Property

Question 1

What durational language is used for FSD?

Answer 1

So long as

While

During

Until

Question 2

When will a Fee Simple Subject to Condition Subsequent (FSSCS) be a FSS to Executory Interest (FSSEI)

Answer 2

If the future interest after the condition is held by a third party (as opposed to the grantor)

Question 3

What are the 4 unities for JT? And for TBE?

Answer 3

Possession, interest, time, title,

TBE: has all 4 plus person.

Question 4

What are the 4 types of tenancies?

Answer 4

1. Tenancy for years (automatically expires after the agreed rental time)
2. Periodic tenancy
3. Tenancy at will
4. Tenancy at sufferance

Question 5

When will a sublessee be responsible for rent?

Answer 5

If the sublessee expressly assumes the rent covenant (or any other covenants)

Question 6

What are the elements of Adverse Possession? ANOCHE

Answer 6

Possession must be:
Actual;
Notorious;
Open and
Continous;
Hostile
Exclusive for statutorily stated time

Question 7

What are the six covenants of title that a grantor guarantees with a general warranty deed?

Answer 7

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 8

What are the components of a mortgage?

Answer 8

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)

Question 9

What is the difference b/w a mortgage in a lien state v. title state?

Answer 9

The mortgage in a lien state will NOT sever a JT, whereas a mortgage in a title theory WILL.

Question 10

What are the alternatives to mortgages? (3 different instruments that work as a mortgage)

Answer 10

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)

Question 11

What is the intermediate title theory?

Answer 11

Mortgagor (borrower) retains title until default.
Minority of jurisdictions adopt this

Question 12

What does it mean to clog the equity of redemption?

Answer 12

The lender makes it harder for borrower to exercise the right (courts do not like this)

Question 13

How will different liens/loans take priority when a property is foreclosed?

Answer 13

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.

Question 14

Are there exceptions to the priority order (senior v. Junior interests)?

Answer 14

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

Question 15

What are the scopes of easements?

Answer 15

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

Question 16

What are real covenants and what are their elements?

Answer 16

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

Question 17

How does covenant privity work?

Answer 17

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).

Question 18

How do you bind a party to the covenant?

Answer 18

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

Question 19

Covenant v. Equitable servitude

Answer 19

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

Question 20

What is a useful tip to know nether the questions refers to a covenant or an equitable servitude?

Answer 20

Look at what the party is seeking (damages-covenant or an injunction-equitable servitude).

Question 21

What are the three types of common interest communities? (Plus define them)

Answer 21

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

Question 22

How does the governance of common interest communities works?

Answer 22

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)

Question 23

What are the remedies from Landlord breaching the habitability warranty?

Answer 23

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

Question 24

When will a Fee Simple Subject to Condition Subsequent (FSSCS) be a FSS to Executory Interest (FSSEI)

Answer 24

If the future interest after the condition is held by a third party (as opposed to the grantor)

Question 25

When must a life tenant (who has a grantee taking after) pay for taxes of a property?

Answer 25

When they are receiving a financial benefit from the property BUT the tenant’s **responsibility is limited to the financial benefit they receive

Question 26

Does RAP apply to leases?

Answer 26

NO

Question 27

What is the Shelter Rule?

Answer 27

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)

Question 28

What is the estoppel by deed doctrine?

Answer 28

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.