Ownership Flashcards
Fee Simple Absolute
I convey to green acre to you.
You own 100% of it forever
Life estate language?
I convey green acre to you for life.
Rules for Life Estate?
- You can do whatever you want with it.
- you can convey it, but they only get it for as long as you are alive.
- You cannot commit waste
- Must pay property taxes
Rules about waste in a life estate?
- Can’t
- You are the custodian, essentially
- may see questions where life tenant harms property, cannot do that
Mortgage on life estate?
- Life tenant only pays property taxes and / or the mortgage interest.
- Remainder person pays the principle
- The life estate owes the taxes and mortage interest, but not the principle of the mortgage.
Types of remainders?
- Vested
- Contigent
What is a vested remainder?
I convey to you for life, then to joe.
look for “then to” language
Joe has a vested remainder.
Nothing is stopping joe from getting his remainder, so it is vested.
What is a contingent remainder?
I convey to you for life, then to joe if he is married.
Joe has to DO something to get his remainder, so it is contingent.
Types of vested remainders?
- Subject to Open
- Subject to Total Divestment
Vested remainder subject to open?
- I convey to you, then to your kids
- Giving to you for life, then to a class of people that i ascertainable, such as your kids.
- TIP: Shut and pick answer with vested remainder if you see “to joe, then to…’
vested remainder subject to total divestment?
- I convey green acre to you for life, then to joe if he uses it as a museum to the jets
- Joe could lose his remainder if he stops doing what he is supposed to do.
- Key language: Then to ____ if he
Fee simple determinable?
- I convey green acre to you, but if something occurs I can get it back
- Creates right of reversion
- Owner has to act to get it back, not automatic.
Rule against perpetuity?
- TIP: If you see hypo where i can convey to you FSD or FSSCS, any subsequent grantees rights are void.
- I convey green acre to you so long as you use it a residence, If you stop, then to joe and his heirs. This is void
- when the interest is made, if you can count to 21 years and say “do we know when he will get it”, then he will not get it.
If one part violates the RAP, is whole thing void?
No, just cross out the part that violates.
Joint tenancy?
- Two or more people have an undivided interested in land with a right of survivorship
- If one dies, their share is absorbed by survivor.
- You are allowed to convey joint tenancy, but it becomes a tenancy in common.
- Cannot convey by will.
Tenants by the Entirty?
- Legally married couples are pressumed to own by the entirety
- There is a right of survivorship
- One spouse cannot convey their interest without the other
- Severed by divorce
Partitition
Co-tenants may request partician, except when it is not practical
Contribution for co-tenants?
- If one party is paying mortgage or taxes on a property, they can recover contribution for the money they have paid
Contribution for co-tenant but one tenant is in sole possession of land?
- Then they can only recover an amount to the extent it exceeds the market value of the property
Rent rules for co-tenants?
- Out of possession co-tenant may share in the rents and profits with another co-tenant
- You may not demand rent from a co-tenant living on the land unless they are damaging the land or kicked you out of the land
Repair rules for co-tenants?
- If repairs are necessary, and the one doing the repairs requested money from you and you refuse, then they can seek contribution
- If they’re just dumb repairs, then the repair maker is on their own
Improvement rules for co-tenants
- One co-tenant may not seek contribution from co tenant for improvements they make on the land, unless they increase rental value or profits on the land
Periodic tenant?
- One that has a starting date and foes on for a certain period of time
- Renews at the end of the term, unless we say something to the contrary
- ‘starts jan 1st, then goes month to month”
- Need one month notice, unless its year to year then we need 6 month notice
Tenancy for Years
- Starts at a specific date, ends at a specific date
- No notice
Tenancy at Will
- tenant staying after the lease ends
- parties bound by original terns
- Terminated by you leaving, or landowner evicting
Landlord Duty of actual Possession
Has to give tenant possession on first day of lease
landlord duty of repairs
Duty to make reasonable repairs
Warrant of Habitability
- Need to give notice and give them time to fix it
- Need to be so bad no one could live there
Quiet Enjoyment
- Must take whatever steps necessary to make sure other tenants are not bothering you
- nEed to give landlord notice and give chance to fix it
- So bad that no one would be able to enjoy it
Tenant duty to pay rent?
- Tenant must pay rent, except if the property is destroyed or the landlord breeches habitability or quiet enjoyment.
- Look for extreme circumstances
landlord duty not to commit waste?
- physcially damage property, letting property go so bad that its destroyed
Assignment?
- Giving entire interest in a lease term to another
- assignment = new guy is primarily liable to landlord
- But can still come after original lease holder secondarily, unless there is a novation.
sublease?
- Giving less than entire interest to another
- Original tenant remains primarily liable on the lease term
Covenants against assignment/subleases?
- Will be strictly construed.
- if it says you cant assign, you can sublease and vice versa
Landlord sells building?
- You still owe rent, but if the new owner wants you to pay them the need to give you notice
Fair housing act?
- Prohibits discrimiation in the sale or rental of property based on race, family status, religion, pregnant, kids under 18, disabilitym, sex etc.
Fixtures?
- cannot remove something that becomes so attached to property that removing it would cause damage to the land
- Trade fixture
- kitchen stuff in a restaurant, etc
- these are removable at the end of the lease term or after the end of the term so long as its a reasonable amount of time
