Property

Question 1

Subsequent interest for fee simple determinable (2)

Answer 1

possibility of reverter (if holder is grantor) or executory interest (if holder is third party)

Question 2

Subsequent interest for fee simple subject to condition subsequent

Answer 2

right of entry - reetry or power of termination

(holder is grantor and must exercise right to terminate)

Question 3

Subsequent interest for fee simple subject to an executory condition

Answer 3

executory interest - holder is third party

Question 4

material breaches by landlord

Answer 4

breach of covenant of quiet enjoyment or implied warranty of habitability

Question 5

two executory interests

Answer 5

springing and shifting

Question 6

shifting executory interest

Answer 6

divests interest from one grantee to another on the happening of a condition

Question 7

springing executory interest

Answer 7

divests interest from grantee to the grantor - reverts to grantor than to the grantee

GRANTOR involved

Question 8

holdover tenant becomes a what if landlord accepts rent?

Answer 8

periodic tenancy

Question 9

mortgage defintion

Answer 9

security interest to secure debt

Question 10

fee simple determinable language

Answer 10

so long as
while
during
until

Question 11

tenancy by entirety unities

Answer 11

possession, interest, time, title, and person (marriage)

Question 12

purchase money mortgage

Answer 12

loan for purchasing property

Question 13

future advance mortgage

Answer 13

second mortgage - line of credit

Question 14

FHA racial discrimination intent?

Answer 14

impact ?

Question 15

not habitable premises remedy

Answer 15

refuse to pay rent
remedy defect and offset rent
defend against eviction

Question 16

adverse possession req

Answer 16

open
continuous
exclusive for statutory period
actual
non-permissive (hostile)

Question 17

reasonable use water rights

Answer 17

Favored in the eastern U.S. and allows the owner to make any reasonable use of the water. Water rights cannot be sold or transferred separately.

Question 18

prior appropriation water rights

Answer 18

Favored in the western U.S. and states that water rights are determined by priority of beneficial use (first in time, first in right). Water rights can be sold or transferred separately.

Question 19

deed transfers title when 3 reqs

Answer 19

intend to convey interest
delivers deed
accepts the deed

Question 20

covenant running with land (BURDEN)

Answer 20

writing for SOF
intent
notice
horizontal privity
vertical privity
touch and concern

Question 21

material terms in a deed

Answer 21

(i) Identities of the grantor and the grantee,

(ii) Words of transfer,

(iii) Description of the property interest being transferred, and

(iv) Grantor’s signature.

Question 22

general warranty deed covenants (6)

Answer 22

Present covenants:
1) Covenant of seisin,
2) Covenant of the right to convey
3) Covenant against encumbrances

Future covenants:
4) Covenant of quiet enjoyment
5) Covenant of warranty
6) Covenant of further assurances

Question 23

lien theory state

Answer 23

majority
mortgage treated as a lien and does not affect JT

Question 24

title theory state

Answer 24

minority rule
severs JT to TIC

Question 25

vested remainder subject to complete divestment v. contingent remainder

Answer 25

subject to a condition subsequent that can completely divest the remainder interest (trigger words: but if)
-can lose property

VERSES

subject to a condition precedent to grantee’s taking
-may not ever get property

Question 26

life tenant duty to pay taxes

Answer 26

duties including paying ordinary taxes on the real property, but only to the extent that the life tenant receives a financial benefit from the property

financial benefit based on
occupies the property – in which case the financial benefit is measured by the fair market rental value of the property (e.g., reasonable rental value) or

does not occupy the property – in which case the financial benefit is measured by the income derived from the land (e.g., third-party rental income, crops grown on the land)

Question 27

executory interest

Answer 27

third party interest

Question 28

right of refusal rule

Answer 28

A right of first refusal is a partial restraint on alienation that, if reasonable, is valid and enforceable by an injunction. This right is generally reasonable if the holder of the right can purchase the property under the same terms offered to another party.

Question 29

estoppel by deed

Answer 29

Under the “estoppel by deed” doctrine, a grantor who conveys an interest in land by warranty deed before actually owning it is estopped from later denying the effectiveness of that deed. When the grantor acquires ownership of the land, the after-acquired title is transferred automatically to the prior grantee.

Question 30

doctrine of equitable conversion

Answer 30

A majority of jurisdictions apply the doctrine of equitable conversion when a land-sale contract is silent regarding the risk of loss (as seen here). Under this doctrine, the risk of loss is placed on the **party with equitable title at the time the property was destroyed unless the other party is at fault for the loss. ** The seller retains legal title to real property during the pendency of the sales contract (i.e., during the executory period), but the buyer receives equitable title once the contract is formed and can be specifically enforced.*

Question 31

deed in lieu of foreclosure

Answer 31

“deed in lieu of foreclosure” allows the mortgagee to take immediate possession of the property without the formalities of a foreclosure sale.

However,** the mortgagee takes the property along with any junior interests attached to the property**—e.g., the savings and loan association’s second mortgage. And if the mortgagee accepts a deed in lieu of foreclosure without reserving the right to foreclose (as seen here), then its mortgage is extinguished. As a result, the house remains subject only to the savings and loan association’s mortgage.

Question 32

Shelter Rule

Answer 32

BFP protection passes to subsequent buyer

Question 33

Shelter Rule

Answer 33

BFP protection passes to subsequent buyer

Question 34

public nuisance claim requirement

Answer 34

to prevail on a public nuisance claim, an individual plaintiff must show that he/she suffered a different kind of harm than the rest of the community

Question 35

Race notice reqS

Answer 35

Under this type of statute, a good-faith purchaser for value (i.e., a bona fide purchaser or BFP) has priority over an earlier-acquired interest in the property if the BFP:

lacked notice (actual, record, or inquiry) of the earlier interest at the time the BFP acquired an interest in the property and

recorded that interest before the earlier interest was recorded.

Question 36

exoneration of liens doctrine

Answer 36

applies when a devisee (the son) receives a specific devise of real property (the house) that is subject to an encumbrance (e.g., mortgage, lien). Under this doctrine, the devisee is entitled to pay off any encumbrances on that property—including a purchase-money mortgage—from the remaining assets in the testator’s estate.

As a result, the personal representative should accede to the son’s demand to use the estate’s remaining assets to pay off the mortgage on the house.

Question 37

Constructive eviction elements

Answer 37

. Constructive eviction occurs when:
(1) the T gives notice to the L;
(2) the L has adequate time to fulfill his duties; and
(3) the T vacates the property within a reasonable amount of time.

Question 38

easement by implication

Answer 38

(1) If the owner of two parcels of land previously used one parcel to benefit the other,
(2) the parties intended the use to continue if:
* that use was continuous,
* apparent or known, and
* reasonably necessary to the dominant land’s use and enjoyment
*
*
* (as distinguished from an easement by necessity, which requires strict necessity).

Question 39

Uniform Vendor and Purchaser Risk Act.

Answer 39

Under this act, the risk of loss remains with the seller until the buyer takes possession of or receives legal title to the property.

unlike equitable conversion

Minority rule

Question 40

equitable conversion

Answer 40

place the risk of loss on the buyer during the executory period—i.e., the period between the execution of the real-estate contract and closing. This is true regardless of whether the buyer takes possession of the property during that period.

majority rule

Question 41

marketable title issues

Answer 41

Covenants
Easements
Leases
Liens
Gaps in chain of title
Boundary disputes
Existing zoning violations
Adverse possession