Conveyances and Types of Property Interests under Property Law
📘 I. Conveyances in Property Law
🔹 What is a Conveyance?
Conveyance is the act of transferring legal title of real property from one person (the grantor) to another (the grantee). It can be voluntary (through sale, gift, or lease) or involuntary (through court order, foreclosure, eminent domain).
🔹 Methods of Conveyance
Deed – The most common form of conveyance of legal title.
Will – Transfers property upon the death of the owner.
Intestate Succession – Property passes according to statutory inheritance laws if no will exists.
Trusts – Equitable title passes to a beneficiary, while legal title is held by a trustee.
Adverse Possession – Involuntary conveyance through possession over time.
🏠 II. Types of Property Interests
Property interests can be broadly categorized into possessory and non-possessory interests, and then into legal and equitable interests.
A. Freehold Estates (Possessory Interests)
1. Fee Simple Absolute
Most complete ownership.
Duration: Indefinite.
Freely transferable, inheritable.
Case Law:
Fee Simple in United States v. Craft, 535 U.S. 274 (2002) – Defined property rights under federal tax lien law, confirming fee simple as a complete ownership interest.
2. Fee Simple Determinable
Automatically ends upon occurrence of a specified event.
Language: “so long as,” “until,” “while”.
Example Case:
Mahrenholz v. County Board of School Trustees, 93 Ill. App. 3d 366 (1981) – Determined whether language in a deed created a fee simple determinable or a fee simple subject to a condition subsequent.
3. Fee Simple Subject to Condition Subsequent
Does not automatically terminate; grantor must take action to reclaim.
4. Life Estate
Ownership for the duration of a life.
Reverts to grantor or remainderman after death.
Case Law:
White v. Brown, 559 S.W.2d 938 (Tenn. 1977) – Interpreted a will to decide whether a life estate or fee simple was granted.
B. Leasehold Estates
Term of Years – Fixed period.
Periodic Tenancy – Automatically renews.
Tenancy at Will – Ends at any time by either party.
Tenancy at Sufferance – Tenant wrongfully holds over.
Relevant Case:
Kelo v. City of New London, 545 U.S. 469 (2005) – While not about leaseholds, it discusses government taking leasehold interests for public use, which relates to possessory leasehold rights.
👥 III. Concurrent Interests (Co-Ownership)
1. Tenancy in Common
Each owner holds an individual, undivided interest.
Freely transferable.
No right of survivorship.
2. Joint Tenancy
Includes right of survivorship.
Requires four unities: time, title, interest, possession.
Case Law:
Riddle v. Harmon, 102 Cal. App. 3d 524 (1980) – One joint tenant severed the joint tenancy unilaterally, creating a tenancy in common.
3. Tenancy by the Entirety
Joint tenancy for married couples.
Cannot be severed unilaterally.
📜 IV. Future Interests
1. Reversion – Future interest retained by grantor when a lesser estate is conveyed.
2. Remainder – Future interest given to third party.
Vested Remainder – Guaranteed to become possessory.
Contingent Remainder – Depends on condition or unascertained person.
3. Executory Interest – Cuts off another’s interest prematurely.
Case Law:
Gray v. Gray, 199 Ga. 160 (1945) – Dealt with contingent and vested remainders and interpretation of testamentary documents.
🚫 V. Non-Possessory Interests
1. Easements
Right to use another’s land.
Can be appurtenant (benefits land) or in gross (benefits person).
Case Law:
Ellenburg v. Shepherd, 314 S.C. 137 (1993) – Easement by implication and necessity discussed.
2. Profits à prendre
Right to enter land and extract natural resources.
3. Licenses
Revocable right to use land temporarily.
4. Covenants and Equitable Servitudes
Contractual promises related to land use.
Key Case:
Tulk v. Moxhay, 41 Eng. Rep. 1143 (Ch. 1848) – Established that equitable servitudes run with the land if notice exists.
🧾 VI. Recording and Notice
Recording statutes protect purchasers:
Race – First to record wins.
Notice – BFP without notice wins.
Race-Notice – BFP who records first wins.
Case Law:
Messersmith v. Smith, 60 N.W.2d 276 (N.D. 1953) – Illustrated problems with improperly recorded deeds and race-notice jurisdiction.
⚖️ VII. Adverse Possession
Allows someone to claim title if possession is:
Actual
Open and notorious
Exclusive
Hostile
Continuous for statutory period
Classic Case:
Howard v. Kunto, 477 P.2d 210 (Wash. Ct. App. 1970) – Continuous summer use of property satisfied adverse possession.
Summary Table: Types of Property Interests
| Type | Duration | Transferable? | Key Case Example |
|---|---|---|---|
| Fee Simple Absolute | Indefinite | Yes | Craft (2002) |
| Fee Simple Determinable | Until event | Yes | Mahrenholz (1981) |
| Fee Simple Subject to CS | Conditional | Yes | |
| Life Estate | For life | Sometimes | White v. Brown (1977) |
| Leasehold | Fixed or variable | Usually | |
| Joint Tenancy | Life of owners | Yes, severs | Riddle v. Harmon (1980) |
| Remainder (Vested/Contingent) | After life estate | Yes/Depends | Gray v. Gray (1945) |
| Easement | Permanent/term | Sometimes | Ellenburg (1993) |
| Adverse Possession | Statutory period | No (initially) | Howard v. Kunto (1970) |
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