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I. Possessory Estate - Owner of the right to possess land in the PRESENT. Nature of the Posessory EstateTells us the duration of that estate. People have ownership in terests in l andrather than absolute ownership Words of Purchase: Tells us whois receiving the interestO to Aand her heirs. Words of Limitation: Tells us what kind ofestategrantee is receivingO to A and her heirs(absolute)A. Four Kinds of Possessory EstatesFee Simple / Fee Tail / Life Estate / Term of Years.

1. Fee Simple O to A and her heirsa. No inherent ending // Owner can devise, sell or keep land forever //Intestate, owners heir inherit land.

b. and her heirs-Does not conveyany legally recognizable interest to As heirs, only A.c. Limitation:None.d. Convey: All of the interest. No Less.

2. Fee TailNo Longer Used3. Life Estate - O to A for life, remainder to her heirs/to B

a. It is a land grant for the life of A. After A dies, it goes to B. Here, B has a future interest in the land.b. Purpose: Grantor of a life estate could control who takes the property at the life tenants death.c. Limitation: Only during lifetime.d. Convey: All or Lesser.

A has a right to possess property during her lifetime. If A conveys her life estate to B, B has alife estatepur autre vie (for the life of another). Bs life estate will then be measured by Aslife. As soon as A dies, Bs interest in the land will end.

If B dies beforeA- B has died owning an interest in property that his heirs can inherit, or Bcould devise to. But,as soon as A dies, the (heir/devisees)s interest will automatically end.

e. Restrictionson what A can do w/the land:- Rent/Lease: A cannot rent or lease land longer than their life- Sale: A cannot grant fee simple estates- Mortgage: Banks dont normally grantmortgages to life estates.- Insurances: Life estate is under no duty to insure buildings & may hurt remaindermens future int- Waste: There are restrictions on what you can do with the property. See below.

4.Term of Years-Leasea. Not a freehold estate:Right to possession of land accompanied w/reponsibility (e.g. payment of taxes)

b.c. FIthat arises in O the Grantor that transfers less than he has, other than a defeasible fee.

II. Future Interests in Transferees -FI Held by someone other than GrantorA. Vest RemainderThree Species:

1.Indefeasbily Vested Remainder2.Vested Remainder Subject to Total Divestment3.Vestered Remainder Subject to Open

B. Contingent RemainderC. Executory InterestTwo Species

1. Shifting Executory Interest2. Springing Executory InterestMethodology1. Distinguish Vested Remainders from Contingent Remainders

Remainder:FI created in a grantee that becomes possessory at the natural conclusion of aproceeding life estate or terms of years.

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2. Distinguish the three kinds of Vested Remainders from each other3. Distinguish allremaindersfrom executory in terests4.

a. Accompanies onlyFee Simple Determinableb. Ex.

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