2 - Ch 48

Question 1

Land

Answer 1

soil and all things of permanent nature affixed to the ground. Also includes water and minerals

Question 2

easements

Answer 2

right to use a portion of another’s land. Benefited land is dominant tenement, and land that is subject to easement is the subservient tenement

creation of easement
-easement by agreement: transferred by deed
-easement by implication: hen one conveys a portion of land that has been used as a dominant estate in relation to the part retained. Grantee’s right to use land retrained is known as a way of necessity
-easement by prescription: acquired by adverse use or contrary to landowner’s use

termination of easement: revocation must be agreed to by the easement owner. May be lost by abandonment

Question 3

profits

Answer 3

right to take part of the soil, minerals or produce from the land that belongs to another

Question 4

licenses

Answer 4

personal, revocable privilege to perform an act(s) on the property of another

Question 5

liens

Answer 5

arise from voluntary act of property owner, typically as security for debt or service
may also arise involuntarily as in tax liens, judgement liens, and mechanic’s liens

Question 6

fixtures

Answer 6

personal property attached to earth or placed in a building such that it is considered part of the real property

tests of a fixture:
-annexation: cannot be removed without damaging or destroying the property
-adaption: personal property especially adapted or suited to the use made of the building may constitute a fixture
intent: in the absence of proof of intent, courts resort to the nature of the property, method of attachment and circumstances

moveable machinery and equipment: not fixtures although removal involves disconnecting wires and water pipes or unbolting them from the floor
trade fixtures: equipment tenant attaches to a rented building

Question 7

fee simple estate

Answer 7

absolute and entire interests, lasts forever

alienable or transferable during life, alienable by will, passes to heirs if not transferred by will, subject to rights of surviving spose, and can be used to satisfy owner’s debts

fee simple defeasible gives grantee all rights subject to complying with the restrictions

Question 8

life estate

Answer 8

lasts only during the life of a person (ordinarily the owner)

Question 9

future interests

Answer 9

remained interest: interest that follows a life estate

possibility of reverter: interest after conveying land subject to a condition or provision that may cause the grantee’s interest to be forfeited

Question 10

common law rule

Answer 10

trespassers: no duty to warn of dangers. Duty to refrain from causing intentional harm once presence is known. Small children protected under the attractive nuisance doctrine

licensees: on premises with permission. Duty to warn of non-obvious dangers known to the owner

invitees: owner owes duty to take reasonable steps to discover danger and either warn the invitee or fix it. If owner fails to take the degree of care required and an invitee is harmed, the owner is liable

Question 11

multiple ownership

Answer 11

forms are the same as for personal property

Question 12

condominiums

Answer 12

control and expenses: may be equal or based on value. Equal rights to common areas

collection of expenses from unit owner: owners’ association generally has a right to a lien against owner’s unit for any amounts due

tort liability: generally liability for injuries of third parties in common areas falls on the condominium association, not the individual owners

cooperatives distinguished: an apartment cooperative is typically a corporation that owns an apartment complex. “ownership” interest of apartment occupants are as stockholders

Question 13

deed

Answer 13

an instrument by which a grantor transfers an interest in land to a grantee

Question 14

classification of deeds

Answer 14

quitclaim deed: transfers whatever interest, if any, grantor has in the property
warranty deed: transfers a guaranteed, specific interest

Question 15

execution of deeds

Answer 15

must be signed or sealed by the grantor who has legal capacity to execute it

Question 16

delivery and acceptance of deeds

Answer 16

no effect and title does not pass until the deed has been delivered, which is a matter of intent

Question 17

recording of deeds

Answer 17

not required; provides notice to the public that the grantee is the present owner

race statutes: first party to record the deed has title

notice statues: last good-faith or bona fide purchaser (BFP) takes title

notice-race or race-notice statues: First BFP to record deed has title

grantee cannot claim protection by virtue or recording deed when claim is made by one with superior title, grantee has notice or knowledge of adverse claim, when title was acquired person acting under a hostile claim in possession, grantee received land as a gift, or transfer was fraudulent

Question 18

additional protection of buyers

Answer 18

buyer is protected by procuring title insurance or an abstract of title, a summarized report of property title and ownership

Question 19

Grantor’s warranties

Answer 19

warranties of title: covenant of seisin (grantor owns the estate conveyed), of right to convey, against encumbrances, of quiet enjoyment, and of further assurances grantor will execute any additional documents required

fitness for use: implied warranty that house and foundation are fit to use

grantee may agree to do or not do certain acts. Binding contract and grantor may recover from grantee for breach

right to enforce the covenant also runs with the land owned by the grantor to whom the promise is made

Question 20

eminent domain

Answer 20

property taken from private owner for a public purpose

issues: if there is a taking of property. and if the property was taken for public use

Question 21

adverse possession

Answer 21

title acquired by continuously possessing land in a viable, notorious, exclusive, hostile manner for a statutory period (typically 10-20)

Question 22

characteristics of a mortgage

Answer 22

termination of mortgagee’s interest on performance , right of the mortgage to enforce the mortgage on default, and mortgagor’s right to redeem the property

Question 23

property subject to mortgage

Answer 23

property that may be sold may be mortgaged. The mortgager need not have complete ownership in the property

Question 24

form of mortgage

Answer 24

must be in writing to satisfy statute of frauds

Question 25

creative forms of financing

Answer 25

multiple options, including adjustable rate mortgage (ARM) or seller financing

a reverse mortgage allows those who have paid off their mortgage to get value out over time

Question 26

recording or filing of mortgage

Answer 26

binding between parties even if not recorded

Question 27

responsibilities of the parties

Answer 27

taxes, assessments, and insurance: rests with mortgagor. Absent agreement, neither party under a duty to insure the property

impairment or security: mortgagor is liable for any damages caused by mortgagor that reduces property value. Both mortgagor and mortgagee have a right of action against a third part who wrongfully injures the property

Question 28

transfer of interest

Answer 28

transfer by mortgagor: may be done without mortgagee consent. does not affect liability unless the mortgagee agrees to substitute the mortgagor

liability of the parties in a transfer by a mortgagor
-assumption: mortgagor remains liable, transferee is liable and property is subject to foreclosure if payments are not made

transfer by mortgagee: a mortgage may be transferred or assigned by the mortgagee

Question 29

rights of mortgagee after default

Answer 29

mortgagee may enforce the mortgage by foreclosure, resulting in the sale of the property.

stay of foreclosure: in some cases authorized by statute to prevent undue hardship

redemption: mortgagor has the right to pay off the mortgage lien and all foreclosure expenses and thus acquire title to property

Question 30

real land

Answer 30

land and all rights in land

Question 31

dominant tenement

Answer 31

land that is benefited by an easement

Question 32

servient tenement

Answer 32

land that is subject to an easement

Question 33

way of necessity

Answer 33

a grantee’s right to use land retained by the grantor for going to and from the conveyed land

Question 34

estoppel

Answer 34

the principle by which a person is barred from pursuing a certain court of action or of disputing the truth of certain matters

Question 35

prescription

Answer 35

the acquisition of a right to use the land of another, as an easement, through the making of hostile, visible, and notorious use of the land, continuing for the period specified by the local law

Question 36

tax lien

Answer 36

a lien on property by a government agency for nonpayment of taxes