ND Real Estate study materials
ND Real Estate study resources

The Life Tenant, the Wind Lease, and the Neighbor's Grain Trucks

ND Real Estate · Put your knowledge to work in context.

All case studies

The Life Tenant, the Wind Lease, and the Neighbor's Grain Trucks

Harlan owned Riverbend Farm, 160 acres in Traill County. In 2009 he conveyed it "to my son Drew for life, and upon Drew's death to Drew's children, per stirpes." Harlan died in 2011. Drew is now 62. He wants to sign (a) a 12-year cash-rent lease of the tillable acres to a sugar beet cooperative and (b) a 25-year wind turbine easement covering the south 40, which would include 60-foot gravel access roads and a permanent concrete pad. Drew's two adult children object. Separately, a neighbor has hauled loaded grain trucks across a dirt track on the south 40 every fall since 2003 to reach the county road. Harlan never objected and never gave permission. In 2019 Drew chained a gate across the track; the neighbor cut the chain and kept hauling. Drew now wants the use stopped.

1. What interest does Drew hold, and can he commit the property for 12 and 25 years without his children's consent?

Read the worked answer

Drew holds a life estate measured by his own life; his children hold the remainder. A life tenant may use the land and may lease it, but he cannot convey an interest that outlives him. The 12-year lease is not void - it is enforceable against the life estate only. If Drew dies in year five, the co-op's lease ends and it becomes a holdover tenant at sufferance as to the remaindermen, who can evict or re-let.

The 25-year easement is a different problem. It conveys an interest in the land coupled with permanent improvements (gravel roads, a concrete pad) that will outlast Drew's estate and reduce the value of what the children eventually receive. That is the classic test for waste, and the remaindermen can seek an injunction or damages. The developer also takes subject to the children's future fee, so its lender and title insurer will balk.

Practical path: obtain written consent from both children (recorded), or bring a court action to authorize the transaction. Drew should not sign either document on his own signature.

2. Analyze the neighbor's claim to the dirt track. If a court finds an easement, what is its scope?

Read the worked answer

A prescriptive easement requires use that is open, notorious, continuous, and adverse (under a claim of right) for North Dakota's 20-year period - the same period used for adverse possession. Permission defeats the claim; the neighbor must show he was not simply a tolerated guest.

The weak link is hostility. Harlan never objected, and use of a farm track between neighbors is often treated as a neighborly accommodation, which is not adverse. The neighbor's strongest counter is that he was never asked and never treated the use as a favor.

The timeline matters. Counting from 2003, the period would have closed in 2023 - four years after Drew chained the gate. An effective, actual interruption before the period expires restarts the clock; Drew's chain is his best evidence, but the neighbor cut it and kept hauling, so a court could find the interruption was futile. This is genuinely fact-dependent, and Drew should not assume the gate settled it. If the neighbor prevails, the easement is limited to the historic use: seasonal grain hauling over a dirt track. It would not authorize paving, year-round commercial traffic, or use by others, and Drew could seek contribution for maintenance.

3. If Drew lists and sells his interest, what does a buyer actually receive, and what should the listing say?

Read the worked answer

The buyer receives a life estate measured by Drew's life - not a fee. On Drew's death the property passes to the children, and the buyer is out. A lender will treat the collateral as terminable at an unpredictable date, so financing will be scarce and expensive, and title insurance will insure only during Drew's lifetime.

The listing must state that the interest is a life estate, name the remaindermen, describe the 2009 deed, and disclose the pending turbine and neighbor disputes. Marketing it as a farm for sale would be a misrepresentation. Expect a steep discount reflecting Drew's age and the absence of any residual value to the buyer. A workable structure is a sale of Drew's life estate combined with a simultaneous purchase of the remainder from the children, so the buyer ends up with a fee - but that requires all three sellers to agree and sign.