Practice Set 1

Question 1

When are restraints against alienability not invalid?

Answer 1

When there are partial restraints such as (1) option contracts and (2) right of first refusal, as long as they are reasonable

Question 2

What test is used to determine whether a partial restraint against alienation is reasonable?

Answer 2

The utility of the purpose served by the restraint is balanced against the likely harm that would result from its enforcement

Question 3

Who do race notice statutes not protect?

Answer 3

Those who acquired the title of the property by (1) gift, (2) intestacy, or (3) devise

Question 4

What is the estoppel by deed doctrine?

Answer 4

A grantor who conveys a real property interest by warranty deed before actually owning it is estopped from later denying the effectiveness of his deed

Question 5

What is ademption?

Answer 5

When a devise fails (or is “adeemed”) because the testator no longer owns the property upon death

Question 6

When does a notice recording act not protect the subsequent buyer?

Answer 6

When either (1) the buyer has actual notice of prior ownership, or (2) the buyer has constructive notice because of a recorded deed

Question 7

What is the Shelter Rule?

Answer 7

When grantors who are protected by the recording act protect (or “shelter”) their grantees who would otherwise be unprotected

Question 8

What is the difference between an easement and a license?

Answer 8

Licenses can be created orally whereas easements require writing
Courts will prefer to interpret ambiguous written grants as a license

Question 9

When can a license not be revoked?

Answer 9

When the grantee of the license detrimentally relies on the license

Question 10

What is a prescriptive easement?

Answer 10

An easement created by continuous, actual, open, and hostile use for a specific period though the use need not be exclusive