Can a Life Tenancy Be Revoked due to Acts of Waste, Not Paying Taxes?
Full Question:
Answer:
While it is possible to rescind a deed for fraud, incapacity, duress, undue influence, material breach in performance of a promise, or mistake, among other grounds, it is difficult to undo a deed and the typical remedy for waste committed by a life tenant is to bring an action for damages. The life tenant, cannot injure or commit waste to the real property to the detriment of the interests of the remaindermen. A life tenant is subject to liability for an unreasonable or improper use, abuse, mismanagement, or omission of duty regarding real estate which results in its substantial injury, including lasting damage to the remainder or depreciation in its value. Thus, a life tenant has an obligation to preserve the value of the land for those with subsequent or remainder interests.
Rescission is the name for the remedy that terminates the contractual duties of both parties, while reformation is the name for the remedy that allows courts to change the substance of a contract to correct inequities that were suffered. In order to have a rescission, both parties to the contract must be placed in the position they occupied before the contract was made. Courts have held that a party may rescind a contract for fraud, incapacity, duress, undue influence, material breach in performance of a promise, or mistake, among other grounds.
