MBE Review_Real Property

Question 1

FSD

Answer 1

POR

Question 2

FSCSD

Answer 2

ROR

Question 3

Right of 1st Refusal (Options)

Answer 3

must be held by ascertainable person

if unascertainable person, then violates RAP

Question 4

JT w/Right of Survivorship

Answer 4

one may sell all or part of interest in JT, results in TIC

if spouse dies, other spouse automatically gets spouse’s interest

Question 5

Holdover Doctrine (LL/Tenant)

Answer 5

Tenant who outstays a lease - Periodic Tenancy

If Residential, locked into month-month

If Commercial, locked into periodic term of original lease, but cannot exceed one year

If prior to lease expiring, tenant receives notification of rent increase, tenant pays new amount

Question 6

Assignment (LL/T)

Answer 6

when tenant transfers possession for remaining balance of lease

original tenant always on hook for rent, b/c privity of contract

new tenant (assignee) on hook for rent, b/c privity of estate

so both are jointly/severally liable for rent

Question 7

Transfer of Easement

Answer 7

If in writing & recorded, buyer will win

Record notice is the best type of notice

Question 8

Profit (Appurtenant v In Gross)

Answer 8

non-possessory interest in land that allows profit holder to enter onto land (servient) to remove minerals, soil, timber, substance from the land

Appurtenant - “it takes 2” - benefits a dominant estate - cannot independently transfer the profit from the dominant estate

In Gross - does not exist to serve a dominant estate - can be transferred independently

Question 9

Covenant

Answer 9

A promise to do or not to do something

(ex. Developer subdividing land into plots w/ promise giving restrictions)

New owner will be bound by covenant as long as given Notice (Actual, Inquiry, Constructive, Common Scheme)

Question 10

Fixture

Answer 10

chattel that is attached to property

Commercial - Trade Fixtures Doctrine - tenant may remove all trade fixtures prior to expiration of lease; Exception: accessions = structural additions to real property

Residential - look at the nature of the chattel. (heirloom, valuable) ; intent of annexor; how much damage will be caused to real property if chattel is removed (more damage, less likely to remove)

Question 10

Fixture

Answer 10

chattel that is attached to property

Commericial -

Residential - look at the nature of the chattel. (heirloom, valuable)

Question 11

Equitable Conversion

Answer 11

when buyer agrees to purchase real estate, buyer becomes equitable owner during escrow. buyer bear risk of loss if property is damaged or destroyed. liable up to full contract price

once parties enter into valid agreement, they are fixed in stone. if buyer dies, buyer’s estate can demand specific performance. likewise if seller dies, seller’s estate can demand specific performance.

Question 12

Doctrine of Part Performance

Answer 12

takes a land sale K out of SOF as long as part performance unequivocally prove the existence of that land sale agreement

(ex. lawyer paying 2K rent per month are consistent as being renter, not owner; even though oral agmt to purchase in installments)

Question 13

General Warranty Deed Covenants

Answer 13

best deed - contains 6 Covenants

3 Present Covenants ( Seisen, Conveyance, Against Encumbrances) = I own, I can sell, without any strings attached
3 Future Covenants (Quiet Enjoyment, Warranty, Further Assurances) = No one will disturb you, if disturbed, I’ll defend you, after defended, I will do whatever it takes to perfect your title
Future covenants run w/ the land, are enforceable by future owners

Question 14

Assuming a Mortgage

Answer 14

Both Buyer and Original Buyer are jointly & severally liable to Mortgagee (Lender) to mortgage

Question 15

Shelter Doctrine

Answer 15

if you take from BFP for value w/o notice, then buyer steps into shoes of BFP, even if he knows of original’s unrecorded interest

Question 16

Race Notice Statute

Answer 16

Without NOTICE whose conveyance is FIRST Recorded

Question 17

Notice Statute

Answer 17

Without NOTICE whose conveyance is RECORDED

Question 18

What constitutes an Assignment?

Answer 18

When a tenant makes a complete transfer of the entire remaining term of his leasehold interest, it constitutes an assignment.

Question 19

What happens to a Covenant when a lease is Assigned?

Answer 19

When a tenant makes a complete transfer of the entire remaining term of his leasehold interest, it constitutes an assignment. The assignee and the landlord are then in privity of estate, and each is liable to the other on all covenants in the lease that run with the land.

The covenant runs with the land if the original parties so intend and the covenant “touches and concerns” the leased land, i.e., burdens the landlord and benefits the tenant with respect to their interests in the property.

Question 20

When does a Covenant run with the land?

Answer 20

A covenant at law will run with the land and be enforceable against subsequent grantees if:

(i) the contracting parties intended it to run;
(ii) there is privity of estate between the original promisor and promisee (horizontal privity), as well as between the promisor and his successor (vertical privity);
(iii) the covenant touches and concerns the property; and
(iv) the burdened party has notice of the covenant.