Property

The owner of the life estate is personally liable, if foreclosed because of taxes all future interest holders lose their interest.

Always followed by a possibility reverter

Only good between two charities

Promptly

Fee simple owners it only applies to tenants

• Class opened when the grantor granted property, Child In gestation is in the class.
• Class closes when any member of the class has a present possessory interest in the property

There is no Rule against perpetuities

The non-joining remaining tenants now are tenants in common with the buyer and joint with other joints

If holdover tenant is notified prior to lease expiring the new rent price is valid

Holdover tenants in commercial settings are automatically renewed into a yearlong lease

New owner must have notice for easement for it to be valid

Must show an affirmative act to abandon

If the original developer had any notice it will run with the land

Was it intended to remain with the property? The amount of damage determines the ability to remove.

The commercial fixtures that are installed for commercial purchases, they may be removed

During escrow process the buyer is considered to be the owner of the property and bears the risk of loss

Always pick the statement of law

• 1. Open and notorious
• 2. Hostile
• 3. Continuous
• 4. Exclusive

Once grantor intent is established, the deed is considered delivered, unless it is rebutted by other evidence

Proper description of land

In order for the deed to be valid it must adequately describe the land.

You can rescind or reform the contract to buy

I possess the property

• Breached at time of closing
• Covenant of seisin
• Covenant of the right to convey
• Covenant against encumbrances

The right to transfer

The seller guarantees the title is not encumbered by other claims

• Covenant of quiet enjoyment
• Covenant of general warranty
• Covenant of further assurances

Grantor will indemnifies against claims of title for all other grantees

The grantor will take necessary measures to perfect the grantee’s title

At closing – after that it is a breach of covenant

With deed it will transfer immediately, with a will it will transfer at time of death

Will take precedent over all other mortgages, even those recorded prior, but it must be recorded to be effective.

The last bona fide purchaser mortgagee/purchaser for value as long as there was no notice to the subsequent buyer. And so on down the line

Had no notice of prior transactions

If you take from a BFP, you step into the shoes of the BFP

Winner is the first BFP or mortgagee who records

Senior mortgages are wiped off the property when juniors foreclose. Those senior mortgages must seek deficiency judgment. Encumbrances are not wiped off, they stay with the land.

The junior members will jump over and stayed with the property.

Anyone who owns land that abuts water, domestic use trumps commercial or agricultural use. Minor rule prior appropriation doctrine

Any user has superior rights to later uses.

Property interests that can be terminated by the happening of a certain event. Fee simple determinable, Fee simple subject to condition subsequent, fee simple subject to executor limitation

So long as…, until, while…or it is mine!

But if X happens I can come back and take it

If X happens you lose it and someone else gets it

What is left goes to a third party –follows life estate and fee tail

Grantor keeps interest or his heirs. Follows life estate and fee tail

Fee simple determinable

• 1. Indefeasibly vested remainder
• 2. Vested subject to open
• 3. Vested remainder subject to total divestment
• 4. Contingent remainder
• 5. Rule in Shelly’s
• 6. Doctrine of worthier title

A remainder that has vested and upon event happening it goes immediately to another person

A remainder created in a class of persons that is certain to become possessory, but is subject to diminution because more could enter the class

Subject to condition subsequent – If some event happens then Remainderman loses his interest

Remainders created in an unborn or unascertained person(s) or subject to condition precedent

To A for life, then B if he survives A

Contingent Remainder Subject to condition precedent

At common law the contingent remainder had to vest prior to or upon termination of the preceding estate

A life estate between a previous life estate and a remainder gives the remainder to the second life estate in Fee Simple

Following a life estate words like “next of kin” or “heirs” a reversion is created in grantor’s heirs in which they can sue for waste or damage, rather than a remainder which they simply get the remains. Those differences would be litigated after death of grantor.

Rule in Shelly’s

Indefeasibly Vested Remainder

Vested Subject To Open

Vested Remainder Subject To Total Divestment

• Doctrine of Worthier Title
• Executory interest
• If it is not a remainder following a life estate it is an executory interest

Executory interest

Cuts short a prior estate

• Follows a gap in possession or divests the estate of the transferor
• To A when and if A graduates from college, or to A for life, and one year after death to B. (O has a reversion in the gap)

Fully transferable, devisable by will, and descendible by will