Restatement (Third) of Property · Section § 6-2
This section addresses the concept of future interests in property, defining the ways in which a future interest can be created, transferred, and extinguished.
Source: Restatement Restatement (Third) of Property § § 6-2
A future interest can be created in a property when the owner designates a separate interest that would become possessory at some future time, subject to specific conditions.
This section clarifies how future interests in property are established. It details the rules surrounding the conditions under which these interests can arise and suggests how they can be transferred or terminated.
Identifies the various types of future interests, including remainders and executory interests.
Explains the conditions that affect the validity and transfer of future interests.
Illustration 1
If a property owner conveys land 'to A for life, then to B,' A has a present interest while B holds a future interest.
Illustration 2
An example of an executory interest may involve conveying property 'to A unless A does not graduate from law school, in which case to B.'
This case applied § 6-2 by evaluating the enforceability of a remainder interest created under a condition precedent.
Understanding § 6-2 is crucial for property law practitioners and students as it influences real estate transactions, estate planning, and the drafting of wills. Ensuring valid future interests helps avoid disputes and misunderstandings regarding property rights.