CHAPTER 5

FUTURE INTERESTS

I. INTRODUCTION

A. Future estates:  The estates discussed in the previous chapter are ones which are possessory, or present. The common law also recognizes, however, a number of estates that are non-possessory. Since these estates may or will become possessory in the future, they are commonly referred to as future estates.

1. Estate exists in present even though not now possessory:  These future estates, even though they are not possessory, nonetheless exist in the present. For instance, suppose A conveys Blackacre “to B for life, remainder in fee simple to C and his heirs”. At the time of conveyance, C has a remainder in fee simple; it is only the aspect of possession that is future.

B.  Five estates:  There are five kinds of future estates, each of which will be discussed in this chapter:

[1] The possibility of reverter, which follows the fee simple determinable (infra);

[2] The right of entry, which follows an interest (fee simple or other) subject to a condition subsequent (infra, p. 70);

[3] The reversion, which is left in a grantor after he makes a conveyance of a lesser estate(infra, p. 71);

[4] The remainder, which is a future interest in one other than the grantor, and which takes effect after the termination of an earlier estate (infra, p. 72); and

[5] The executory interest, which like the remainder is a future interest in one other than the grantor, but which generally takes effect by cutting short a prior interest (infra, p. 88).

II. THE POSSIBILITY OF REVERTER AND THE RIGHT OF ENTRY

A. Reversionary interests:  We have seen that under the Anglo-American system of estates, ownership of a given parcel of land may be split among a present interest and one or more future interests. One way such a split can occur is if the owner of a present estate (either a possessory fee simple absolute or some lesser present interest, such as a life estate) transfers possession, but not the full interest he owns. Where this happens, the grantor is left with one of several kinds of reversionary interests: (1) the possibility of reverter; (2) the right of entry; and (3) the reversion.