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Chapter 1: Introduction to Property

I. Things and Interests in Things
A. “Bundle of Sticks”- various rights that usually include the exclusive right of possessing,
enjoying, and disposing of a thing (Possession=Control)
1. Right to possess
2. Right to use and enjoy
3. Right to transfer or dispose
4. Right to exclude
B. Adams v. Cleveland-Cliffs Iron Co.
1. Neighbors of a mining company complain about the dust, blasts, & vibrations
2. Court required proof of an unauthorized direct or immediate intrusion of a physical,
tangible object to prove trespass (dust & noise are intangible)
3. Trespass vs. Nuisance
a. Trespass- protects right of exclusion & requires a physical invasion, but can
recover nominal damages without proving that an injury resulted
b. Nuisance- protects right to use and enjoy & requires a balancing test (social
utility vs. harm to landowner) & must prove that an injury resulted
C. Jacque v. Steenberg Homes
1. Defendant brought mobile home across yard after Jacque explicitly denied entry
2. Nominal damages are sufficient to recover punitive damages in cases of intentional
trespass because right to exclude one of most important and essential to ownership
II. Classification of Property
A. Real Property- land and the things permanently attached to it (fixtures)
1. Fixture if
a. Real or constructive annexation of the article to the land (basketball hoop)
b. Appropriation or adaptation to the use or purpose of the land (key, drapes)
c. Intention was to make the annexation permanent at the time of installation
B. Personal Property- all other things (ex. cars, paintings, bank accounts, ideas, etc.)
C. Johnson v. Hicks
1. Irrigation system underneath several properties
2. Considering all the factors involved with the installation, including the nature of the
system, and the relation and situation of the owner who installed it, the court inferred that
Hick’s intention was that the irrigation system would water the 2 properties for so long as
the Johnsons remained in possession of the land
3. Irrigation system= fixture
D. Intellectual Property


personal property has been damaged or the defendant has interfered with the plaintiff’s use of the property. divide the profits/damages evenly 2. Argument that the name of a celebrity is a trademark under the Lanham act and that her economic interest in her name outweighs freedom of expression needs to be considered by a fact-finder III. but the effort is interrupted by the unlawful acts of others. 2. Motorola defined elements of claim under INS rule *Plaintiff generates or collects info at some cost or expense *Value of the info is highly time sensitive *Defendant’s use of the info constitutes free-riding on Plaintiff’s efforts *Defendant’s use of the info is in direct competition to Plaintiff’s use *Ability of other parties to free-ride on Plaintiff’s efforts would so reduce the incentive to produce the product or service that its existence would be substantially threatened 3. LaFace Records a. Conversion vs. trespass to chattel a. patent. Hayashi a. Associated Press a. AP has quasi-property right in relation to competitive firms but not to the public gain possession. Parks v. the actor has a legally recognized pre-possessory interest in the property c. but actual dispossession is not required 2 .if you can’t tell who the owner is. INS was taking news from AP’s eastern publications & publishing them in the west for profit b. NBA v. International News Service v.wrongful exercise of dominion over personal property of another *Must show actual interference with plaintiff’s dominion. but scuffle broke out and ball ended up in possession of Hayashi b. Equitable division. Conversion. etc. Where an actor undertakes significant but incomplete steps to achieve possession of a piece of abandoned personal property. Barry Bonds hit record homerun. First Possession 1. Trespass to chattel. Gray’s Rule. but wrongful withholding of property can constitute actual interference even where defendant lawfully acquired property b. Outkast made a song with Rosa Parks name in the lyrics b. Acquiring an Interest in Things A. trade secret. Types: copyright. Popov v. which was caught by Popov. trademark.1. an actor must retain control of the ball after the incidental contact with people or things d.

Embedded 3 . Delamirie a. Lost a. Categories of Found Property 1. Abandoned a. then the buyer gets right of possession against all but the true owner C. Subsequent Possession 1.great 2. but Jeweler’s apprentice tries to keep it b.slight b. Armory v. Treasure Trove a. Finder becomes possessor 5. Finder becomes possessor 4.3. etc. coins. If the finder of a jewel sells the jewel. Voluntarily relinquished with the intent to abandon b. Bailment for benefit of bailee (your neighbor gives you his lawnmower to you for your use) *Standard of care by bailee. Finder of lost property has right of possession against all but the true owner 3. Owner of premises becomes possessor 3. Bailment for benefit of Bailor (ex. Unintentionally & involuntarily relinquished property b.) that have been abandoned & are so old that the true owner is likely dead or cannot be found b. Can’t sell a greater interest than you own a. Finder becomes possessor 2. Bailment. Voluntarily placed property that is overlooked or forgotten b. give your dog to your neighbor to take care of while you are on vacation) *Standard of care by bailee.ordinary care c. that one person will entrust personal property to another for a specific purpose and that when the purpose is accomplished the bailee will return the property to the bailor a.agreement. Bailment for mutual benefit (you give your shirt to a dry cleaner to clean & you pay for the service) *Standard of care by bailee. Mislaid a.requires both intent to abandon property and physical abandonment B. either express or implied. Abandonment. Chimney sweep finds jewel & takes it to jeweler to be appraised. Items of treasure (gold. jewels.

Jar of coins found by workers while paving a driveway b. Exclusive *Prove that claimant wholly excluded the owner from possession for the required period *Sharing with the owner does not count c. Lindner Aviation. Elements a. Werner a. Benjamin v. a. devisor-devisee) 4 . 15. which the average owner would exercise over a similar property in like circumstances *Possession only extends to area actually being used b. if the other requirements are met a. Inc. Continuous & Uninterrupted *Look at nature and circumstances of property to determine if use was continuous & uninterrupted f. claimant’s possession will be considered open and notorious *Opportunity for notice rather than actual notice d.successive adverse possessors can be tacked together to satisfy the total time period required. Objects are essentially a fixture of the land because they have become part of the property b. Adverse Possession of Real Property 1. money=mislaid property. Open. Must have privity-legal relationship between adverse possessors passing the land (ancestor-heir. Embedded property goes to owner of premises D.000 hidden in wing of plane during routine inspection b. notorious.a. grantor-grantee. or 20 years for adverse possession of land 2. Employee at airplane hanger found $18. Tacking. Owner of premises becomes possessor (to protect from excavation by trespassers) of actual use and enjoyment of the land involved.generally 10. Under the circumstances. Statutory period. Corliss v. so belongs to the owner of the premises. in this case the owner of the airplane 7. Actual Possession *Test. Adverse/Hostile *Possession must be inconsistent with rights of true owner e. and visible *Generally if claimant uses property in a way that an average owner would under like circumstances.

rather than “preponderance of evidence” 9. Statutory period will not begin to run against the owner until the adverse possessor establishes exclusive right (rebuttal of permissive possession) title is granted to the adverse possessor. usually gets the benefit of some form of extension to the statutory period a. rather than title. Most states require “clear and convincing evidence”. row of trees. Some states just make the statute of limitations longer for someone who is legally disabled 7.adverse possessor can only convey possession by describing that which is to be conveyed in the instrument of conveyance 3. the land will be transferred for a fair market value 5 . etc. Relation Back Doctrine. Gruebele v. Schultz v. is the essential element in determining the validity of tacking) c. T2’s new owners asked for removal of garage. Dew a. Court said that natural enclosures (river. Open and notorious requirement not met by a minor encroachment along a common boundary c. and improved it by installing driveway 6. Dew cultivated land by planting trees & mowing lawn. b. Majority view= Privity of Possession (transfer of possession. If the encroachment cannot be undone easily or without great expense. Dew built driveway on neighbor’s land b. Permissive possession doesn’t constitute hostile possession required for adverse possession claim c. State statute required a substantial enclosure. Standard of proof a. Gorski a. Geringer a.statute of limitations is suspended until the disability is removed b. which dates back to the time they initially adversely possessed the land 4. Payment of taxes not required for adverse possession under claim of right 5. Mannillo v. A garage was built that encroached on T2’s property. Tolling. including a flight of concrete steps that encroached on adjacent land by 15 inches b. or that the land was usually cultivated or improved c. T1 was sold.b. Minority view. T1 and T2 land both sold again. An owner who suffers from a statutorily specified disability when adverse possessor begins adversely possessing. and T2’s owners gave permission to new owner to leave garage partially on T2’s land. Additions made to a house. T1 and T2 owned land next to each other. Some states disregard any disability c.) count d.

Carpenter v. Voidable title. Generally. Maine Doctrine (minority).cause of action will not accrue until the injured party discovers or by exercise of reasonable diligence should have discovered the adverse possession 6 . State of Mind a. but is intentionally claiming the property anyway b.cannot transfer greater interest than you own 2. O’Keeffe found several of her missing paintings b. Connecticut Doctrine (majority). and installed a propane tank & driveway on it anyway b.state of mind of adverse possessor is irrelevant 11. Good faith necessary for adverse possession under claim of right 12. Lott v.10.requires a written instrument purporting to pass title to the claimant *Shortens period of possession necessary to gain title *Permits acquisition by constructive possession of entire tract described in deed rather than just portion actually in adverse possessor’s possession *Requirement to pay taxes *Good faith requirement c. which was sold to church b. Muldoon Road Baptist Church a. Deed of reconveyance or a deed of trust is sufficient for color of title 13. Compromise.adverse possession can occur against land owned by government in proprietary capacity. Adverse Possession of Personal Property 1. General Rule. Ruperto a. graded it. Color of Title. Exceptions to general rule a.person with voidable title has power to transfer good title to a good faith purchaser for value 3. but she cleared several feet. Entrusting possession of goods to a merchant who deals in goods of that kind b. planted grass and bushes. Adverse possession against the Government a. After a divorce. but not in governmental capacity E. land split evenly between husband & wife.adverse possessor must know that she doesn’t own the property. Owner of a lot knew that the cornfield north of her property did not belong to her. O’Keeffe v. Discovery Rule (replaced open & notorious requirement). can’t gain title to government owned land by adverse possession b. Snyder a. Husband’s survey messed up and measured an additional 75 feet into wife’s property.

Transferring Interest in Things: Gifts A. Acceptance d.equitable doctrine by which court denies relief to a claimant who has unreasonably delayed in asserting the claim. Some courts require manual delivery b. Made in contemplation of impending death e.constructive because note and check left in apartment to which only Scherer had key & the check was signed over to him. then Wagner jumped off the roof b. Smart a. Donative intent. Laches. Woo v. Delivery= surrender of control a.evidenced by letter c. Donative intent b. Donative intent was met c. Acceptance. so he could cash it 5.revocable a. Hyland a.he had severe heart problems e. Acceptance. Donor died from contemplated peril. Acceptance (implied if gift is unconditional and beneficial to donee) 2. Scherer v. Donor must die of peril contemplated when making gift 3. Impending death. Donor did die due to heart problems 7 . Delivery c. On table in apartment that she shared with of something that allows the means to get the gift c. Wagner left a note bequeathing everything (including $17. Constructive delivery.400 check) to Scherer. when the delay has prejudiced the party against whom relief is sought of symbol of the gift 4.contemplating suicide e.presumed because gift was unconditional and beneficial d. Delivery c.killed herself f.4. Inter vivos gift. Impending death. Donative intent b. Requirements 1.irrevocable a. Delivery. Dying man wrote 3 personal checks to his long time partner b. Gift causa mortis. Symbolic delivery.she wants the money d.

McLaurin v.f. “To A”= words of purchase d. “And his heirs”= words of limitation e. In the event of her marrying then said remainder of my property to be divided equally between my two sons” *If purpose of the condition is to restrain from marriage than the condition is invalid *Other provisions of the will indicate that his intent was to give his wife a fee simple estate g. Estates in Land and Future Interests A. Owner can *Keep forever *Sell or give to someone else who can keep forever *Devise it to someone forever c.“to A and his heirs” a. Simpson’s will: “the remainder of my property to go to my wife as long as she remains my widow. Inheritance of a Fee Simple *No one has heirs until after his/her death *To be an heir must: **Survive decedent **Be listed in state’s inheritance statute as an eligible taker 8 . McLaurin” *Court held that language did not create a fee simple because “and his heirs” not included *Minority of states follow this formal language approach f. Gruen a. Fee simple.M. McLaurin “granted. but an owner can transfer a remainder interest c. Present Estates 1. sold and released unto the said J. Mrs. Dickson v. No inherent ending b. The letter from the father to his son serves as symbolic delivery of the remainder interest in the painting and was evidence of his intent V.checks not valid as delivery because not surrender of control over the money (could have stopped payment before she cashed them) 6. A promise to give a gift in the future is unenforceable because there is no consideration.L. Delivery. Inter vivos gift from father to son of remainder interest in a painting b. McLaurin *In a granting clause. bargained. Alexandria Hospital *G. Gruen v.

Responsibility for the condition of the premises: Waste * estate based on life other than that of the owner b. so began interpreting fee tails as fee simple conditionals 3. Life Estate. which has deprived property of its value and usefulness *Remainderman doesn’t have to wait until life tenant dies to bring action *Action for waste can be countered by laches or estoppel.complete and permanent change in the surrounding conditions. Williams v. but mere passage of time isn’t enough 9 .no inheritance if person related to decedent too remotely h. MacKenzie it *Defendants wanted to abandon property because couldn’t do anything with *Abandonment requirements. Pur autre vie. Long v. v.intent to abandon & physical relinquishment of possession *Court holds that it is not possible to abandon a fee simple title 2. GA Williams gave his 3 daughters his farm “during their lives” subject to any of them marrying or dying *General preference for fee simples.“to A for life” a. when unborn heirs have a contingent interest. i. Estate of Williams *In a will.e. Crum *In will. Purpose is to make property stay in blood-line c. life tenant not allowed to commit waste. Court dislike. Long left farm to his wife “during her life time” then to his 2 kids “for their lives” and the remainder “to the heirs of their [his kids’] bodies” *Issue. Estate is inheritable only by specified descendants of the original grantee b.inaction by the tenant that diminishes the value of the future interest *Ameliorative waste. the living interest holder can’t sell the property unless it appears extremely necessary d. destruction of property by the life tenant to the harm of the reversion or remainder *General standard= prudence or good husbandry *Permissive waste.*Prevent “laughing heir”. but court found that the language “during their lives” showed a clear intention to create something other than a fee simple c. The (Obsolete) Fee Tail. Pocono Springs Civic Ass’n. remainder has not yet vested and it is uncertain if it will ever do so-in the meantime an unproductive farm is held captive for years after Long’s death *Generally.“To A and the heirs of his body” a.

Defeasibility.power of termination d.“but if” “provided that” “on condition that” *Corresponding future interest= power of termination or right of reentry *If the condition happens. Nonfreehold Estates (Landlord and Tenant) a.fee simple subject to condition subsequent **O.transferor may chose to attach a condition to the transfer (if the grantee does something that the grantor prohibits.“so long as” “until” “during” *Corresponding future interest= possibility of reverter *Estate ends on the happening of some occurrence at which time the future interest holder’s interest automatically becomes possessory *O conveys to A for so long as no liquor is sold on the premises **A. Term of years. so even if she had been alive when the suit was brought she wouldn’t have been able to prove that waste hadn’t occurred 4. Phillips simple *Wife has life estate and 2 kids have indefeasibly vested remainder in fee *Clear evidence that the life tenant failed to carry out duty to keep property in reasonable repair and most of the damage occurred in the last 2-3 years. Periodic for a fixed period b. the future interest holder’s interest does not automatically become possessory *O conveys to A but if liquor is ever sold on the premises. Fee simple determinable *Language. Fee simple subject to executory limitation *Future interest created in 3rd party *Language can be either fee simple determinable or fee simple subject to condition subsequent 10 . or yearly tenancies c. then O may reenter and take possession of the property **A.e. Moore v. Tenancy at will. the grantee’s estate will end prematurely) b. or fails to do something the grantor requires.tenant’s right to possession endures so long as both parties wish it to continue 5. quarterly.monthly. Fee simple subject to condition subsequent *Language. Qualification of estates: Defeasibility a.fee simple determinable **O.possibility of reverter c.

then court can strike the offending language & leave estate intact *If executory interest. the law will imply a reasonable time for the event *Don’t always have to have the expressed reentry clause when there is language that clearly shows the intent of the grantor to make the estate conditional **To determine sufficiency of language consider: language.grantor has a reasonable time to exercise the right of reentry/power of termination *Statute of Repose.extinguishes possibility of reverter or power of termination if the specified contingency does not occur within 30 years of creation I. then court must terminate entire estate *Language of limitation. if this school and several others failed at any time to admit only white students. and facts showing the grantor’s intent to benefit the adjacent land by the condition imposed f. Sollie *P conveyed property to D “on condition that the grantee will build a partition fence along the South side of the property” and land was used for “church or residence purposes only” *When estate is conveyed on contingency and no time is specified for the contingency. amount of consideration paid in proportion to actual value. Dominion Trust Co.*Future interest becomes possessory automatically when condition occurs *O conveys to A but if A ever sells liquor on the premises. *Clause in will stated that trust income would go to particular school “so long as” the school admitted only white kids.Fee simple determinable on executory limitation *Hermitage’s claim survives because it wasn’t subject to any limitation h. Epworth Assembly *Statute of repose enacted with 30-year time period 11 . nature of event specified in condition and its importance to grantor. e. Hammond *”If grantee fails to provide skiing facilities for a period of two consecutive years then a breach has occurred and the grantor shall have the right to reenter and take possession of said premises” *Breach of condition is determined by strict construing the language of the conveyance (judicial bias against forfeiture) * Breach didn’t occur here because failure to renew rope tow permit is not failure to maintain and make available the premises as a ski area & the grantor did not wait the full 2 years g. the income would pass to Hermitage without a limitation *If condition subsequent. Red Hill Outing Club v. Forsgren v. then to B. Statutory Restrictions *Doctrine of Waiver (or Laches). Hermitage Methodist Homes v. Ludington & Northern Railway v.

during) a. 3 types of direct restraints on alienation *Forfeiture. Restraints on Alienation a. Banc One Financial *Family wanted to sell part of farm to niece. General Rule. until.whenever O transfers an interest of lesser duration than O owns a.*Court justified b/c statute promotes alienability of land (land subject to forfeiture not marketable) 6. Takes effect at the natural termination of the estate 2. Right of Reentry/Power of termination a.a present right to a future interest 1.prohibition of undue or unreasonable restraints on alienation b. Possibility of Reverter (so long as. Must be exercised in order to have effect once condition is violated 4. but included restriction that property reverted automatically if property was mortgaged or encumbered during the life of the grantor *Created fee simple determinable for niece & Possibility of reverter for Alby *Court looks at scope and time to determine if partial restraint is reasonable **Restraint on only one type of transfer **Restraint only for so long as grantor is alive B.renders any attempt to alienate void **Invalid agreement by the holder of an interest not to alienate **Valid if and only if limited *Disabling. Future Interests. Remainder (can never follow a fee simple) 12 . Automatic upon violation of the condition 3.terminates the interest upon an attempt to alienate **Valid if and only if limited (Test of Reasonableness) *Limited in duration *Allows a variety of types of transfers *Limits number of persons to whom transfer is prohibited *Tends to increase value of property *Imposed on an interest/property not otherwise marketable *Promissory restraint. Alby v. Reversion. Nonreversionary Future Interests a.

Executory interest in fee simple (2) O conveys to A for life. then to B A.fee simple subject to executory limitation estate O. immediately to B and his heirs. and one day after A’s death. then to B estate determinable subject to executory limitation B.remainder (6) O conveys to A for life.remainder (3) O conveys to A for 10 years.remainder (“so long as” makes this a natural termination) (5) O conveys to A for life.executory interest (doesn’t begin at natural termination of prior 13 . B has an executory interest estate subject to executory limitation B. to B A.remainder (4) O conveys to A for life so long as A doesn’t drink alcohol. then to B A.term of years (Particular estate not subject to condition subsequent) B. then to B estate (particular estate not subject to condition subsequent) B. Executory interest c.reversion in fee simple subject to executory limitation estate) B. Examples (1) O conveys to A and his heirs. Rules (1) A nonreversionary future interest following a defeasible fee simple is always an executory interest (2) If A’s particular estate (life estate or term of years estate) *Is determinable it is followed by a remainder *Is subject to condition subsequent it is followed by an executory interest (3) If A’s particular estate is nondefeasible *B’s interest is a remainder if it will become possessory immediately upon the ending of A’s estate *If not. A. but if B marries C during A’s lifetime. but if A drinks alcohol.b.

Examples (1) O conveys to A for life. than it is a vested remainder d.indefeasibly vested remainder in fee simple (no condition precedent & B is born and estate B. B is not a class & there is no condition subsequent) conveyance. so not a contingent remainder.class that is not physiologically closed at the life tenant’s death does close at the time of the life tenant’s death if one or more takers is available at that time subsequent *Vested remainder subject to total divestment.class of persons which may increase in number *Rule of Convenience. A.describes terms on which remainderman gets his interest *Condition subsequent. Vested and Contingent Remainders a. Condition precedent vs. then to B if B has passed the bar exam at the time of A’s death. if *Subject to condition precedent.subject to condition e.5. or *If remainderman is unascertained/unborn at the time of the creation of the interest b.describes terms on which remainderman loses his interest c. If not a contingent remainder. (2) O conveys to A for life.contingent remainder in fee simple (“if” without a “but” probably indicates a condition precedent) C. so his heirs are unascertainable) O. then to B A. Vested remainders subject to divestment/subject to condition subsequent *Indefeasibly vested (unconditional) class which may increase in number and no condition subsequent *Vested remainder subject to open (subject to partial divestment). B is living at time of estate estate B’s heirs. Is it a contingent remainder? Yes. then to B’s heirs. otherwise to C. condition subsequent *Condition precedent.reversion (contingent remainder always followed by a reversion) (3) O conveys to A for life.contingent remainder in fee simple (B is still living.alternative contingent remainder in fee simple 14 .

Canoy. Occurs when two distinct estates of greater and lesser rank meet in the same person or class of persons b. O conveys his interest (reversion) to A A. Courts don’t like it.contingent remainder in fee simple O. then to B if B passes the bar exam. to their issue. so narrowly applied only to “heirs”. Doctrine of Merger a. then to A’s heirs. not subject to open b/c limited to 10 kids) estate **R. then to B for life. Canoy. so not contingent. not to “children” or “issue” d. Applied as a matter of law regardless of grantor’s intent e. if any” **G. Won’t merge is there is an intervening interest *O conveys to A for life. Example in jurisdiction without Shelley’s rule 15 . If a life estate holder is granted the reversion or remainder held by a future interest holder. Doctrine of Destructibility (only in Florida) *If previous estate ends before remainder can vest *If possessory interest & reversion are held by same person.O. the two interests merge into a fee simple c. then to my son. Rule in Shelley’s Case a. Canoy *”I will and devise my farm to G. O conveys to A for life. and for any that are deceased.reversion f.vested remainder in fee simple subject to executory limitation (no condition precedent & no unborn/unascertainable persons. Canoy.A’s interest and A’s heirs’ interest won’t merge unless B dies before A f. estate B. and at his death. in 10 equal shares to my 10 children.fee simple absolute (life estate & reversion destroys contingent remainder) 7. Canoy for life. R. Canoy v. for the term of his natural estate **10 Children. Converts a remainder to the heirs or bodily heirs of the life tenant into a remainder in the life tenant b. then contingent remainder is not strong enough to prevent merger *Ex.reversion But. Abolished in most states c.

reversion *With doctrine A. so A gets a fee simple absolute 8.contingent remainder in fee simple (A still estate & indefeasibily vested remainder in fee estate O’s interest is good unless it must vest. then to A’s heirs A. Does not apply to *Indefeasibly vested remainders *Remainders vested subject to total divestment *Reversions *Possibilities of Reverter *Powers of Termination 16 . Doctrine of Worthier title a. which merge. Applies only to conveyances. so A’s heirs unascertainable) O.*O conveys to A for life.reversion 9.contingent remainder in fee simple estate O. Rule.reversion g. Remainder in grantor’s heirs is given to the grantor and becomes a reversion in the grantor b. Example in jurisdiction with Shelley’s rule *O conveys to A for life. if at all. not later than 21 years after some life in being at the creation of the interest b. so take into account the grantor’s intent) c. Rule Against Perpetuities a. O conveys to A for estate A’s heirs. not to devises (rule of construction rather than a rule of law. Applies only to *Contingent remainders *Executory interests *Remainders vested subject to open c. then to O’s heirs * Without Docrtine A. then to A’s heirs A.

d. Bell *DSIC conveyed to city so long as the property is used as a public library. dissolved. Ask yourself. In its traditional application. it is a RAP case.keep the special limitation (like Bell case) *Condition subsequent-type language. “No interest is good unless it must vest. Step 5: Apply the rule If the interests violate the rule they are void at the time they are granted When an executory interest following a fee simple interest in land is void under RAP the prior interest becomes absolute unless the language creating the interest makes it very clue that the prior interest is to terminate when the executory interest takes effect or not. Charity on Charity exemption *Where there is a gift to the A charity. Subject to open?) Yes. f. O to the city for so long as property is a library. with a gift over to the B charity upon on remote contingency. executory interest. the 2nd gift is not valid if either the 1st or 2nd of the gifts is to a noncharity 17 .possibility of a reverter Since the corp. thereafter to S and D Step 1: classify interests City – fee simple determinable on executory limitation S and D – executory interests Step 2: Shelley? Worthier title? No Step 3: Is there a RoP issue? (is in contingent remainder.special limitation is void **DSIC conveys to the City but if it fails to comply with the condition of using the land as a library then to S and D g. if at all. This interest could vest in 5001000 years so it violates RAP. vested rem. City of Klamath Falls v. the heirs end up with the property anyway. not later than 21 years after some life in being at the creation of the interest” Step 4: Do any of these interests violate the rule? Will we absolutely know if the future interest will vest within 21 years after the life of someone? Yes. Condition subsequent-type language vs. “could the city have the library for 100 years and then lose it? If so. determinable-type language *Determinable-type language. and thereafter to F and F The remaining interest makes it very clear that the prior interest is to terminate SO O. RAP is not a wait and see rule. the disposition is valid *But.from the moment of creation e. Invalidates interest ab initio.

so it could extent far beyond 21 years and there was no establishment of a life in being in the clause 18 .if seller is going to sell a property. Ferrero Construction Co. *Void under common law RAP *Under wait & see. Traps under RAP *Fertile octogenarian *Unborn Widow *Administrative contingency i. Ferrrero ended up with 2 offers.instead of invalidating an interest immediately you wait & see if it will vest within 21 years of lives being at the creation of the interest *If interest is valid under traditional rule. Rourke sued for specific performance of his right of 1st refusal *Right of 1st refusal. than it may be valid under the wait & see rule if it vests within the RAP period *Ex. the right of 1st refusal holder has the option to buy it first (usually by matching the other offer) *Court holds that all rights of 1st refusal are subject to RAP because they place restraints on alienability *This particular right of 1st refusal was void under RAP because there was no limit to when Rourke could exercise the right. *Rourke had right of 1st refusal on lots owned by Ferrero.h. Wait & See Rule. you wait and see if A has a kid that turns 25 within 21 years of A’s death j. than still valid under wait & see rule *If interest is invalid under traditional rule. Ferrero decided to sell a lot and notified Rourke. O conveys to A for life. but decided to turn down both. A is living and childless at the time of the conveyance. v. then to the first child of A to reach 25. Dennis Rourke Corp.