Executory interest

Executory interest

An Executory Interest is a future interest, held by a third party transferee (i.e. someone other than the grantee), which either cuts off another's interest or begins after the natural termination of a preceding estate. It differs from a remainder.

Two types of executory interests

There are two different types of executory interests: shifting and springing.

hifting executory interest

A shifting executory interest always follows a defeasible fee and cuts short someone other than the grantor. For example, if O conveys property “To A and her heirs, but if B returns from Canada sometime next year, to B and his heirs”; here, B has a shifting executory interest, and A has a fee simple subject to this shifting executory interest.

pringing executory interest

A springing executory interest cuts short the grantor of the property. For example, if O conveys property “To A, if and when he marries”; here, A has a springing executory interest, and O has a fee simple subject to this springing executory interest.

References

* Black's Law Dictionary

ee also

* Executory contract


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Look at other dictionaries:

  • executory interest — see interest 1 Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. executory interest …   Law dictionary

  • executory interest — noun An third party interest in an estate in land created by the conditions of a grant wherein the grantor gives the land to a second party, but with said land going to a third party upon the occurrence of a condition; an interest created subject …   Wiktionary

  • executory interest — noun : an interest that takes effect through an executory limitation …   Useful english dictionary

  • springing executory interest — noun An interest in an estate in land created by the conditions of a grant wherein the grantor cuts short the grantors own interest in the property in favor of the grantee, contingent upon the occurrence of a specific condition. Example: Joe… …   Wiktionary

  • shifting executory interest — noun A third party interest in an estate in land created by the conditions of a grant wherein the grantor gives the land to a second party, but with the occurrence of a condition divesting the second party of the land in favor of the third party …   Wiktionary

  • interest — in·ter·est / in trəst; in tə rəst, ˌrest/ n [probably alteration of earlier interesse, from Anglo French, from Medieval Latin, from Latin, to be between, make a difference, concern, from inter between, among + esse to be] 1: a right, title, claim …   Law dictionary

  • executory limitation — n: a limitation that creates an executory interest a fee simple subject to an executory limitation see also executory interest at interest Merriam Webster’s Dictionary of Law. Merriam Webster …   Law dictionary

  • executory — ex·ec·u·to·ry /ig ze kyə ˌtōr ē/ adj: designed or of such a nature as to be performed in the future or to take effect on a future contingency cancellation of the executory portion of the contract J. J. White and R. S. Summers compare contingent… …   Law dictionary

  • fee simple subject to executory interest — noun A defeasible fee created with clear durational language expressing a condition (e.g. so long as , until , while ) which causes ownership of a property to revest in a third party identified by the grantor if that condition comes about. Syn:… …   Wiktionary

  • Executory contract — An executory contract is a contract in which a party has material unperformed obligations. Although material, an obligation to pay money does not usually make a contract executory. An obligation is material if a breach of contract would result… …   Wikipedia

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