LLB220 Study Guide - Final Guide: Testator, Inter Vivos, Life Estate
CONDITIONAL INTERESTS AND
PERPETUITIES
1. Absolute versus conditional
interests
2. Vested versus contingent interests
We will look at today:
- Determinable and conditional
interests
- Void conditions
- Vested and contingent interests
- The rule against perpetuities
Determinable and conditional interest
- Determinable interest
- Interest defeasible by a condition
subsequent
- Interest subject to a condition
precedent
Determinable
- Words like ‘while, during, until,
for so long as’
- E.g. If Tony conveys land to
Martha as follows: “To Martha in
fee simple as long as the land is
used for residential purposes”
- What happens if the land ceases to
be used for residential purposes?
- What interest (if any) is retained by
Tony (the grantor)?
Interests defeasible by a condition
subsequent
- Words like ‘provided that, on
condition that, but if’
- E.g.: If Tony conveys land to
Martha as follows: “To Martha in
fee simple provided that the land is
never zoned for commercial
purposes”
- What happens if the land is rezoned
for commercial purposes?
- What interest (if any) is retained by
Tony (the grantor)?
Interests subject to a condition precedent
- Same as for condition subsequent
(words like ‘on condition that’,
‘but if’, ‘once’, ‘provided that’)
- BUT condition must be met before
grant is made
- E.g.: If Tony conveys land to
Martha as follows: “To Martha in
fee simple provided that she
graduate from University”
- What if Martha never graduates
from university?
When is a condition void?
Uncertainty: See Re Lichtenstein [1986] 2
NZLR 392
Repugnance to interest
granted/restraint on alienation: See
Bondi Beach Astra Retirement Village v
Gora [2011] NSWCA 396
Contrary to public policy Zalpetal v
Wright [1957] Tas SR 211
Property given to de facto partner: “On her
own terms, that she would stick to me and
behave herself”
Vested and contingent interests and the
rule against perpetuities
An interest is vested if:
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Document Summary
Interests defeasible by a condition subsequent: absolute versus conditional. Words like provided that, on interests condition that, but if": vested versus contingent interests. Words like while, during, until, for so long as". Martha as follows: to martha in fee simple as long as the land is used for residential purposes . Martha as follows: to martha in fee simple provided that the land is never zoned for commercial purposes . Same as for condition subsequent (words like on condition that", But condition must be met before grant is made. Martha as follows: to martha in fee simple provided that she graduate from university . Property given to de facto partner: on her own terms, that she would stick to me and behave herself . What interest (if any) is retained by. Vested and contingent interests and the rule against perpetuities. The identity of the holder is known.
