PROPERTY D SLIDES

1. PROPERTY D SLIDES The past, the present, and the future walked into a bar. It was tense. 3-4-16 National Grammar Day

2. Friday March 4 Music: Bach, Unaccompanied Cello SuitesYo-Yo Ma, Cello (Released 2006) ALMOST SPRING BREAK

3. Badlands: (4F) Reggie“to Veronica for life, then to Betty and her heirs if Betty attains the age of 21.” • Veronica: Life Estate • Betty: Contingent Remainder in Fee Simple • Reggie: Reversion • What if Veronica dies while Betty is still age 17? • Life Estate is Over • Betty Can’t Take, Because Condition Not Met • We’ll Come Back to This After We Introduce Executory Interests

4. PROPERTY D: 3/4 FRIday Pop Culture Moment THE “READY BETTY” JOKE

5. DEFEASIBLE FEES

6. DEFEASIBLE FEES • Dotted Line indicates Conditional Interest • Open Circle indicates that it would cut off present interest (usually at an unspecified time) as opposed to waiting for it to be complete.

7. DEFEASIBLE FEES:Two Relevant Distinctions • Automatic termination v. Needs action by future interest holder • Who holds future interest?: Grantor v. Grantee

8. DEFEASIBLE FEES:Restatement Terms • Fee Simple Determinable • Fee Simple on Condition Subsequent • Fee Simple on Executory Limitation

9. DEFEASIBLE FEES:Fee Simple Determinable • OPERATION: Self-Executing (Automatically Terminates Fee Simple When Condition Occurs)

10. DEFEASIBLE FEES:Fee Simple Determinable • OPERATION: Self-Executing • KEY LANGUAGE: “So long as”, “While”, “Until” (References to Time)

11. DEFEASIBLE FEES:Fee Simple Determinable • OPERATION: Self-Executing • KEY LANGUAGE: “So long as”, “While”, “Until” • FUTURE INTEREST: “Possibility of Reverter” (in GRANTOR)

12. DEFEASIBLE FEES:Fee Simple Determinable: Example To Estelle and her heirs so long as asparagus is not grown on the property.

13. DEFEASIBLE FEES:Fee Simple on Condition Subsequent • OPERATION: Grantor (or Successor) Must Act to Terminate Fee Simple

14. DEFEASIBLE FEES:Fee Simple on Condition Subsequent • OPERATION: Grantor Must Act • KEY LANGUAGE: • “But if”, “provided that if”, “on condition that if” PLUS • “O may [re]enter and [re]claim the land”

15. DEFEASIBLE FEES:Fee Simple on Condition Subsequent • OPERATION: Grantor Must Act • KEY LANGUAGE: “But if”, “provided that if”, “on condition that if” PLUS “O may [re]enter and [re]claim the land.” • FUTURE INTEREST: “Right of [Re]Entry” (in GRANTOR)

16. DEFEASIBLE FEES:Fee Simple on Condition Subsequent: Example EXAMPLE: To Estelle and her heirs, but if asparagus is grown on the property, I can reenter and claim the land

17. DEFEASIBLE FEES:Fee Simple on Executory Limitation • OPERATION: Either self-executing or grantee has to act.

18. DEFEASIBLE FEES:Fee Simple on Executory Limitation • OPERATION: Either self-executing or grantee has to act. • KEY LANGUAGE: Creates interest in 3d party if condition violated

19. DEFEASIBLE FEES:Fee Simple on Executory Limitation • OPERATION: Either self-executing or grantee has to act. • KEY LANGUAGE: Creates interest in 3d party if condition violated • FUTURE INTEREST: Executory Interest (in 3d party grantee)

20. DEFEASIBLE FEES:Fee Simple on Executory Limitation: Examples • To Estelle and her heirs so long as asparagus is not grown on the property, otherwise to Bob.

21. DEFEASIBLE FEES:Fee Simple on Executory Limitation: Examples • To Estelle and her heirs so long as asparagus is not grown on the property, otherwise to Bob • To Estelle and her heirs, but if asparagus is grown on the property, Bob can enter and claim the land.

22. DEFEASIBLE FEES:Restatement Terms (What We Use) • FEE SIMPLE DETERMINABLE (to grantor; automatic) • F.S. ON CONDITION SUBSEQUENT (to grantor; must act) • F.S. ON EXECUTORY LIMITATION (to grantee; either way)

23. Defeasible Fees & Matching Future Interests (Accessorizing) FEE SIMPLE DETERMINABLE & Possibility of Reverter F.S. ON CONDITION SUBSEQ’T & Right of Re[Entry] F.S. ON EXECUTORY LIMITATION & Executory Interest

24. TERMINOLOGY: ME v. WORKBOOK Defeasible fee in the form of a Fee Simple Determinable BUT with the future interest in third party: • Me (& Restatement): “Fee Simple on Executory Limitation” • Workbook: “Fee Simple Determinable” (See Workbook p.72 fn19)

25. TERMINOLOGY: ME v. TEXTBOOK • Textbook says Fee Simple on Executory Limitation terminates automatically (P533) • For our purposes, assume that sometimes, a Fee Simple on Executory Limitation can operate like a Fee Simple on Condition Subsequent • “To Sonny & his heirs, but if Sonny ever runs for Congress, Cher mayenter and take the land.”

26. DEFEASIBLE FEES:Transfer of Fee: Effect on Condition • The purchaser/grantee of a defeasible fee takes subject to any condition not made irrelevant by the sale/transfer. • Like purchaser/grantee of a Life Estate; usually can’t get more than grantor has.

27. DEFEASIBLE FEES:Transfer of Fee: Effect on Condition • The purchaser/grantee of a defeasible fee takes subject to any condition not made irrelevant by the sale/transfer. • Example: To J so long as alcohol is never used on the premises. • Wording of condition not limited to J; appears to apply to anyone • Condition survives sale.

28. DEFEASIBLE FEES:Transfer of Fee: Effect on Condition • The purchaser/grantee of a defeasible fee takes subject to any condition not made irrelevant by the sale/transfer. • Compare: To J so long as J never uses alcohol on the premises. • Condition only places limit on J. • Fairly minor restriction if J is not the owner. • Once J is dead, condition can never be violated, so subsequent owner would have fee simple absolute.

29. Defeasible Finite Estates: Examples Term of Years on Condition Subsequent: “To Josh for 20 years, but if he ever passes the bar exam, my heirs can enter & retake.” Life Estate on Executory Limitation “To Dan for life, but to Mike & his heirs if Mike ever passes the bar exam.”

30. BADLANDS: Problem 4H NORBECK PASS

31. Badlands: (4H): Thelma conveys “To Louise for 99 Years if Louise so long live." • Louise?

32. Badlands: (4H): Thelma conveys “To Louise for 99 Years if Louise so long live." • Louise: Term of years determinable. • Most likely to operate as a life estate, but L might live 99 more years. (Yogurt in Georgia) • Can be used where there is some legal or tax reason to avoid life estate.

33. Badlands: (4H): Thelma conveys “To Louise for 99 Years if Louise so long live." • Louise: Term of years determinable. • What other interests are there?

34. Badlands: (4H): Thelma conveys “To Louise for 99 Years if Louise so long live." • Louise: Term of years determinable. • Thelma: • Possibility of Reverter (rights if L dies before 99 years) PLUS • Reversion (rights after 99 years if L alive) =

35. Badlands: (4H): Thelma conveys “To Louise for 99 Years if Louise so long live." • Louise: Term of years determinable. • Thelma: Possibility of Reverterplus Reversion = Reversion (Merger)

36. Doctrine of Merger “merge.” • If one person becomes the owner of two contiguous interests, the interests will **MERGE**

37. Doctrine of Merger “merge.” • If one person becomes the owner of two contiguous interests, the interests will • Example: • Erick has a life estate. • Amanda holds the reversion that follows it. • If Erick purchases the reversion from Amanda, it mergeswith his life estate and he will have a fee simple absolute.

38. Doctrine of Merger “merge.” • If one person becomes the owner of two contiguous interests, the interests will Life Estate (Erick) + Reversion (Amanda  Erick) Fee Simple Absolute (Erick) **MERGE**

39. Mahrenholz v.County Board“For School [of] Porpoises”

40. EVERGLADES: DQ4.05MahrenholzMajor Events EGRET IN MANGROVE SWAMP

41. EVERGLADES DQ4.05: Mahrenholz Major Events • 3/51: Grant to SD#1 • 2/69: Mrs.H dies intestate; HH sole heir • 5/73: Property used for storage only • 5/77: HH conveys interest to Ms • 9/77: HH releases interest to SD#1

42. EVERGLADES DQ4.05: MahrenholzMajor EventsFee Simple Determinable & Poss. of Rev. • 3/51: Grant to SD#1 SD=FSD + Hs=PR • 2/69: Mrs.H dies intestate; HH sole heir  ?

43. EVERGLADES DQ4.05: MahrenholzMajor EventsFee Simple Determinable & Poss. of Rev. • 2/69: Mrs.H dies intestate; HH sole heir  SD=FSD+ HH=PR • 5/73: Property used for storage only • 2 Possibilities: Violation or Not  ?

44. EVERGLADES DQ4.05: MahrenholzMajor EventsFee Simple Determinable & Poss. of Rev.SD=FSD + HH=PR5/73: Property used for storage only GRANT VIOLATED NO VIOLATION SD-FSD HH-PR 5/77 HH  Ms HH-FEE SIMPLE ABS. 5/77 HH  Ms

45. EVERGLADES DQ4.05: MahrenholzMajor EventsFee Simple Determinable & Poss. of Rev.5/77: HH  Mahrenholzes GRANT VIOLATED NO VIOLATION SD-FSD HH-PR SD-FSD HH-PR Can’t Transfer PR in Illinois Except to Holder of Fee; Only Passes Through Intestacy 9/77 HH release to SD? HH-FEE SIMPLE ABS.  Ms-FEE SIMPLE ABSOLUTE 9/77 HH release to SD?

46. EVERGLADES DQ4.05: MahrenholzMajor EventsFee Simple Determinable & Poss. of Rev.9/77: HH Release to SD GRANT VIOLATED NO VIOLATION SD-FSD HH-PRRelease to Holder of Fee Allowed; School District’s Interests Merge SD-FEE SIMPLE ABS. Ms-FEE SIMPLE ABS. HH has Nothing, So Release Ineffective Ms-FEE SIMPLE ABS.

47. EVERGLADES DQ4.05: MahrenholzMajor EventsFee Simple on Condition Subsequent & Right of Entry • 3/51: Grant to SD#1 SD=FSCS + Hs=RE • 2/69: Mrs.H dies intestate; HH sole heir  ?

48. EVERGLADES DQ4.05: MahrenholzMajor EventsFee Simple on C.S. & Rt. Of Entry • 2/69: Mrs.H dies intestate; HH sole heir  SD=FSCS+ HH=RE • 5/73: Property used for storage only • 2 Possibilities: Violation or Not  ?

49. EVERGLADES DQ4.05: MahrenholzMajor EventsFee Simple on C.S. & Rt. Of EntrySD=FSCS + HH=RE5/73: Property used for storage only GRANT VIOLATED NO VIOLATION SD-FSCS HH-RE 5/77 HH  Ms SD-FSCS HH-RE Right of Entry Only Can Become Fee if Holder Acts: HH Didn’t 5/77 HH  Ms

50. EVERGLADES DQ4.05: MahrenholzMajor EventsFee Simple on C.S. & Rt. Of EntrySD=FSCS + HH=RE5/77: HH  Mahrenholzes GRANT VIOLATED NO VIOLATION SD-FSCS HH-RE Can’t Transfer RE in Illinois Except to Holder of Fee, so No Change 9/77 HH release to SD? SD-FSCS HH-RE Can’t Transfer RE in Illinois Except to Holder of Fee, so No Change 9/77 HH release to SD?