Friday, October 26, 2018

Good Hypo

In a past year, a student asked me a very interesting hypothetical question involving the following grant: G conveys "to A for life, but if A uses the property for commercial purposes, then to B and his heirs."

What interst does A have?
What interest does B have?
What interest does G have?

Let's discuss this!

How about this one?

Suppose: Grutz conveys "to A for life, but if A moves to Europe, then Grantor shall have the right to reenter and possess the property as of his former estate."

What does A have?

What does Grantor have?




Answer:


A has a life estate subject to a condition subsequent


Grantor (Grutz) has both a reversion and a power of termination. One commentator explains that: "The interest in the Grantor is more than a reversion. The [power of termination] does not become effective automatically, but only at the will of the grantor. Therefore, the interest is best described in its two parts."