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5. Acceptancea. Bilateral transaction: usually held that giving a gift is a bi-lateral transaction requiring an acceptance on behalf of the donee, but if gift is a beneficial one, the ct. can presume that the donee intended to acceptb. Donee unaware: issue usually arises where the donor gives the property to a 3rdperson to be held until it’s given to the donee, but cts. have generally heard that acceptance is not absolutely necessary and that the gift took effect immediately upon its execution by the donor10
IV. FREEHOLD ESTATESA. Fee Simple Absolute1. Largest estate permitted by law; invests the holder of the fee w/ full possessory rights now and in the future; has an infinite and potentially infinite duration. Holder cansell, divide, devise, or if he/she dies intestate, the heirs inherit it2. Restrictions on use: the holder can’t violate zoning laws, can’t be a nuisance to the adjoining landowner, but other than that free to do anything w/in the law 3. Words needed to create: “to A and his heirs” (necessary only in inter-vivos transfers, but for devises, not necessary to say “and his heirs”)a. Words of limitation: “and his heirs” describethe estatethat is being transferred—fee simple absoluteb. Words of purchase: “to A” describes who(A) is getting the estate4. Inheritance of a Fee Simplea.Heirs: if a person dies intestate, the decedent’s real property descends to his heirs, but no one has heirs until he dies-Classes of kindred usually go: to the first issue, and if no issue, then to the parents, and if no parents, then to collateralsb.Issue: doesn’t refer to children only, but further descendants c.Ancestors: parents; usually take as heirs if decedent leaves no issued.Collaterals: All persons related by blood to the decedent who are neither descendants nor ancestors (i.e.: brothers, sisters, nieces, nephews,cousins, etc.)e.Escheat: if a person died intestate w/o any heirs the property escheats to the state if no next ofkin is locatedB. Defeasible Fees-Fee simple estates of potentially infinite duration that can be terminated by the happening of a specific event 1. Fee Simple determinable (and possibility of reverter)-Fee simple so limited, it will end automatically when a stated event occurs -An estate that automatically terminates on happening of a stated event and goes back to the grantora. Created by the use of durationallanguage: “for so long as”, “until”, “while”, or “during”(i.e.: O conveys land to A for so long as no alcohol is consumed on the premises—this give A a fee simple determinable, and O has a possibility of reverter, b/c if alcohol is consumed, it reverts back to him, but there’s a chance it won’t be, and then A would still have the land and it has the possibility of passing on to A’s successors; A also has the option of conveying his interest to B, and then B would have to follow the same rules)b. Correlative Future Interest in the Grantor—Possibility of Reverter-Since the grantee’s estate may end on the happening of the stated event, there’s a possibility that the land may revert back to the grantor, thus