Possessory Estate- party who holds the right to possess the property right now Future Interest- party who holds the right to possess the property in the future (when the possessory estate ends) How to Classify Possessory Estates & Future Interests Possessory Estates 1. Identify who hold the possessory estate 2. Classify the possessory estate based upon its durate 3. Focus on the express language of the conveyance indicating the duration of the possessory estate Future Interests 1. Identify who holds the future interest 2. Classify the future interest based upon the possessory estate which it follows 3. Indicate the duration of the future interest Chapter 2 Fee Simple Absolute -there is no future interest - no one presently has the right to possess the property in the future -there is no inherent condition or restriction limiting how owner can use the property -right to transfer the property freely to whomever he desires Words of Purchase- words in the conveyance which indicate to whom the property is being transferred Words of Limitation- words which indicate the duration of the estate being transferred - for fee simple absolute: “and her heirs” To Diagram: 1. Who holds the possessory estate 2. Which possessory estate do they hold (find the words of limitation)
Ex: O A-FSA Fee Simple Defeasibles Fee Simple Determinable -deemed to terminate immediately and automatically upon the occurrence of the express condition -“as log as/so long as…”, “until…”, “during…”, and “while…” Fee Simple Subject to a Condition Subsequent -does not terminate immediately or automatically upon the condition occurring -“but if…”, “however, if…”, “provided that…”
--“right of entry clause” : also accompanied with an express clause, expressing the condition Every possessory estate other than a fee simple absolute must be coupled w/ a future interest. Someone must have the present right to possess the property in the future the moment the possessory estate terminates.