MEE Essentials: Property Flashcards
K to deed order
K of sale is signed BEFORE deed is delivered
Equitable conversion
Under doctrine of equitable conversion, as soon as K is signed (even BEFORE closing), risk of LOSS remains on BUYER EVEN IF seller remains in POSSESSION/CONTROL of land
Validity of a deed
TO be valid, deed must
IDENTIFY buyer + seller
DESCRIBE land
contain words indicating PRESENT INTENT TO CONVEY
SIGNED by GRANTOR
Deed delivery defined
Deed must be DELIVERED to be valid, as defined by INTENT to PRESENTLY PASS TITLE
Two types of deed
1) quitclaim
2) warranty
Quitclaim deed
Grantor gives NO covenants (promises nothing) and grantee gets WHATEVER grantor has, SUBJECT TO defect/undisclosed easement/other problem
with NO recourse
Warranty deed six covenants
3 present covenants + 3 future covenants
pReSeNt
RIGHT to convey
SEISIN
NO encumbrances (no liens/easements not stated in deed)
FEW (future)
FURTHER assurances
Quiet ENJOYMENT
WARRANTY
Under CL, can grantees sue for future/present/both covenants?
ONLY future, but some jdx do not follow common law
Merger of K/deed
on CLOSING DATE, K for sale merges into DEED, and THEN buyer can ONLY sue on DEED
Breach of implied warranty of fitness and habitability
Builder of new homes impliedly WARRANTS that home is HABITABLE and FIT for its intended purposes
Any defects discovered in REASONABLE time and due to builder’s NEGLIGENCE or failure to do work in WORKMANLIKE manner
Common law rule of conveyance
Under common law, grantor can only convey rights he had at TIME OF CONVEYANCE. Thus, CL follows FIRST-IN-TIME FIRST-IN-RIGHT principle, subject to state recording acts
Notice recording statutes
Protect SUBSEQUENT BFPs for VALUE who take WITHOUT NOTICE of earlier transaction
Race-notice statutes
Protect SUBSEQUENT BFPs for VALUE who take WITHOUT NOTICE AND are FIRST to RECORD
Pure race statutes
Protect SUBSEQUENT PURCHASERS (not BFPs) who are first to record
3 types of notice
AIR
ACTUAL
INQUIRY (investigation of land or instrument would lead person to inquire)
RECORD (recorded in CHAIN of title)
Wild deeds
Deeds outside chain of title that are recorded too early/late, which do NOT give notice
Mortgagor transfer of title
A mortgagor may transfer title to property, but generally is still personally liable on the note
Mortgage: ‘subject to’
A new transferee who takes land SUBJECT TO mortgage is generally NOT personally liable
Mortgage: ‘assumes’
A new transferee who ASSUMES mortgage IS personally liable ALONG WITH original mortgagor
If a transferee pays mortgage payments, has he impliedly assumed mortage?
MEE: YES
MBE: NO
Novation in mortgage
Novation occurs when initial mortgagor, new transferee, AND mortgagee ALL AGREE that mortgagor is no longer liable + transferee assumes ALL duties
Lease: term for years
Lease that specifies START and END DATE
Periodic tenancy
Periodic tenancy has NO fixed end date and repeats until one party gives notice to the other, by EXPRESS OR IMPLIED agreement (or operation of law e.g. invalid year-long lease bc of SOF violation)
Valid notice required to terminate periodic tenancy
Assignment lease default rule
If lease does not prohibit assignment or sublease, tenant can assign or sublease her interest in the lease
Constructive eviction
Occurs when tenant can prove landlord BREACHED DUTY to tenant (commercial or residential) which caused loss of SUBSTANTIAL use and enjoyment of premises and tenant VACATED after giving ADEQUATE NOTICE
Implied warranty of habitability
Breached ONLY in residential lease if premises are UNINHABITABLE
Tenant can VACATE, SUE, or OFFSET damages
Duties of a tenant
Must pay rent
If he does NOT pay rent and has ABANDONED property, landlord can sue for damages OR treat as SURRENDER, which EXCUSES future rent obligations
Duty to mitigate
Under CL: Landlord has NO duty to mitigate
Many states: landlords DO have duty to make reasonable effort to mitigate
Fair Housing Act
disallows discrimination in housing sales/rentals on basis of race/color/religion/sex/family status/national origin
Does NOT apply to owner-occupied dwellings with 4 units or less BUT those owners CANNOT place discriminatory advertisements (owner AND publisher in violation of FHA for discriminatory ads)
Creation of easement
Easements can be created expressly, impliedly (prior use/benefit/apparent/continuous OR necessity), or by prescription
Termination of easements
Easements may be terminated by express terms, written release, merger of dominant and servient lands, prescription, estoppel, condemnation, or abandonment
Abandonment standard for easements
Mere nonuse not sufficient, must be ACT of abandonment
Creation of joint tenancy
Joint tenancy requires four unities (PITT)
Possession
Interest
Time
Title
Many states REQUIRE use of language “joint tenancy” + adding SURVIVOR language to create joint tenancy
Severance of joint tenancy rule statement
A joint tenancy can be severed one of four ways (G-SAM)
Giving away during life
Signing K for sale
Actual judicial lien sale
Mortgage in TITLE THEORY state
Adverse possession requirements
ANOCHES
Adverse
Notorious
Open
Continuous
Hostile
Exclusive
Statutory period met
What land can a party gain title to under adverse possession?
ONLY the area that a person ACTUAL possesses (unless there is color of title, unitary tract, or reasonable amount possessed = WHOLE TRACT)
Tacking
In some circumstances, an adverse possessor may TACK ON time that prior adverse possessor had possessed to reach statutory period
Failure to record interest by adverse possession
Adverse possessor will prevail over subsequent BFP who complies with recording act because there is no DOCUMENT that interest holder could record
Surrender
When a tenant ABANDONS lease and landlord ACCEPTS abandonment
Can be shown when landlord RETAKES premises, remodels building, re-rents to new party for more $ or higher term
If commercial lease imposes duty to repair on landlord, can landlord still argue that tenant had duty to repair?
NO, by default tenant has duty to repair in commercial lease, but if lease provides otherwise, LANDLORD has duty
