OFFICE HOURS TODAY ROOM 280 LAW LIBRARY 2:30-4:30 p.m.

1
OFFICE HOURS TODAYROOM 280 LAW LIBRARY230-430
p.m.

• Saturday Class moved to
• 900 - 1020 a.m.

2
(G) To my only son, Larry, for life, then to
Larry's children and their heirs." Larry has two
children, Moe and Curly.

• Larry?

3
(G) To my only son, Larry, for life, then to
Larry's children and their heirs." Larry has two
children, Moe and Curly.

• Larry Life Estate
• Moe Curly?

4
(G) To my only son, Larry, for life, then to
Larry's children and their heirs." Larry has two
children, Moe and Curly.

• Larry Life Estate
• Moe Curly Vested Remainders
• (in F.S.) Subject to Open
• Larry has another child, Stella. Stella has?

5
(G) To my only son, Larry, for life, then to
Larry's children and their heirs."

• Larry Life Estate
• Moe Curly Stella Vested Remainders (in
  F.S.) Subject to Open
• Curly dies, leaving his wife, Noreen, and a
  child, Orrin Curly's will devises all his
  property to Noreen. What happens to Curlys
  interest?

6
(G) To my only son, Larry, for life, then to
Larry's children and their heirs."

• Larry Life Estate
• Moe Noreen Stella Vested Remainders (in
  F.S.) Subject to Open
• Larry dies. State of the title?

7
(G) To my only son, Larry, for life, then to
Larry's children and their heirs."

• Larry dies. State of the title?
• Moe Noreen Stella share fee simple absolute
  (tenants in common).

8
DEFEASIBLE FEES
9
DEFEASIBLE FEESRestatement Terms

• FEE SIMPLE DETERMINABLE (to grantor
  automatic)
• F.S. ON CONDITION SUBSEQUENT (to grantor must
  act)
• F.S. ON EXECUTORY LIMITATION (any to grantee)

10
IDENTIFYING DEFEASIBLE FEES
11
IDENTIFYING DEFEASIBLE FEES
12
IDENTIFYING DEFEASIBLE FEES
13
(H) Thelma conveys "to Louise for 99 years if
Louise so long live."

• Louise?

14
(H) Thelma conveys "to Louise for 99 years if
Louise so long live."

• Louise Term of years determinable.

What other interests are there?
15
(H) Thelma conveys "to Louise for 99 years if
Louise so long live."

• Louise Term of years determinable.
• Thelma Possibility of Reverter
• Reversion
• Reversion (Merger)

16
DOCTRINE OF MERGER

• If one person becomes the owner of two contiguous
  interests, the interests will merge

17
DOCTRINE OF MERGER

• If one person becomes the owner of two contiguous
  interests, the interests will merge.
• Example Eric has a life estate. Vanessa holds
  the reversion that follows it. If Eric purchases
  the reversion from Vanessa, it merges with his
  life estate and he will have a fee simple
  absolute.

18
DOCTRINE OF MERGER

• If one person becomes the owner of two contiguous
  interests, the interests will merge.
• Example Eric has a life estate. Vanessa holds
  the reversion that follows it. If Eric purchases
  the reversion from Vanessa, it merges with his
  life estate and he will have a fee simple
  absolute.

MERGE
19
Mahrenholz v. County Board
20
Mahrenholz v. County Board MAJOR EVENTS

• 3/51 Grant to SD1
• 2/69 Mrs.H dies intestate HH sole heir
• 5/73 Property used for storage only
• 5/77 HH conveys interest to Ms
• 9/77 HH releases interest to SD1

21
Mahrenholz v. County Board MAJOR EVENTS FSD PR

• 3/51 Grant to SD1 SD-FSD Hs-PR
• 2/69 Mrs.H dies intestate HH sole heir?
• 5/73 Property used for storage only
• 5/77 HH conveys interest to Ms
• 9/77 HH releases interest to SD1

22
Mahrenholz v. County Board MAJOR EVENTS FSD PR

• 3/51 SD-FSD Hs-PR
• 2/69 Mrs.H dies intestate HH sole heir SD-FSD
  HH-PR
• 5/73 Property used for storage only?
• 5/77 HH conveys interest to Ms
• 9/77 HH releases interest to SD1

23
Mahrenholz v. County Board MAJOR EVENTS FSD
PR2/69 SD-FSD HH-PR

• GRANT VIOLATED
• HH-FEE SIMPLE ABSOLUTE
• 5/77 HH --gt Ms?

• NO VIOLATION
• SD-FSD HH-PR
• 5/77 HH --gt Ms?

24
Mahrenholz v. County Board MAJOR EVENTS FSD PR

• GRANT VIOLATED
• HH-FS ABSOLUTE
• 5/77 HH --gt Ms?
• Ms-FS Absolute
• 9/77 HH release to SD?

• NO VIOLATION
• SD-FSD HH-PR5/77 HH --gt Ms?
• SD-FSD HH-PR
• 9/77 HH release to SD?

25
Mahrenholz v. County Board MAJOR EVENTS FSD PR

• GRANT VIOLATED
• Ms-FS Absolute
• 9/77 HH release to SD?
• Ms - FS Absolute

• NO VIOLATION
• SD-FSD HH-PR
• 9/77 HH release to SD?
• SD - FS Absolute

26
Mahrenholz v. County Board MAJOR EVENTS FSCS
RE

• 3/51 Grant to SD1 SD-FSCS Hs-RE
• 2/69 Mrs.H dies intestate HH sole heir?
• 5/73 Property used for storage only
• 5/77 HH conveys interest to Ms
• 9/77 HH releases interest to SD1

27
Mahrenholz v. County Board MAJOR EVENTS FSCS
RE

• 3/51 SD-FSCS Hs-RE
• 2/69 Mrs.H dies intestate HH sole heir SD-FSCS
  HH-RE
• 5/73 Property used for storage only?
• 5/77 HH conveys interest to Ms
• 9/77 HH releases interest to SD1

28
Mahrenholz v. County Board MAJOR EVENTS FSCS
RE2/69 SD-FSCS HH-RE

• GRANT VIOLATED
• SD-FSCS HH-RE
• 5/77 HH --gt Ms?

• NO VIOLATION
• SD-FSCS HH-RE
• 5/77 HH --gt Ms?

29
Mahrenholz v. County Board MAJOR EVENTS FSCS
RE

• GRANT VIOLATED
• SD-FSCS HH-RE
• 5/77 HH --gt Ms?
• SD-FSCS HH-RE
• 9/77 HH release to SD?

• NO VIOLATION
• SD-FSCS HH-RE 5/77 HH --gt Ms?
• SD-FSCS HH-RE
• 9/77 HH release to SD?

30
Mahrenholz v. County Board MAJOR EVENTS FSCS
RE

• GRANT VIOLATED
• SD-FSCS HH-RE
• 9/77 HH release to SD?
• SD - FS Absolute

• NO VIOLATION
• SD-FSCS HH-RE
• 9/77 HH release to SD?
• SD - FS Absolute

31
Mahrenholz Summary of Possibilities
32
Mahrenholz v. County Board (FM18)The court
says The type of interest held governs the mode
of reinvestment with title if reinvestment is to
occur. DQ6. What does the court mean by
reinvestment ?
33
DQ7 (FM20) In Northwestern University , a
conveyance was made upon the express condition
that said Wesley Hospital, the grantee herein,
shall erect a hospital building on said lot and
that on the failure of said Wesley Hospital to
carry out these conditions the title shall revert
to Northwestern University.This language
cannot be interpreted as creating anything but a
fee simple subject to a condition subsequent, and
the court so held.
34
DQ8 (FM21) In its discussion of McElvain, the
court says that as an action in ejectment was
brought, the difference between a fee simple
determinable and a fee simple subject to a
condition subsequent would have no practical
effect . Why does it believe this?
35
Mahrenholz v. County Board

• To the Trustees of School District No. 1
• "to be used for school purpose only otherwise to
  revert to Grantors herein.
• DQ9 Fee Simple Determinable
• or
• Fee Simple on Condition Subsequent?

36
To Trustees of SD No.1 "to be used for school
purpose only otherwise to revert to Grantors
herein. FSD

• only suggests automatic
• condition in 1st clause
• to revert (v. may re-enter) suggests
  automatic
• similar grants held FSD

37
To Trustees of SD No.1 "to be used for school
purpose only otherwise to revert to Grantors
herein. FSCS

• 2 clauses usually used for FSCS
• No time words
• Most states presume FSCS

38
Mahrenholz v. County Board DQ10 Under what
circumstances might the distinction between a fee
simple determinable and a fee simple on condition
subsequent be significant?
39
FSD v. FSCS Consequences

• Transferability after breach (Mahrenholz)

40
FSD v. FSCS Consequences

• Transferability after breach
• Adverse Possession

41
FSD v. FSCS Consequences

• Transferability after breach
• Adverse Possession
• Income from land after breach (to grantor if
  FSD)

42
FSD v. FSCS Consequences

• Transferability after breach
• Adverse Possession
• Income from land after breach
• Waiver/Estoppel by future interest holder
  (possible if FSCS)

43
DQ10 Why do so many grants fail to indicate
clearly which interest is intended?
44
DQ11 IS STORAGE A SCHOOL PURPOSE?ARGUMENTS
45
DQ11 IS STORAGE A SCHOOL PURPOSE?What
legal research could you do to help resolve this
question?
46
DQ132 IS STORAGE A SCHOOL PURPOSE?
RESEARCHLEGAL CASES ON SCHOOL
PURPOSECASES ON CHURCH PURPOSE ETC.
FACTUAL WHAT FACTS MATTER ?
47
DQ132 IS STORAGE A SCHOOL PURPOSE?
RESEARCHFACTUAL GRANTORS INTENTIN GRANT
ITSELFWITNESSES TO TRANSACTIONASK
GRANTORWITNESSES RE GRANTOR BELIEFS
48
DQ12. Why should we allow grantors to have any
control at all of what happens to land after they
have died?