The Idiot's Guide to Estates in Land and Future Interests

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A Shortcut to Understanding
Estates in Land
Welcome to the world of Estates in Land. At first glance, this world appears to be a complex
chaotic mess of jibberish. But let me assure you—it is not. The system of estates is nothing
more than a simple foreign language. As with any language, learning the vocabulary can at first
be tedious, but once you know the meaning of the terms and practice applying them, it will all
fall into place.
CHAPTER 1: ESTATES – FREEHOLD AND LEASEHOLD
Estates. Think of an estate as the specific grouping of sticks within the bundle of rights that
comprise the possible property rights that a person may hold in land. If that is too complicated,
just think of an estate as the title that a person holds in land. For example, do you hold title that
gives you full ownership in the land, or do you hold title that gives you merely a right to lease
the land?
An estate may be either: (1) a freehold estate, or (2) a leasehold estate.
Freehold estate: The term “freehold” derives from the land that was free from control of lords
who had originally owned land in England. The landowners who received land from the lords
eventually came to “hold it free” from the lords’ control. Today, freehold estate means rights to
land that are not a part of a lease.
Leasehold estate: It is exactly what it sounds like—a lease in land. It is also referred to as a
nonfreehold estate. There’s nothing earth-shattering about this concept.
We diagram the freehold/leasehold relationship like this:
Estates
Leasehold
(Nonfreehold)
Freehold
Ok. That wasn’t so bad. Now let’s consider the types of freehold estates that are possible. (For
now, we’ll postpone discussing the type of leasehold estates.)
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CHAPTER 2: THE TYPES OF FREEHOLD ESTATES
Freehold estates may be either: (1) a fee simple; (2) a life estate; or (3) a fee tail.
In our diagram, these types of freehold estates may be represented as follows:
Estates
Leasehold
(Nonfreehold)
Freehold
Fee Simple
Life Estate
Fee Tail
Below is a description of each of the three freehold estates:
(1) The fee simple is the longest in duration of these three estates: it is potentially infinite.

For example: O gives Blackacre “to A.” This means that A owns Blackacre for as long as
A desires, and if A never transfers Blackacre to someone else, Blackacre will pass to A’s
heirs when A dies.
o One thing to point out early on: In this example, O is the “Grantor” or
“Transferor,” and A is the “Grantee” or “Transferee.”
(2) The life estate lasts for as long as a person’s life. Someone who holds a life estate might
own land for the length of that person’s own life, or the length of another person’s life.

Example: O gives Blackacre “to A for life.” This means that A owns Blackacre for the
life of A. When A dies, Blackacre goes back to O.
o A holds a life estate.

Life estate pur autre view. Where an estate is measured by a person’s life who is not
the estate holder, it is a life estate pur autre view.
o Example: O gives Blackacre “to A for the life of B.” This means that A owns
Blackacre for the life of B. When B dies, regardless of what A may be doing on
Blackacre, Blackacre goes back to O.

A holds a life estate pur autre vie.
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(3) The fee tail lasts for as long as a person’s descendents’ lives, generation after generation.
The magic words representing a fee tail are: “heirs of the body.” So, if O conveys Blackacre to
A and the heirs of the body of A, then A holds a fee tail. A cannot sell Blackacre because it must
pass to A’s children, and their children, and their children, until finally there are no more children
for it to pass on to, at which point O (or O’s descendants) gets it back.
Are you dizzy yet? Don’t worry. You’ll be glad to know that most states have passed laws
doing away with the fee tail. Most states have declared that an attempt at a fee tail (through the
magic words of “heirs of the body”) creates a fee simple. End of story. Except, of course, if you
live in Arkansas. Under Arkansas law, an attempt at a fee tail creates a life estate in the
recipient, A, and then the children of A get a fee simple once A dies.

Don’t be concerned if the fee tail gives you a headache. Just know that if you see the
words “heirs of the body,” that is a red flag in Arkansas; it is a fee simple most
everywhere else. Simply put, in Arkansas it means A gets a life estate, and A’s children
get a fee simple after A dies.

In essence, the fee tail language (“heirs of the body”) results in either a fee simple or a
life estate. So there are really only two type of freehold estates you need be concerned
with: fee simple and life estate.
Given the inapplicability of the fee tail, our diagram of the estates may thus be portrayed like
this:
Estates
Leasehold
(Nonfreehold)
Freehold
Fee Simple
Life Estate
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Fee Tail
CHAPTER 3: THE TYPES OF FEE SIMPLE ESTATES
The fee simple has four further sub-categories:
(1) fee simple absolute;
(2) fee simple determinable;
(3) fee simple subject to condition subsequent; and
(4) fee simple subject to executory limitation.
These four sub-categories of a fee simple estate may be represented on our estates chart like this:
Estates
Leasehold
(Nonfreehold)
Freehold
Fee Simple
Absolute
Determinable
Life Estate
Fee Tail
s.t. Condition Subsequent
s.t. Executory Limitation
Below is a description of each of the four sub-categories of the fee simple:
(1) Fee simple absolute. The fee simple absolute has no qualification or restriction on the
estate.*

A landowner who holds land in fee simple absolute may do anything the
landowner so desires with the land (including transferring it by sale or by will).*

If the landowner does not transfer the land by will or otherwise before the
landowner dies, the land will pass to the landowner’s heirs at the landowner’s
death.
This isn’t exactly true as there may be covenants or easements that apply to the land—concepts that we will be
studying next semester. For now, though, it is ok to think of the “fee simple absolute” estate as providing a
landowner unlimited rights over the land.
*
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There are three phrases that create a fee simple absolute when a landowner transfers land
(in this example, the Grantee is A):
1. “to A”. For example: O gives Blackacre to A. A holds a fee simple absolute
(assuming that O also held a fee simple absolute before transferring her interest to A.)
2. “to A and his heirs”. For example: O gives Blackacre to A and his heirs.

The phrase “and his heirs” does not mean that A’s heirs hold any rights in the land
before A dies. A could transfer the land to a third party and the heirs would
simply be out of luck.
3. “to A in fee simple”. For example: O gives Blackacre to A in fee simple.
(2) Fee simple determinable. Where a fee simple has a duration placed on it that may cut short
the fee simple in favor of the Grantor, and where that fee simple automatically reverts back to the
Grantor, the fee simple is “determinable.” Simply put, if O gives Blackacre to A so long as A
remains a student, then if A does not remain a student, A’s interest is cut short, and Blackacre
goes back to O, who granted Blackacre to A in the first place. O has given A a fee simple
determinable.
Think of it like this: the Grantor, O, is determined to get the land back even though
she gave it to A, the Grantee. O makes it so that if something happens (or doesn’t
happen) in the future, the land will automatically go back to her. That is a fee simple
determinable.

Buzz words of duration: “so long as”; “as long as”; “while”; “during”; “until”
o “O gives Blackacre to A while A is working for B.”
o “O gives Blackacre to A during A’s employment with B.”
o “O gives Blackacre to A until A stops working for B.”
o “O gives Blackacre to A so long as A brushes his teeth every evening.”
 If A fails to brush his teeth, Blackacre goes back to O.
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(3) Fee simple subject to condition subsequent. Where a fee simple has a condition placed on
it that may occur in the future, and where the Grantor is given the power to re-take the estate (if
the Grantor so chooses), the fee simple is subject to condition subsequent.

Buzz words of condition: “provided that”; “on condition that”; “if”; “but if”;
“provided, however,”.

Example #1: “O gives Blackacre to A, but if A does not remain a student, then O
may re-enter” means that if A does not remain a student, O may choose to re-take
Blackacre if she so desires; it is not automatic that O will get Blackacre back. O
has given A a fee simple subject to condition subsequent.

Example #2: “O gives Blackacre to A, provided, however, that A brushes his teeth
every evening.” This means that if A fails to brush his teeth, O may re-enter and
take Blackacre back if O so chooses.
o Note that the Grantee need not specify that the Grantee may re-enter at her
discretion for it be a fee simple subject to condition subsequent.
(4) Fee simple subject to executory limitation. Where a fee simple has a condition or duration
placed on it that favors a new Grantee (rather than the Grantor) such that the new Grantee
automatically takes the fee simple on the occurrence of the condition or duration, the fee simple
is subject to executory limitation.

Example #1: “O gives Blackacre to A, but if A does not remain a student, then to
C” means that if A does not remain a student, Blackacre automatically goes to C.
o A holds a fee simple subject to executory limitation.

Example #2: “O gives Blackacre to A as long as A remains a student, then to C”
means that if A does not remain a student, Blackacre automatically goes to C.
o A holds a fee simple subject to executory limitation.
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Thus, the system of estates in land may be represented like this:
Estates
Leasehold
(Nonfreehold)
Freehold
Fee Simple
Absolute
Determinable
so long as
as long as
while
during
until
Life Estate
Fee Tail
s.t. Condition Subsequent
provided that
on condition
if
but if
provided, however,
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s.t. Executory Limitation
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