1. Property Law Estates and Future Interests Boston College Law School October 29, 2004

2. Policy Issues Basic Issue –To what extent should landowners be able to attach conditions to grants of property? Questions –Why give landowners this power at all? History Greater power includes lesser power Promote alienation and control –Why not give landowners unlimited power to attach conditions? Hinders freedom of current possessors (dead hand control) Inefficient; prevents land from moving to most efficient current use May lead to unhealthy concentrations of wealth

3. Estates in Land Fee simple –Fee simple absolute –Fee simple determinable –Fee simple subject to condition subsequent –Fee simple subject to executory limitation Life estate Fee tail Leasehold

4. Fee Simple Estates Fee simple absolute –“O to A and his heirs” or “O to A” –Future interest: none Fee simple determinable –“O to A, so long as used for residential purposes” –Future interest: possibility of reverter Fee simple subject to condition subsequent –“O to A, so long as used for residential purposes, but if not so used, O shall have a right of re-entry” –Future interest: right of re-entry Fee simple subject to executory limitation –“O to A, so long as used for residential purposes, and then to B” –Future interest: executory interest

5. Life Estates Life estate w/ reversion –“O to A for life” –Future interest: reversion Life state w/ remainder –“O to A for life, then to B” –Future interest: remainder Contingent remainder –“O to A for life, then to B if B graduates from college” –“O to A for life, then to B’s children” if B has no children yet Vested remainder –Absolutely vested (“O to A for life, then to B”) –Vested subject to open (“O to A for life, then to B’s kids” if B has kids) –Vested subject to divestment (“O to A for life, then to B, but if B flunks out of law school, then the property shall revert to O”)

6. Other Estates Fee tail –“O to A and the heirs of his body” –Future interest: reversion or remainder Leasehold –“O to A for 10 years” –Future interest: reversion or remainder

7. Regulation of Estates Limitations on forms of conveyances Striking down certain conveyances –Rule against perpetuities –Rule against restraints on alienation –Rules supported by public policy –Statutory regulation Interpreting conveyances