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Property > Competing Claimants > Flashcards

Competing Claimants Flashcards

0
Q

Adverse Possession Requirements

A
  1. Actual, Open, Notorious, Exclusive occupation
  2. Hostile Intent
  3. For the Statutory Period
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1
Q

How to Analyze Competing Claimants Problems on the MBE

A
  1. Take Claimants in Chronological Order
  2. Establish their Claims to the property - ap; lsc; conv
  3. Take subsequent claimants and see if they can take title away via:
    a. Adverse Possession
    b. Land Sale Contract
    c. Conveyance
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2
Q

Minority Rule to Physical Possession Element of Adverse Possession

A

Occupant pays taxes

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3
Q

How to satisfy the Hostile intent requirement of Adverse possession

A

Possess intent contrary to owners interests.

Claim of Right - claiming property as ones own

Under color of title - mistaken belief of good title

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4
Q

What Destroys Hostile Intent in Adverse Possession

A

Permission
At any time during the adverse possessors claim to property.
Knowledge does not imply permission.

Co-Tenant can gain adverse possession only after ouster.

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5
Q

Authority Split on Encroachment and Hostile intent

A

Majority: Mistaken encroachment will establish hostile intent.

Minority: Must show they would have encroached knowing boundary.

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6
Q

Time element of Hostile Possession

A

continuous for the statutory period.
Common Law period - 20 years.

Continuous is question of fact based on particular circumstances. What is the typical use of the property?

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7
Q

Tacking

A

Requires transfer of interest from one Adverse Possessor to another to Combine possession periods and meet statutory requirement.

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8
Q

Scope of What the Adverse Possessor Obtains

A

That portion of the land actually occupied.
only acquires what true owner actually has.

EXCEPTION -
AP enters land under color of title,
occupies a SIGNIFICANT part of parcel described in flawed deed,
can claim the entire parcel described.

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9
Q

Disability in Adverse Possession

A

Disability suspends tolling of SoL.

Infancy, Insanity, Imprisonment.

SoL run once disability is lifted.

Disability must exist at commencement.

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10
Q

Rights of the Adverse Possessor and the True Owner

A

Owner - evict and sue for damages (rent) until the statute has run.

SOL runs - AP is owner from date of entry.

adverse possessor is the owner as against all other persons except true owner - can have others evicted from the property.

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11
Q

Statute of Frauds

A

writing required to transfer interest in real property.
Must be signed and contain:
Description of the property
Description of the parties
Price
Conditions of price or payment if agreed on.

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12
Q

Exceptions to the Statute of Frauds - list

A

part performance

Equitable and Promissory Estoppel

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13
Q

Doctrine of Part Performance

A

to enforce an oral contract of sale of land
performance must prove the existence of a contract
show some combination of the following:

  1. Payment - all or part
  2. taking possession
  3. making substantial improvements
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14
Q

Equitable and Promissory Estoppel to prove an oral land contract

A

Equitable Estoppel based on an act or representation

Promissory Estoppel based on a promise

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15
Q

Bifurcation of Title

A

land sale contract is formed.
Equitable Title passes to buyer
Legal Title remains with seller until closing then passes.

Majority Approach - Risk of loss follows equitable title - house burns down - buyer is fucked.

Uniform Vendor and Purchaser Risk Act -
Risk of loss remains with seller until transfer of possession or legal title.

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16
Q

Marketable Title

A 
Date of Closing Rule - 
Only necessary at closing
Implied in every land sale contract absent contrary provision
not perfect title, 
only reasonably free from defect.
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17
Q

Potential Defects clouding Marketable Title

A

Unpaid Mortgage or Lein
Covenants or Easements restricting land use
Title Acquired by Adverse Possession
Zoning or Statutory Violation

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18
Q

Remedy for Covenants that manifest at the time of closing

A

Majority of jurisdictions
seller retains part of selling price to
remove defect from land
making title marketable

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19
Q

Merger Doctrine

A

the land sale contract merges into the deed on closing.
must sue on the deed, not contract, after closing

Result will be what kind of deed buyer has obtained - quitclaim or warranty deed.

20
Q

Quitclaim Deed

A

purchased ‘as is’

buyer is screwed if subsequent defects are discovered.

21
Q

Warranty Deed

A

Contains covenants of title on which the buyer can sue.

General Warranty Deed -
all covenants present
covers all prior owners.

Special Warranty Deed -
can Contain all covenants of title
covers prior ownership period only
Breach must have arisen during ownership period.

22
Q

Covenants of title (6) - Present and Future

A

Present Covenants

  1. Seisin - Grantor owns the property
  2. Right to Convey - Grantor can convey
  3. Encumbrances - Promise there are none

Future Covenants

  1. Quiet Enjoyment - not disturbed by party asserting a valid claim to the land.
  2. Warranty - Grantor will defend against such claims.
  3. Further assurances - grantor will do anything reasonably necessary to perfect guarantees of title.
23
Q

Covenants Running with the Land

A

Present Covenants do not run with the land.
Breach must occur on date of closing to be actionable.

Future Covenants run with the land and are actionable after closing.

24
Q

Tort Concerns in Land Sale

A

Duty to disclose
material latent defects
known and not readily observable
not known to the buyer.

Seller fails to follow through or
has ongoing duty to make premises habitable or fit,
can lead to tort liability.

25
Q

3 Requirements for a valid conveyance

A
  1. Valid Deed
  2. Delivery
  3. Acceptance
26
Q

4 Requirements for a Deed Sufficient for Statute of Frauds

A
  1. Sufficient Identity of the parties
  2. Words indicating present intent to transfer
  3. Sufficient description of the property - legal or descriptive
  4. Grantor’s signature - grantee not necessary
27
Q

When Delivery of a Deed Exists

A

present intent to transfer to grantee

Physical delivery not required

28
Q

How grantor can deliver a deed

presumptions created

A
  1. Give the deed to grantee - presumption of intent to transfer. rebutted with evidence grantor did not intend a present transfer
  2. Retain the deed - presumption of NO intent to deliver.
    Rebutted with evidence of intent to transfer.
  3. Give the deed to a 3rd party to complete the conveyance.
29
Q

Relation Back Doctrine

A

Grantors delivery to a 3rd party effectuates conveyance on completion of delivery.

date of delivery relates back to date the grantor handed the deed to 3rd party,

A gives deed to X and tells X to give deed to B on condition B graduates from law school. A subsequently gives deed to C. B graduates from law school. B’s interest relates back to date A gave deed to X. B defeats C’s interest.

30
Q

Grantor hands a deed to a 3rd party with conditions

A

Gives rise to concerns regarding intent to transfer.

The more conditions placed on conveyance, more likely conveyance will fail.

31
Q

Death Escrow

A

‘A’ gives deed to ‘X’ on condition they give it to B on A’s death,

conveyance grants a life estate in A
remainder to B and
is a present delivery of the conveyance.

If grantor expressly retains the right to reclaim the deed from a 3rd party, this defeats relation back doctrine.

32
Q

Acceptance by the Buyer

A

Where transfer is beneficial to grantee, acceptance is presumed.

no valid conveyance if grantee refuses.

33
Q

Recording Acts - Types

A

Race Statute - First in time will prevail

Notice Statute - Subsequent bona fide purchaser prevails

Race Notice Statute - Subsequent bona fide purchaser who records first prevails

34
Q

Bona Fide Purchaser

A

pays value and

takes without notice (of prior conveyance)

35
Q

Paying Value - Bona fide purchaser

A

Value must be some significant amount over nominal consideration.

Mortgagee is deemed to pay value if mortgage is issued for the debt on property.

Judgement creditor is not.
will lose out to prior conveyances

36
Q

3 types of Notice A buyer will have

A

Actual

Constructive

Inquiry

37
Q

Actual Notice

A

facts actually known

38
Q

Constructive Notice

A

Comes from the recording of a conveyance

39
Q

Inquiry Notice

A

information a reasonable person would discover
on reasonable inquiry.

A grantee is expected to inspect what he is getting from grantor

40
Q

Recording A Conveyance - Grantor/Grantee Index

A

majority of jurisdictions
Contains 2 sets of books
conveyances listed by grantor and grantee.
Each conveyance listed in chronological order

41
Q

Estoppel by Deed

A

grantor conveys title he does not own
and subsequently acquires title.

Minority Rule - Operation of law theory - title passes by operation of law to prior grantee.

Majority Rule - Prior grantee must go to court and assert claim. Grantee will be estopped from denying it to him. If Grantee fails to do so before grantor conveys again to a bona fide purchaser for value, grantee will lose out.

42
Q

Shelter Rule

A

A grantee’s defeat of competing claims,

enables subsequent grantee to shelter under his good deed

43
Q

Adverse possession where possessor occupies only part of property.

How to acquire whole property?

A

Enter under color of title.

Absent color of title, claimant only acquires title to property actually occupied

44
Q

Requirement Seller Has Marketable Title

A

Only on the day of closing. Buyer cannot object to sellers failure to have marketable title prior to date of closing.

Majority allow seller to earmark a part of the selling to make title marketable and buyer must go through with sale.

45
Q

Covenant that Grantor owns the property

A

Covenant of Seisin

46
Q

Oral Condition on an otherwise valid delivery of a deed

A

Not allowed.
Parole Evidence will reject such condition.
Conveyance of an interest in land must be in writing, and such conditions as well.

47
Q

Grantor Expressly retains right to reclaim deed from 3rd party prior to delivery to grantee

A

Will defeat relation back doctrine.

Right must be explicitly retained to defeat doctrine.

Property (6 decks)

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