Property Flashcards
Executory interest
future interest that cut short a prior vested interest
Vested remainder
interest given to (a) ascertained grantee and (b) not subject to condition precedent.
If a remainder fails (a) or (b), it is a contingent remainder
Fee simple determinable (FSD)
Limited by specific durational language
Possibility of reverter:
future interest held by grantor following FSD. Vests automatically after the durational period ends.
RAP
certain future interests must vest or fail within 21 years after the death of a life in being at the time that the interest is created.
Effect of a RAP violation
strike the violating interest as if the interest was never created in the first place.
2 Exceptions to RAP:
(1) charity-to-charity gifts
(2) options held by a current tenant to purchase a fee interest in the leasehold property.
Interests subject to RAP
contingent remainder, vested remainder subject to open, and executory interest
Vested remainder subject to open
vested remainder in a (a) class gift and (b) full class membership is unknown (but at least one person in the class must be vested).
If class gift + full class membership is unknown with nobody vested → contingent.
In a class gift (vested remainder) class is closed when
all members are identified
Rule of convenience
interpretive rules that can save a class gift from being invalidated under RAP. closes the class when any member of the class becomes entitled to immediate possession
“All or nothing” class gift rule
If the gift to any member of the class is void under RAP, the gift is void as to all members of the class.
2 Exceptions to all-or-nothing class gift rule:
(1) transfers of a specific dollar amount to each class member and (2) transfers to a subclass that vests at a specific time ( to the children of B, and upon the death of each, to that child’s issue”
Three kinds of concurrent estates:
tenancy in common, joint tenancy, tenancy by the entirety
Presumption in deciding which type of concurrent estates:
tenancy in common
Right of survivorship in tenancy at common
Does not exist
Ownership interest in joint tenancy requires ∑: PITT:
(1) equal right to Possess the whole property (2) they have the equal share of the same type of Interest (3) they received the interest at the same Time (4) they received the interest in the same instrument of Title
Creation of joint tenancy requires
(a) clear expression of intent + (b) survivorship language
Right of survivorship in joint tenancy
surviving joint tenant automatically take the deceased tenant’s interest
Joint tenancy can terminate upon
inter vivos transfer
Granting a mortgage interest in the joint tenancy
Majority (lien theory): does not sever.
Ouster occurs when:
co-tenant in possession denies another co-tenant access to the property. The denied co-tenant to manifest intent to access and get denied.
Remedies for ouster:
injunction granting access or damages for the value of the use while unable to access the property
Co-tenant’s right to receive rent
A co-tenant is entitled to a portion of the rent received from a third party’s possession, minus operating expenses, based on ownership interest.
co-tenant is generally not required to pay rent to the other co-tenants for the value of her own use of the property, even when the other co-tenants do not make use of the property.
Co-tenant to right to contribution to operating expenses
Operating expenses are divided based on ownership interest.
A co-tenant can collect contribution from the other co-tenant for payments in excess of her share of the operating expenses © a co-tenant in sole possession can collect only for the amount that exceeds the rental value of the property.
Co-tenant right to reimbursement for repairs
No right to reimbursement for necessary repairs, but repairing co-tenant can get credit in a partition action
Co-tenant duty to contribution for improvement
No duty, but improving co-tenant can get credit in a partition action.
Co-tenant right to partition
Tenants in common or joint tenants have a unilateral right to partition
Partition by sale is ordered when:
When physical partition is (1) not practical or (2) not fair to all parties. Proceeds of partition divided based on ownership interests.
Enforceability of agreement not to partition
Enforceable if (a) agreement is clear and (b) time limit is reasonable.
FHA prohibits
discrimination in sale, rental and financing of dwellings as well as advertising that states a discriminatory preference
3 Exemptions from the FHA:
(1) single-family home sold/rented without a broker;
(2) owner-occupied building with 4 or fewer living units
(3) religious organizations and private clubs
Protected class under FHA:
Race color religion national origin sex disability familial status.
Does not include sexual orientation
Prohibited activity under FHA:
refusing to rent, sell, or finance; requiring different rents; falsely denying that a unit is available; providing different services to facilities
Causation requirement under FHA
Prohibited behavior must be linked to protected traits © advertisement
Choice of law in a property dispute that involves more than one state: baseline rule
controlling law is based upon where the property is located (law of the situs)
Baseline rule for choice of law is ignored when
(1) Instrument:. instrument designates otherwise or
(2) Marriage: when classifying marital or separate property in a marriage case → domicile of the party may override ; or
(3) Mortgage: mortgage document require repayment to be made in another state
Four types of landlord-tenant tenancies:
(1) tenancy for years (2) periodic tenancy (3) tenancy at will (4) tenancy at sufferance
Tenancy for years:
tenancy measured by a fixed and ascertainable amount of time
Tenancy for years can terminate in 3 situations:
(1) Automatically upon expiration of the term. (2) Tenant surrender the lease or (3) Tenant or LL commits material breach
Periodic tenancy:
estate that is repetitive and ongoing for a set period of time
Periodic tenancy is created when
Parties’ intent to create a periodic tenancy. Intent can be express or by implication (payment of rent).
Oral agreement regarding the payment of monthly rent: creates periodic tenancy.
Periodic tenancy termination–is notice required?
Yes. Proper notice required
Notice to terminate tenancy is proper when
a. timely (given before the start of what will be the last term) and
b. written (in most jx)
Tenancy at will creation
Express agreement or by implication. © In the absence of a specific agreement to create a tenancy at will, regular rent payments will lead to the tenancy being treated as a periodic tenancy
Tenancy at will termination–requirement
can be terminated for any reason at any time by either party. No notice required
If the agreement gives only the LL a right to terminate at will, the tenant also gets the same right. If the agreement gives only the tenant a right to terminate at will, LL is not given the same right.
When LL or tenant dies, does the lease terminate?
Yes for tenancy at will.
No–does not terminate periodic tenancy or tenancy for years.
Tenancy at sufferance:
describes temporary tenancy when a tenant holds over after the lease ended.
Tenancy at sufferance creation:
created by tenant’s actions
Tenancy at sufferance termination
(1) tenant voluntarily leaves
(2) LL evicts or
(3) LL re-rents to holdover
If LL re-rents to a holdover tenant, what is the new tenancy created?
periodic tenancy
Can LL charge a higher rent to holdover tenant?
LL can charge a higher rent if LL had informed tenant of the increase before the expiration of the old lease.
Two basic duties of tenant
- pay rent
2. avoid waste
Tenant duty to pay rent can be suspended in 3 situations:
(1) premises are destroyed and tenant didn’t cause it;
(2) LL completely or partially evicts tenant
(3) LL materially breaches the lease
Landlord basic 4 duties
- duty to deliver possession of property
- implied CN of quiet enjoyment
- implied warranty of habitability
- Duty to maintain/repair
Implied covenant of quiet enjoyment
LL has a duty to allow T a right to quiet enjoyment of the property without interference by the LL
Ways to breach implied covenant of quiet enjoyment (Landlord-tenant)
Actual eviction Partial eviction Construction eviction Common area control Control other tenant's nuisance behavior
Implied Warranty of Habitability
LL has a duty to maintain residential property habitable
Tenant’s right upon breach of implied warranty of habitability
- Withhold rent (to do this, T must notify LL and give opportunity to fix); or
- Remedy the defect and offset cost against rent; or
- Defend against eviction