- Shifting executory interests (plural shifting executory interests) are a type of executory interest that shifts from one party to another (law) It is possible for a third party to acquire a legal interest in land through the terms of a grant in which the grantor grants the land to another party, but only upon the occurrence of a condition that relieves the second party from his or her ownership of the land and transfers the land to the third party
What is the difference between a remainder and an executory interest?
When it comes to residual interests and executory interests, one of the most important distinctions is that a remainder interest does not take away the interests of any prior interest holders, but an executory interest might take away a previous interest holders interests.
Is a remainder interest a future interest?
When it comes to remaining interests and executory interests, one of the most significant distinctions is that a remainder interest does not take away the interests of any earlier interest holders, but an executory interest can do so.
What is the difference between springing and shifting executory interest?
On the occurrence of a certain condition, shifting executory interests are transferred from one grantee to another. On the occurrence of a certain circumstance, springing executory interests are transferred from the grantor to the grantee.
What do executory interests follow?
In real estate, an executory interest is a future right to possession of property that will be activated upon the occurrence of a specified event and will convey the property to a third party.
Can an executory interest be contingent?
When the preceding estate is terminated, Y’s interest naturally follows, but will only become possessory if one of the conditions for possessory interest is met (Y’s interest isn’t considered vested since one of the conditions must be met first, therefore it is dependent).
Can a future interest be transferred?
It is vital to remember that, even if a future interest does not confer any right of possession in the present, it can be transferred or even sold before it really vests.
What are the future interests retained in transferees?
Future interests in a transferee’s property can be divided into two categories. Remainders When the natural expiration of a prior life estate held by another transferee occurs, a residual is created in the name of the transferee and becomes possessory. Generally speaking, there are two categories of remainders.
What is a springing executory interest?
Springing executory interest (plural springing executory interests) is a type of executory interest that occurs when an executor is appointed (law) An interest in real estate generated by the terms of a grant in which the grantor grants the grantee an interest in the property in exchange for the grantee’s own interest in the property, subject to the fulfillment of certain conditions.
Who Owns future interest in real property?
Upon transfer of ownership, the transferring owner (the grantor) has the option to give, sell, or bargain-sale the future interest to the recipient (the grantee) named in the deed of conveyance. The transfer of this future interest is irrevocable, just as it is when a person deeds a house or other real estate to another individual.
What does defeasible mean in real estate?
Fee simple defeasible is a legal phrase and kind of property ownership in which the ownership is conditional on the fulfillment of certain requirements. It may be necessary to return property to the grantor or to a specified third party if the terms of the ownership agreement are not followed.
Is a right of entry transferable?
The right of entrance is another sort of future interest that may be acquired. When a condition subsequent to the transfer occurs, a right of entrance is created and the grantor retains the ability to access the property and reclaim ownership, the right of entry is referred to as a ″inheritance.″
What does future estate mean?
Future estates are interests in land or personal property that provide the possessor the right of possession, but not ownership, of the land or personal property. Essentially, they are estates that will vest, either in title or in enjoyment, at a future period, whether or not they are subject to a limitation that results in the creation of a subsequent estate.
Can an executory interest follow a fee simple determinable?
Fees are easily determinable. The interest will revert to the grantor or to the grantor’s heirs at the end of the term. In most cases, a fee simple determinable is followed by the possibility of reverter. An executory interest does not imply the possibility of reverter in the case of a fee simple determinable pursuant to an executory interest.