Any money the city gets to be used only for the park Money invested by city in park goes to city NOTE: Reverter only seemingly has value after land is condemned When condemner (City) owns City of Palm Springs v. Living Desert Reserve – present possessory interest in the land, condemnation action makes violation of condition imminent holder of reverter gets the value of the land Policy Fee Simple Absolute over Life Estate Marketability of life estates is low Conflicts between life tenants and remaindermen high transaction costs life lifetime Can’t lease beyond tenant’s a mortgage on property Can’t get Life tenant has no duty to insure, but gets proceeds from any insurance purchased in the event of an accident Restraints on Alienation Restraints make property unmarketable Perpetuate concentration of wealth Discourage land improvement from reaching the property Prevent owner’s creditors FUTURE INTERESTS LOOK AT TEXT, THEN CASES – Retained by Transferor These are all vested for RAP – Possibility of Reverter Follows fee simple determinable – Right of Re-entry Follows fee simple subject to condition subsequent – Reversion Everything not covered by the other two – Created in Transferee Vested Remainder Owned by an ascertained person, not subject to condition – precedent Vested Subject to Divestment Subject to condition subsequent/executory – interest Vested Remainder Subject to Open Person is ascertained, but more can still join – the class Not vested for RAP – Indefeasibly Vested Remainder Not subject to open – Contingent Remainder Owned by an unascertained person or subject to condition – precedent Not vested for RAP – Executory Interest Follows fee simple subject to executory interest Not vested – – for RAP Interpret will, can be vested in a single person otherwise not vested Class Closing Rule NOTE THIS HELPS FAVOR EARLY VESTING – Class closes physiologically once no other can be born into it Parent dies
Any money the city gets to be used only for the park Money invested by city in park goes to city NOTE: Reverter only seemingly has value after land is condemned City of Palm Springs v. Living Desert Reserve – When condemner (City) owns present possessory interest in the land, condemnation action makes violation of condition imminent holder of reverter gets the value of the land Policy Fee Simple Absolute over Life Estate Marketability of life estates is low Conflicts between life tenants and remaindermen high transaction costs Can’t lease beyond life tenant’s lifetime Can’t get a mortgage on property Life tenant has no duty to insure, but gets proceeds from any insurance purchased in the event of an accident Restraints on Alienation Restraints make property unmarketable Perpetuate concentration of wealth Discourage land improvement Prevent owner’s creditors from reaching the property FUTURE INTERESTS – LOOK AT TEXT, THEN CASES Retained by Transferor – These are all vested for RAP Possibility of Reverter – Follows fee simple determinable Right of Re-entry – Follows fee simple subject to condition subsequent Reversion – Everything not covered by the other two Created in Transferee Vested Remainder – Owned by an ascertained person, not subject to condition precedent Vested Subject to Divestment – Subject to condition subsequent/executory interest Vested Remainder Subject to Open – Person is ascertained, but more can still join the class – Not vested for RAP Indefeasibly Vested Remainder – Not subject to open Contingent Remainder – Owned by an unascertained person or subject to condition precedent – Not vested for RAP Executory Interest – Follows fee simple subject to executory interest – Not vested for RAP Interpret will, can be vested in a single person otherwise not vested Class Closing Rule – NOTE THIS HELPS FAVOR EARLY VESTING Class closes physiologically once no other can be born into it Parent dies