PROPERTY E SLIDES

1. PROPERTY E SLIDES 2-26-13

2. CHAPTER 4:The Shadow of the Past

3. HOLD QUESTIONSUNTILEND OF LECTURE

4. Approaching Chapter 4

5. Approaching Chapter 4: Vocabulary

6. Approaching Chapter 4: Vocabulary LEARN THEIR NAMES BUTCH SPOT

7. Approaching Chapter 4: Policy Concerns • Interests Created by Voluntary Transfers of Property Rights, so Generally Want to Fulfill Grantor’s Intent • BUT in Tension with Competing Policy Concerns

8. Approaching Chapter 4: Policy Concerns Laypeople Don’t Know Categories Leads to Tension Between Grantor’s Intent & Channeling Function (Telling State What to Do w Property Conveyed) See White v. Brown (Thursday)

9. Approaching Chapter 4: Policy Concerns • Grantor’s Intent v. • Channeling Function

10. Approaching Chapter 4: Policy Concerns • Grantor’s Intent v. • Channeling Function • Dead Hand Control

11. Approaching Chapter 4: Policy Concerns • Grantor’s Intent v. • Channeling Function • Dead Hand Control • Alienability

12. Approaching Chapter 4: Relevant Time Frames • “At Common Law”: Dates prior to modern streamlining of the rules. (e.g., 1600-1800)

13. Approaching Chapter 4: Relevant Time Frames • “At Common Law”: Dates prior to modern streamlining of the rules. (e.g., 1600-1800) • “Today”: Dates after modern streamlining of the rules. (e.g., 1950-present)

14. Approaching Chapter 4: Relevant Time Frames • “At Common Law”: Dates prior to modern streamlining of the rules. (e.g., 1600-1800) • “Today”: Dates after modern streamlining of the rules. (e.g., 1950-present) • Precise line between them varies from state to state and from issue to issue,so you don’t need to know where it is.

15. Approaching Chapter 4: Relevant Time Frames In Multiple Choice Qs, I Will Do One of the Following: • Explicitly Say “At Common Law” • Provide a Date After 1950 (Clearly Means “Today”) • Provide a Fact That Clearly Means “Today” (e.g., cell phone; computer) • Give no Info in Q, but Some of the Answer Choices will Indicate “Common Law” or “Today”

16. Present Possessory Estates

17. PRESENT POSSESSORY ESTATES • Present v. Future (Tenant v. Landlord)

18. PRESENT POSSESSORY ESTATES • Present v. Future • Possessory v. Non-Possessory: (Tenant v. Trust Beneficiary)

19. FEE SIMPLE ABSOLUTE

20. FEE SIMPLE ABSOLUTE • “Simple”= can go on forever (to distinguish from “Fee Tail”)

21. FEE SIMPLE ABSOLUTE • “Simple” = can go on forever (to distinguish from “Fee Tail”) • “Absolute” = no conditions (to distinguish from conditional or “defeasible” fees, which we’ll introduce next week.)

22. FEE SIMPLE ABSOLUTE • Right to possess and use forever • Right to transfer all present and future rights (inheritable/devisable) • Right to liquidate assets • Default estate today

23. FEE SIMPLE ABSOLUTE CREATION: Lloyd grants Redacre “to Mimi and her heirs.”

24. FEE SIMPLE ABSOLUTE Lloyd grants Redacre “to Mimi and her heirs.” WORDS OF PURCHASE: WHO GETS THE ESTATE?

25. FEE SIMPLE ABSOLUTE Lloyd grants Redacre “to Mimiand her heirs.” WORDS OF PURCHASE: WHO GETS THE ESTATE? WORDS OF LIMITATION: WHAT ESTATE DO THEY GET?

26. FINITE ESTATES TERM OF YEARS FEE TAIL LIFE ESTATE

27. FINITE ESTATES TERM OF YEARS: “TO ANN FOR 10 YEARS” FEE TAIL LIFE ESTATE

28. TERM OF YEARS • Finite period specified • Can alienate, devise, inherit (until term ends) • Need explicit time language to create: (“for 99 years”) • Effectively creates long-term lease

29. FINITE ESTATES TERM OF YEARS: TO ANN FOR 10 YEARS FEE TAIL: “TO CAL & THE HEIRS OF HIS BODY” LIFE ESTATE:

30. VOCABULARY: ISSUE v. HEIRS • Issue = Direct (= “Lineal”) Descendants (Children, Grandchildren, etc.)

31. VOCABULARY: ISSUE v. HEIRS • Issue = Direct Descendants • Heirs = People who inherit your property at the time ofyour death under the relevant Intestacy Statute

32. VOCABULARY: ISSUE v. HEIRS • Issue = Direct Descendants • Heirs = People who inherit your property at the time of your death under the relevant Intestacy Statute • You cannot have heirs until the moment of death (presumptive heirs before that).

33. FINITE ESTATES TERM OF YEARS: TO ANN FOR 10 YEARS FEE TAIL: TO CAL & THE HEIRS OF HIS BODY LIFE ESTATE:

34. FEE TAIL: TRADITIONAL RULES • Grantee(X) has present & future possessory right until death • Only X’s issue can take after X's death • Only issue of issue-who-took can take in future • Equivalent to chain of life estates (thus finite) • Error in “Definition” in course materials S70 : should read “direct line of descent from the grantee.” • Present holders can only alienate life estates

35. FEE TAIL: TRADITIONAL RULES • Creation at common law: “to A & heirs of his body” • Grant creates no interest in A's issue until A dies. • B/c chain of life estates, won't know who takes till A dies • Can have special fee tails • “To A & heirs of his body by W” • “ To A & male heirs of his body”

37. FEE TAIL: TODAY • Traditional fee tail abolished in every American jurisdiction. • What to do if grantor uses language “heirs of his/her body?” • Statutes determine; different solutions in different states. • Outside scope of course.

38. FINITE ESTATES TERM OF YEARS: TO ANN FOR 10 YEARS FEE TAIL:TO CAL & THE HEIRS OF HIS BODY LIFE ESTATE: “TO BEA FOR LIFE”

39. FEE SIMPLE ABSOLUTE • Right to possess and use forever • Right to transfer all present and future rights (inheritable/devisable) • Right to liquidate assets • Default estate today

40. LIFE ESTATE • Right to possess and use only for lifetime of original grantee

41. LIFE ESTATE • Right to possess and use only for lifetime of original grantee • Right to transfer only rights for lifetime of original grantee (not inheritable/ devisable)

42. What if a living person transfers a life estate? • Opal conveys Gemacre “to Ruby for life”, (retaining a reversion for herself). • Ruby then conveys her life estate “to Esmeralda.” • What does Esmeralda have?

43. What if a living person transfers a life estate? • Opal conveys Gemacre “to Ruby for life”, retaining a reversion herself. • Ruby then conveys her life estate “to Esmeralda.” • Esmeralda has a life estate pur autre vie (for the life of another). The duration of the interest is still measured by Ruby’s life.

44. LIFE ESTATE • Right to possess and use only for lifetime of original grantee • Right to transfer only rights for lifetime of original grantee (not inheritable/devisable) • Right only to present income; can’t liquidate capital (Doctrine of Waste)

45. LIFE ESTATE • Right to possess and use only for lifetime of original grantee • Right to transfer only rights for lifetime of original grantee (not inheritable/devisable) • Right only to present income; can’t liquidate capital • Default Estate at Common Law

46. DEFAULT ESTATE (“To Bill.”)What does Bill get if not specified? • Common Law: Default was Life Estate Bill gets Life Estate Grantor keeps Reversion

47. DEFAULT ESTATE (“To Bill.”)What does Bill get if not specified? • Common Law: Default was Life Estate Bill gets Life Estate; Grantor keeps Reversion • Today: Default is Fee Simple • Bill gets Fee Simple Absolute • Grantor keeps nothing

48. Future Interests that Follow Finite Estates

49. FUTURE INTERESTS THAT FOLLOW FINITE ESTATES • REVERSION • REMAINDER

50. FUTURE INTERESTS THAT FOLLOW FINITE ESTATES REVERSION Future interest retained by grantor when s/he conveys a finite estate without indicating who will have rights when it expires.