Property Flashcards

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1
Q

Joint Tenancy

Alienable?
Devisable?
Descendible?

A

Two or more own with the right of survivorship -> JT’s have equal shares

Yes it is Alienable
No it is no devisable
No it is descendible

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2
Q

How to create a Joint Tenancy?

A

TTIP
- T – At same time
- T – By same title (same deed, will, or other document of title)
- I – Identical equal interests
- P – Right to possess whole

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3
Q

Tenancy by Entirety

A

Between married partners only with right of survivorship

CAN’T TOUCH THIS

Creditors of one spouse cannot touch this tenancy for satisfaction of the debt
One spouse acting alone cannot defeat the right of survivorship by unilaterally conveying to a 3rd party

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4
Q

Severance of Tenancy by the Entirety?

A

CAN ONLY BE SEVERED BY:
Divorce -> On the event of divorce, tenancy by the entirety becomes a tenancy in common
Death
Mutual Agreement
Execution by a joint creditor of both spouses can sever a tenancy by the entirety

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5
Q

Tenancy in Common

A

NO RIGHT OF SURVIVORSHIP

Co-tenant owns individual part + right to possess whole

Each interest is Devisable, descendible, alienable *****

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6
Q

Voluntary Waste?

Permissive Waste?

Ameliorative Waste?

A

Voluntary = willful destruction

Permissive = neglect

Ameliorative = unilateral change increasing value

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7
Q

Three Partition Methods?

A

Joint Tenants or Tenants in Common can partition to sever

  1. Voluntary -> Amicable end
  2. Judicial action “In Kind” (physical division)
    - Works best -> When Blackacre is sprawling acreage like a farm or
    vineyard … Courts prefer this method
  3. Judicial Action Forced sale (division of proceeds)
    - In the best interest of all parties, land is sold, and the sale
    proceeds are divided up proportionately
    - Works best -> When Blackacre is a single building … home or
    commercial building
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8
Q

Tenancy for Years

A

Most common run of the mill apartment lease

For a known, fixed period time
“To T for 10 years”
Termination is automatic (on end date)
Landlord can terminate if tenant breaches any lease’s covenants
No writing needed to terminate
Writing typically needed for greater than 1 year

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9
Q

Periodic Tenancy

A

Continues for successive intervals (ex. month to month) UNTIL properly terminated

“To T from month to month” OR “to T, with rent payable on the first day of every month”

Terminates by notice from one notice at least equal to the length of the time period
-> month to month (one month notice) week to week (one week notice)
HOWEVER - year to year? one month notice

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10
Q

Tenancy at Will

A

No fixed duration - terminable at the will of either the landlord or tenant

“To T for as long as L or T desires”

Terminates after 1 party displays intention that it should come to an end or by operation of law (death)

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11
Q

Tenancy at Sufferance

A

Created when a tenant wrongfully holds over, meaning they remain in possession past the expiration of the lease

T’s lease expires, but T continues to occupy the premises

Terminates when landlord evicts tenant or elects to hold tenant to another term

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12
Q

Hold-Over Doctrine

A

If a tenant continues in possession after their right to possession has ended, the landlord may: (1) evict the tenant, (2) bind the tenant to a new periodic tenancy

Exceptions
(1) Tenant remains in possession for only a few hours after termination or leaves a few articles of personal property OR
(2) the delay is not the tenant’s fault (ex. Severe illness)

^^ In these cases, the landlord CANNOT bind the tenant to a new
tenancy

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13
Q

Tenant’s Duties?

A

Repair AND to pay rent!

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14
Q

Tenant’s Duty to repair when lease is silent?

A
  • Maintain premises
  • Make routine repairs
  • Not ordinary wear and tear repairs
  • Do not commit waste
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15
Q

Landlord’s Duties?

A

Actual physical possession to the Tenant at the start of the lease

  • If at the start of the tenant’s lease, a prior holdover tenant is still in possession -> L has breached, and new T gets damages
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16
Q

Implied Covenant of Quiet Enjoyment

A

T has right to quiet use and enjoyment without interference from L

Applies in residential and commercial leases

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17
Q

Constructive Eviction

A

Occurs when L renders the premises unsuitable for occupancy

T has claim to constructive eviction if three elements are met:
SNG
S - Substantial Interference
N - Notice to L
G - Get OUT/vacate

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18
Q

Implied Warranty of Habitability

A

Premises must be fit for basic human habitation
- Ex. -> Running water, electricity, heat during winter

RESIDENTIAL LEASES ONLY
Non-waivable

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19
Q

Tenant’s entitlements when Implied Warranty of Habitability is breached?

A

MRRR
M - Move out and terminate lease
R - Repair and deduct
R - Reduce or withhold rent - until court determines fair value
R- Remain (pay rent) and seek damages

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20
Q

Fair Housing Act (FHA) with 2 exceptions

A

Protects tenants and potential tenants from discrimination based on race, color, religion, national origin, sex, or disability
EXCEPTIONS
o Owner occupied buildings with 4 or fewer units
o Single-family homes if owner has no more than 3 single family
homes
PROHIBITED ACTIONS
o Refusing to negotiate, rent, or sell housing, or give mortgage
o Providing different for sale/rental
o Falsely representing dwelling unavailable

*** Reasonable accommodations for tenants with disabilities
o L’s must also make reasonable accommodations in rules, policies, and services when necessary to afford a disabled person an equal opportunity to use dwelling

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21
Q

Assignment

A

Transfer of entire remaining term of lease

Assignee T in privity of estate with L (but not privity of contract!)
o Liable on covenants that run with land
 Examples -> Promise to pay rent, pay taxes, repair or paint premise

Original T in privity of contract (but not estate) with L
o Liable for original lease obligations
 Example -> T2 cannot pay rent? T1 is liable
* T2 betrays any promises in OG lease? T1 is liable as secondary matter

A covenant prohibiting assignment does not prohibit subleasing and vice versa

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22
Q

Sublease

A

A sublease arises when T1, the OG tenant, transfers less than her entire interest to T2

T2 has no privity (estate or contract) with L
o T1 & T2 responsible to each other
Relationship between L and T1 remains intact
o Ex. If T2 fails to pay rent, L proceeds against T1, T1 in turn proceeds
to T2
o L breaches implied warranties with T2? -> T2 sues T1 and then T1
impleads L

A covenant prohibiting sublease does not prohibit assignment and vice versa

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23
Q

Landlord’s Tort Liability under Caveat Lessee and the 5 exceptions

A

“TENANT BEWARE”

Under common law, L was under not duty to make premises safe EXCEPT for:

CLAPS
C - Common Areas
L - Latent defects
A - Assumption of repairs
P - Public use rule
S - Short term lease of furnished dwelling

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24
Q

Landlord’s Tort Liability under Modern Statutes

A

General duty of reasonable care and will be held liable for injuries resulting from ordinary negligence if the L had notice of a defect and opportunity to repair it

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25
Q

Easement

A

Grant of nonpossessory property interest that entitles its holder to some form of use or enjoyment of another’s land

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26
Q

Affirmative Easement

A

Right to go on to and do something on another’s land

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27
Q

Negative Easement

A

Right to prevent landowner from doing something - expressly created by a writing signed by the grantor
LASS
L - Light
A - Air
S - Support
S - Stream water from an artificial flow

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28
Q

Easement Appurtenant

A

Benefits holder in use/enjoyment of own land - ALWAYS 2 PARCELS INVOLVED

Two parcels
o Dominant -> Derives benefit
o Servient -> Bears burden

Automatically transfers of dominant tenement (dom parcel is sold), regardless of being mentioned in the conveyance

Automatically transfers of servient estate (servient parcel is sold) UNLESS the new owner is BFP without notice of easement

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29
Q

Easement in Gross

A

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

Holder has personal/commercial advantage unrelated to use/enjoyment of land
- Servient land burdened
- NO benefited/dominant tenement
Examples
o The right to place a billboard on another’s lot (commercial)
o The right to swim in another’s pond (not commercial)
o The utility company’s right to lay power lines on another’s lot (commercial)

Not transferable unless it is for commercial purposes

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30
Q

Creation of an Easement - 4 ways

A

PING
P - Prescription
I - Implication
N - Necessity
G - Grant

PRESCRIPTION
- COAH -> Continuous and uninterrupted; Open and notorious; Actual use (need not be exclusive); Hostile
Permission defeats this

IMPLICATION
- Created by operation of law; they’re exception to the SoF
- Preexisting use -> previous use on the servient part was apparent and continuous AND parties expected easement to run bc it is reasonably necessary to dom’s use and enjoyment

NECESSITY
- Will be implied when a landowner conveys a portion of her land with no way out except over some part of the grantor’s remaining land
o Owner has servient parcel has the right to locate the easement

GRANT
- in writing and signed by the holder of the servient tenement unless its duration is brief enough to be outside the coverage of SoF

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31
Q

Express Reservation Easement

A

When a grantor conveys title to land but reserves the right to continue to use the tract for a special purpose

Easement can only be reserved for the GRANTOR

Grantor CANNOT reserve for anyone else = void!!

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32
Q

Termination of an Easement - 8 ways

A

END CRAMP
E - Estoppel (servient owner materially changes positions in reliance)
N - Necessity (when the needs, UNLESS it is in writing!)
D - Destruction (of servient land…cannot be voluntary -> fire, flood, etc.)
C - Condemnation (of servient land like Eminent Domain)
R - Release (by holder to servient owner in writing)
A - Abandonment (physical action demonstrating intent to not use
easement again like building a structure across the easement)
M - Merger (Owner of easement & Servient land held by same person)
P - Prescription (COAH -> adverse possession elements)

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33
Q

License

A

Mere privilege to enter another’s land for some delineated purpose

Creation -> no writing required and freely revocable at will of licensor
Ex. -> Tickets to Broadway show. All other 200 people get to see but you. Your ticket is a mere freely revocable license.
Ex. -> Neighbors talking by a fence. Grantor orally grants an easement for more than 1 year? Invalid easement bc not in writing so turns into license!

34
Q

The Profit

A

Entitles holder to enter servient land & take some resources

  • For example, the soil, some substance of the soil (such as minerals, timber, or oil) or some product of the property (such as fish or game)
  • All the rules governing creation, alienation, and termination of easements are applicable to profits
  • Profit may be extinguished through surcharge (misuse that overly burdens servient land)
35
Q

On the exam, how will you know whether the analysis should be about covenants or equitable servitudes?

A

Plaintiff wants money damages? -> COVENANTS

Plaintiff wants an injunction? -> EQUITABLE SERVITUDE

36
Q

Covenants - Requirement for Burden to Run? - 5 elements

A

Any successor in interest to the burdened estate will be bound by the covenant as if they had expressly agreed to it:
WITHN
W - Writing (OG Promise in writing)
I - Intent (Intended for Covenant to run)
T- Touch and Concern (Pertains to involved land)
H - Horizontal and Vertical Privity (see below)
N - Notice (Notice of promise when successor took)

HP -> nexus between the OG promising parties (succession of estate)
 OG parties were vis-à-vis parties (Ex. grantor-grantee) when
covenant was created
 In other words, the 2 must have shared some interest in the land
independent of the covenant
 HP is difficult to establish – its normally why many burdens will not
run
VP -> Nexus between successor and original covenanting party (non-hostile)
 Only time this won’t be present is when successor acquired her
interest through adverse possession
- Present when there is non-hostile nexus such as a contract, devise,
or descent

37
Q

Covenants - Requirement for Benefit to Run? - 4 elements

A

Does the successor have standing to enforce the covenant?
WITV
W - Writing (OG Promise in writing)
I - Intent (Intended for Covenant to run)
T - Touch and Concern (Pertains to involved land)
V - Vertical Privity (Does not need horizontal privity but must have non-
hostile nexus)

38
Q

Equitable Servitudes

A

An equitable servitude is a covenant (that is, a promise to do or not do something on the land) that, regardless of whether it runs with the land at law, can be enforced in equity against successors of the burdened land unless the successor is a bona fide purchaser (meaning, a subsequent purchaser for value without notice of the covenant).

39
Q

Creation of Equitable Servitude

A

WITNES
W - Writing (Generally, OG Promise was in writing)
I - Intent (OG parties intended promise would be enforceable)
T - Touch and Concern (Promise affects the parties as landowners)
N - Notice (Subsequent purchasers were put on notice… Actual, Inquiry,
or Record when they acquired land)
ES - Equitable Servitude

NO PRIVITIES REQUIRED FOR EQUITABLE SERVITUDES -> WOOHOOO

40
Q

LIKELY TO BE ON EXAM

The Implied Equitable Servitude - GENERAL COMMON SCHEME DOCTRINE

A

The court will imply a reciprocal negative servitude to hold the unrestricted lot holder to the promise. Thus, if a developer subdivides land, and some deeds contain restrictive covenants while others do not, the restrictive covenants will be binding on all parcels provided there was a common scheme of development and notice of the covenants.

Two Elements
1. Scheme of development (including D’s lot) when sales began

  1. D had notice of promise when they took
    - Actual -> literal knowledge
    - Inquiry -> neighborhood seems to conform to the common restriction
    - Record -> imputed to buyers on the basis of the publicly recorded
    documents

If the Scheme arises AFTER lots are sold, no implied servitude can arise without express covenants

41
Q

Defenses to Equitable Servitudes

A
  1. Neighborhood conditions have changed so much that enforcement would be inequitable
  2. Unclean hands - person seeking enforcement is violating a similar restriction on his own land
  3. A benefited party acquiesced in a violation of the servitude by a burdened party
  4. Estoppel - a benefited party acted in a way that a reasonable person would believe the covenant was abandoned or waived
  5. Laches - benefited party fails to bring suit against the violator within a reasonable time
42
Q

Adverse Possession - 4 elements

A

COAH
C - Continuous and Uninterrupted use for the given statue’s period (can
tack on time from predecessors as long as there is privity)
O - Open and Notorious (Discoverable upon inspection to put true
owners on notice)
A - Actual and Exclusive (Actual possession of reasonable portion of
land and not sharing with true owner)
H - Hostile (without owner’s permission… permission defeats this -
ALSO adverse possessors state of mind is irrelevant)

43
Q

Adverse Possession and Disabilities

A

SoL will not run against a true owner who is afflicted by a disability at the inception of the adverse possession (meaning, when the cause of action first accrued)… if disability came into play after the adverse possessor started their gig, it don’t matter!!

44
Q

Adverse Possession and Future Interests

A

SoL does not run against a holder of a future interest until the interest becomes possessory

45
Q

Adverse Possession and Covenants

A

Adverse possessor uses land in VIOLATION of a recorded real covenant for the limitations period? -> They takes title free of the real covenant

Adverse possessor COMPLIES with the covenant for the statutory period -> They take title subject to the real covenant

In either case, if an adverse possessor uses land for the limitations period, she DOES take title to the land.

46
Q

Land Sale Contract elements

A

Must be in writing signed by the party against whom enforcement is sought (the defendant) to comply with SoF AND

  1. Identify the parties
  2. Describe the property
  3. Include the price or means of determining the price

**both parties DO NOT have to sign… only the one being sued is required for enforcement

Inaccurate Land Description? -> Specific performance with a pro rata reduction in price!

47
Q

Part Performance - Exception to SoF

A

Allows a buyer to enforce an oral real estate contract by specific performance if:

  1. Oral contract is certain and clear, AND
  2. The acts of partial performance clearly prove the existence of a contract
    - Buyer has taken POSSESSION of the property
    - Buyer has PAID the purchase price or a significant portion of the purchase price
    - Buyer has made SUBSTANTIAL IMPROVEMENTS

**NEED 2/3 OF THESE ^^

48
Q

Doctrine of Equitable Conversion

A

Once the contract is signed, equity regards the buyer as the owner of the real property
(Equitable title is with buyer BUT legal title has not been conveyed yet!

This means RISK OF LOSS is on the BUYER!
- Even though the risk of loss is on the buyer, if the property is damaged or destroyed, the seller must credit any fire or casualty insurance proceeds they receive against the purchase price the buyer is required to pay

49
Q

Marketable Title

A

Seller’s implied promise to provide title reasonably free from doubt/threat of litigation on ON THE DAY OF CLOSING!

Common defects that render title unmarketable:
 Defects in record chain of title
 Encumbrances (mortgages, liens, easements, restrictive covenants)
 Zoning violations

QUITCLAIM deeds does not in any way effect the implied covenant to marketable title - it still exists!!

50
Q

Unmarketable Title Remedies

A

Buyer must notify seller and give the seller reasonable time to cure the defects
 If seller fails -> rescission, damages, SP with abatement, and quiet title suit

In a contract for the sale of real property, the seller of the land is entitled to use the proceeds of the sale to clear title if she can ensure that the purchaser will be protected
* The seller’s offer to escrow the funds in this case should act as such guarantee

51
Q

Seller will not make false statements of material fact

A

Failure to disclose
 1. Seller must know or have reason to know of the defect
 2. Seller must realize that the buyer is unlikely to discover the
defect; AND
 3. The defect must be serious enough that the buyer would
probably reconsider the purchase

52
Q

Deed - How to pass title and elements of the deed

A

To pass title the Deed must be LEAD - Lawfully Executed and Delivered

Elements of a deed
WWUI
W - Writing signed by grantor
W - Words of intent transfer
U - Unambiguous description of the land
I - Identification of the parties

NO CONSIDERATION NEEDED

53
Q

Three Covenants for Title - what are the 3 deeds?

A

General Warranty Deed

Special Warranty Deed

Quitclaim Deed

54
Q

Quitclaim Deed

A
  • No covenants for title
  • Worst deed!
  • Grantor isn’t even promising that he has title to convey!
55
Q

General Warranty Deed

A
  • Best Deed!!
  • It warrants against all defects in title, including those attributable to
    grantor’s predecessors!
  • Contains all 6 of the following covenants:
    o Present covenants (breached at delivery)
     Seisin -> grantor owns
     Right to convey -> grantor can transfer
     Against encumbrances -> No servitudes/liens
    o Future covenants (breached if grantee disturbed in possession)
     Quiet enjoyment -> No 3rd party lawful claims
     Warrant -> Grantor will defend
     Further Assurances -> Grantor will perfect

**Present covenants do not run with land!! so remote grantees cannot sue on them!!!!

56
Q

Special Warranty Deed

A

Warrants against all defects in title (BUT only for grantor themselves)

All of the same promises/covenants as general warranty deed, but only on behalf of myself! No responsibility for any transgressions of my predecessors of interest

Statutory Special Warranty Deed
o Grantor has not conveyed this parcel to anyone but this grantee
o Estate is free encumbrances made by grantor

57
Q

Race Statute

A

First one to record wins!

“Any conveyance of an interest in land, other than a lease for less than one year, shall not be valid against any subsequent purchaser whose conveyance is first recorded.”

58
Q

Notice Statute

A

Last BFP to take (enter the fact pattern) wins!

“Any conveyance of an interest in land, other than a lease for less than one year, shall not be valid against any subsequent purchaser for value, without notice thereof, unless the conveyance is recorded.”

59
Q

Race-Notice Statute

A

BFP and records before the other! = Now to win, (1) B must be a BFP and (2) win the race to record!

“Any conveyance of an interest in land, other than a lease for less than one year, shall not be valid against any subsequent purchaser for value, without notice thereof, whose conveyance is first recorded.”

60
Q

Bona-Fide Purchaser (BFP) - 3 elements

A

To be a BFP, a grantee must:

  1. Purchaser (did not take by gift, will, inheritance)
  2. Pay valuable consideration
  3. Take without notice of prior conveyance
  • **Donees, heirs, and devisees themselves are not purchasers and
    thus cannot be BFPs
61
Q

Actual Notice

A

Literal knowledge

62
Q

Inquiry Notice

A

Charged with what inspection of the land/property would have revealed… whether you did the inspection or not, you will be on inquiry notice!

If a recorded instrument makes reference to an unrecorded transaction, grantee is on inquiry notice of whatever a reasonable follow-up would have revealed.

63
Q

Record Notice

A

On notice if Deed was properly recorded within the chain of title

64
Q

Chain of Title

A

Sequence of recorded document capable of giving record notice to subsequent takers

Chain of title is established through a title search - grantor/grantee index

65
Q

Shelter Rule

A

Anyone who takes from a BFP will prevail against any interest the BFP would have prevailed against

This protects the BFP interest when they try to transfer to donee’s etc…

**Applies even if the transferee had actual knowledge of the prior interest

66
Q

Wild Deed

A

Recorded deed that is connected to the chain of title
It is INCAPABLE of giving constructive notice.

Rule of Wild Deed -> if a deed, entered on the records, has a grantor unconnected to the chain of title, the deed is a wild deed and is incapable of giving record notice of its existence.

67
Q

Estoppel by Deed

A
  • Grantor purports to convey to grantee realty they do not then own
  • Grantor later acquires title to the property
  • Title automatically vests in grantee
  • Grantor is estopped from denying validity of pre-acquisition
    conveyance
  • But watch out for BFP: Early recording is outside chain of title

One who conveys realty in which he has no interest, is estopped from denying the validity of that conveyance, if he subsequently acquires the title that he had previously purported to transfer.

68
Q

Who is the mortgagor? Who is the mortgagee?

A

The Mortgagor is the borrower!

The Mortgagee is the lender!!!

69
Q

Purchase Money Mortgage

A

An extension of value by a lender who takes as collateral a security interest in the very real estate that its loan enables the debtor to acquire

70
Q

Non-purchase money mortgage

A

Loan is not used to purchase the property that is being used as collateral

Ex. Dave and Melissa pay of their home. They now seek to borrow $30,000 from FCB to pay for Austin’s Law School, granting FCB a security interest in their home.

71
Q

Transfer by Mortgagor… Assume? Subject to?

A

Who’s Personally Liable on Debt:
If O (mortgagor) sells Blackacre to B:
o B “assumes mortgage”: Both O and B
o B takes “subject to mortgage”: Only O, but if recorded, Blackacre
can be foreclosed

72
Q

Priority of Foreclosure Proceeds

A
  1. Expenses of the sale, including attorneys’ fees, and court costs
  2. Foreclosing party’s -> The principal and accrued interest on the loan
  3. Any junior lienors in the order of their priority; and then
  4. The mortgagor
73
Q

Effects of Foreclosure on Interest

A

Junior interests terminated (paid in descending order from sale proceeds)

Necessary Parties -> All junior lienholders + debtor!
o A junior mortgagee must be named as a party to a senior
mortgagee’s foreclosure action because it has the right to pay off
the senior mortgage to avoid being wiped out by foreclosure
o Failure to include a necessary party results in the preservation of
that party’s interest despite foreclosure and sale - This means their
mortgage will remain on the land!!
 Making the next buyer of the property liable for that
mortgage/debt (whatever it may be)

Senior interests unaffected (buyer takes subject to them!)

74
Q

Priority of Creditors

A

Creditors must record

First in time, first-in-right - recording first gives you priority!

75
Q

Equitable Redemption

A

The right of a mortgagor to recover the land by paying the amount overdue on the mortgage, plus interest, at any time before the foreclosure

Sale cut off by foreclosure sale

76
Q

Statutory Redemption

A

Right of a mortgagor to recover the land after the foreclosure sale has occurred, usually by paying the foreclosure sale price

77
Q

Zoning Variance - what is it and how do you show it?

A

Variance grants a landowner permission to depart from zoning restriction

Show (1) undue hardship + (2) no diminution to neighboring property values

78
Q

Cumulative Zoning Ordinace

A

Land ranked and categorized to create hierarchy of uses. Under this, land that is zoned for a particular use may be used for the stated purpose and for any higher use!

Ex. Zoning Hierarchy
1. Single Family Home
2. Two-family home
3. Apartment building
4. Strip mall
5. Factory

Someone who owns the apartment building, can build a Single Family home on that property. But someone who owns a two-family home, cannot build a factory on that very same property!

79
Q

Noncumulative Zoning

A

Land may be used only for the purpose for which it is zoned!

80
Q

Watercourses - Riparian Doctrine

A

Water belongs to those who own land bordering watercourse.

Riparian share right of reasonable use!

81
Q

Watercourses - Prior Appropriation Doctrine

A

Water belongs to state… Right to divert/use can be acquired through actual use

82
Q

Surface Waters - Common Enemy Theory

A

Owner can take any protective measures to get rid of surface water/combat is flows