Ownership Flashcards
Fee Simple Absolute
absolute ownership
Fee Simple Determinable
- Ownership automatically terminates upon a condition and passes to grantor
- Durational words: “as long as,” “until”
Fee Simple Subject to Condition Subsequent
- When the condition occurs, the grantor can exercise a right of reentry
- Look for conditional words: “but if,” “right to re-enter”
Life Estate
Ownership terminates at the end of the measuring life
Restraint on Alienation
A grantor can place a reasonable restraint on the grantee’s ability to freely transfer
Tenants in Common
- Each tenant owns an undivided interest in the entire property
- No right of survivorship; interest is freely devisable or transferable
Joint Tenancy with Right of Survivorship
- Requires express language and the four unities (possession, interest, time, title)
Lien theory (majority)
A mortgage is simply a lien and does not sever the joint tenancy.
Title theory (minority)
A mortgage is a transfer of title and severs the joint tenancy.
Rights and Obligations of Co-Tenants
Possession
Each cotenant has the right to possess the entire property
Rights and Obligations of Co-Tenants
Rent
- A cotenant does not owe rent
- A cotenant must share rent received from a third party
Rights and Obligations of Co-Tenants
Operating Expenses
A cotenant can generally collect expenses if he has paid more than his share
Rights and Obligations of Co-Tenants
Repairs and Improvements
- Cotenant does not have a right to be reimbursed for repairs.
- He may only seek contribution for necessary repairs if he gave notice of the need.
Tenancy for Years
created by express agreement for fixed period of time
Periodic Tenancy
repetitive, ongoing estate measured by set periods that automatically renew
Tenancy at Will
parties must expressly agree, no fixed period of time, may be terminated by either party at any time
Tenancy at Sufferance
a tenant wrongfully holds over past the expiration of the lease, lasts until eviction or converts into a periodic tenancy
Tenant’s Duties
pay rent, avoid waste, and make reasonable repairs
Withholding or Deducting Rent
a) If landlord breaches the covenant of quiet enjoyment, can terminate lease and stop paying rent
b) If the landlord violates the implied warranty of habitability, can terminate lease and stop paying rent OR deduct from the rent
Landlord’s Duties
Duty to Repair
landlord must repair damages under residential leases, unless the tenant caused the damages
Landlord’s Duties
Implied Warranty of Habitability
- Only applies to residential leases
- Landlord must maintain the property such that it is reasonably suited for residence
- Tenant must give notice to the landlord and reasonable opportunity to repair
Landlord’s Duties
Covenant of Quiet Enjoyment
- Applies to residential and commercial leases
- The landlord cannot disrupt the tenant’s possession or enjoyment of the property
Landlord’s Duties
Constructive Eviction
- Landlord substantially interferes with the tenant’s use and enjoyment of the land;
- Tenant gives notice of the problem and reasonable time for the landlord to repair, but the landlord does not repair; and
- Tenant vacates the premises in a reasonable amount of time
Assignment
a transfer of the tenant’s entire remaining lease to a new party
Sublease
a transfer of a portion of the tenant’s lease
Assignment and Sublease
Liability
- Original tenant remains liable to landlord for lease obligations under privity of contract
- Assignee is liable to landlord for rent and covenants that run with the land under privity of estate
- Subtenant is not liable to landlord because not in privity of contract or estate
Landlord’s Duty to Mitigate
Must make reasonable efforts to re-rent the property
Pay rent
Surrender
tenant transfers lease back, and landlord accepts, tenant no longer obligated to pay rent
Pay rent
Abandonment
if tenant abandons the property, landlord can accept as an offer of surrender
