Which of the following interests in property are not subject to the Rule Against Perpetuities?
The RAP provides that certain interests in property are void if there is any possibility (however remote) that they may vest more than 21 years after some LIB @ the creation of the interest.
To what interests in land does RAP apply?
- (i) CRs (ii) EIs
- (iii) Class gifts (even VRs)
- (iv) Options and rights of first refusal, and
- (v) POAs
*Future interests in the grantor (i.e., reversions, possibilities of reverter, and rights of entry) are not subject to RAP.
If O conveys property “to A for life, then to B’s heirs” and A predeceases B, at common law the heirs’ interest is void under the __________.
The Rule of Destructability of CRs
At common law, a CR had to vest prior to or upon termination of the preceding estate or it was destroyed.
By the conveyance, O attempted to create a LE in A and a CR in B’s heirs. However, if A predeceases B, there are no heirs of B to take possession (because one’s “heirs” are not determined until her death) so the remainder is destroyed, leaving a LE in A and a reversion in O.
Doctrine of Merger
Under the Doctrine of Merger, whenever the same person acquires all of the existing interests in land, present and future, a merger occurs resulting in a FSA in that person.
At common law, if the person acquired all of the interests except a contingent remainder, the merger would occur anyway, and the contingent remainder would be destroyed.
Common Law Rule in Shelley's Case
A conveyance that purports to give a grantee a freehold estate (e.g., a life estate) with a remainder to the grantee’s heirs instead gives the grantee both the freehold estate and the remainder.
Common Law Doctrine of Worthier Title
A remainder limited to the grantor’s heirs is invalid, and the grantor retains a reversion in the property.
A court will never reform a deed that has been relied on by a bona fide purchaser.
is an equitable action in which the court rewrites a deed to make it conform to the parties’ intention. Reformation will be granted if the deed does not express what the parties agreed to for any of the following reasons:It reflects the parties’ mutual mistake;It contains a drafting error; orIt reflects one party’s unilateral mistake—but only if that mistake was induced by the other party’s misrepresentation or inequitable conduct.
A court will never reform a deed that has been relied on by a bona fide purchaser. R
Inquiry Notice is not imputed solely from the use of a
Inquiry notice means that a subsequent grantee is held to have knowledge of any facts that a reasonable inquiry would have revealed, even if he made no inquiry. A quitclaim deed releases whatever interest a grantor might have in the property and contains no covenants for title. Nonetheless, in the majority of states, grantees are not charged with inquiry notice from the mere fact that a quitclaim deed was used.
Parole Evidence is not admissble to show
Parol evidence generally will not be admitted to show oral conditions on the delivery of a deed given to a grantee. In most jurisdictions, parol evidence is not admissible to show that a facially unconditional deed given directly to a grantee was in fact subject to a condition. The condition will be ignored. This is not the case when the deed is deposited with an escrow.