Death of a Party (equitable conversion) Flashcards
Shay v. Penrose, decedent died intestate w/legal title to land, but had executed a real estate contract……..so….
equitable conversion applies & her properties being subject to the contracts are treated as personality.
real estate becomes personalty
treat real estate which is subject to a contract of sale as PERSONALTY of the vendor and to treat the identified proceeds being used to ACQUIRE real estate as realty.
what else terminates at execution of the contract
vendor=a spouse’s dower or curtesy rights
vendee=spouse’s rights created
Vendor held real est. in COTENANCY BY ENTIRETY
man rule- will TERMINATE—cuz tenancy can’t be a personalty
can joint tenancies be used to hold personalty
yes
can tenancies in common be used to hold personalty
yes
Do option contracts trigger equitable conversion?
NO–
-there must be a BINDING contract of sale
contract MUSTS for equitable conversion:
- BINDING
- satisfy the SOF
- evaluate at time of death
can you evaluate consequences of Equitable Conversion after death?
NO, not before or after death.
(TIME to evaluate is at the moment of death)***
Clapp V. Tower
- land that is subject to a contract of sale is NOT reality, its personalty
- this can change the state where probate is done.
WHERE is realty probated?
in the state where the land is Located
where is personalty probated?
state where the decedent DIED
what will a tenancy by entirety become after contract & equitable conversion?
Tenancy in Common (now right against creditor is NOT preserved) **mess
so…. make SURE CONTRACT indicates sellers intent w/in contract to JOINT TENANCY w/Rt of survivorship
analysis?
- was there a binding RE contract ON DAY he died?
- status of property on DATE of DEATH
always ask client…..
do you own proper anywhere other than HERE, & if so, make sure wills valid THERE (ex 2 witness/3 witness state)
