Property Flashcards
What durational language is used for FSD?
So long as
While
During
Until
When will a Fee Simple Subject to Condition Subsequent (FSSCS) be a FSS to Executory Interest (FSSEI)
If the future interest after the condition is held by a third party (as opposed to the grantor)
What are the 4 unities for JT? And for TBE?
Possession, interest, time, title,
TBE: has all 4 plus person.
What are the 4 types of tenancies?
- Tenancy for years (automatically expires after the agreed rental time)
- Periodic tenancy
- Tenancy at will
- Tenancy at sufferance
When will a sublessee be responsible for rent?
If the sublessee expressly assumes the rent covenant (or any other covenants)
What are the elements of Adverse Possession? ANOCHE
Possession must be:
Actual;
Notorious;
Open and
Continous;
Hostile
Exclusive for statutorily stated time
What are the six covenants of title that a grantor guarantees with a general warranty deed?
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
What are the components of a mortgage?
Note = the promise to repay loan debt
Mortgage = instrument providing security for the note
Note: the rule is that the mortgage follows the note (if a bank transfers the mortgage but not the note, the transfer will be void)
What is the difference b/w a mortgage in a lien state v. title state?
The mortgage in a lien state will NOT sever a JT, whereas a mortgage in a title theory WILL.
What are the alternatives to mortgages? (3 different instruments that work as a mortgage)
Deed of trust = uses a trust to hold title to th benefit of the lender
Installment land K = seller retains title until buyer makes finally installment payment (there is a tradition and modern approach)
Absolute deed = borrower transfer deed instead of conveying a security interest for the loan (must be proven by clear and convincing evidence)
What is the intermediate title theory?
Mortgagor (borrower) retains title until default.
Minority of jurisdictions adopt this
What does it mean to clog the equity of redemption?
The lender makes it harder for borrower to exercise the right (courts do not like this)
How will different liens/loans take priority when a property is foreclosed?
By chronological order, the oldest in time will be consider a senior interest and survive foreclosure, whereas interests after foreclosing interest will be junior interests and extinguish.
Are there exceptions to the priority order (senior v. Junior interests)?
YES.
1. Purchase-money mortgages (take prior to others)
2. Recording act (junior may take first if in a notice jurisdiction w/o knowledge of senior)
3. Subordination agreement b/w mortgagees(senior agrees to subordinate interest to junior)
4. mortgage modifications
after-acquired property
What are the scopes of easements?
Depends on the type of easement, but all express easements will use:
intent to clarify ambiguous terms
A reasonableness standards for any changes in use.
A trespass naming to those that exceed the easement’s scope
Implied easements, the scope will be determined by the nature of the prior use or necessity
What are real covenants and what are their elements?
A promise concerning the use of the land that runs to successors IF privity allows.
Elements: (1) must be in writing; (2) have intent; (3) touch and concern the land; (4) notice — actual or constructive, and inquiry for equitable servitude; (5) privity
How does covenant privity work?
Horizontal privity is b/w OG parties, look for a transfer b/c covenant must be contained in the same instrument (e.g., deed)
Strict vertical privity exists when OG party gives new party their entire interest
Relaxed vertical privity exists when OG party gives new party a carved out interest (not the whole).
How do you bind a party to the covenant?
To make someone abide by the covenant (subject them to it, stop them from doing it) = you use the burden, which requires horizontal and strict vertical privity.
To use the existing covenant (make sure you can enforce it) = you get the benefit, and you need relaxed vertical privity
Covenant v. Equitable servitude
Covenant; (1) writing; (2) intent; (3) touch and concern the land; (4) notice; (5) privity
- Remedy: damages
Equitable servitude: (1)-(4) BUT does NOT require privity.
- Recovery: injunctive relief
What is a useful tip to know nether the questions refers to a covenant or an equitable servitude?
Look at what the party is seeking (damages-covenant or an injunction-equitable servitude).
What are the three types of common interest communities? (Plus define them)
Common interest communities are RE development in:
1 Owner’s association: pay dues
2. Condominiums: individual units but common areas owned collectively in TIC.
3. Cooperatives
How does the governance of common interest communities works?
There is a declaration: governing doc that outlines controlling covenants and restrictions
- these rules will be valid IF: not illegal, not against public policy, not unconstitutional
- rules must abide by RR (rational review, rule must be reasonably related to a legitimate association purpose)
What are the remedies from Landlord breaching the habitability warranty?
If the premises are not habitable, then the tenant may choose to:
1. Refuse to pay rent
2. Remedy the defect and offset the cost against rent
3. Defend against eviction
When will a Fee Simple Subject to Condition Subsequent (FSSCS) be a FSS to Executory Interest (FSSEI)
If the future interest after the condition is held by a third party (as opposed to the grantor)
When must a life tenant (who has a grantee taking after) pay for taxes of a property?
When they are receiving a financial benefit from the property BUT the tenant’s **responsibility is limited to the financial benefit they receive
Does RAP apply to leases?
NO
What is the Shelter Rule?
Is a rule that protects buyers who buy from a BFP as if the buyers themselves were BFPs (even if the had notice of other purchases)
What is the estoppel by deed doctrine?
When you sell something you know you don’t own and then you get possession to it, you are estoppel from saying te previous sale did not exist — so buyers get prop.
