Property Flashcards

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1
Q

RAP applies to

A

(1) Executory interests
(2) Contingent Remainders
(3) Vested Remainders Subject to Open
(4) Purchase Option
(5) Right of First Refusal

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2
Q

Common Law - Transfer of Grantor’s Future Interests

A

Via intestacy ONLY

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3
Q

Dealing with RAP

A

(1) Double check RAP applies to the interest
(2) Is it possible that after everyone currently alive is dead, and more than 21 years pass, someone else could claim an interest?
(3) If yes, then the interest is wiped out.

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4
Q

Co-Tenants + Profits

A

If profit is produced by one co-tenant’s efforts (and not by a third-party like through rent) –> no right to share

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5
Q

Covenants vs. Equitable Servitudes

A

Covenants –> seeking money damages

Equitable Servitudes –> Seeking equitable remedies (i.e., injunction)

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6
Q

Covenant - Creation

A

(1) Privity
(2) Intent - writing must have language indicating the parties’ intent for the covenant to bind successors in interest / intent for the restriction to run with the land
(3) Notice - current owner of SERVIENT estate must take the land with notice of the covenant
(4) Touch and Concern the Land (use and enjoyment of the land is reduced for servient and increased for dominant estate)

To enforce benefit – must have writing (SOF), intent that covenant runs with land, vertical privity and T(ouches and concerns)

To enforce burden – must have above AND horizontal privity AND new owner had notice of the covenant.

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7
Q

Covenant - Privity

A

(1) Horizontal Privity –> Privity of K in connection with the land between the original covenantor and covenantee
(2) Vertical Privity –> Relationship between the original party and their successor

NOTE: For a burden to run, the privity of estate will only exist when the holder of the servient estate transfers all of his interest in the servient estate to the new owner (so it must be a FULL transfer)

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8
Q

Equitable Servitude Requirements

A

I - N - T

Intent
Notice
Touch and Concern the Land

To enforce benefit – (1) writing (SOF); intent; and T

To enforce burden –> above + new owner must have notice of the servitude.

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9
Q

Implied Reciprocal Servitude

A

Look for a filed declaration containing the restrictions, which may be negative ONLY

Statute of Frauds does NOT apply.

Look for a common scheme/plan - relevant factors include (1) large percentage of lots expressly burdened; (2) oral representations to buyers; (3) advertisements to buyers; (4) or recorded plot maps.

Current owner takes with notice of the restriction

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10
Q

Ways to Terminate Covenants or Equitable Servitudes

A

(1) Written Release
(2) Merger of the dominant and servient estates
(3) Abandonment
(4) Estoppel
(5) Changed circumstances so that the reason behind the merger is no longer valid

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11
Q

Easement Appurtenant

A

When there’s an easement with a dominant and servient estate

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12
Q

How can an Easement be created?

A

(1) Expressly –> the writing must satisfy the SOF
(2) Implication
By prior use
By Necessity
By plat
(3) By Prescription (adverse possession)

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13
Q

Easement Implied by Prior Use

A

(1) a single tract of land is divided by a common
owner;
(2) a pre-existing use by the grantor is established
prior to the division;
(3) continuous and obvious indication that the use was meant to be permanent;
(4) the use affects the value of the land conveyed;
AND
(5) the use is reasonably necessary for the owner’s
use and enjoyment of the land conveyed
(important or highly convenient).

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14
Q

Easement by Necessity

A

Usually need it for access to public roads

(1) Common ownership of dominant and servient estate, then severance
(2) strict necessity for the easement at the time of severance

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15
Q

Scope of Easements

A

What’s expressly stated only. Otherwise, can be used to extent that it’s reasonably necessary to do so

If someone goes beyond what’s reasonably necessary, the easement doesn’t terminate. Instead the servient can sue for injunction or damages.

NOTE: Holder of the easement can do what’s reasonably necessary to maintain the easement, even if it interferes with servient’s use of the property

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16
Q

Terminating Easements

A

(1) Estoppel – when the servient estate owner
reasonably relies (or materially changes
position) on an assurance that the easement will
not be enforced;

(2) Termination of the necessity;
(3) Involuntary destruction of the servient estate;
(4) Condemnation of the servient estate;
(5) Written release;

(6) Abandonment – a physical action showing an
intent to never use the easement again;

(7) Merger of the properties (if land is separated
again, it does not revive the easement); OR

(8) Prescription.

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17
Q

Profits

A

Holder of the profit has the right to go on someone’s land and take something from it. Can only be created expressly or by prescription

Otherwise, treat as easements.

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18
Q

Licenses

A

Privilege to do something on someone else’s property. PERSONAL right. Not an interest in the land.

These are freely revocable at any time unless the license is

(1) coupled with an interest OR
(2) executed (licensee spends money/labor in reliance on the license, thus the license is irrevocable until the licensee gets value out of the expenditure.)

Can also terminate on the death of the licensor OR conveyance of the servient estate.

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19
Q

Are licenses transferrable?

A

NO

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20
Q

Fixtures

A

Personal property attached to the land IF it’s owned by the landowner and so necessary/convenient for the use of the land that it’s deemed to be a part of the land

Intent to annex a chattel = question of fact (reasonable person standard)

A deed to the land transfers all fixtures unless stated otherwise.

mortgage covers the land and all its chattel.

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21
Q

Constitutional Limitations to Zonining

A

Procedural Due Process - Requires notice and opportunity to be heard

Substantive Due Process - Zoning ordinance cannot be arbitrary or capricious.

Equal Protection - Zoning ordinance cannot treat similarly situated people differently.

First Amendment - Subject to it if it regulates billboards or aesthetics

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22
Q

Takings

A

5th Amendment

If owner is denied all reasonable, economically beneficial uses of the land.

Balancing Test Factors:

(1) Economic impact of the regulation
(2) Extent regulation has interfered with distinct investment-backed expectations; and
(3) Character of government action

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23
Q

Rezoning

A

If a rezoning is inconsistent with a comprehensive plan for that area, then it must be based on a change of conditions in the land, neighborhood, environment, or public opinion.

Rezoning of a land is quasi-judicial and requires procedural due process. A broader rezoning is legislative.

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24
Q

Nonconforming Use

A

Use permitted by zoning statutes/ordinances to continue, even those similar uses are not generally permitted in the area

May not be expanded or rebuilt after substantial destruction.

Local ordinances also often prohibit the enlargement, extension, or alteration of a nonconforming use

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25
Q

Variances

A

Permission to use property in a way forbidden by the zoning ordinance to alleviate conditions peculiar to the particular parcel of land

Area Restriction: Petitioner must show that there are practical difficulties in meeting the requirements or that the requirements are unreasonable/create an undue hardship.

Think of being unable to use the land because of physical requirements

Use Restriction: (i.e., using the property in a way contrary to the nature of the surrounding neighborhood - residential in commercial district) Must show undue hardship - without the variance, then there’s no viable use for the property

26
Q

Special Use Permit

A

Required for uses in an area not zoned for those uses, but which would be beneficial to the public welfare and compatible of the area

27
Q

Conditional Use Permit

A

Similar to special use permit - but applicant must meet additional conditions.

28
Q

Spot Zoning

A

A parcel or small area that can be zoned for a use or structure that is inconsistent with the rationale of the overall plan/ordinance

Illegal if the zoning ordinance is designed to serve the private interests of one or more landowners

29
Q

Exactions

A

Approval of use in exchange for money/dedication of land

Permissible ONLY IF

(1) local government can demonstrate an increased public need is causally related to the owner’s use AND
(2) Amount of exaction is approximately equal to the additional public cost imposed by the use.

30
Q

Lateral Support

A

Landowner has absolute right to lateral support.

Landowner is strictly liable if the land (with or without the building on top) would have subsided anyway.

Landowner only owes duty of negligence if land (only with a building) would have subsided.

31
Q

Subjacent Support

A

The right of support extends to the land in its natural state; and to buildings existing on the date the subjacent estate was severed from the surface.

Otherwise only owe a duty of negligence for subsequently erected buildings.

32
Q

Water rights

A

Riparian View (majority) – anyone who is within the watershed/touches it has a right to make reasonable use

Prior Appropriation/Use (Minority) – Awards the right to use the water to the first person to take water for beneficial purposes

33
Q

Diffuse Surface Water

A

Common Enemy Rule (EAST): Flood water can be diverted by any method onto another’s land

Civil Law Rule (WEST): No interference with any surface water is allowed

Reasonable Use Rule: surface water can be diverted onto another’s land if using reasonable means doing so

34
Q

When a land-sale K is formed, who bears the risk of loss?

A

Majority – Whoever has the equitable title (buyer)

Minority (Uniform Vendor and Purchaser Act) – Seller until legal title or possession of the property passes to the buyer

35
Q

What kind of title must the seller deliver at closing?

A

NOT a perfect title - just needs to be reasonably free from defects in both fact and law

36
Q

Merger Doctrine

A

Contract merges into the deed so, any guarantees made in the contract that are not reflected in the deed are extinguished when the deed is conveyed to the buyer of the property

After closing, buyer can only sue on the deed and not on the contract.

37
Q

Quitclaim Deed

A

Deed is “as-is” – buyer cannot sue and seller conveys whatever interest he/she has

38
Q

Special Warranty Deed

A

Typically limits liability to only the period of the seller’s ownership of the land.

So, seller promises that no defects occurred during his/her ownership.

39
Q

General Warranty Deed

A

Present Covenants - do NOT run with the land; can only be breached at closing

(1) Seisin - Grantor promises they own the property
(2) Right to Convey
(3) Covenant against encumbrances

Future Covenants - run with the land

(1) Quiet Enjoyment - promises there grantee won’t be disturbed by a valid third-party claim to the land
(2) Warranty - promises to defend against third party claim
(3) Further Assurances - promises to do everything reasonably necessary to perfect the title

40
Q

Residential Homes - Fitness and Suitability

A

Commercial builders and developers of new homes have a duty to disclose material latent defects that aren’t readily observable and not known to the buyer

Some states extend duty to all sellers of homes, new and used.

41
Q

Implied Warranty of Quality

A

Applies to sale of new/remodeled homes by builders and developers.

Defects must be discovered within a reasonable time after construction or remodeling

42
Q

Mortgages - Intermediate Theory

A

Lien theory until default (mortgagor has right to possession, rents, profits, etc.)

Upon default, title theory is applied (mortgagee gets the rights)

43
Q

“Assumes the mortgage” + Novation with lendor.

A

Buyer is personally liable. Original borrower is NOT liable.

44
Q

Assumption of Mortgage - Grantor and Grantee Responsibilitties

A

Grantee becomes primarily liable.

If debt falls into default, grantor can recover payments made from grantee.

45
Q

Due-On-Sale Clause

A

Gives mortgagee the option to require that the entire debt is due and payable upon any transfer

46
Q

Adverse Possession - Minority Rule

A

Adverse Possessor must also pay taxes (in addition to physical occupation)

47
Q

Adverse possession - disability

A

Disability can toll the statute of limitations as long as it existed at the time adverse possession began.

48
Q

During adverse possession - rights of the owner and adverse possessor

A

Owner can eject the adverse possession and can collect damages

Adverse possessor is considered the owner against everyone in the world except the owner.

Once adverse possessor successfully owns the land – they are the true owner as of the date they entered the land.

49
Q

Requirements for Valid Conveyance

A

(1) Donative intent - Grantor must intent to transfer interest immediately to the grantee (or if only effective upon grantor’s death, it needs to follow will formalities)
(2) Delivery
(3) Acceptance

50
Q

Delivery of a Deed

A

Grantor gives deed to grantee –> rebuttable presumption of delivery

Grantor retains deed –> rebuttable presumption of no delivery

Grantor gives deed to a third-party to give to grantee –> Conveyance relates back to the date grantor gave the deed to a third party BUT if grantor expressly retains the right to reclaim the deed from the third party, then there’s no transfer of title

51
Q

Acceptance of Deed

A

Presumed if the transfer is beneficial to the grantee.

But if grantee refuses, there’s no transfer of property.

52
Q

SOF - Deeds

A

Valid deed:

(1) sufficient identification of the parties
(2) Words indicating intent to make a present transfer
(3) sufficient description of the property
(4) grantor’s signature

NTOE: Grantee does not need to sign the deed

53
Q

What if seller dies after executing a sales K but before closing?

A

Decedent’s personal representative must complete the transaction. The money received goes to the beneficiary who inherits personal property (not real estate).

54
Q

Exoneration (Majority Rule)

A

Inherited property is taken subject to all outstanding liens and mortgages.

The estate does NOT pay them off.

55
Q

Ademption by Extinction

A

If a gift of real estate described specifically in the will is not in the testator’s estate at the time of death, the gift is addeemed by extinction and the beneficiary takes nothing.

56
Q

Ademption by Satisfaction

A

If a gift of real estate was made during the testator’s lifetime, but the specific property is still mentioned in the will, the gift is adeemed by satisfaction because the beneficiary has already received it.

57
Q

If a gift of real estate was made during testator’s lifetime but a general devise is in the will then. . .

A

the real estate already received will NOT be adeemed by satisfaction UNLESS:

(1) the will provides for deducting the gift
(2) testator, in writing, declared that the gift was part of the general devise; or
(3) devisee, in writing, acknowledged that the gift was part of the general devise

58
Q

Indexes - Recording a conveyance

A

Minority (tract index) - legal description of tract of land following by chronological listings of all conveyances involving that piece of land. Always provides constructive notice.

Majority (grantor-grantee index) - set of books arranged by grantor and other by grantee.

59
Q

Estoppel by Deed

A

Majority - If grantor transfers property to grantee before grantor has title (but later acquires it), grantee can go to court and estop the grantor from denying title to them.

Minority - title would automatically pass to grantee by operation of law.

60
Q

Title Insurance

A

Purchased at time of closing by buyer so that if there’s a defect in the chain of title, unexpected encumbrance, or other similar problem, the buyer can make a claim under the insurance policy