Final Flashcards
Concurrent rights of possession:
co-ownership (more than one person owning an interest in the property at the very same time [could be either a possessory or a shared future interest])
Types of Concurrent Interest
Tenants in common
Joint Tenants
Tenancy by the entirety
Tenants in common
separate but undivided ownership of property by two or more persons (preferred under modern law; general rule is to construe an ambiguous conveyance in favor of a tenancy in common) preferred because of their alienability
- Each TIC has undivided right to use possess whole unit
- Termination: T1 dies– his interest goes to his estate– transferred by will/inheritance
Joint Tenants
have the right of survivorship joint tenants together are regarded as a single owner. (preferred in common law)
* Each T owns undivided whole
* When T1 dies, interest disappears and other T’s absorb his interest
*Interest can be transferred during life– making it then a TIC however not transferable after death
Four elements of a Joint Tenancy
1) Time: must acquire interest at same time
2) Title: Must acquire title by same instrument
3) Interest: all must have equal undivided shares and equal measured by duration
4) Possession: Each tenant must have right to possess whole unit
Conveyance
Usually through deed– the transfer and assignment of any property right or interest from one individual or entity (the conveyor) to another (the conveyee).
Joint tenancy– Simultaneous Death Problem
Rule is that either clear and convincing evidence is used to demonstrate that one joint tenant survived the other by 120 hours or a governing instrument that provides for the distribution method. Or if joint tenants die close in time, we presume that each of them survive as to half. Treat it like a tenancy in common
Tenancy by the Entirety
can be created only in husband and wife( holding as one person); here the four unities plus a fifth unity: the unity of marriage, are required and the surviving tenant has the right of survivorship
- One party cannot convey to third party and keep TBE, must both convey was they are considered one
- Divorce/ death only way to sever
- Insulate property held by the entirety from claims of creditors
Tenancy by the Entirety –creditors
MAJ: Interest of H or W in an estate by the entireties is not subject to the claims of his/her her individual creditors during the joint lives of the spouses
MIN(1) creditor can get to the interests of the debtor spouse, but cannot destroy the other spouse’s right to possession during life or survivorship right; if debtor spouse dies first, creditor has no interest.
MIN(2) Only the survivorship right can be attached
Multi-party bank accounts
Joint Account
Savings account trusts (trotten accounts)
Payable of Death accounts
Joint Accounts
- A and B or A or B
- Right of survivorship
- A gift, arrangement for proportionate ownership; a convenience account; problematic probate avoidance device
Savings Account Trust “Trotten Trust”
Poor person’s trust, can use while alive, then goes to someone else upon death
Payable of Death (POD)
Only available where statutory authorized; during life I have and use the $
Partition
Division of concurrent interest in land
2 types: Partition in kind and Partition by sale
* If parties can agree on division, no partition needed
* Available to JT and TIC, not TBE
Partition in kind
occurs simply when the property is divided, equitably and fairly, between multiple owners. Property as unique/individual, more sentimental. Courts tend to favor this approach because it does not require someone to sell their property against their will
Partition by sale
Court sells the property and then divides up the proceeds amongst the parties according to their representative shares in the property. May result in owelty if one person gets more $ as a result of improvements made by other tenants. Economists like this because they argue that it leads to the most productive use of resources, property gets to its best use
*Rule: Partition by sale only applied when (1) physical attributes of the land are such that a partition in kind is impracticable or inequitable and (2) interests of the owners would be better served by a partition by sale
Exam tip on partition
Courts generally say that a partition in kind is preferred, but since partition is an equitable remedy courts will consider a variety of factors to decide whether to grant a partition in kind or partition by sale. Courts always try to find a reason to go with partition by sale
General rule for sharing land via cotenant
In absence of an agreement to pay rent or an ouster of a cotenant, a cotenant in possession is not liable to his cotenants for the value of his use and occupation of the property
Test for ouster
Created by either AD beginning to run or refusing other co tenant ability to enter
AD beginning to run for cotenant
o Requires the offending co-tenant to assert a claim of absolute ownership
o If they file a bill for partition, argue it as an implicit acknowledgement of co-ownership
Refusing the other co-tenants the ability to enter
o Majority Rule: before an occupying tenant can be liable for rent, he must have denied his cotenants the right to enter; nonliability for mere occupancy, an occupying tenant is not liable for rent notwithstanding a demand to vacate or pay rent.
o Minority Rule: Establishes liability for rents on a continued occupancy after a demand to vacate or pay rent.
Cotenant affecting the land
General Rule: the act of one joint tenant without express or implied consent or authorization from his cotenant cannot bind or prejudicially affect the rights of the latter.
**Limitations arise in cases where one joint tenant in possession leases all of the joint property without consent of his cotenant and places lessee in possession.
**Joint tenant not joining in the lease not bound by its terms and can recover from the tenant of his cotenant the reasonable value of use and enjoyment of his share of the estate if the tenant under the lease refuses him the right.
**Usually a lease not going to work as a severance because generally without an outright conveyance there is no severance.
Remedies available to cotenant (plaintiff)
** Partition, ouster, accounting
* Majority Rule that a cotenant in possession need not account to cotenants out of possession for the reasonable rental value of the property
* rent and profits: T1 collecting 3rd parties rent must account to other co-owners amount received
* T paying more than fair share of taxes, mortgage, etc can get contribution from other T’s (unless in some jsx not if T1 has been is sole possession
Four types of Leaseholds
1) Term of years
2) Periodic tenancy
3) Tenancy at will
4) Tenancy at sufferance
Term of years
An estate that lasts for some fixed period of time or for a period computable by a formula that results in calendar dates for beginning and ending
Periodic Tenancy
lease for a period of some fixed duration that continues for succeeding periods until L or T gives notice of termination; must be appropriate/timely notice to terminate; notice must be given a full period in advance.
* Renews automatically from period to period
Tenancy at Will
- Tenancy of no fixed period that endures so long as both L and T desire
- Ends when one of the parties terminates it
- Usually a period of notice is required; 30 days is the default
Tenancy at Sufferance
- Holdovers; L has the right to terminate at any time, will be ended by eviction or something to that effect
- T not a trespasser, but a holdover, had a right but no longer does.
If lease made that does not meet any tenancies
From Garner case: look at the intention from the lease
* Could also be a license or concession– look to following factors: intention, number of restrictions, exclusivity, rights and remedies
Selection of Tenants
Cannot discriminate under FHA
* Law exempts owners of single-family houses that own no more than 3 houses and not use brokerage service
Delivery of possession
Two rules: English rule and American Rule
- English (MIN but growing popular) unless stipulated otherwise, in every lease there is an implied covenant that L should make premise be open for entry at start of lease
**If not sue L - American rule (MAJ but declining) when L fails to make premise available to T at beginning of lease, sue tenant still occupying land
Delivery of possession
Two rules: English rule and American Rule
- English (MIN but growing popular) unless stipulated otherwise, in every lease there is an implied covenant that L should make premise be open for entry at start of lease
**If not sue L - American rule (MAJ but declining) when L fails to make premise available to T at beginning of lease, sue tenant still occupying land
Sublease and Assignments
Leasehold interests freely alienable by an assignment or sublease.
* Policy: free alienability serves economic advantages or society at large because property gets to its highest/best use.
* If L wants to restrict, he must spell that out in the lease
Sublease
creates a new Leasehold out of the main leasehold (not for full duration of lease)
** No privity in estate between T1 and L. T liable to L for both privity of estate and K; T1 subtenant of T
Assignment
T transfers his entire interest to another. Takes original leasehold interest between L&T and passes it along to assignee, T out of the picture as far as holding of estate concerned.
** Privity of estate between T1 and L; Privity of K between T and L
Determining sublease or assignment
MAJ: when lease conveyed for entire time left in lease: assignment; lease conveyed for a time not for full duration of lease: sublease
MIN: Look to intent of parties
Privity
Privity of K: exchange of promises
Privity of Estate: Mutual or successive relation to some eight in property; legal relationship two parties bear when their estates constitute one estate in law
Termination by Forfeiture
*Termination by forfeiture occurs when T breaches the lease, enabling a L to re-enter the property and terminate the lease
** If T terminates by surrender, then the assignment to T1 probably still okay, but if L terminates by forfeiture then T1 out of possession.
Restrictions of Assignments/Sublease
Majority Rule: a restriction on transfer of a T’s interest in a lease may absolutely prohibit transfer (makes the lease less attractive though)
Commercial Approval Clauses
MAJ: Can refuse a proposed assignee no matter how unreasonable refusal is
MIN (but trending): refusal of proposed assignee when there is a commercially reasonable objection (financial responsibility of proposed assignee, suitability of property, legality of new use, need for alteration, nature of the occupancy, competition between Ts or with L)
** Moral/personal convictions not reasonable
** shows good faith and fair dealings
** different for residential– can be unreasonable
Termination and recapture clause
lease provision common in commercial property that allows the L to terminate the lease if the T finds a new T and profit off of the new T
Tenants who default– Common Law
L may legally use self help to retake premise provided that (1) l is legally entitled to possession for reasons such as T holds over after lease termination or where T breaches the lease and contains a re-entry clause and (2) the L’s means of re-entry are peaceable