The estates system is a vocabulary for slicing ownership across time. A present estate says who has the land now. A future interest says who gets it later, and it is a presently existing property right even though possession is postponed. Almost every problem in this area is solved the same way: read the granting language, name the present estate, then name the future interest and say who holds it.
Rule
- Fee simple absolute. Complete ownership of unlimited duration, with no accompanying future interest.
- Life estate. Lasts for the life of the holder. It is followed by a reversion in the grantor or a remainder in a third party, and the life tenant may not commit waste.
- Fee simple determinable. Created by durational language such as so long as or until, and it ends automatically, leaving a possibility of reverter in the grantor.
- Fee simple subject to a condition subsequent. Created by conditional language plus an express right to re-enter, and it ends only if the grantor acts, holding a right of entry.
- Fee simple subject to an executory limitation. Cuts over automatically to a third party, who holds an executory interest.
- Remainders. A vested remainder is held by an ascertained person with no condition precedent. A contingent remainder is not. Both follow the natural end of the prior estate rather than cutting it short.
Leading cases
- White v. Brown: ambiguous language was read to convey a fee simple absolute rather than a life estate, because courts presume a grantor intended to pass the entire interest.
- Mahrenholz v. County Board of School Trustees: the choice of durational or conditional wording determines whether the estate ends automatically or only on the grantor's re-entry.
- Baker v. Weedon: a court may order the sale of land against the wishes of a life tenant or remainderman only where it is necessary for the best interests of all the interest holders.
Where students go wrong
The first mistake is guessing from the feel of the words. The distinction between determinable and condition subsequent language is mechanical, and courts prefer the latter because forfeiture is disfavored.
The second is forgetting to name who holds the future interest. A grantor keeps a reversion, a possibility of reverter or a right of entry. A third party takes a remainder or an executory interest. The label follows the holder.
The third is skipping the waste doctrine. A life tenant who exhausts the property is answerable to the remainderman, and that is where many exam questions actually go.
FAQ
What is the difference between a remainder and an executory interest?
A remainder waits politely for the prior estate to end naturally. An executory interest cuts the prior estate short or springs out of the grantor at a later time.
What does vested mean?
The interest is held by an ascertained person and is not subject to a condition precedent. It may still be vested subject to open, where a class of takers can grow.
What is waste?
Conduct by a present possessor that unreasonably harms the interests of a future interest holder, whether by damage, neglect, or in some states by changing the property's character.
Related terms
Working through this in your own casebook takes longer than reading it here. Syllume starts from your syllabus and turns each assigned case into a brief you can study from.