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Question 1

What is the name of our current system of land ownership?

Answer 1

Allodial System

Question 2

Name the 4 types of Free-Hold Estates

Answer 2

1. Fee-simple, 2. Defeasible Fee 3. Fee Tail 4. Life Estate

Question 3

Fee-Simple absolute estate

Answer 3

Most comprehensive ownership known to law.

Question 4

Defeasible Fee estate

Answer 4

(also called base fee or qualified fee or fee simple determinable) A fee that can be divested (taken) from the fee holder at some future time upon the occurrence (or non occurrence) of a specified event.

Question 5

Explain Condition Precedent (or Fee Simple Subject to a Special limitation) in a defeasible fee estate

Answer 5

automatic termination upon happening of specified event. Example: A inherits ownership of B’s land so long as the land is always used for church purposes. If land is no longer used for church purposes, A automatically loses interest in the land and automatically returns to grantor (or grantor’s successor).

Question 6

Explain Condition Subsequent

Answer 6

A fee simple subject to a condition gives grantor (or grantor’s successors) the power to terminate the grantee’s estate upon the happening of a specified event. BUT, unlike condition precedent, this does NOT divest the grantee of her interest automatically. The grantor must exercise the right through legal proceeding called a Suit to Quiet Title.

Question 7

Executory Limitation

Answer 7

fee simple passes automatically to some other person upon the happening of a specified event.

Question 8

Fee Tail

Answer 8

ABOLISHED OR REPLACED IN STATES. Could only be created by a conveyance reading exactly “to X and the heirs of X’s body.” X could not convey the land, but the estate would continue so long as there were any legit heirs of X.

Question 9

Life Estate

Answer 9

conveying an estate to “Y for as long as Y shall live”. Upon Y’s death, property reverts to X or X’s successor in interest. Y may not make unreasonable use of the property or do anything which would decease the value. Feudal Law.

Question 10

Legal Life Estate types

Answer 10

1. Dower 2. Curtesy 3. Community Property

Question 11

Dower

Answer 11

life interest in real estate given to wife upon her husband’s death. Abolished in Colo

Question 12

Curtesy

Answer 12

life estate given to husband upon wife’s death. Abolished in Colo

Question 13

Community Property

Answer 13

Colorado law today. property acquired during marriage is considered to be equally owned by both spouses. Spouses cannot separately convey their community property interest (because they cannot partition the property). Either spouse can will his or her half of the community property to third parties.

Question 14

Escheat

Answer 14

right of gov’t to acquire property owned by a person who dies without leaving a will or heirs

Question 15

Nonconforming Use

Answer 15

If a lot or improvement does not conform to zoning use because it existed before the enactment of zoning ordinance then the use may be permitted to stand.

Question 16

Conditional Use permit

Answer 16

Allows a city of county to consider special uses which may be essential or desirable to a particular community but which are not allowed within a zoning district (school, church, parking lot…)

Question 17

Variance

Answer 17

If an owner is deprived of reasonable use of their property by the zoning enactment a variance may allow a change in the use of their property to use that is otherwise strictly prohibited by the exiting zoning. The owner must demonstrate the unique circumstances that make the variance necessary. ex: setbacks, height requirements.

Question 18

Spot Zoning

Answer 18

a spot within a large zone which has different zoning. Usually for political reasons such as granting one bar the right to sell liquor within a dry town.

Question 19

Deed Restrictions on Ownership

Answer 19

limitation on land imposed by a grantor, such as requiring all structures built on the land be of brick veneer.

Question 20

Riparian Rights

Answer 20

unrestricted right to use water provided use doesn’t interrupt flow or contaminate. also owns land under the water to the exact center.

Question 21

Littoral Rights

Answer 21

own adjacent to the water only up to the mean “average” high-water mark.

Question 22

Accretion

Answer 22

increase in land due to soil deposit (alluvion)

Question 23

Reliction

Answer 23

new land acquired when water recedes

Question 24

Erosion

Answer 24

gradual wearing away of land caused by flowing water

Question 25

Avulsion

Answer 25

sudden removal of soil (land) by act of nature (such as landslide)

Question 26

Doctrine of Prior Appropriation

Answer 26

State controls nearly all water. Used in scarce areas. To secure water rights, person must show beneficial use for the water

Question 27

PUD (Planned Unit Development)

Answer 27

consists of owners of versus types of real estate. all or some may either hold common ownership in land or facilities or are obligated for payment of expenses other than for or in addition to the individually owned land underneath each owner’s residence. Must be a recorded declaration that sets for the the conditions and obligations assoc. with the ownership of real property located within the PUD or Common Interest Community.

Question 28

Can a Condominium project in Colorado consist of single family lots?

Answer 28

Yes

Question 29

Common Law Estates - Name 4

Answer 29

1. Estate for Years (fixed time period)
2. Estate from Period to Period - no fixed termination date (ex: month-to-month rental)
3. Estate/Tenancy at Will (tenancy at will): terminable at will of either party upon giving proper notice.
4. Estate/Tenancy at Sufferance - arises when tenant wrongfully holds over after expiration of lease.

Question 30

Estate/Tenancy for Years

Answer 30

lease of a fixed time period (can be for days, years… any time period)

Question 31

Estate/Periodic Tenancy

Answer 31

no fixed termination date (ex: month-to-month rental)

Question 32

Estate/Tenancy at Will

Answer 32

terminable at will of either party upon giving proper notice.

Question 33

Estate/Tenancy at Sufferance

Answer 33

arises when tenant wrongfully holds over after expiration of lease. Landlord can evict or choose to accept tenant for similar term and rent amount.

Question 34

Ground Lease

Answer 34

parcel of unimproved land is let for usually a long period of time. Lease provides that a building shall be erected on the land by the tenant and provision for the disposition of the building at the end of the lease (usually title goes to land owner upon payment of all, part or none of the value of the building, depending on agreement). Solves financing problem for investors, reducing costs during building, as well as tax advantages with rent as a deductible business cost.

Question 35

Step-up Lease or Graduated Lease (type of Ground Lease)

Answer 35

Provide for increases in value to be matched by increased ground rent at suitable intervals. Can be set by fixed increases at pre-stated intervals OR can be based on property value determined by arbitration committee appraised at regular intervals.

Question 36

Percentage Lease

Answer 36

used for commercial establishments, fixed minims rent plus percentage of tenant’s gross sales (require detailed contracts and thorough knowledge and expert judgement).

Question 37

Sky Lease

Answer 37

lease of air space (Chicago Merchandise Mart over the railroad). Colo has had only a few such leases.

Question 38

Net Lease

Answer 38

tenant pays all or substantial part of the cost of pertain and maintenance. Various versions: 100% net/net” or “net - excepting for taxes” or “triple-net” = rent, expenses, debt/mortgage.

Question 39

Gross Lease

Answer 39

owner pays their own expenses. Tenant pays only set rent amount. (such as monthly apt lease)

Question 40

Farm Lease

Answer 40

Same principles as other leases. Ordinarily each locality has and uses a farm lease that meets needs/conditions of the community.

Question 41

12 Conditions of a Lease (DPCDOCLSSDRA)

Answer 41

1. Date 2. Parties 3. Consideration 4. Description of Property 5. Operative Words (clearly state the extent and nature of interest being conveyed to the tenant, including duration or term of the lease and lessee’s rights) 5. Conditions and exceptions 6. Lessor’s and Lesee’s Covenants 7. Signatures 8. Seal (not required) 9. Delivery 10. Recording (not required but recommended) 11. Acknowledgment (not required but recommended).

other useful inclusions: cost of living adjustment, security deposit clause…

Question 42

Is notice required to terminate a least on the last day of the term?

Answer 42

No

Question 43

Is written notice required to terminate a periodic tenancy?

Answer 43

Yes, within a specified time before the end of the period.

Question 44

How much notice is required to terminate a year to year tenancy? 6 month tenancy? Monthly tenancy?

Answer 44

3 months. 1 month. 10 days. Notice must be delivered to property.

Question 45

Can an eviction take place in as few as 3 days in Colo?

Answer 45

Yes - expedited eviction fo undesirable and dangerous persons. persons who have committed acts in statute CRS 12… drugs, violence, felonies, endangerment of persons or property. Specifically does NOT include victims of domestic violence or persons who could not reasonably have known of the substantial acts.

Question 46

Constructive Eviction

Answer 46

premises have been allowed to become uninhabitable by landlord (such as no heat or other facilities)

Question 47

Duties & Liabilities of the Parties to a Lease

Answer 47

1. Lawful Use
2. Advertise
3. Covenant of Habitability (not provided for by Colo law) - req’s landlord to keep property warm and habitable unless each unit has it’s own facilities.
4. Repair or Premises
5. No Right to Enter
6. Liabliity for Injury
7. Common Areas
8. Sublet (unless lease prohibits
9. Default - many lease agreements provide that upon default of the tenant the landlord may declare the term of lease ended or b re-let the premises apply the rent from the new tenant’s lease to the old lease with old tenant being responsible for any balance due.

Question 48

Fixtures and Trade Fixtures in a lease

Answer 48

A FIXTURE becomes so connected that it becomes a part of the real property (ex: ceiling fan attached to apartment by tenant technically must stay with the property). A TRADE FIXTURE: is installed by a tenant to carry on a trade or business and remains property of the tenant, not the owner.