Missed property

Question 1

What is subrogation?

Answer 1

Subrogation allows a third party to take a senior mortgage’s priority when the 3P (1) fully pays off the senior mortgage and (2) has no actually knowledge of junior interest

Question 2

What is a holdover tenant?

Answer 2

A tenant who remains in possession after the lease term expires is a holdover tenant

L can file suit to remove the tenant
Accept rent and hold tenant to a periodic tenancy

Question 3

When should a notice for termination of a periodic tenancy be given?

Answer 3

Periodic tenancy can be terminated at the end of a period and before the final period starts

Question 4

When can a tenancy at will be terminated?

Answer 4

Can be terminated by the L or T or automatically when L conveys a PRESENT interest in the property to a 3P

If a future interest, then the tenancy continues

Question 5

Can a BFP rely on a forged or altered document to establish priority under the recording act?

Answer 5

No

Question 6

What does a valid deed require?

Answer 6

A valid deed must be

1. in writing and signed by the grantor
2. identify the grantor and the grantee （must be ascertainable)
3. contain words of transfer and
4. describe the property being transferred

Question 7

What is an unjustifiable abandonment? and what can the landlord do?

Answer 7

Unjustifiable abandonment when the tenant leaves the property with the intent to terminate the lease without legal justification and refuse to pay rent

If L accepts the offer, the lease is terminated and T is not liable for future rent.

Acceptance can be made in
1. express agreement OR
2. retaking possession with L’s own use OR re-renting the property

Question 8

What is the doctrine of worthier title?

Answer 8

It prevents against remainders in a grantor’s heir
Creates a presumption of a reversion to the granter

Question 9

What is the Rule in Shelley’s case?

Answer 9

Prevents against remainders in a grantee’s heirs
Uses the doctrine of merger to create a fee simple

Question 10

What does life estate become after transfer? Is it measured against the past life tenant or the current life tenant?

Answer 10

It become life estate pur autre vie and measured by the past life tenant

Question 11

What are the exceptions to the class gift rule?

Answer 11

Transfers of specific dollar amount to each class member
Transfer to a sub class that vests at a specific time

Question 12

Waste in life tenant? Different types?

Answer 12

Permissive waste - negligent care of property
Voluntary waste - decrease value of property,
Ameliorative waste - no decrease in value is ok

Question 13

What is vested remainder subject to complete divestment?

Answer 13

Condition subsequent that divests the vested remainder

Question 14

When does termination notice must be given?

Answer 14

Before the last term starts and effective as of the last day of the period

If year to year period, notice must be given at least six months

Question 15

When can L recover for future rent?

Answer 15

Generally, there is no anticipated repudiation, so no recovery for L

If the state allows AR, L can recover the difference between future rent under lease and either (1) reasonable rental value or (2) actual rent collected from re-letting

BUT if T abandons and L rejects, then T is liable for future rent, and L must mitigate damages by re-renting

Question 16

What are the relief available if there is partial eviction by adverse possessor or trespasser?

Answer 16

Nothing. T is not excused from paying rent

Question 17

What is constructive eviction?

Answer 17

Constructive eviction happens when L substantially interferes with T’s enjoyment, T give notice to L, L fails to respond, and T must vacate the premises within reasonable time

Question 18

When is a variance granted?

Answer 18

Granted if

1. enforcement of a zoning requirement would cause the landowner unnecessary hardship AND
2. the variance would not be contrary to public interest

Question 19

What are two types of variances?

Answer 19

Use variances - allow land to be used differently than currently zoned use

Area variances - allow structure on the land to look different than structures on the rest of the zoned area

Question 20

Do TIC have right to all or only natural resource proportionate to their interests?

Answer 20

Only proportionate to their interest

Question 21

What happens to a lien on a TIC? and what happens at a partition by sale?

Answer 21

Creditor only has a lien on T’s property interest.

At the sale, the lien will either
1. If creditor is not a party, remain on the T’s property interest
2. If creditor is a party, attach to T’s share of proceeds

Question 22

What are the different types of listing agreements?

Answer 22

Open - Seller may use other brokers to sell and commission goes to whichever broker finds a buyer

Exclusive agency contract - Seller can find buyer, and if seller does so without the broker’s help, broker receives no commission

Exclusive right to sell - commission goes to the broker if the property is sold during the listing period, no matter who finds the buyer

Question 23

When is liquidated damage in a land sale contract unreasonable or constitute a penalty?

Answer 23

When the liquidated amount exceeds 15% of the purchase price

Question 24

What does a recorded equitable interest have priority over?

Answer 24

A subsequent judgment lien

Question 25

When is a title marketable?

Answer 25

When it is free of a risk of litigation
When buyer interest has priority over competing interests in the same property

Question 26

What is restraint on alienation? what is void and invalid?

Answer 26

Prohibiting recipient from selling or otherwise transferring their interest in the property.

Absolute restraint is VOID - only valid if REASONABLE (partial restraint, etc.); balance utility of restraint against harm resulting from enforcement

Indirect restraint on alienation:

Imposing transfer fees, limiting property’s use/reducing value, valid unless lacking rational justification

Question 27

Does life tenant has the right to remove the chattel?

Answer 27

Yes, they can remove within a reasonable time after the estate ends if
1. LT did not intend for the attachment to be permanent and
2. the chattel can be removed without substantial damage to the property

Question 28

What is the ownership of emblements?

Answer 28

If planted, cultivated crops, they are personal property, they pass with the land unless they are harvested, ripe, planted by tenant with indefinite leasehold or planted by AP

If natural, they are real property, and pass automatically with the land

Question 29

When does FHA not apply?

Answer 29

Religious organizations
private clubs
senior housing
owner of <3 single family dwellings
owner occupied dwellings with < 4 units
rental home by private owner

Question 30

What happens when the easement is silent on the location?

Answer 30

Servient estate owner may fix the easement to a reasonable location

Question 31

Does a deed in lieu of forclosure terminate junior interest?

Answer 31

NO

Question 32

What is estoppel by deed

Answer 32

Applies when a grantor conveys property by warranty deed before acquiring title to that property (e.g. grantor only has LE, but FI is in someone else hand)

Once the grantor receive full title, it will transfer to the earlier grantee

Question 33

Modification of mortgage

Answer 33

When a senior mortgage is modified, it retains priority if it does not materially prejudice the junior interest

Question 34

When can L limit assignment or sublease?

Answer 34

Only when the reason is related to the property being leased, NOT on personal prejudice

Question 35

What can L do if lease prohibits assignment or sublease and T assigned/subleased?

Answer 35

L can terminate the lease for breach and recover damages

Question 36

What is the doctrine of merger in mortgage

Answer 36

The same person acquires both
- the lender’s interest in the property AND
- the mortgagor’s interest in that same property
If merged, can’t foreclose