Property Flashcards
Rule Against Perpetuities
An interest is void unless it must vest, if at all, not more than 21 years after some life in being at the creation of the interest
Ask- will the future interest vest or fail within 21 years after everyone then alive dies?
If there is any chance that it could happen later – > void
Kill everyone and wait 21 years
L/T An assignment is
A transfer of an entire leasehold balance
L/T A sublease is
A transfer of less than the entire leasehold balance
Easement appurtenant
(requires two parcels of land)
- Dominant parcel is benefitted by the easement
- Servient parcel is the one burdened by the easement
Merger
Unity of ownership (terminates an easement)
Equitable conversion
After execution of a real estate contract, buyer is equitable owner of the land and seller is equitable owner of the cash
Bona fide purchaser requirements
- pays value
- good faith
- without notice
Record interests to prevent BFPs
Recording statutes – two main types
- notice: Last BFP always wins
2. Race-notice: first BFP to record wins (look for the word “first’ in the statute)
Foreclosure has ______ effect on senior interests
NO
Easement
An interest in land
Nonpossessory interest in the use of another’s land
Grant of an easement for more than 1 year must comply with the SoF
License
NOT an interest in land
Revocable personal privilege to enter another’s land without liability for trespass
A license results when the grant of an easement violates the SoF
Personal to the licensee and not alienable
Creation of Easements by Prescriptions
Analogous to adverse possession (but AP requires exclusive possession, here shared use is allowed) Use must be -open and notorious -adverse -continuous and uninterrupted -lasting for the statutory period
Foreclosure effect on junior interests
Terminates all junior interests that have been joined in the foreclosure action
Joint tenancy definition
Two or more own with the right of survivorship
Tenancy by the entirety definition
A protected marital interest between spouses with the right of survivorship
“Can’t touch this”
Tenancy in common definition
Two or more own without the right of survivorship
Three forms of concurrent ownership
- joint tenancy
- tenancy by the entirety
- tenancy in common
Joint tenancy characteristics
Right of survivorship (deceased JTs share automatically goes to surviving JT)
Alienable inter vivos
NOT devisable
NOT descendible
How to create a joint tenancy
Four unities T-TIP T: at the same time T: by the same title (same deed, will, or other document of title) I: identical, equal interests AND P: with right to possess the whole
Ways to sever joint tenancy
- Sale: JT sells/transfers interest during lifetime, even without others knowledge/consent
(disrupts the four unities, so the buyer is a TIC, remaining JTs are still JTs) - Partition
-voluntary or judicial (in kind (physical division) or forced sale (division of proceeds)) - Mortgage (in a minority of states)
-majority: lien theory - no severance
-minority: title theory - severance
Can creditors of only one spouse come after a TbE for satisfaction of the debt?
No
Are unilateral transfers or encumbrances of a TbE valid?
No
These are a nullity, unenforceable
Severance of a TbE
- divorce (becomes a TIC)
- death
- execution of lien
Tenancy in common characteristics
Co-tenant owns individual share and right to possess whole
Devisable, Descendible, Alienable (NO survivorship rights)
Rights and duties of co-tenants
- possession (no ouster)
- rents and profits
- -none from co-tenant in exclusive possession (unless there has been an ouster)
- -fair share if leased to third party
- no adverse possession unless ouster (hostility element is missing)
- carrying costs (each pays fair share)
- repairs (contribution for reasonable, necessary repairs with notice)
- unilateral improvements (no contribution, but credit at partition (or debit if there is a diminution in value))
- must not commit waste
Three types of waste
- voluntary (willful destruction)
- permissive (neglect)
- ameliorative (unilateral change increasing value)
a joint tenant or tenant in common has a right to bring an action for partition T/F
TRUE
Judicial partition- what kind is preferred?
Partition in kind
Forced sale allowed if fair physical division not possible
Temporary restraints on right to partition are tolerable, as long as they are
reasonable in nature and duration
four leasehold/nonfreehold estates
- tenancy for years
- periodic tenancy
- tenancy at will
- tenancy at sufferance
Tenancy for years characteristics
- known, fixed period of time
- termination automatic on end date
- no notice needed to terminate
- writing typically needed if greater than one year (SoF)
Periodic tenancy characteristics
-continues for successive intervals until properly terminated
Creation of a periodic tenancy
- express (“L to T from month to month”)
- by implication
- no mention of duration, but rent at set intervals
- oral term of years violating SoF
- holdover tenant after lease ends
What happens when an attempted oral tenancy for years is more than one year, and thus violates SoF?
An implied periodic tenancy is created (period = rent interval)
Termination of a periodic tenancy
Notice, usually written
Common law: at least equal to length of period (except for year-to-year: 6 months at common law or 1 month under the restatement) ONE MONTH IS THE PREFERRED APPROACH
-unless otherwise specified in lease
Tenancy at will characteristics
- no fixed duration
- terminable at will of either party at any time (“to T for as long as L or T desires”)
- most states require notice and a reasonable time to quit
Tenancy at sufferance characteristics
- T wrongfully holds over past lease expiration’
- L proceeds to recover rent
- terminates when L moves to evict or holds T to new tenancy
Tenant’s duty to repair if lease silent includes:
- maintain premises
- make routine repairs
- not ordinary wear and tear repairs
- don’t commit waste
Tenant’s duty to repair when express covenant in lease
- maintain in good/repair condition
- T may terminate lease if premises destroyed w/o T’s fault
Options if tenant breaches, but is still in possession of the premises
- evict or continue relationship and sue for rent
- L must not engage in self-help
Options if tenant breaches, but is out of possession
SIR
Surrender: end lease
Ignore: do nothing and hold T liable for rent
Re-let: new lease and hold T liable for deficiency
(under the majority rule, L must at least try R (mitigation))
Landlord’s duties
- duty to place T in actual, physical possession
- implied covenant of quiet enjoyment
Implied covenant of quiet enjoyment definition
T has right to quiet use and enjoyment without interference from L
Applies in both residential and commercial leases
Ways to breach implied covenant of quiet enjoyment
Wrongful eviction (exclusion from whole or part of premises without cause) Constructive eviction (L’s breach renders premises unsuitable for occupancy)
Do both wrongful eviction and partial eviction relieve tenant of duty to pay rent?
yes
Elements of constructive eviction
SING
Substantial Interference (chronic/permanent problem due to L’s actions or failures)
Notice (T must notify L)
Goodbye (T must vacate)
Landlord’s duties related to other tenants
- abate nuisances on site
- control common areas
Implied warranty of habitability characteristics
Residential ONLY
Premises must be fit for basic human habitation
Standard: case law and housing code
Nonwaivable
Tenant’s options for breach of implied warranty of habitability
MR3 Move out/terminate lease (NOT required) Repair and deduct Reduce/withhold rent Remain and seek damages
Retaliatory eviction
L can’t terminate lease/penalize T in retaliation for T’s exercise of legal rights
Civil rights act bars
Racial or ethnic discrimination in the sale or rental of all property
Fair housing act
Bars housing discrimination on the basis of race, color, religion, sex, disability, familial status, national origin
Must allow for reasonable accommodations for tenants with disabilities (tenant provides at won expense)
FHA exemptions
- owner-occupied buildings with 4 or fewer units
- single family homes if owner has no more than 3
Prohibited actions under FHA
- refusing to negotiate, rent, or sell housing or give mortgage
- providing different terms for sale/rental
- falsely representing dwelling unavailable
Assignment of a lease definition
Transfer of entire or remaining term of lease
Sublease definition
Transfer or part of the remaining term of lease
Assignment of lease – who has privity with who after an assignment?
Assignee T in privity of estate w/ L
-liable on covenants that run with land
Original T in privity of contract (NOT estate) w? L
-liable for original lease obligations
Can you have privity of estate if you have no possession? (assignments)
No
(assignments) definition of covenants that run with the land for privity of estate
A covenant runs with the land if the original parties to the lease so intend and if the covenant “touches and concerns” the land (that is, benefits the landlord and burdens the tenant (or vice versa) with respect to their interests in the property)
If lease between L and T1 is reassigned to T2 and then T2 assigns to T3, and the property is damaged by T3, who can L sue?
T1 (privity of contract) and T3 (privity of estate)
Sublease arises when
T1 transfers LESS than her entire interest to T2
Sublease characteristics
T2 has NO privity of estate or contract with L (T1 and T2 are responsible to each other)
Relationship between L and T1 remains intact
Caveat Lessee definition and exceptions
L has no duty to make premises safe, so no tort liability
Exceptions:
CLAPS
Common areas
Latent defects (L must warn of hidden defects, no duty to repair)
Assumption of repairs (L liable if negligent)
Public use rule (short lease, significant defect)
Short-term lease of furnished dwelling
Easement definition
Grant of a nonpossessory property interest entitling the holder to use/enjoyment of another’s land
Affirmative easement definition
Right to go on to and do something on another’s land
Negative easement definition
Right to prevent landowner from doing something
LASS (light, air, support, stream water from an artificial flow)
Minority of states also allow for a scenic view
Negative easements can only be created
Expressly, by writing signed by the grantor
Easement appurtenant
Benefits holder in use/enjoyment of own land
Two parcels:
-dominant tenement: derives benefit
-servient tenement: bears burden
Easement in gross
Only one parcel is needed
An easement is in gross if it confers upon its holder only some personal or pecuniary advantage that is not related to their use or enjoyment of their land
There is a servient tenement burdened, but no dominant tenement deriving benefit
Ex: right to place a billboard on another’s land, right to swim in another’s pond
Appurtenant easement transfers ___ with transfer of the dominant tenement, whether or not it is mentioned in the conveyance
Automatically
An easement in gross is not transferable unless it is for
Commercial purposes
Basic methods for creating an affirmative easement
PING
Prescription
Implication (pre-existing use/quasi-easement)
Necessity
Grant (signed writing (unless outside SoF))
Requirements for easement implied from pre-existing use
- previous uses on the servient tenement was apparent and continuous
- parties expected that the use would survive division bc reasonably necessary to dominant tenement’s use and enjoyment
Requirements for creation of easement by prescription
COAH Continuous Open and Notorious Actual Hostile
Scope of an easement is set by
The terms of the grant or the conditions that created it
8 ways to terminate an easement
END CRAMP
Estoppel (servient owner materially changes positions in reliance)
Necessity (when need ends unless in writing)
Destruction (of servient land)
Condemnation (of servient land)
Release (by holder to servient owner)
Abandonment (physical action) (NOT mere nonuse)
Merger (easement and servient land held by same person)
Prescription (by servient owner)
License definition
Mere privilege to enter another’s and for narrow/delineated purpose
Which is considered an interest in land: a license or an easement?
Easement
Creation of a license
No writing required (not subject to SoF)
Freely revocable at will of licensor
A failed attempt to create an easement results in a
License
When does estoppel bar revocation of a license?
Only when the licensee has invested substantial money or labor in reasonable reliance on the license’s continuation (becomes an easement by estoppel)
Profit definition
Entitles holder to enter servient land and take some resource
All easement rules apply to profits
Can also be extinguished by surcharge (misuse that overly and wrongfully burdens the servient estate)
Negative/restrictive covenant definition
Refrain from doing something (“I promise not to build for commercial purposes)
Affirmative covenant definition
do something related to land (“I promise to maintain our shared fence”)
Covenant v. equitable servitude – how to tell?
Money damages: covenant
Injunction: equitable servitude