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In Property Law and Real Estate , a future interest is an interest in property that does not include the right to present possession or enjoyment of the property. Thus, for example, if T grants Blackacre ''to A for life, then to B'', B has a future interest in Blackacre, even though A has the present possesory interest. Future interests can be created by a Defeasible Estate .

There are six kinds of future interests recognized at Common Law : three in the transferor and three in the transferee.


FUTURE INTERESTS IN THE TRANSFEROR

  • Reversion

  • Possibility Of Reverter - The transferror of a fee simple determinable retains a possibility of reverter, meaning that the transferror will ''automatically'' regain title to the land if the possessor violates the associated condition.

  • Right Of Entry (or power of termination) - The transferror of a fee simple subject to a condition subsequent retains a right of re-entry. If the possessor violates the condition, the transferror, or his/her heirs, may assert that right.


''See'' Jesse Dukeminier & James E. Krier, Property 270-272 (5th ed. 2002).


FUTURE INTERESTS IN A TRANSFEREE

  • Vested Remainder - A vested remainder is created when it is given to an ascertainable AND is not subject to a condition precedent. In an ambiguous situation, the law tends to prefer vested remainders over contingent remainders.

  • Contingent Remainder - A contingent remainder is created by language which allows the person with the interest to obtain title if a stated event has happened (a condition precedent) OR if the interest is created in an unascertainable person. E.g. "To A for life, then to B if B has married C;" "To A for life, then to A's children" - If A has no children at the time of the writing.

  • Executory Interest - A future interest is executory if it either divests/cuts short the interest of another (shifting executory interest) OR if it divests the transferror at some later time (springing executory interest.)


''See'' Jesse Dukeminier & James E. Krier, Property 273-274, 278 (5th ed. 2002).