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