 | This article or section recently underwent a major revision or rewrite and needs further review. You can help! | In property law and real estate, a future interest is an interest in property that does not include the right to present possession or enjoyment of the property. Future interests are created on the formation of a defeasible estate; that is, an estate with a condition or event triggering transfer of possessory ownership. Image File history File links Scale_of_justice. ...
Property law is the area of law that governs the various forms of ownership in real property (land as distinct from personal or movable possessions) and in personal property, within the common law legal system. ...
This article concerns the common-law legal system, as contrasted with the civil law legal system; for other meanings of the term, within the field of law, see common law (disambiguation). ...
A gift, in the law of property, has a very specific meaning. ...
In real estate common law, adverse possession is a means of acquiring title to anothers real property without compensation, by, as the name suggests, holding the property in a manner that conflicts with the true owners rights. ...
A deed is a legal instrument used to grant a right. ...
In the common law of property, personal belongings that have left the possession of their rightful owners without having directly entered the possession of another person are deemed to be lost, mislaid, or abandoned, depending on the circumstances under which they were found by the next party to come into...
Bailment describes a legal relationship where physical possession of personal property (chattels) is transferred from one person (the bailor) to another person (the bailee) who subsequently holds possession of the property. ...
A license or licence is a document or agreement giving permission to do something. ...
Estate is a term used in the common law. ...
Allodial title is a concept in some systems of property law. ...
Fee simple, also known as fee simple absolute or allodial, is a term of art in common law. ...
A life estate, at common law is an estate in real property that ends at death. ...
Fee tail is an obsolescent term of art in common law. ...
A concurrent estate or co-tenancy is a concept in property law, particularly derived from the common law of real property, which describes the various ways in which property can be owned by more than one person at a given time. ...
A leasehold estate is an ownership interest in land in which a lessee or a tenant holds real property by some form of title from a lessor or landlord. ...
A condominium is a form of housing tenure. ...
Conveyancing is the act of transferring the ownership of a property from one person to another. ...
A bona fide purchaser (BFP)—or bona fide purchaser for value without notice (BFPFVWN)—in the law of real property, is an innocent party who purchases property for value, without notice of any other partys claim to the title of that property. ...
Torrens title is a system of land title where a register of land holdings maintained by the state guarantees indefeasible title to those included in the register. ...
Estoppel by deed is a doctrine in the law of real property that arises where a party conveys title to land that he does not own to a bona fide purchaser, and then acquires title to that land. ...
A quitclaim deed is a term used in property law to describe a document by which a person disclaims any interest the grantor might have in a piece of real property, and passes that claim to another person (the grantee). ...
A mortgage is a method of using property as security for the payment of a debt. ...
Equitable conversion is a doctrine of the law of real property under which a purchaser of real property becomes the equitable owner of title to the property at the time that they sign a contract binding them to purchase the land at a later date. ...
This page is a candidate to be copied to Wiktionary. ...
A restraint on alienation, in the law of real property, is a clause used in the conveyance of real property that seeks to prohibit the recipient from selling or otherwise transferring his interest in the property. ...
The rule against perpetuities is a rule in property law which prohibits a contingent grant or will from vesting outside a certain period of time. ...
To meet Wikipedias quality standards, this article or section may require cleanup. ...
In the common law of England, the doctrine of worthier title was a legal doctrine that preferred taking title to real estate by descent over taking title by devise or by purchase. ...
A nonpossessory interest in land is a term of the law of property to describe any of a category of rights held by one person to use land that is in the possession of another. ...
NB: This article is manifestly incorrect outside of US law. ...
A profit, in the law of real estate, is a nonpossessory interest in land similar to the better-known easement, which gives the holder the right to take natural resources such as petroleum, minerals, timber, and wild game from the land of another. ...
A covenant running with the land, in the law of real property, is a nonpossessory interest in land in the form of an agreement between adjoining landowners to do or not do something with relation to the land that they respectively occupy - to maintain a fence, for example, or not...
An equitable servitude is a term used in the law of real property to describe a nonpossessory interest in land that operates much like a covenant running with the land, requiring the landowner to maintain certain practices with respect to the land (e. ...
In the law of real property, fixtures are anything that would otherwise be a chattel that have, by reason of incorporation or affixation, become permanently attached to the real property. ...
Waste is a term used in the law of real property to describe a cause of action that can be brought in court to address a change in condition of real property brought about by a current tenant that damages or destroys the value of that property. ...
A partition is a term used in the law of real property to describe the court-ordered division of a concurrent estate into separate portions representing the proportionate interests of the tenants. ...
Riparian water rights is a system of allocating water among the property owners who abut its source. ...
Lateral and subjacent support, in the law of property, describes the right a landowner has to have that land physically supported in its natural state by both adjoining land and underground structures. ...
An assignment is a term used with similar meanings in the law of contracts and in the law of real estate. ...
Nemo dat quod non habet, literally meaning no one [can] give what they dont have is a legal rule, sometimes called the nemo dat rule that states that the purchase of a possession from someone who has no ownership right to it also denies the purchaser any ownership title. ...
A contract is any promise or set of promises made by one party to another for the breach of which the law provides a remedy. ...
In the common law, a tort is a civil wrong for which the law provides a remedy. ...
In the common law, a will or testament is a document by which a person (the testator) regulates the rights of others over his property or family after death. ...
The law of trusts and estates is generally considered the body of law which governs the management of personal affairs and the disposition of property of an individual in anticipation and the event of such persons incapacity or death, also known as the law of successions in civil law. ...
Criminal law (also known as penal law) is the body of statutory and common law that deals with crime and the legal punishment of criminal offenses. ...
The law of evidence governs the use of testimony (e. ...
Wikipedia does not have an article with this exact name. ...
Property law is the area of law that governs the various forms of ownership in real property (land as distinct from personal or movable possessions) and in personal property, within the common law legal system. ...
Real estate is a legal term that encompasses land along with anything permanently affixed to the land, such as buildings. ...
A defeasible estate is created when a grantor transfers land conditionally. ...
For example, suppose O is the owner of Blackacre. If O transfers the property "to A for life, then to B", A acquires present possession of Blackacre. However, once A dies, B will take possession, so B has a future interest in the property. In this example, the event triggering the transfer is A's death. Blackacre, Whiteacre, Greenacre, and variations thereof are the placeholder names of fictitious estates in land universally used by professors of law in common law jurisdictions, particularly in the area of real property, to discuss the rights of various parties to a piece of land. ...
Because they are interests in property, future interests can usually be sold, gifted, willed, or otherwise disposed of by the beneficiary (but see Vesting below). Because they are future interests, any such disposition will occur before the beneficiary actually takes possession of the property. giFT stands for giFT: Internet File Transfer. ...
In the common law, a will or testament is a document by which a person (the testator) regulates the rights of others over his property or family after death. ...
A beneficiary in the broadest sense is a natural person or other legal entity who receives money or other benefits from a benefactor. ...
There are six kinds of future interests recognized at common law: three in the transferor and three in the transferee. See Jesse Dukeminier & James E. Krier, Property 270-274 (5th ed. 2002). This article concerns the common-law legal system, as contrasted with the civil law legal system; for other meanings of the term, within the field of law, see common law (disambiguation). ...
Vesting
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Vesting means granting a person an immediate right to present or future enjoyment of property. In plain English, one has a right to a vested asset that cannot be taken away by any third party, even though one may not yet possess the asset. When the right, interest or title to the present or future possession of a legal estate can be transferred to any other party, it is termed a vested interest. In law vesting is to give an immediately secured right of present or future enjoyment. ...
A vested interest may be one of three types:
- Absolute: A future interest is absolutely vested if its beneficiary must (legally) eventually take possessory ownership.
- Subject to open: A future interest is vested subject to open if it belongs to a class of beneficiaries, where that class can expand. A common example is a grant from O "to A's children": the class of A's children can't be closed until A dies, so any children alive at the time of the grant are vested subject to open.
- Subject to divestment: A future interest is vested subject to divestment if it will vest in its beneficiary unless that person violates a condition laid out in the grant.
A person may alienate (divest) themselves of only those interests that are guaranteed to vest. Interests that aren't guaranteed to vest are subject to the rule against perpetuities. Alienation is estrangement or splitting apart. ...
The rule against perpetuities is a rule in property law which prohibits a contingent grant or will from vesting outside a certain period of time. ...
Future interests in the transferor
Reversion -
A reversion occurs when a granted estate is absolutely vested in the grantor. Wikipedia does not yet have an article with this exact name. ...
Estate is a term used in the common law. ...
- Example: "O grants Blackacre to A for life."
- Analysis (O): A is guaranteed to die (eventually), at which point Blackacre returns to O. This future interest is absolutely (indefeasibly) vested in O.
- Analysis (A): A has a life estate.
- Alienation: O can alienate her future interest. A can alienate his rights in the property, but only to the extent that those rights were granted him (as a life estate). So A can sell Blackacre to B, but once A dies it returns to O. Notice that B has no control over this kind of vesting.
Reversion is not subject to the rule against perpetuities. A defeasible estate is created when a grantor transfers land conditionally. ...
A life estate, at common law is an estate in real property that ends at death. ...
Possibility of reverter There is a possibility of reverter when an estate will return to the grantor if a condition is violated. - Example: "O grants Blackacre to A, for as long as A refrains from drinking alcohol."
- Analysis: If A never drinks after the grant (and never sells the property), then Blackacre will belong to A at A's death, and be distributed according to the rules of probate. If A does drink after the grant, then the property returns to O.
- Language used: Durational. Examples include "for as long as", "while", and "during".
- Alienation: O cannot alienate this future interest, because it may never vest in O. A is vested, subject to divestment. This interest is subject to the rule against perpetuities.
This type of future interest is called fee simple determinable. The vesting of the future interest is determinable at the time of the grant, because reverter is automatic if the condition is broken. Probate is the legal process of settling the estate of a deceased person; specifically, distributing the decedents property. ...
A defeasible estate is created when a grantor transfers land conditionally. ...
Right of entry (or power of termination) A grantor has the power of termination when an estate will return to the grantor if a condition is violated and the grantor decides to reclaim the estate. This type of grant may occur when the grantor wants the option of deciding the severity of the violation. - Example: "O grants Blackacre to A, on condition that A refrains from drinking alcohol."
- Analysis: If A never drinks after the grant (and never sells the property), then Blackacre will belong to A at A's death, and be distributed according to the rules of probate. If A does drink after the grant, then A's rights in Blackacre end, although A is still in possession of Blackacre.
- Language used: Conditional. Examples include "on condition", "if used for", and "provided that".
- Alienation: O cannot alienate this future interest, because it may never vest in O. A is vested, subject to divestment. This interest is subject to the rule against perpetuities.
This type of future interest is called fee simple subject to a condition subsequent. To see why, consider that in order to retain Blackacre, A must continue to perform under the terms of the grant (by not drinking). If A fails to 'not drink', that condition will trigger the subsequent loss of A's rights in Blackacre. Probate is the legal process of settling the estate of a deceased person; specifically, distributing the decedents property. ...
A defeasible estate is created when a grantor transfers land conditionally. ...
Future interests in a transferee
Remainders -
It has been suggested that Remainder (law) be merged into this article or section. (Discuss) A remainder is a future interest in a third party that vests upon the natural conclusion of the grant to the original grantee. It is the interest in the property that is 'left over', or remains, after the original grantee is finished possessing it. For example, O's grant "to A for life, then to B" creates a remainder in B. There are two types of remainders: vested and contingent. Image File history File links Please see the file description page for further information. ...
Vested remainders A vested remainder is created when property is granted to both a direct grantee and a named third party, and is not subject to a condition precedent to the third party taking possession. An event of state of affairs that is required before something else will occur. ...
- Example: "O grants Blackacre to A for life, then to B".
- Analysis (A): A has a life estate.
- Analysis (B): B has a vested remainder, because Blackacre will vest in B after A dies, with no further conditions.
- Alienation: B may divest his (absolutely) vested remainder, which is not subject to the rule against perpetuities. A is subject to the rules regarding divestiture of a life estate, as noted above.
A life estate, at common law is an estate in real property that ends at death. ...
Contingent remainders A contingent remainder is created when a remainder cannot fully vest at the time of granting. This normally occurs in two situations: - when the property can't vest because the beneficiary is a class subject to open, or
- when property is granted to both a direct grantee and a named third party, and the third party is subject to a condition precedent.
Remainders subject to open - Example: "O grants Blackacre to A for life, then to B's children".
- Analysis: The class of B's children can't be determined until B dies, so any children who are unborn at the time of the grant have a remainder contingent upon B having offspring. Children of B are fully vested as soon as they are born, provided A is still alive. There is ambiguity if A dies before B, since B could continue having children, who might or might not have an interest in Blackacre depending on jurisdiction.
Remainders subject to condition precedent - Example: "O grants Blackacre to A for life, then to B if B is married to C".
- Analysis (O): If B is married to C when A dies, B will own Blackacre. If B isn't married to C, then the property will vest in O (or O's estate) without O having to make a claim for it. So O has a possibility of reverter.
- Analysis (A): A has a life estate.
- Analysis (B): B has a contingent remainder subject to condition precedent, because Blackacre will vest in B, but only if B is married to C before A dies.
- Alienation: B does not vest unless he is married to C at the moment of A's death. In other words, he will have to wait until A dies to divest.
Note: a different result would be reached if the grant was "O to A for life, then to B if B has married C". In this case, B could marry and divorce C, and his future interest would be fully vested before A's death. In an ambiguous situation, the law tends to prefer vested remainders over contingent remainders. A life estate, at common law is an estate in real property that ends at death. ...
Executory interests An executory interest is a future interest in a third party that vests upon any condition subsequent except the natural termination of the original grantee's rights. In other words, an executory interest is any future interest held by a third party that isn't a remainder.
Executory limitations transferring ownership from the grantor to a third party are called springing executory interests, and those that transfer from the grantee to a third party are called shifting executory interests.
The grantor never retains a future interest when there is an executory condition present. To see why, note that if the executory condition is never met, the original grantee retains the interest, while if the condition is met, the interest transfers to a third party.
Executory interests are subject to the rule against perpetuities. However, if all of the potential vesting beneficiaries are named, the rule will never be violated.
Third party beneficiaries of executory interests cannot alienate them, since the interests are contingent upon a condition subsequent, so the interest is not guaranteed to vest.
Shifting executory interests - Example: "O grants Blackacre to A, but if A ever drinks alcohol, then Blackacre goes to B."
- Analysis (A): A will retain ownership as long as A doesn't drink, so A has 'contingent present interest'.
- Analysis (B): B has a shifting executory interest, because without the 'unusual' termination condition, title to Blackacre would have vested in the grantee.
Springing executory interests - Example: "O grants Blackacre to A, for as long as A refrains from drinking alcohol, but if A ever drinks alcohol, then Blackacre goes to B."
- Analysis (A): A will retain ownership as long as A doesn't drink, so A has a 'contingent present interest'.
- Analysis (B): B has a springing executory interest, because without the 'unusual' termination condition, title to Blackacre would have vested in the grantor.
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