property

Question 1

Fee Simple Determinable

Answer 1

 Ownership automatically terminates upon a condition and passes to grantor
 Look for durational words: “as long as,” “until”

Question 2

Fee Simple Subject to Condition Subsequent (FSSCS)

Answer 2

 When the condition occurs, the grantor can exercise a right of reentry
 Look for conditional words (“but if”) and words such as “right to re-enter”

Question 3

Restraint on Alienation

Answer 3

 A grantor can place a reasonable restraint on the grantee’s ability to freely transfer
 If the restraint is unreasonable, a court will strike it from the conveyance

Question 4

Rights and Obligations of Co-Tenants, Rent

Answer 4

• A cotenant does not owe rent for his use of the property
• A cotenant must share rents received from a third party

Question 5

Rights and Obligations of Co-Tenants, Operating Expenses

Answer 5

(e.g. taxes, mortgage payments)—a cotenant can generally collect expenses if he paid more than his share

Question 6

Rights and Obligations of Co-Tenants, Repairs and Improvements

Answer 6

• A co-tenant does not have a right to be reimbursed by other co-tenants for repairs,
  even if necessary.
• A co-tenant may only seek contribution for necessary repairs if the co-tenant gave
  notice of the need for repairs.

Question 7

Types of Leases

Answer 7

a. Tenancy for Years—created by express agreement for fixed period of time
b. Periodic Tenancy—repetitive, ongoing estate measured by set periods that automatically renew (e.g., month-to-month)
c. Tenancy at Will—parties must expressly agree, no fixed period of time, may be terminated by either party at any time
d. Tenancy at Sufferance—a tenant wrongfully holds over past the expiration of the lease, lasts until eviction or converts into a periodic tenancy

Question 8

Tenant’s Duties to Landlord

Answer 8

-Pay Rent: unless CQE or IWH are breached
-Avoid Waste: tenant cannot damage the property and must repair damages he causes
-Make Reasonable Repairs

Question 9

Landlord’s Duties to Tenant

Answer 9

-Duty to Repair: landlord must repair damages under RESIDENTIAL leases, UNLESS the tenant caused the damages
-Must not breach Implied Warranty of Habitability
-Must not breach Covenant of Quiet Enjoyment

Question 10

Implied Warranty of Habitability

Answer 10

• Only applies to residential leases
• Landlord must maintain the property such that it is reasonably suited for residence
  *Tenant must give notice to the landlord and reasonable opportunity to repair
• If the landlord fails to make repairs, the tenant may:
  -Stay in the property and deduct rent until the repair occurs
  -Stay in the property, pay for repairs, and deduct the cost from rent
  -OR Terminate lease and move out

Question 11

Covenant of Quiet Enjoyment

Answer 11

• Applies to residential and commercial leases
• The landlord cannot disrupt the tenant’s possession or enjoyment of the property
  *Constructive Eviction:
  -Landlord substantially interferes with the tenant’s use and enjoyment of the land
  -Tenant gives notice of the problem and reasonable time for the landlord to repair, but the landlord does not repair
  -Tenant vacates the premises in a reasonable amount of time

Question 12

Liability Under Assignment’s and Subleases

Answer 12

 Original tenant remains liable to landlord for lease obligations under privity of contract
 Assignee is liable to landlord for rent and covenants that run with the land under privity
of estate
 Subtenant is not liable to landlord because not in privity of contract or estate

Question 13

Prohibition of Assignments or Subleases

Answer 13

 Allowed to prohibit assignment or sublease
 If the lease prohibits only assignment, the tenant may still sublease
 If the tenant violates the prohibition, the landlord can terminate the lease
* Waiver—if the landlord accepts payment from the new tenant, he waives the right to enforce the prohibition clause
 Consent—some clauses allow assignment or sublease only with landlord’s consent
* The landlord can only withhold consent on a commercially reasonable ground

Question 14

Adverse Possession

Answer 14

-Exclusive: must not share with OWNER
-Continuous: generally without a substantial break
-Hostile: without owner’s permission
-Open/Notorious: must openly use land as owner would

Question 15

Valid Deed Requirements

Answer 15

-Must identify the parties,
-Must be signed by the grantor,
-Must include words of transfer, and
-Must contain a reasonably definite property description

Question 16

Intent to Transfer a Valid Deed

Answer 16

-Grantor must intend to make a present transfer of the property interest to the grantee
-Grantor must PRESENTLY intend for transfer, and that present intent is determined by the FACTS

Question 17

General Warranty Deed

Answer 17

3 PRESENT COVENANTS
 Covenant of Seisin—the grantor owns the land as described in the deed
 Covenant of the Right to Convey—the grantor has the right to transfer title
 Covenant Against Encumbrances—no undisclosed encumbrances
-Breach occurs at time of conveyance
-Do NOT run with the land, a later grantee CANNOT sue original grantor

3 FUTURE COVENANTS
 Covenant of Quiet Enjoyment—the grantee’s possession will not be interfered with by a third party’s claim for title
 Covenant of Warranty—the grantor will defend against a third party’s claim for title
 Covenant of Further Assurances—the grantor will do whatever is necessary to pass title to the grantee
-Breach occurs when there is interference with possession
-DO run with the land; a later grantee CAN sue original grantor

Question 18

Quitclaim Deed

Answer 18

-Contains no covenants of title
-The grantee receives whatever interest the grantor possessed

Question 19

Implied Warranty of Fitness or Suitability

Answer 19

-Applies to NEW HOMES
-Seller warrants he used adequate materials and workmanship
-Covers hidden (i.e., latent) defects and obvious (i.e., patent) defects
-The buyer has a duty to reasonably inspect the residence
-Buyer may sue for breach against the builder, developer, and contractors within a
reasonable time after discovery of the defect

Question 20

Recording Acts

Answer 20

a. Notice Statute—If a person purchases land without notice of a prior interest, the person will prevail in an ownership dispute against the prior interest
b. Race Statute—The first person to record their deed will prevail in an ownership dispute, regardless of knowledge.
c. Race-Notice Jurisdiction—If a person purchases land without notice of the prior interest,
and records first, the person will prevail in an ownership dispute against the prior interest.

Question 21

Bona Fide Purchaser

Answer 21

• A BFP is a person who pays value for the property and takes it without notice of prior claims.
• Notice and Race-Notice Statutes protect BFPs.
• A BFP must pay value for the interest, it cannot be a gift
  -SHELTER RULE: BFPs who are protected by the recording act will “shelter” their grantees from prior claims.
• Not protected from Adverse Possessors

Question 22

Notice

Answer 22

a. Actual—Actual knowledge
b. Inquiry—Reasonable investigation would have disclosed prior claims
c. Constructive—Grantees are on notice of all prior interests that were properly recorded
 Wild Deeds—recorded outside the grantor’s chain of title; these do not provide constructive notice to a grantee

Question 23

Express Easement

Answer 23

-Created by the parties in a writing that complies with the Statute of Frauds

Question 24

Easement by Necessity

Answer 24

-Created when the dominant property is useless without the benefit of an easement across the neighboring servient property

Question 25

Easement by Implication

Answer 25

-Created when the owner of two parcels used one to benefit the other and the parties intended the easement to continue upon the sale of the dominant parcel

Question 26

Easement by Prescription

Answer 26

-Obtained like adverse possession (no Exclusivity requirement, just CHO)

Question 27

Enforceability of Easements

Answer 27

-GENERALLY will continue after land is transferred
* Abandonment: easement dies if owner acts AFFIRMATIVELY (non-use insufficient) to indicate that they have a clear intent to relinquish the easement
* Merger: easement dies if person becomes owner of both dominant and servient estates simultaneously
* Sale to BFP: If a written easement has been granted but not recorded, it is not enforceable against a BFP

Question 28

Covenants, generally

Answer 28

• Involve a promise to do or not do something in relation to land
• Land can be either benefitted or burdened by a covenant
• Covenants can exist between landowners and also between landlords and tenants

Question 29

Covenants, Run with the Land (burden)

Answer 29

a. Writing—must comply with the Statute of Frauds
b. Intent—original parties must intend for the promise to run with the land
c. Touch and Concern—must affect how both pieces of land are used
d. Notice
e. Privity (horizontal)—original parties most have shared some interest other than the promise, such as grantor-grantee
f. Privity (vertical)
 Concerns the relationship between the original party and the successor party
 Burden: For the burden to run with the land, the owner must transfer the entire interest

Question 30

Covenants, Run with the Land (benefit)

Answer 30

a. Writing—must comply with the Statute of Frauds
b. Intent—original parties must intend for the promise to run with the land
c. Touch and Concern—must affect how both pieces of land are used
d. Privity (vertical): Concerns the relationship between the original party and the successor party
 Concerns the relationship between the original party and the successor party
 Benefit: the benefit will run if the successor takes any portion of the original estate (including a lease)

Question 31

Equitable Servitude

Answer 31

-WIT N(burden only)
-Same as Covenants but remedy is injunction, while remedy for covenant is money damages