MBE Real Property Flashcards
When is a vested remainder subject to complete divestment?
If the occurrence of a subsequent condition will eliminate the remainder interest (e.g., “then to my heirs; but if none survive my friend, then to my lawyer”).
What is required to create a joint tenancy?
The property must be conveyed with the express intent to create survivorship rights and four unities must coexist (PITT):
Possession – tenants share an equal right to possess or use the property
Interest – tenants have an equal interest in the property
Time – property interests simultaneously vest in all tenants
Title – property interests received in the same instrument of conveyance
When and how can a tenancy at will be terminated?
It can be terminated at any time with reasonable notice (unless otherwise agreed), and can generally be terminated by the landlord or the tenant. But if only one party is expressly given the right to terminate the leasehold, the arrangement may be deemed unconscionable if, for example, the arrangement is unfair due to one party’s superior bargaining power. In such a case, both parties are given the ability to terminate the lease.
What defects render a title unmarketable?
- Future interest if future-interest holder has not agreed to transfer title
- Private encumbrance (e.g., mortgage, covenant, option, easement)
- Significant physical defect (e.g., incurable encroachment)
- Title acquired by adverse possession & not quieted by judicial decree
- Zoning-ordinance violation
Does the mailbox rule apply to option contracts for the sale of real property?
No. Instead, the grantor must receive the option holder’s decision to exercise the option within the time period specified in the contract. Otherwise, the option holder loses the option and any consideration that was paid.
When is a transfer by deed effective?
When the deed is delivered by the grantor and accepted by the grantee. Delivery is shown by the grantor’s intent to make a present transfer of the property (which can be implied from the grantor’s words and conduct). Delivery can be presumed when the deed has been recorded but recording is not required to deliver a deed. Acceptance is presumed if the transfer benefits the grantee. Physically handing over a deed is not required and does not conclusively prove a grantor’s present intent to convey property.
What is the exoneration-of-liens doctrine?
Under the common-law exoneration-of-liens doctrine, the recipient of a specific devise of real property can use the remaining assets in the testator’s estate to pay off any encumbrances on that property. However, note that most states have abolished this doctrine, and payment of an encumbrance on devised real property is required only if the will so specifies.
When is a covenant terminated by abandonment?
A covenant is terminated by abandonment when an affirmative act—something more than neglect or nonuse—shows a clear intent to relinquish the covenant.
When can an equitable servitude be implied from a common scheme?
If (1) the owner intended to create a common scheme, (2) the intended servitude was restrictive, and (3) persons to be bound had notice of the servitude. But, it cannot be enforced against lots sold before the common scheme arose.
When can a landowner restrict another’s blockage of light?
Landowners can only restrict another’s blockage of light if they are protected by statute or enter into an agreement with the neighboring landowner to create a negative easement. The English common law doctrine protecting a right to light has been rejected.
When can a lease covenant be enforced by an assignee-landlord?
If the covenant runs with the land—i.e., the original parties intended to bind their successors, the covenant touches and concerns the land, and there is privity of estate.
What is the merger doctrine?
Under the merger doctrine, a contract for the sale of land merges with the deed, and any obligations contained in the contract can only be enforced if they are incorporated into the deed.
What does the seller of a residence have a duty to disclose?
All material physical defects that are known to the seller and cannot be reasonably discovered by the buyer.
When must a seller deliver marketable title on the closing date (and no later)?
When time is of the essence—i.e., (1) the contract states that “time is of the essence,” (2) circumstances indicate that the parties intended to strictly adhere to the closing date, or (3) one party notifies the other that time is of the essence within a reasonable time prior to closing.
What is the doctrine of equitable conversion?
Under the doctrine of equitable conversion, a buyer receives equitable title to real property upon entering a land-sale contract. In contrast, the seller retains legal title and acquires the equitable right to receive the purchase price upon closing. As a result, a judgment obtained against the seller after the execution of the land-sale contract is not enforceable against the real property—even if the claim arose before the contract was executed.
