DC Practice Set

Question 1

What obligations do life tenants have for the property?

Answer 1

Life tenants have the obligation to (1) pay all ordinary taxes on the land up to the value of its benefit (rental value of property), (2) interest on the mortgage to the extent he receives a financial benefit, and (3) not to commit waste

Question 2

What can a remainderman recover for paying taxes on behalf of the life tenant?

Answer 2

The holder can bring an action against the life tenant personally to recover these payments from the life tenant, up to the value of the financial benefit the life tenant received from the property

Question 3

What are the four unities required for joint tenancy?

Answer 3

1. Equal right to possess the whole
2. Identical equal interests
3. Interest created at the same time
4. Each own the same title

Question 4

How does a joint tenancy get severed?

Answer 4

1. One JT unilaterally sells the interest
2. Title theory state mortgage
3. Property levied + sold in judicial lien
4. Leases in some states (others suspend)

Question 5

When can a restraint on alienation be enforceable?

Answer 5

A restraint on alienation such as a right of first refusal would be enforceable if it were reasonable

Question 6

What are the requirements for adverse possession?

Answer 6

1. Exclusive
2. Continuous
3. Hostile
4. Open / Notorious

Question 7

What happens if someone sells property that they don’t actually own?

Answer 7

The seller would be estopped from denying the effectiveness of the deed under the estoppel by deed doctrine with specific performance as remedy

Question 8

What are the usual remedies in a real property transaction?

Answer 8

Specific performance

Question 9

Who is permitted to enforce real covenants / equitable servitudes?

Answer 9

Only by successors in interest to the original deed

Question 10

What interest is created if an owner gave permission to use the land without necessity?

Answer 10

A license, which can be revoked at any time

Question 11

What claims are available after the conveyance of a quitclaim deed?

Answer 11

Nothing because the claims under the contract have merged into the deed and only claims under the deed can be brought, which for a quitclaim deed is nothing

Question 12

What are the seller’s obligations in the event that property is destroyed between contract and closing and it has casualty insurance?

Answer 12

The seller must give the buyer credit in the amount of insurance proceeds against the purchase price even though the doctrine of equitable conversion requires the buyer to go through with the contract despite destruction of the property

Question 13

Who is liable for a mortgage if a buyer purchases a property subject to a mortgage?

Answer 13

Since a buyer doesn’t assume a mortgage if the property is subject to the mortgage, only the seller is personally liable

Question 14

What are the features and results of a deed in lieu of foreclosure?

Answer 14

1. Borrower convey all interest in property to lender
2. Requires consent of both lender and borrower
3. Lender can pursue deficiency but borrower can get the deed set aside if not reasonable / fair