thus, purchaser still faces potential litigation from holder of FPI… … BUT, some policies will cover such a situation (for extra $$) title insurance … FEE TAIL Original purpose of in early England, was (perpetuate primogeniture fee tail, $$/power by locking land into BUT, abolished in U.S. b/c contrary to family)… basic concepts of property ownership (i.e. free marketability, best use) in U.S. is NOT void rather, into Fee tail converted either… in first grantee FSA in first grantee w/ in life Life estate FPI tenant’s children (“one-generation lock-up”) LIFE ESTATE 2 kinds of life estate… Created by grant granted to A, O has to A for life estate reversion “O life” granted to A, B has to A for life, then to life estate remainder “O B” Created by (“O reserved in O, A has reservation for life, then to life estate A” EI) is measured by life Life estate pur autre vie another’s ends when B dies, NOT when A to A for life of life estate “O B” dies… rather, when A dies, continues in OR life estate will beneficiaries … A’s testate/heirs (until B’s death) Life tenant has obligation to make reasonable repairs, but NOT improvements life tenant who makes has NO right to Volunteer rule improvements – entitlement (“O if A makes then B gets to A for life, then to improvements, B” benefit thereof, A gets learning experience) Exception to volunteer rule… If improvement is required by legal/economic necessity… if city tells life tenant to either make improvement Legal necessity OR vacate premises ?? Economic necessity AND, improvement is made as by (NOT reasonably prudent person … more than necessary)… then, there will be b/w life tenant and equitable apportionment of cost … holder of FPI
… thus, purchaser still faces potential litigation from holder of FPI… … BUT, some title insurance policies will cover such a situation (for extra $$) FEE TAIL Original purpose of fee tail, in early England, was primogeniture (perpetuate $$/power by locking land into family)… BUT, abolished in U.S. b/c contrary to basic concepts of property ownership (i.e. free marketability, best use) Fee tail in U.S. is NOT void rather, converted into either… FSA in first grantee Life estate in first grantee w/ FPI in life tenant’s children (“one-generation lock-up”) LIFE ESTATE 2 kinds of life estate… Created by grant “O to A for life” life estate granted to A, O has reversion “O to A for life, then to B” life estate granted to A, B has remainder Created by reservation (“O for life, then to A” life estate reserved in O, A has EI) Life estate pur autre vie is measured by another’s life “O to A for life of B” life estate ends when B dies, NOT when A dies… … rather, when A dies, life estate continues in A’s will beneficiaries OR testate/heirs (until B’s death) Life tenant has obligation to make reasonable repairs, but NOT improvements Volunteer rule – life tenant who makes improvements has NO right to entitlement (“O to A for life, then to B” if A makes improvements, then B gets benefit thereof, A gets learning experience) Exception to volunteer rule… If improvement is required by legal/economic necessity… Legal necessity if city tells life tenant to either make improvement OR vacate premises Economic necessity ?? … AND, improvement is made as by reasonably prudent person (NOT more than necessary)… … then, there will be equitable apportionment of cost b/w life tenant and holder of FPI
Property-2_Coskran-Spring-2009.docx