PROP - MBE Vocabulary

Question 1

Actual Notice

Answer 1

Direct knowledge of a fact, such as that a property to be acquired is encumbered, or information sufficient to make a prudent person inquire as to such fact (e.g. utility wires running across the property would probably serve as actual or inquiry notice that the property is encumbered by an easement in the utility.)

Question 2

Appurtenant easement

Answer 2

Right of one owner of land (the dominant estate) to make use of the land of another (the servient estate) that attaches or “appertains” to the dominant estate and passes with the title to the dominant estate. Compare with easement in gross.

Question 3

Bona Fide Purchaser (BFP)

Answer 3

One who pays valuable consideration for an interest in property, has no notice of other encumbrances on the interest and acts in good faith.

Question 4

Chain of Title

Answer 4

The successive conveyances of a certain property, consisting of all documents affecting title, the existence of which is readily available to BFP.

Question 5

Class Gift

Answer 5

A gift to a group of persons, uncertain in number at the time of the gift, to be ascertained at a future time, who are all to take in equal or other definite proportions, the share of each being dependent for its amount on the ultimate number of members of the class.

Question 6

Common Development Scheme

Answer 6

Plan for subdividing land which intends that all parcels by subject to a restriction, which may be evidenced by a recorded plan, a general pattern of restrictions, or oral representations to early buyers. The finding of a common scheme in a residential development allows you to imply equitable servitudes restricting all parcels sold after the scheme arose.

Question 7

Condemnation

Answer 7

Taking of private property for public use, such as building a highway, which raises a duty of just compensation under the due process clause of the constitution. The power to condemn property is known as eminent domain.

Question 8

Condition Precedent

Answer 8

An act or event that must exist or occur before an interest in property that is subject to it can become vested.

Question 9

Condition Subsequent

Answer 9

An act or event that will extinguish a particular interest in land. An estate subject to a condition subsequent is an interest in property which may last forever, except upon the happening or non-happening of a specified event, at which point it will become subject to termination (e.g., a conveyance to B, so long as he remains a vegetarian,” which gives B an estate subject to a condition subsequent) Compare with determinable estate.

Question 10

Constructive notice

Answer 10

Awareness of a fact that is presumed by law to have been acquired, namely the presumed knowledge of all instruments within a purchaser’s chain of title. Compare: actual notice

Question 11

Dedication

Answer 11

Conveyance of land by a private owner in the nature of a gift or grant and an acceptance of that land by or on behalf of the public. Streets in the development are usually acquired by the town through a dedication to the public of the properly comprising the streets.

Question 12

Defeasible

Answer 12

An estate that can be either partially or fully defeated (lost) at some future time.

Question 13

Delivery

Answer 13

A legally recognized handing over of one’s possessory rights to another.

Question 14

Determinable Estate

Answer 14

An interest in property which may last forever, except upon the happening of non-happening of a specified event, at which point it will automatically terminate (e.g. a conveyance “to B so long as the property is used for church purposes and if it is not, then to A,” which gives B a determinable estate.) Compare with condition subsequent.

Question 15

Dominant Estate

Answer 15

An estate whose owners are entitled to the beneficial use of another’s property (the servient estate), most commonly by way of easement.

Question 16

Easement in gross

Answer 16

A personal privilege to make use of another’s land. Compare with appurtenant easement.

Question 17

Fee Simple Absolute

Answer 17

The most complete property interest known to property law; an estate of infinite duration which can be freely devised or transferred.

Question 18

Foreclosure

Answer 18

When a mortgagor defaults on the underlying debt, the process that extinguishes the mortgagor’s right to the property, allowing the creditor to sell the property to satisfy the debt.

Question 19

Heir-at-law

Answer 19

Person who inherits the property of a deceased person under the laws of intestacy. If a valid will devises property to someone else, the heirs-at-law will not get it.

Question 20

Inter vivos

Answer 20

During life. Used to characterize a transfer of property that is not make in a will.

Question 21

Intestate

Answer 21

The state of having died without leaving a will, resulting in the distribution of property according to the laws of intestacy.

Question 22

Inverse condemnation

Answer 22

A government taking of property without the formality of a condemnation proceeding via zoning regulation which is not aimed at protecting the public health and makes a piece of property practically useless or worthless. In such a case, the owner must be compensated for the property interest taken.

Question 23

Life in being

Answer 23

Anyone who has been conceived by the time of the grant, preferably someone named in the grant. Used to determine the time period during which an interest must vest to be valid under the Rule Against Perpetuities.

Question 24

Marketable Title

Answer 24

Title that a reasonable well-informed purchaser would, in exercise of ordinary business prudence, be willing to accept. It need not be perfect, but should be free from reasonable doubt, so that it will not expose the party who holds it to litigation.

Question 25

Novation

Answer 25

The substitution of a party for one of the original parties to a contract, such as a lease, where the original lessee is complete discharged from further liability. (Such a situation rarely exists on the MBE.)

Question 26

Privity

Answer 26

(horizontal/vertical) a relationship between parties out of which there arises come mutuality of interest. Two types are required for a convenant to run at law: Horizontal privity: is the privity that exists between the convenantor and the convenantee. Vertical privity: is the privity that exists between the covenantor and his or her successor in interest who acquires the property subject to the covenant.

Question 27

Recording

Answer 27

A means of giving constructive notice of ownership or an interest in land by placing the deed, easement, or evidence of the interest in the public record. Recording of the interest prevents a subsequent purchaser or mortgagee of the land from qualifying as a bona fide purchaser for value without notice, because the instrument recorded would provide at lease constructive notice of another’s prior ownership or interest in the land. Recording acts are characterized as being of three types: pure race, race-notice, or pure notice.

Question 28

Remainder

Answer 28

The part of an estate in property that is left over when the immediately preceding estate (often a life estate or an estate for years) is terminated, IF it is not a reversionary interest in the original grantor or the grantor’s heirs.

Question 29

Rescission

Answer 29

The cancellation of a contract, such as a contract for the sale of land, usually by mutual consent.

Question 30

Residuary Clause

Answer 30

Clause in a will that conveys to the names beneficiary or beneficiaries everything in the testator’s estate not devised to a specific person or legatee.

Question 31

Restraint on Alienation

Answer 31

A restriction on the ability to convey real property interests. Such restraints are disfavored by the law and may be void.

Question 32

Restrictive Covenant

Answer 32

A promise included in an agreement restricting the use of real property or the kind of buildings that may be erected on it. See covenant at law and equitable servitude.

Question 33

Reversionary Interest

Answer 33

An interest left over when the immediately preceding estate is terminated, and the interest remains in the grantor (i.e., the person who created the immediately preceding estate in someone else). Includes the right of entry and possibility of reverter.

Question 34

Right of Entry

Answer 34

The resumption of possession by the grantor, pursuant to a right reserved when he or she formerly parted with possession, which requires the grantor to asset his or her right by judicial process before the preceding estate is terminated. Compare with possibility of reverter.

Question 35

Servient Estate

Answer 35

An estate in land that is subject to use in some way by the owner of another property, the dominant estate.

Question 36

Subject to Defeasance

Answer 36

Able to revoked or defeated upon the occurrence or non-occurrence of certain conditions.

Question 37

Sublease

Answer 37

Agreement wehereby a tenant grants an interest in the leased premises to the subtenant, where the interest is less than the tenant’s entire interest. The original tenant remains primarily liable for the payment of rent. Compare with assignment.

Question 38

Survivorship

Answer 38

A right whereby a person with an interest in property becomes entitled to the whole property by reason of having survived, or outlived, another person who also has an interest in it.

Question 39

Tenancy at Sufferance

Answer 39

aka holdover tenancy A tenancy that arises when one first lawfully possesses land under a lease and subsequently “holds over” or continues possession beyond the end of the term of the lease.

Question 40

Tenancy at Will

Answer 40

Leased estate that gives the tenant the right to possession of the property for an indefinite period of time, and either party has the right to terminate upon proper notice. A tenant at will cannot assign his or her estate to another.

Question 41

Time of the essence

Answer 41

Language employed in land sale contracts that requires performance (closing/settlement) by the parties on the date specified. Failure to do so is considered a breach. Without such language, the court will allow a reasonable period following the specified date within to close on the contract.

Question 42

Touch and Concern

Answer 42

A requirement for a real covenant to run with the land. The covenant touches and concerns the land when it enhances the enjoyment of one parcel of land by burdening the enjoyment of another.

Question 43

Vested

Answer 43

You got it, or you are sure you’re gonna get it. (Even if you don’t know exactly what you’re going to get, when you’re going to get it, or for how long you’re going to keep it!)

Question 44

Warranty Deed

Answer 44

A deed that purports to convey property free and clear of all encumbrances, except those noted in the instrument, and usually contains covenants or warranties of seisin, quiet enjoyment, right to convey, freedom from encumbrances, future assurances, and defense or title against all claims. Compare with quitclaim deed.

Question 45

Zoning

Answer 45

State or local law that controls the use of private land for the protection of the health, safety, morals and welfare of its citizens but requires compensation if it goes so far as to effect a taking a property.

Question 46

Implied Covenant of Quiet Enjoyment

Answer 46

Means that the LL will not interefere with the T’s possession and quiet enjoyment of the premises.

Question 47

Implied warranty of habitability

Answer 47

(If the lease is residential) Requires that the property be in condition suitable for human occupancy and usually is tied to local housing code standards.

Question 48

Fixture

Answer 48

An item that is physically attached to the property in such a way that it loses its identity, or such that its removal would cause considerable damage to the structure.

(Example: furnace in home is bolted to the floor and connected to duct work in the house)

Usually does not include items that the T brought to the house.