Estates; Leases; Co-tenancies Flashcards
RULE AGAINST PERPETUITIES
The Rule Against Perpetuities provides that no interest in property is valid unless it must vest, if at all, no later than 21 years after one or more lives in being at the creation of the interest.
It applies to executory interests created in third persons but not to reversionary interests of the grantor.
Charity to charity exception.
FEE SIMPLE DETERMINABLE
A fee simple determinable is an estate that automatically terminates on the happening of a stated event and goes back to the grantor.
Possibility of reverter - automatic, always follows a fee simple determinable. “Frank Sinatra Didn’t Prefer Orvile Redenbarker”. POR not subject to Rule Against Perpetuities.
FEE SIMPLE SUBJECT TO CONDITION SUBSEQUENT
A fee simple subject to condition subsequent is created when the grantor retains the power to terminate the estate of the grantee on the happening of a specified event.
On the happening of that event the estate of the grantee continues until the grantor exercises her power of termination (right of entry) by bringing suit or making reentry. [Not Automatic must assert right].
RIGHT OF FIRST REFUSAL
A right of first refusal gives its holder a preemptive right to meet any third party’s offer to purchase real estate.
Subject to RAP unless held by ascertainable person. There will be a RAP issue if right is contingent.
JOINT TENANCY
A joint tenancy is a type of concurrent ownership of a parcel of land that is distinguished primarily by the right of survivorship (i.e. when one tenant dies, the property is freed of her concurrent interest and the survivor retains an undivided right in the property that is no longer subject to the interest of the deceased co-tenant).
To create a joint tenancy, a grantor must explicitly indicate in the conveyance that the parties are to hold as joint tenants. If one joint tenant conveys her interest, the joint tenancy is severed. The new tenant holds as a tenant in common with the remaining joint tenant, so that there is no longer a right of survivorship.
TERMINATION OF TENANCY
When a tenant continues in possession after the termination of his right to possession, the landlord may evict him or bind him to a new ‘periodic’ tenancy. In a commercial lease, if the original lease term was for a year or more, a year-to-year tenancy will result. If, prior to the termination of the original tenancy, the landlord notifies the tenant that occupancy after termination will be at an increased rent, the tenant will be held to have acquiesced to the new terms if he does not surrender. A periodic tenancy is automatically renewed until proper notice is given. Proper notice for a year-to-year tenancy is six months’ notice.
ASSIGNMENT OF LEASE
An assignment is when a tenant transfers possession of the premises for the remaining balance of the lease.
Tenant is still on the hook - privity of contract with landlord. Both the assignee and the Tenant are jointly and severally liable to Landlord for overdue rent. Assignee is is privity of estate with Landlord.
