pay ordinary taxes

Ameliorative waste

• Avoid increase land value
• UNLESS all future interest holders are known and consented