Prop, Future Interests, Trusts

Question 1

1) The 3 types of fee simple estates are _____

Answer 1

SAD
S – Fee Simple SUBJECT to a Condition Subsequent or Precedent
- You’ll recognize these interests when they BOP you on the head
B – “BUT”, if liquor is ever sold on the land, then to G
O – “ON condition that” the land is used only for residential purposes
P – “PROVIDED” the land is not used for commercial purposes

A – Fee Simple ABSOLUTE

D – Fee Simple DETERMINABLE
- These interests can be recognized by SUD language
S – “SO long as” liquor is not sold on the land
U – “UNTIL” the land is not used for religious purposes
D – “DURING” this period, the land is used only for residential
Purposes

Question 2

2) Joint Tenancies are created in the ____, and require unity of:

Answer 2

PITT
P – POSSESSION
I – INTEREST
T – TIME
T – TITLE

Question 3

3) A ____ partitions realty:

Answer 3

COW
C – COURT decree
O – ORAL agreement between all (100%) of the co-tenants provided they all (100%) go
into possession
W – Signed WRITING voluntarily partitioning property by exchange of deeds signed by all co-
tenants

Question 4

4) A broker earns a commission when he or she procures a ____ buyer:

Answer 4

RAW
R – READY
A – ABLE
W – WILLING

Question 5

5) A ____ may enforce an oral real property contract:

Answer 5

PIP
P – Buyer who has PAID the purchase price, in whole or in part
I – Buyer making valuable IMPROVEMENTS on realty
P – Buyer taking POSSESSION

Question 6

6) A donative transfer requires ___

Answer 6

AID:
A – ACCEPTANCE by donee
I – INTENT to make immediate gift
D –Proper DELIVERY of a signed & acknowledged deed

Question 7

7) _____ are in warranty deeds:

Answer 7

SEC FEW
S – Covenant of SEISIN
E – Covenant against ENCUMBERANCES C – Covenant of the right to CONVEY
F – Covenant of FURTHER Assurances
E – Covenant of Quiet ENJOYMENT
W – Covenant of WARRANTY

Question 8

8) The ____ gives notice to a real property buyer:

Answer 8

CIA
C – CONSTRUCTIVE notice
I – INQUIRY notice
A – ACTUAL notice

Question 9

9) _____ for real covenants, but _____ for equitable servitudes:

Answer 9

9) PINTS for real covenants, but TINS for equitable servitudes:
P – PRIVITY of estate
I – INTENT by original contracting parties that covenant attaches to land & run to future
assignees (Horizontal Privity)
N – CIA NOTICE of Restrictive Covenant
T – Must TOUCH & concern the land
S – Must satisfy the SOF

Question 10

10) PINTS can come in _____:

Answer 10

C – Imposed by COMMON owner to protect lands retained
A – Covenants agreed to by ADJOINING landowners/neighbors
N – Imposed for the benefit of NEIGHBORING lands
S – To carry out common plan or SCHEME

Question 11

11) In granting or denying an area variance, the court considers _____

Answer 11

ACES2:
A – are there ALTERNATIVES available that don’t violate zoning law?
C – would the proposed variance alter the CHARACTER of the neighborhood?
E – would it adversely affect the ENVIRONMENT?
S – is the problem the owner is attempting to resolve SELF-CREATED, or did he buy w/ notice
of the problem, or create the problem & build w/o a permit?
S – was the variance insubstantial or SUBSTANTIAL?

Question 12

2) A ______ establishes adverse possession:

Answer 12

EUNUCH
E – EXCLUSIVE possession (not shared w/ owner)
U – Owner was UNDER no disability (infancy or mental incompetency) when AP began!
N – NOTORIOUS & open possession, which would put the true owner on notice that a
trespasser was possessing his land he should bring an ejectment action
U –UNDER actual or constructive occupancy
C – CONTINUOUS/uninterrupted actual possession
H – HOSTILE possession

Question 13

13) The hostility prong of AP is negated if, during 10 yr period, AP calls the owner _____

Answer 13

OPA:
O – OFFERS to buy land from true owner
P – Asks PERMISSION of true owner to use land
A – ACKNOWLEDGES title in true owner

Question 14

14) Negative easements are limited to ____

Answer 14

LAWS: 
L – LIGHT easements
A – Easements of AIR
W – Easements regarding WATER use
S – Easements of SUPPORT

Question 15

15) _____ create easements:

Answer 15

PIGS
P – Easements by PRESCRIPTION
I – Easements by IMPLICATION (a.k.a., quasi-easements) 
G – Easements by GRANT
S – Easements by STRICT Necessity

Question 16

16) You get an implied easement if you find a _____

Answer 16

CRAB:
C – Both dominant and servient estates were formerly held by a COMMON owner
R – Use of an implied easement is REASONABLY necessary for reasonable use of the dominant estate
A – Use of the easement was plainly & physically APPARENT from reasonable inspection of the
land (exception: implied easement for underground water pipes)
B – Former use of the land subordinated one part of the land for the BENEFIT of another part

Question 17

17) _____ will extinguish an easement:

Answer 17

A FRAME
A – ABANDONMENT
F – FORECLOSURE of a mortgage that was recorded prior to the easement
R – Signed writing, RELEASING the easement
A – ADVERSE Possession of a servient estate in a hostile manner, preventing use of the
easement
*M – MERGER by common ownership of all (100%) of dominant & servient estates,
because one can’t possess an easement, covenant, or profit on her own property
E – EMINENT DOMAIN (government condemnation) of the servient estate

Question 18

18) _____ a chattel, and it becomes a fixture:

Answer 18

TIP
T – TYPE of chattel that generally becomes part of real estate
I – INTENT of person installing chattel (whether it was intended to be permanently
installed, or the person intended to subsequently remove it)
P – The PARTIES’ relationship

Question 19

20) Even if a lease is silent on these topics, a landlord _____ these implied covenants:

Answer 19

HEARS 
H – HABITABILITY
E – Quiet ENJOYMENT
A – ASSIGNABILITY of the lease
R – Good REPAIR (this covenant is made by commercial tenants) 
S – Minimal SECURITY precautions

Question 20

19) An out-of-possession landlord is liable in tort to the _______ for injuries:

Answer 20

POLICE
P – Where the leasehold was to be open to the PUBLIC, and LL failed to inspect and repair dangerous conditions before turning over the land to tenant
O – Arising OUTSIDE the premises, proximately caused by a dangerous condition on the premises, which LL should have known about when he turned over the land
L – Caused by LATENT defects that LL should have known about, where tenant has not had reasonable time to discover and repair that condition
I – Where tenant’s INTENDED use of the premises created an unreasonable risk of harm to
others, and LL was aware of this intended use
C – Where LL has multiple leases in the same building, and the injury occurred in a COMMON passageway
E – Where LL EXPRESSLY covenants to make repairs, and fails to do so, causing injury

Question 21

21) A tenant’s constructive eviction is _____

Answer 21

BUENO:
B – Landlord BREACHES the lease
U – The breach interferes with the tenant’s USE
E – The breach interferes with the tenant’s ENJOYMENT
N – Tenant gives landlord NOTICE and a reasonable time to remedy; and
O – Tenant must move OUT

Question 22

1) Vesting is as easy as ____

Answer 22

ABC:
A – X must definitely be ASCERTAINABLE w/in RAP period.
B – X must be a life in BEING at the time of conveyance, or in being w/in RAP period
C – X’s future interest must be CERTAIN to happen

Question 23

2) RAP doesn’t apply to a future interest w/ a ____

Answer 23

C2ROUP:
C – COVENANTS running with the land (PINTS & CANS)
C – A remainder interest passing from one CHARITY to another charity, but RAP may be violated if the future charitable interest is preceded or followed by a non-charity
R – a REVERSIONARY interest retained by the grantor (a Possibility of Reverter, Right of Entry, or a reversionary interest on a long term lease (99 year lease))
O – A tenant’s OPTION to buy or to renew contained in a long term lease
U – A future interest in trust benefiting the U.S. government
P – In MBE, PREEMPTIVE rights of first refusal to buy, but in NY, only first refusals of a
commercial nature (business) or involving government rights are exempt from RAP; thus, a right of first refusal on NY residential realty (between neighbors or among family members) must be fully and finally exercisable w/in the RAP period

Question 24

3) RAP applies to _____ future interests:

Answer 24

CORE
C – CONTINGENT Remainders
O – OPTIONS to Purchase retained in a deed by a grantor that possibly could be exercisable
beyond the RAP period
R – REMAINDER Interests that either follow a life estate or follow some event
E – EXECUTORY Interests (remainders that follow a conditional fee i.e., fee simple
determinable or fee simple subject to a condition subsequent)

Question 25

4) ______ cures a Perpetuities violation:

Answer 25

SAW FUR
S – The perpetuities SAVINGS Clause
A – ADMINISTRATION of the estate Contingency
W – WAIT-and-see doctrine
F – FERTILE Octogenarian exception
U – UNBORN Widow exception
R – REDUCING an age contingency to 21 years

Question 26

1) Trusts are created _____

Answer 26

“BIT BY BIT”
B – A BENEFICIARY must be clearly and unambiguously named
I – The INTENT to create a trust must be clear
T – TRANSFER of assets to the trust

Question 27

2) A trustee’s investments are prudent based on a _____

Answer 27

TIN DAD: 
T – TRUST TERMS restricting trustee investments
I – INFLATION
N – NEEDS of beneficiaries
D – DIVERSIFICATION of investments 
A – The total AMOUNT of the trust
D – DURATION of the trust

Question 28

3) ____ is not bound by the spendthrift rules:

Answer 28

SENATE
S – SELF-SETTLED trusts, where the settlor and beneficiary are the same person, trust can be
attached by creditors for up to 100% of the settlor’s interest. If settlor retained only a life
estate, his creditors can only seize 100% of the life estate, not the remainder interest.
E – The trust is not EXPRESSLY made spendthrift
N – If NECESSARIES are furnished to a beneficiary, the creditor is allowed to recover their fair
value from the beneficiary’s trust income
A – ALIMONY & child support arrears
T – Federal income TAXES owed by the beneficiary
E – “Services EXCEPTION” to pay for legal and other services needed to protect the beneficiary’s interest in the spendthrift trust.

Question 29

4) There are eight types of powers of appointment:____

Answer 29

GENT’S PIN:
 G – GENERAL power of appointment
E – EXCLUSIONARY power
N – NON-GENERAL power
T – TESTAMENTARY power 
S – SPECIAL power
P – POSTPONED power
I – IMPERATIVE power
N – NON-EXCLUSIONARY power