Property

Question 1

Elements of adverse possession

Answer 1

Actual, exclusive, open & notorious, hostile, and continuous throughout the statutory period

Question 2

Define covenant

Answer 2

a written promise to do something on the land or a promise not to do something on the land

Question 3

Define license

Answer 3

a privilege to enter onto another’s property. It may be revoked at any time merely by a manifestation of the licensor’s intent to end it.

Question 4

Notice statute

Answer 4

a subsequent bona fide purchaser (“BFP”) will prevail over a prior grantee who failed to record before the BFP’s purchase; if the prior grantee has previously recorded, the subsequent purchaser ordinarily will be deemed to have record notice of the prior conveyance and will not be a BFP.

Last BFP for value who wins

Question 5

Transferee takes “subject to” the mortgage

Answer 5

the transferee will not be liable to the mortgagee on the promise underlying the mortgage

Question 6

Fee simple determinable

Answer 6

an estate that automatically terminates on the happening of a stated event and goes back to the grantor

“while,” “during,” or “until”

durational language is broken –> possibility of reverter (alienable)

Question 7

Fee simple subject to condition subsequent

Answer 7

created when the grantor retains the power to terminate the estate of the grantee upon the happening of a specified event. Upon the happening of the event stated in the conveyance, the estate of the grantee continues until the grantor exercises his power of termination (right of entry) by bringing suit or making reentry. Generally, the grantor must expressly reserve the right of entry; this retained interest does not automatically arise.

The following words are usually held to create conditions subsequent: “upon condition that,” “provided that,” “but if,” and “if it happens that.”

right of entry

Question 8

Fee simple subject to an executory interest

Answer 8

owners heirs are not retaining any future interest in the party

executory interest

Question 9

Restraint against alienation

Answer 9

restriction on the free alienability (transferability) of the property

direct restraints on fee simple estates are void as a matter of public policies

anti-sublease or anti-assignment are permissible

Question 10

Life estate

Answer 10

the holder is responsible for the property taxes

the only way a life estate is terminated early is if the holder commits waste

Question 11

When does a class close?

Answer 11

When any member of the class has a present possessory interest in the property

Question 12

Easement by Necessity

Answer 12

Never in writing

Question 13

Lien theory vs. Title theory

Answer 13

Lien theory - a mortgage is regarded as a lien on title, & one joint tenant’s execution of a mortgage on their interest doesn’t by itself cause a severance. A severance occurs only if the mortgage is foreclosed and the property sold. Mortgagee risks losing its interest if the mortgagor dies prior to foreclosure.

Title theory - a mortgage is regarded as a transfer of title, which destroys the unity of title & severs the joint tenancy.

Question 14

general warranty deed gives the grantee six covenants of title

Answer 14

the right to seisin, 
the right to convey, 
a covenant against encumbrances, 
the covenant of quiet enjoyment, 
the covenant of further assurances, and 
a general warranty

Question 15

Adverse possession during life estates

Answer 15

The statute of limitations that determines the time period for adverse possession does not run against the holder of a future interest (e.g., a remainder) until that interest becomes possessory, because the holder of the future interest has no right to possession (and thus no cause of action against a wrongful possessor) until the prior present estate terminates

Question 16

Forfeiture of estates

Answer 16

The general policy of courts is to avoid forfeiture of estates. Thus, where the terms of a conveyance are ambiguous, there is a presumption in favor of the fee simple subject to condition subsequent because forfeiture is not automatic.

Question 17

Future interests

Answer 17

Future interests can pass at death by will or inheritance unless an interest’s taking is subject to an express or implied contingency of survival.

Question 18

Leases

Answer 18

A lease grants the lessee the exclusive right to possess the premises, and broad rights to use them in any manner, unless specifically restricted.

Any restriction not included in the lease will be unenforceable.

Question 19

Easement

Answer 19

An easement, on the other hand, grants only a limited interest in the land-to use it for only those purposes stated in the easement

Question 20

The covenant of quiet enjoyment

Answer 20

is breached when the grantee is evicted by a third party with paramount title, i.e., title or ownership of the estate conveyed that is superior to the grantor’s title.

Question 21

The covenant of right to convey

Answer 21

is breached if the grantor lacks title, i.e., ownership of the estate conveyed, at the time of the grant.

Question 22

Requirements for valid conveyance of land

Answer 22

execution & delivery of the deed

Question 23

Race-notice statute

Answer 23

a subsequent BFP is protected only if she records before a prior grantee. The operative words in a race-notice statute are “without notice” and “first recorded.”

Question 24

Race statute

Answer 24

whoever records first wins. Actual notice is irrelevant

Question 25

Notice

Answer 25

Actual - actually know
Record - property recorded
Inquiry - reasonably inquiry would reveal (inspection of premises)

Question 26

Shelter rule

Answer 26

a person who takes from a bona fide purchaser will prevail against any interest that the transferor-bona fide purchaser would have prevailed against. This is true even where the transferee has actual knowledge of the prior unrecorded interest.

Question 27

Whether the covenant of encumbrances runs with the land

Answer 27

The covenant against encumbrances assures that there are neither visible encumbrances (easements, servitudes, etc.) nor invisible encumbrances (mortgages, etc.) against the title or interest conveyed. This is a present covenant and is breached, if at all, at the time of conveyance. If a covenant for title can be enforced against the covenantor by a transferee of the covenantee, it is said to “run with the land.” The majority rule is that present covenants do not run with the land and cannot be enforced by remote grantees.

Question 28

Doctrine of equitable subrogation

Answer 28

a person other than the mortgagor who pays off a mortgage can step into the shoes of the now-paid-off-mortgagee