What is a life tenant entitled to?
The life tenant is entitled to all ordinary uses and profits from the land. She is generally not allowed to consume or exploit natural resources.
What is voluntary waste?
Overt conduct by the life tenant that causes a drop in value.
What is PURGE?
PURGE are the exceptions to the life tenant's duty not to consume or exploit natural resources on the land (oil/minerals/timber)
PU - Prior use - prior to the grant, the land was used for exploitation.
R - repairs - the life tenant may consume natural resources for reasonable repairs and maintenance.
G - grant - grant may allow for exploitation.
E - exploitation - the land is only useful to exploit, such as a rock quarry.
Open Mines Doctrine
A life tenant can continue to mine in any mines that are in use when she takes the life estate, but can't open any new ones.
What is permissive waste?
When the life tenant allows the land to fall into disrepair.
What is the life tenant's obligation to keep the land in good repair?
She must MAINTAIN the premises in reasonably good repair.
Life tenant's obligation to pay taxes.
A life tenant is obligated to pay ordinary taxes on the land, to the extent of income or profits from the land. If there is no income or profit, the life teant is required to pay all ordinary taxes to the extent of the premises fair rental value.
What is ameliorative waste?
When a life tenant engages in behavior that improves the property's value. Prohbited unless the future interest holders all are known and all consent.
How can you tell when a condition precedent exists in a conveyance?
The language will appear BEFORE the language creating hte remainder.
Destructibility of Contingent Remainders
At common law, a contingent remainder was destroyed if it was still contingent at the time the preceding estate ended. Nowdays, that contingent remainder just turns into a springing executory interest, and stays with the remainder-holder.
Rule in Shelley's Case
At common law, if O conveys to A for life, and then to A's heirs, the present and future interests would merge and A would take in fee simple absolute. Not the case today.
This would happen even in the face of GRANTOR INTENT.
Doctrine of Worthier Title
Still viable: if O tries to create a future interest in his own heirs. That contingent remainder is void. But contrary GRANTOR INTENT will WORK in this rule.
Common law rule of convenience
A class is closed whenever any member of the class can demand possession.
For example, to A for life, then to B's children. When A dies, that **** is closed, even though B could have more children. Any kid in B's womb is good.
RAP brightline rules (from Paula's lecture)
1. a gift to an open class that is conditioned on the members surviving to an age beyond 21 violates the common law RAP.
2. an executory interest with no limit on the time within which is must vest violates RAP.
RAP charity exception
A gift from one charity to another escapes RAP.
"Wait and see" approach to RAP
Under the majority reform effort, the validity of any suspect future interest is obtained on the basis of the facts as they now exist, at the end of the measuring life.
And the interest granting the joint tenancy must also state the right of survivorship.
Equitable conversion (in joint tenancy)
If you enter into a contract to sell your share, that automatically severs the joint tenancy.
Three people own as joint tenants, one conveys his interest, what do the other two have?
They are still joint tenants with each other!
Severance and mortgages
Under the "title theory" of mortgages, a mortgage against a joint tenant's interest severs the joint tenancy.
Under the "lien theory" of mortgages, a mortgage against a joint tenant's interest does NOT sever the joint tenancy.