Property Flashcards
What is a fee simple absolute?
The least restrictive present possessory interest
Present possessory interests are also known as _______.
Freeholds
What is the language of a fee simple absolute?
“To A & her heirs” or “to A”
Fee simple absolute grants _____ ownership
Absolute
How long is the duration of the rights granted via fee simple absolute?
Potentially indefinite
Rights granted by fee simple absolute are freely:
- Devisable
- Descendible
- Alienable
What does it mean for ownership to be freely devisable?
Owner is free to pass interest via will
What does it mean for ownership to be free descendible?
Owner’s interest passes via intestate succession if the owner dies without a will
What does it mean for ownership to be freely alienable?
Owner’s interest is transferable inter vivos
Inter vivos means _______.
During the owner’s lifetime
Is there future interest when rights are granted via fee simple absolute?
No; owner’s have nothing while owner is alive
What is the language of fee tail rights?
To A & the heirs of her body
Any attempt to create a fee tail creates _______.
A fee simple absolute
Where there are defeasible fees, interest in land has the possibility of ________.
Being taken away
What is a fee simple determinable?
Fee simple which automatically comes to an end upon a stated event
What language must a grantor use for a fee simple determinable?
Clear durational language:
“to A so long as”
“to A until”
“to A during”
“to A provided that”
etc.
Once a named event in a fee simple determinable occurs, then _________.
it automatically reverts to grantor
How is a fee simple determinable devisable?
Subject to condition
How is a fee simple determinable descendible?
Subject to condition
What is the nemo dat rule?
A person cannot assign a greater interest than the interest which is possessed
A fee simple determinable is alienable subject to _______
Condition
The future interest in fee simple determinable maintains the possibility of _______.
Reverter
What is a fee simple subject to condition subsequent?
Rather than automatically ending when an event occurs, Grantor must affirmatively exercise the right to take back property
What language is required for a fee simple subject to condition subsequent?
Clear durational language that expressly reserves the right to re-enter
“to A, but if X occurs, grantor shall have a right of entry”
“to A upon the condition that X, grantor shall have a right of entry.”
What future interest exists in a fee simple subject to condition subsequent?
Right of entry
What is a fee simple subject to executory limitation?
Provides for the estate to pass to a third person upon the happening of the state event
What language should be used for a fee simple subject to executory limitation?
“To A but if X occurs, then to B”
What is the effect of violating a fee simple subject to executory limitation?
Automatically passes to third party
What future interest exists for a fee simple subject to executory limitation?
Shifting executory interest (future interest, held by a 3rd person, that cuts off another’s interest)
Generally, defeasible fees are ______ by the court
Disfavored
Courts disfavor defeasible fees because courts tend to discourage ________
Restraints on alienation
Courts disfavor defeasible fees because there is a presumption against ________.
Forfeitures
To have a defeasible fee, _________ language is required
Clear durational language
A ________ restraint on alienation of a fee simple estate is void and unenforceable. It results in ________.
Absolute
Fee simple absolute to grantee
What is a life estate?
Lifetime ownership of land
Ownership of a life estate must be measured in terms of ______, not ______.
Lifetime
Years
“To A for life” describes what kind of life estate?
Simple life estate
“To A for B’s life” describes what kind of life estate?
Pur autre vie
What rights does a life tenant have in a life estate?
All ordinary uses and profits of the land
In a life estate, a life tenant has a duty ______________.
Not to harm the future interest holders of the land
In terms of a life tenant’s duty not to harm future interest, what is affirmative waste?
Any structural change intentionally made to the estate that causes harm to the estate or depletes its resources
Under a life estate, a life tenant has a duty not to consume or exploit natural resources unless:
- Prior to the grant, land was used for exploitation
- Reasonable repairs and maintenance
- Expressly authorized by grantor OR
- Normal use of the land
What is the open mines doctrine?
Permits continued excavation by a life tenant from any mine on the property that is already open, but prohibits opening new mines
In terms of a life tenant’s duty not to harm future interest, what is permissive waste?
Failure to maintain the estate, both physically and financially
A life tenant must maintain an estate only to the extent _____________.
Of the income or profits derived from the land
If a life tenant is using the land herself with no rent, then the life tenant must maintain the estate only to the extent ___________.
Of the reasonable rental value of the land
What is a life tenant’s obligation to repair?
Life tenant must keep the property in a reasonable state of repair
A life tenant has an obligation to pay interest on __________.
Encumbrances, to the extent of the income or profits derived from the land.
In a life estate, who must pay taxes on the land?
Life tenant
A life tenant has no obligation to insure _______.
The premises
In terms of a life tenant’s duty not to harm future interest, what is ameliorative waste?
Unauthorized improvement to the estate that changes the land’s physical character
In terms of a life estate, ameliorative waste is prohibited unless ____________.
All future interest holders consent
What future interest exists for life estates?
Reverts to grantor unless assigned to third party remainder.
In a life estate, a third party remainder is responsible for:
- Principal portion of mortgage payments
- Extraordinary repairs
Possibility of reverter correlates to the present interest of _________
Fee simple determinable
What is the right of the grantor when there is possibility of reverter?
Estate automatically reverts to grantor upon occurrence of stated event
Right of entry is also known as __________.
Power of termination
Right of entry correlates to the present interest of ________.
Fee simple subject to a condition subsequent
What is the right of the grantor where there is a right of entry?
Estate does not automatically revert; the grantor must exercise her right of entry.
Some courts have held that a right of entry is not transferable __________.
Inter vivos
What is reversion?
The interest that remains after substracting what the grantor has granted from what the grantor originally possessed
Reversion correlates with which present interest?
Estate of lesser quantum
What is the right of the grantor under reversion?
Automatic reversion
What is remainder?
Future interest created in a grantee upon the termination of a prior estate of known fixed duration
A remainder is created only via _______.
express grant in same instrument in which preceding possessory estate is created
A remainder must follow a preceding estate that has _________.
Known fixed duration
A remainder is capable of becoming possessory upon ________.
The natural expiration of the preceding possessory estate
A remainder cannot divest __________.
Prior estates
Any future interest in a grantee that divests a prior estate is ___________.
An executory interest
Vested remainders are:
- Created in an ascertained person AND
- Are not subject to any condition precedent
A vested remainder becomes possessory automatically upon __________.
The termination of the prior estate
If there is a vested remainder subject to complete defeasance, it is either vested subject to being divested by _________ or ________.
Operation of a condition subsequent
Inherent limitation of the estate in remainder
A bested remainder subject to open is vested in ________________.
Persons, at least one of whom is qualified to take possession. The shares of the class are not fixed because more people can join the a class
What is the class-closing rule?
A class closes under the common law rule of convenience when any member of the class can demand possession.
What is the womb rule?
An exception to the class-closing rule; children of B in the womb at A’s death are considered members of the class
When is a continent remainder created?
- In an unascertained person
- Subject to a condition precedent - other than natural termination of preceding estate
Under modern law, grantor and grantor’s heirs hold the estate under contingent remainder subject to ___________.
B’s springing executory interest
What is the Rule in Shellet’s Case?
Converted the contingent remainer in B’s heirs into a vested remainder in B.
After that, doctrine of merger converted them into a single fee simple absolute in B.
Abolished under modern law.
What is the doctrine of worthier title?
O can’t grant something to O that would create remainder to O’s own heirs while O is alive.
What is executory interest?
A future interest in a grantee that, in order to become possessory, must divest or cut short either the prior estate or spring out of the grantor or her heirs
A _________ never divests the prior estate; a __________ always does.
Remainder
Executory interest
What is a shifting executory interest?
A future interest in a grantee that divests or cuts short a defeasible fee in another grantee.
Shifting executory interests always follow _________.
A defeasible fee
What is a springing executory interest?
A future interest in a grantee that vests
and springs out of the grantor at a date subsequent to the granting of the interest
What is the rule against perpetuities?
For a future interest to be valid, the interest must vest - if at all - within 21 years after some life in being at the instrument’s effective date
The Rule Against Perpetuities does not apply to:
- Indefeasibly vested remainders
- Vested remainders subject to complete defeasance OR
- Future interests retained by the grantor
For a contingent remainder, vesting under the Rule Against Perpetuities requires:
- Identification of the taker AND
- Satisfaction of all conditions precedent
For executory interest, vesting under the Rule Against Perpetuities means __________.
Taking of possession
How does the Rule Against Perpetuities apply to Vested Remainders Subject to Open?
A gift to an open class that requires the members of the class to survive past 21 years is void
What is the fertile octogenarian rule?
Presumes that anyone, even an octogenarian, can parent a child, regardless of gender or health
What is the unborn widow rule?
Presumes that a grantor could subsequently marry a person who wasn’t a life in being at the time interest was created
What is the slothful executor rule?
Presumes that the executor of the estate might not probate the will for many years after the testators’s death
What is the precocious toddler rule?
Presumes that it is possible for a toddler to have a child
What are the charitable exceptions to the Rule Against Perpetuities?
- A charitable grant can be perpetual
- RAP does not apply to conveyances from one charity to another
In order to mitigate the harshness of the Rule Against Perpetuities, some states adopted the ______ doctrine.
Wait-and-see
What is the wait-and-see doctrine?
A perpetuity violation should occur only if an interest actually fails to vest within the perpetuity period
What is the Uniform Statutory Rule Against Perpetuities?
- Future interests satisfying the common law RAP are valid
- Any future interest that actually vests within 90 years is also valid
- Cy Pres doctrine
What is the Cy Pres doctrine?
If a future interest fails to vest under common law RAP or within 90 years, the court may reform the interest in a manner that:
- Most closely conforms with the grantor’s intent AND
- Still complies with the RAP
What is joint tenancy?
Each tenant owns undivided share with the right of survivorship
What is a right of survivorship?
When one joint tenant dies, her share passes automatically to the surviving joint tenants
How can joint tenancy be given away?
Transferable inter vivos
What four unities are required to sever a joint tenancy and create tenancy in common?
- Interest vests at the same TIME
- Each tenant must get TITLE by same instrument
- All INTEREST in joint tenancy must be equal shares
- Each tenant must have the right to POSSESS the whole
A conveyance lacking express survivorship language will usually create ________.
A tenancy in common
What is a straw man conveyance?
O conveys to T, who immediately conveys back to O, preserving joint tenancy
How can a joint tenant destroy the right of survivorship?
By severing joint tenancy
At common law, severance of joint tenancy occurs automatically when ________.
Any of the four unities is severed
If joint tenants cannot agree to specific division of land, what options can the court used?
- Partition in kind
- Partition by forced sale
What is a partition in kind?
Division of the property that is in the best interests of all properties
What is a partition by forced sale?
Court determines that forced sale is in best interests of all parties; proceeds divided proportionally
Generally, the court is supposed to order a partition by forced sale only if ___________.
The land cannot be physically divided
What is an inter vivos conveyance where there is joint tenancy?
A joint tenant may sell/transfer her interest in the joint tenancy during her lifetime without the knowledge/consent of the other joint tenants, severing the joint tenancy
What are the two theories on how mortgages affect joint tenancy?
- Lien theory jurisdiction
- Title theory jurisdiction
What are the two theories on how mortgages affect joint tenancy?
- Lien theory jurisdiction
- Title theory jurisdiction
How does the lien theory of mortgages apply to joint tenancy?
Because the mortgage only holds a lien on the property, it doesn’t sever joint tenancy
How does the title theory of mortgages apply to joint tenancy?
Treats title as passing from mortgagor to mortgagee when the mortgage is signed; this severs joint tenancy
______ sale severs the joint tenancy.
Forced sale
Under a judgment lien, when is joint tenancy severed?
When the property is sold at a foreclosure sale
How does a lease by a joint tenant affect joint tenancy?
At common law, it severs joint tenancy.
At modern law, it does not.
What happens to a joint tenancy if one joint tenant is murdered by another.
Severs the joint tenancy; murderer is not entitled to victim’s share by right of survivorship
What is tenancy by the entirety?
Two spouses own undivided share with the right of survivorship
In order for a tenancy by _________ to exist, parties must be validly married to each other.
the entirety
What effect will divorce have on tenancy by the entirety?
Sever it and create a tenancy in common
A _______ _______ agreement between two spouses can sever the right of survivorship
Mutual written
What effect does a unilateral conveyance by one spouse have on a tenancy by the entirety?
Does not sever it
A majority of states hold that a tenancy by the entirety is immune from the claims of _____________ of either spouse.
Separate creditors
What is a tenancy in common?
Each tenant has undivided interest in the property with no right of survivorship
Tenancy in common is presumed by modern law for any conveyance to _________.
Two or more non-married persons
Under a tenancy in common, each tenant must have an equal right to __________.
possess the whole
Is there a right of survivorship in a tenancy in common?
No
The rights and duties of co-tenants apply to what concurrent estates?
- Joint tenancy
- Tenancy by the entirety
- Tenancy in common
What is the general co-tenant right of possession?
Each co-tenant has the right to possess and enjoy the entire property
What is wrongful exclusion?
Improper ouster of a co-tenant
Ouster is required if a co-tenant is trying to obtain title through ________.
Adverse possession
Can co-tenants receive rent if one co-tenant has exclusive possession?
Not unless there has been an ouster
The ouster of a tenant does entitle that tenant to ______.
Rent
Each co-tenant is entitled to her share of profits from _______.
The estate
Each co-tenant must pay her fair share of payments in:
- Taxes
- Mortgages
- Repairs
If there are co-tenants, there is no right to contribution for the cost of _________.
Improvements
When partition occurs, the improvind co-tenant is entitled to _________ but will also _________.
Any increase in value caused by improvements
Be held liable for any decrease in value
A co-tenant must not commit _______.
Waste
Disputes involving real property are governed by what law?
State where the property is situated
Law of the state where a property is situated is also known as the law of _____.
The situs
What is trespass?
Invasion of land by tangible physical object
Trespass to land occurs when:
- D intentionally enters P’s land without permission
- D remains on land without right to be there
- D places tangible object on P’s land without permission
Trespass interferes with the interest in ________.
Exclusive possession of land
If there is trespass, the owner by take action for ______.
Ejectment
What is a private nuisance?
A substantial and unreasonable interference with P’s use and enjoyment of her land
What are the elements of private nuisance?
- P has interest in land
- Unreasonable interference with use & enjoyment of land
- D’s conduct is negligent, abnormally dangerous, or intentional
D’s use and enjoyment of land is unreasonable if:
- Harm to P is greater than utility of D’s conduct OR
- Harm to P is greater than required to ear without compensation
What is lateral and subjacent support?
Describes a landowner’s right to have land physically supported in its natural state by adjoining land and underground structures
D will be strictly liable for damage to buildings on P’s property if the P can show __________.
The weight of the buildings didn’t contribute to the collapse of the land
What are riparian rights?
All landowners whose property is adjacent to a body of water have the right to make reasonable use of it
A riparian owner will be liable to other riparian owners if _______.
Her use of the water unreasonably interferes with other riparian owners’ use of the water
The first person to use water from a water source has the right to ___________.
Continue to use that quantity of water for that purpose
What is percolating water?
Water that seeps or filters through the ground without any definite channel; not part of the flow of any waterway
The owner of the property on the surface of percolating water is entitled to _________.
Make reasonable use of the percolating water but can’t commit waste
What is the common enemy doctrine?
Surface water is a common enemy that damages property at random, so landowners require everyone to act reasonably to protect their own property
What is a leasehold estate?
An interest in land whereby the landholder grants another person exclusive use of land for a limited time, subject to certain terms set forth in the lease
In a leasehold, the tenant has ______ interest and the landlord has _______ interest.
Present possessory
Future