ANSWERS TO MULTISTATE-STYLE EXAM QUESTIONS

ANSWERS TO MULTISTATE-STYLE EXAM QUESTIONS

1. B  A reversion is a future interest of the grantor which will automatically follow a prior estate which will inevitably terminate (e.g., a life estate; a leasehold). A possibility of reverter is a future interest of the grantor which will automatically follow a prior estate which will not inevitably terminate (e.g., fee simple determinable). A right of re-entry is a future interest of the grantor which does not revert automatically, but which requires some act by the grantor in order for him/her to re-acquire a possessory right, and which follows an estate which will not inevitably terminate. Since the property was conveyed only for so long as it is used as a home for the elderly, it will automatically revert to the grantor if that use is ever discontinued. It is, thus, either a reversion or a possibility of reverter. Since it is not certain that it ever will cease to be used as a home for the elderly, however, the prior estate is not one which will inevitably terminate. For this reason, the grantor’s interest is a possibility of reverter. B is, therefore, correct, and A is, therefore, incorrect. C is incorrect because if the property ever ceases to be used as a home for the elderly, no act of the grantor is necessary to make his interest possessory. D is incorrect because the Rule against Perpetuities does not apply to a grantor’s interest.

2. B  A remainder is a future interest in a grantee which will automatically become possessory following a prior estate which will terminate inevitably (e.g., a life estate). An executory interest is a future interest in a grantee which will not automatically become possessory and which follows a prior estate which will not terminate inevitably. Since the interest of Senior Life will only become possessory if racial discrimination is practiced by Senior Center, and since this may never happen, the interest of Senior Life is best classified as a executory interest. A and C are, therefore, incorrect. Under the Rule Against Perpetuities, no interest is good unless it must vest, if at all, during a period measured by a life or lives in being plus 21 years. Since Senior Center might begin practicing racial discrimination after the period proscribed by the Rule, the interest of Senior Life seems to violate the Rule. Because of an exception, however, the Rule Against Perpetuities does not apply to the interest of a charity which follows the interest of a charity. Since Senior Center and Senior Life are both charitable institutions, the Rule Against Perpetuities does not apply, and the interest of Senior Life is valid. B is, therefore, correct, and D is, therefore, incorrect.

3. B  Under Statute I (a pure notice type statute), Parton’s interest would be superior to Bessie’s because while Bessie’s interest was unrecorded, he purchased for value and without notice of the prior conveyance. Under Statute II (a race-notice type statute) Bessie’s interest would be superior even though Parton purchased for value and in good faith (i.e., without notice of the prior conveyance), because Parton’s interest was not recorded before Bessie’s.

4. A  Under this recording statute (a pure race type statute), the first interest recorded is superior. Bessie’s interest derives from the deed which was recorded on April 3. Since Parton’s deed was not recorded until April 5, Bessie’s interest had priority.

B is incorrect because under a race type statute, all that matters is the order in which the interests were recorded. C is incorrect because Bessie’s interest derives from the deed which was recorded on April 3. The general warranty deed by which Marcel conveyed to Parton will determine Parton’s rights against Marcel. But D is incorrect because the recording statute determines the rights of Marcel and Bessie as against each other.