Future-interests questions reward slow classification. Label the estate and future interest first; only then ask whether the Rule Against Perpetuities destroys the future interest.
Future-interests questions reward slow classification. Label the estate and future interest first; only then ask whether the Rule Against Perpetuities destroys the future interest.
Future interests RETAINED BY GRANTOR are interests that remain with the original owner after transferring a lesser estate.
REVERSION: Grantor transfers less than what grantor has. What's left automatically returns to grantor. - "To A for life" → Grantor kept everything after life estate = REVERSION - Arises by OPERATION OF LAW—no need to expressly reserve it - Always VESTED (certain to become possessory)
POSSIBILITY OF REVERTER: Follows FEE SIMPLE DETERMINABLE (FSD). - FSD language: "so long as," "while," "during," "until" - Land AUTOMATICALLY reverts if condition is violated - Example: "To A so long as no alcohol sold" → The moment alcohol is sold, ownership instantly snaps back to grantor
RIGHT OF ENTRY (Power of Termination): Follows FEE SIMPLE SUBJECT TO CONDITION SUBSEQUENT (FSSCS). - FSSCS language: "but if," "provided that," "on condition that" + express right to reenter - Grantor must ELECT to retake—not automatic - Example: "To A, but if alcohol sold, grantor may reenter" → If alcohol sold, grantor CAN retake but doesn't have to
KEY DISTINCTION: Determinable = automatic forfeiture. Condition subsequent = grantor's choice.
RAP: Grantor's interests are NEVER subject to Rule Against Perpetuities.
HYPO: O conveys Blackacre "to the City of Springfield, so long as the land is used for a public park, but if the land ceases to be used for a public park, O may reenter and retake."
ANALYSIS: This is a common bar exam TRAP—the conveyance uses BOTH types of language!
"So long as" suggests FEE SIMPLE DETERMINABLE → Possibility of reverter "But if... O may reenter" suggests FSSCS → Right of entry
When language is MIXED, courts generally look at the GRANTOR'S INTENT. The phrase "O may reenter and retake" suggests grantor wanted the OPTION to reclaim, not automatic reversion.
MOST LIKELY RESULT: Fee Simple Subject to Condition Subsequent with Right of Entry.
WHY IT MATTERS: - If FSD: Land automatically reverts when park use ends—City immediately loses ownership - If FSSCS: O must affirmatively elect to retake. Until O acts, City still owns it (and might resume park use!)
FLORIDA NOTE: Florida disfavors automatic forfeitures and will likely construe ambiguous language as FSSCS to require grantor action.
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