Property Flashcards
General rule
Capture of a fugacious resource
First into possession and control owns the resource
Post: mere pursuit is insufficient for ownership
Exceptions
Capture of a fugacious resource
- Ratione Soli: owner of land owns fugacious resource
- when possession and control is difficult, custom dictates who owns
Ghen: custom of whaling established control
Additions
Capture of a fugacious resource
- Wrongful interference: even if fully not in control, wrongful interference messes with constructive possession; especially trade; lawful competition ok
- Animus revertendi: domesticated creature or animals that return to private property are not fugacious resource
- Rule of increase: offspring belong to mother’s owner
Duck case
barry bonds case: contructive owner (with wrongful interference) & actual possessor split the ball’s proceeds
General rule
Rule of finders - lost property
Finder wins against all except previous possessor and true owner
Exceptions
Rule of finders - lost property
Owner of locus in quo owns if:
attached to soil
trespassor finds
in private location?
owner is in occupied area?
rule
Mislaid property
owner in locus in quo owns until true owner returns
rule
finder of abandoned property
finder owns unless private property
Elements of
Adverse possession
- Continuous for statutory period
- Exclusive and actual
- Open and notorious
- hostile and under claim of right
- (CA) property taxes
AP creates NEW TITLE
In depth:
Continuous for statutory period
- continuous for how it is normally used. so summer home = summer only; undeveloped = dump trash
- Tacking = privity = anything above a mere trespassor
- Disability = note date of entry & when disability ends
in depth
Exclusive and Actual
- Exclude others as a true owner would
- some jxns require improvement, cultivation, or boundries
In depth
Open and notorious
- reaonable true owner would notice that someone is on property
- No de minimus: if de minimus, owner would need actual knowledge of intrusion
Open and notorious with chattels
- Discovery rule: clock begins ticking when owner knows or should have known cause of action
- Make a demand rule: clock begins ticking when owner makes a demand and gets rejected
in depth
Hostile and under claim of right
- Hostile = unauthorized
- claim of right = acting as if he owns property
- State of mind needed: no state of mind, good faith, bad faith
- Color of title: faulty instrument, must enter and possess and only get that part they possess
invited guest cannot become AP
intervivos
Acquisition by gift
- intent of present, immediate transfer
- Delivery
- Acceptance
in depth
intent of present, immediate transfer
- no future gifts
- condition subsequent is ok
- condition precedent not ok
in depth
Delivery
- Actual: generally, if it can be handed over, it must be
- constructive: difficult or impossible to physically hand over (keys to a car)
- Symbolic = ok in CA
- Third party: doner to donee’s agent = instant ; doner to doner’s agent = wait until delivery
Causa mortis
Gift
- same elements but there is an expectation of a death
- revocable
- if die to another reason, instantly revoked
Limits on property
Public property
must open your private land to public so they can enjoy navigable waters
just like a municipality, home owner association must do same
Limits on property
Right to abandon
- intend to abandon property to world
- affirmative voluntary act of abandonment
- subsequent new party appropriates with intent to own
Cannot abandon land
Limits on property
Right to destroy
generally you can UNLESS public policy reasons: value of neighbors land, criminal law, specific duties to others.
Limits on property
Right to transfer
- no total restraints on alienation
- reasonable restraints are ok: charity, Life estates, against a specific person, and only for a limited time
Estates
Life estate
- cannot AP
- subject to law of waste
- MUST BE IMMEDIATELY FOLLOWED BY SOMETHING, OTHERWISE REVERSION
Rules of will construction
- no partial intestacy
- when it is difficult to tell, read a vested remainder to a contingent remainder
- LOOK AT INTENT TO GRANTOR AND CONSIDER IT AS A WHOLE
Law of waste
- Affirmative waste: waste caused by affirmative acts of the tenant
- permissive waste: tenant’s failure to make normal repairs to property, not stopping deterioration
- not waste to continue use of a mine, waste to open a new mine
life estates and leaseholds
Rule on remainders
- LE, CR, CR …
- LE, VR, EI …
STEPS
Rule against perpetuities at common law
- is it a CR, EI, or VRSTO
- who are the lives in being at the time of grant
- Ask what will vest this
- Say: will we know forsure within 21 years of the deaths of LiB @ time of grant if it will vest?
- Blue line the remainder
Will = at death
Deed = at delivery
RAP class gifts & rule of convenience
CL
- all members of a class grant must meet all conditions within 21 years of death of LiB, or entire future interest is void
- Rule of convenience: Class will close upon first vesting & no new born children will share; others alive are in class
Reforms to RAP
- Reduce technicalities: any gift to class set to vest after 25 years is now 21 by judicial construction
- Cy pres
- Wait and see
90 years for CA wait and see
any gift to “widow” is presumed to be then-living spouse
Co-tenancies
Tenancy in Common
- Default state (reverts back)
- alienable, devisable, descendible
- 70%, 30%
Co-tenancies
Joint tenancy
- Right of survivorship
- four unities:
- title: acquire title from same instrument
- time: at the same time
- interest: equal shares
- right to possession
- only alienable
- 100%,100%
CL: need for unities or else TiC
Modern: explicitly state Right of Survivorship
Co-tenancies
transfer of JT
majority rule
- can transfer to yourself without strawman to sever JT
- a lease will not sever JT; dont need permission
transfer makes it TiC (not lease)
uniform death act and slayer statutes
- survive JT by 120 hours, or split
- murder severs JT, makes it TiC, killer loses right to survivorship
Co-tenancies
Tenancy by Entirety
- all four unities plus marrigage
- right of survivorship
- only alienable and only with permission
- creditors cannot reach TbE unless IRS
- cannot unilaterally destroy
Not in CA
make sure you are officially married first.
cant cut spouse out in Will
Co-tenancies and mortgage
does a mortgage survive the death of a mortgager as a lien on the property?
- Title theory: mortgage severs JT or TbE
- Lien theory: does not sever JT
- NO, does not survive because the interest disappears on death b/c survivorship
Liens are a promissory note, you take possession when i cannot pay back
Partitioning
- Cotenants have an absolute right to sell (unless TbE)
- in-kind partition
- partition by sale
two requirements
Partition by sale
something tells me i can never partition by sale
- physical attributes of the land are such that in-kind are impractible or inequitable
- interest of owners would be promoted by partition by sale
think of like a weird fraction
unreasonable restraint on alienation!
Ouster and rent from co-tenants
- cotenants do not owe eachother rent unless an agreement or an ouster
requirements for an ouster?
- barring physical entry onto property
- denying co-tenants claim to title and asserting complete ownership
phyiscal bar - a letter not enough
2nd requirement is near AP
but remember cannot AP a cotenant
general rule
profits, expenses and taxes of cotenancies
cotenants share taxes, expenses, profits, and rents from 3rd parties
absent an agreement to the contrary
Accounting
Demand for proportional receipt of profits and rents
and exception
contributions
- demand to eachother for proportionate payment of expenses, repairs, and taxes
- However, tenant in sole possession may be held to pay taxes and expenses exclusively without contributions (can deduct from rent from 3rd party however)
if one cotenant makes repairs/improvements
- some jxn do not require contribution at time of repair/improvement
- upon partition, improver can recoup costs
- upon partition by sale, improver gets credit from increased sale price
- upon physical partition, improver gets improved aspect
Leaseholds
Term of years tenancy
- for any fixed period
- can end on a condition
- no notice of termination necessary
Leaseholds
Periodic tenancy
- at a fixed period that continues until notice of termination (year to year, month to month)
- notice of termination: 1 year = 6 months at latest; equal to the length of period for shorter periods
- CL: untimely notice of termination = automatic renewal
Leaseholds
At will
- one or both can end the lease at will
- if lease gives LL the right to terminate, law will give same right to T
- if lease gives T only, determinable LE
- most jxn require notice of termination = rent payment period
- can end by death, assignment by T, transfer LL, waste by tenant
Leaseholds
At sufferance
- Either evict = ends tenancy
- accept rent and consent to new tenancy = periodic tenancy created = to timing of rent
holdovers
monthly rent = month-to-month
unlawful discrimination in leases
Civil rights act and FHA
- no racial discrimination
- prohibits discrimination based on a series of enumerated characteristics in sale, rental, and ads of property
Unlawful discrimination in leases
exceptions
- single family dwellings with no broker or ads, can discriminate based on sex/gender in small properties (renting a room) ; owner who lives w/ roommate
- in CA: you can advertise
- Wetzel: landlord has a continuing duty to allow enjoyment without discrimination
this applies to owners
some jxn’s allow occupation discrimination (no lawyers!)
Duty to put tenant in possession
- English rule: duty to put tenant into possession
- American rule: no duty, tenant must evict = only give right to possession
Sublease v. assignment
Assignment
- first tenant conveys ENTIRE interest to next tenant
- creates privity of estate b/w original landlord and second tenant
- thus second tenant owes rent directly to landlord
- privity of K stays with first tenant and landlord
- landlord can take rent from first tenant or next tenant but not both
privity of estate = a relationship in land
privity of K = a relationship in contract
sublease v. assignment
Novation
- agreement from landlord to release first tenant and create new contract with next tenant
- releases that tenant from liability
must be an explicit thing otherwise privity of K remains
sublease v. assignment
Sub-lease
- first tenant conveys less than ENTIRE interest in next tenant (even a day less)
- creates no privity of estate b/w landlord and next tenant and no privity of K
- thus no rent
- first tenant still has privity of K
the actual words of conveyance are not dispositive, was the entire thing given? if yes, assignment
Restrictions on assigning/subleasing and dumpor’s rule
- Majority rule: can unreasonably and arbitrarily withhold consent to an assignment for whatever reason except discrimination
- Minority rule: L must provide a reason on commercially viable grounds for rejecting the sublease
- Rule in Dumpor’s case: if allow one assignment, allow future ones unless agreement to contrary
minority rule = CA
for the minority rule = allowed to deny if competitor or if next tenant is financially unstable
Self-help?
Eviction
- No self help to regain possession of land
- use summary proceedings!
what if tenant abandons?
option 1
- Accept it and terminate the lease
- T will owe rent due @ that time & possible future damages such as any ads they have to do
what if tenant abandons?
option 2
- Reject surrender & enforce lease
- CL: no duty to mitigate
- Modern: LL must mitigate by making reasonable effort to find new tenant
- what is reasonable? advertise, anything you can
- if you relet at only half price, tenant must pay difference = make the tenant whole
- if landlord for more? some jxns allow extra to go to original tenant
what if tenant abandons?
option 3
- re-take possession and relet
- T is still bound to the lease but L will be collecting from next tenant
Eviction
Actual eviction
- T is deprived of any part of physical access or told to get out
- legal duties are done
“dont use this part anymore” = actual eviction
Eviction
constructive eviction
- Rule: deprive tenant of substantial use and enjoyment of the property and render the premises unsuitable for the purposes for which they are leased
home -> not home
office -> not office
Eviction
Constructive eviction remedies?
- leave within reasonable time and no more rent
- stay and sue for damages
- there is no eviction for a brief problem “transitory & fleeting”
when it is neighbors being a nuisance or an issue, how much control does the landlord have over them?
Implied warranty of habitability
- Maj: only for residential apartment leases
- Elements:
- Defect dangerous to human health (local health codes can help)
- Notice
- Reasonable period for repair
- Touchstone: not convenience, comfort, niceness
Implied warranty of habitability remedies
- quit and stop paying rent
- remain and repair and charge LL/deduct from rent
- Remain and reduce or withhold rent
- AND
- sue for damages
Landlord
Common law tort-based duties
- maintain premises reasonably free of dangerous defects @ time of lease to public
- no fradulent misrepresentations about premises
- disclose latent defects
- maintain common areas safely!!!!! (lobby, staircase, parking)
- CL no general duty to repair but if they do, not negligently
- some jxn, try to abate nuisance & immoral conduct
- seasonal or shortterm furnished dwelling, strict liability for defects
- no retaliatory eviction !!!
all these are negligent standard
Tenant duties
- pay rent
- commit no waste
- maintain easy normal wear and tear (lightbulb)
- no illegal purposes
- take care of guests
- inform LL of damages
- vacate at end of term
Law of Fixtures
- once movable chattels become attached to the land
- personal prop becomes real property
- the more complicated and more permanent more likely to be fixture
- more substantial damage to remove = more likely to be fixture
- not yours anymore bro
Contract of sale
- contract –> closing
- at contract, you promise good and merchantable title
- at closing, transfer of title
- in between, inspection
at closing, contract merges into deed and disappears
no merchantable title = unknown encumberance for example = buyer entitled to rescind
Statute of frauds for contract of land
- description of property
- price
- signature of party to be charged
Statute of frauds for contract of land
exception
- Estoppal: in reasonable negative reliance
- can get specific performance (make it happen!)
- can get damages
3 rules
Doctrine of equitable conversion
- Majority: the buyer of property is considered owner as of date of sale contract, even if closing and physical transfer takes place later thus buyer is responsible for any risk of loss after date of K
- minority: does not follow until deed is handed over
- other: risk of loss = in possession
at Common Law
Duty to disclose defects
- Caveat emptor: no duty to disclose defects, inspect it yourself
- exceptions:
- seller cannot actively conceal defects
- seller cannot make active misrepresentations
- fiduciary duty: must disclose
examples for each
actively hide a hole in floor
does it leak? nah bro chill
lawyer client
Modern erosion of caveat emptor
- Most jxn (CA): hold that a seller has affirmative duty to disclose all known material defects
- Material? important to decision to buy or afffects value or desireability of property
- Known? actual knowledge or should have known depending on jxn
stigma statutes: no need to disclose aids or murder
Remedies for breach of sales K
know which is best for seller and buyer
- Specific performance: one party forces other party to go through with it (best for buyer)
- damages: seller breaches by not giving marketable title (american rule: expectation damages back / english: only get deposit back)
- Recession & retention of damages: buyer breaches and seller has option to rescind and keep down payment
- lien = seller breaches and buyer places lien on property
The Deed
General warranty deed
- Promises of myself and everyone behind me
- best one for buyer
The Deed
Present covenants of GW deed
- Covenant of seisan = I own it
- Covenant of right to convey = I can sell it
- Covenant against encumberance = no encumberances
Majority rule: do not run with the land
breached at moment of passing
Iowa: all 6 run with land
The deed
future covenants of GW deed
- Covenant of GW - if anyone with superior title comes, ill compensate you then (after court ruling)
- Covenenant of future assurance (i will make sure to sign anything remaining)
run with the land
The Deed
Special warranty deed
I only make those promises as to myself
cannot sue seller for things before him
the deed
Quitclaim deed
no promises whatsoever so dont talk to me
the deed
Elements of a deed
- description of property conveyed
- consideration: a dollar and other valuable consideration
- signature of seller
- promises
consideration: you do a low amount for when you get sued cause that is what you owe lol
the deed
delivery deed
- delivery = all types
- intent to immediately disposses
cannot continue to keep using it
or do a letter with both names like the case
or try to sell it later
delivery of deed
Estoppal by deed
- when grantor conveys land to grantee that grantor does not own, and the grantors conveys the title to the land
- if grantor later acquires title to land, grantor is estopped to deny he had title at the time of the deed and that has passed to grantee
automatically passes
Mortgage
it is a remedy, I ask for 150k and give bank the right to forclose
one property can have multiple mortgages
Mortgage
Priorities
general rule
- Mortgages have priority over each other in order which they are made, first to last
the order
when forclosure sales happen
- court and attorney meh
- Payment to loan that was foreclosed
- payment to junior lien/mortgage (anything subsequent) (not to senior liens)
- anything remaining to debtor
not to senior liens = THESE SURVIVE and run with land
buyer will probably pay alot less to quickly pay back to the senior mortgage/lien
b/c you do not want mortgage on your house that someone else has to pay
Mortgage
Priorities exceptions
- Purchase money mortgage has priority over anything (start here and go subsequent by time)
- Marshalling = w/ separate properties = “senior lender use other land to see if you can get money back before foreclosing both”
PMM = loans that purchase the land are PMM
Marshalling is a fairness thing between banks, a request, a plea for mercy
Foreclosure principles
- borrower must receive notice of action
- notice to the public to attract bidders
- if the sale does not cover unpaid debt, lender can seek deficiency judgment against borrowers personal property
- these have protections = if sale does not yield fair market value, no deficiency judgment
- CA goes step further = no deficiency judgment on PMM
Protections in procedure of foreclosure
- Reinstatement = right to reinstate loan if late payment within certain period by paying late payment
- CL equity of protection = BEFORE foreclosure sale, if you are in default, you win lottery & you have right to pay back full loan = foreclosure must be called off
- Statutory equity of protection = borrower has right to pay a set amount (usually foreclosure price) to successful bidder w/i a statutory period AFTER foreclosure
one more
Motion to set aside the sale
- some irregularity in the process or if winning price too low
- “shock the conscious” & some extra element of unfairness
- Duties of good faith and due diligence by lender conducting sale
- inadequacy of price is not sufficient to demonstrate bad faith unless the price is so low it shocks the conscious
- if no good faith = set aside = an intentional disregard of duty or purpose
- due diligence = only one representative there, and only bid enough to make lender whole, no attempt fair market price (no ads), quickly sold at higher price
Transfers of mortgage
- lender can transfer at will
- borrower can transfer a note as well but will often contain “due on sale”
- However, 3rd party can receive and assume the obligations of the note, becoming personally liable (o.g borrower will remain personally liable unless a novation)
- 3rd party can take property subject to note, and not personally liable (although land can still be foreclosed if note not paid)
due on sale = this is why it is unlikely, that if you have a mortgage on your house and you decide to sell half way in, mortgage stays attached to property and could be passed to new buyer and they could assume the debt but more likely the moment you sell and get money, you pay off remaining mortgage
Recording system
CL rule
The interest first in time wins
Recording system
Exception 1
- BFP w/ no actual, constructive, inquiry, or imputed notice
- if you got it for free, you aint the BFP
actual = dude i sold this to dumpy too
constructive = its recorded bro, the world knows, you should have checked
inquiry = you would know if you bothered to check it out, someone was living there
Recording system
A recorded deed gives proper notice if
- meets formal requirements (some jxns want notarized)
- no technical defect (wrong name or property description)
- Properly indexed
- within Chain of Title (NO wild deeds)
Recording system
In a race statute state
- the first to record their interest wins against all other claimants to the interest, no matter when the other claimants got their interests or what they know of others’ interests.
- we do not care about BFP
- if bank is second in line, their mortgage is gone
Recording system
Race statute wording
“No conveyance of an interest in real property shall be valid against third parties (subsequent people, prior people) until it is recorded according to law.”
Recording system
Notice statute state
- the BFP without notice who acquires an interest wins against a prior interest holder.
- Obviously, once someone records the interest, no future BFP without notice can ever come to exist because after recording everyone in the world is deemed to have notice of the interest.
the day you record, no BFP can come and take away
Recording system
Notice statute language
“No interest in real property shall be good against subsequent purchasers for a valuable consideration and without notice, until the same be recorded according to law.”
Recording system
in a race-notice statute state
the BFP without notice who records first wins against a prior interest holder who has not recorded yet. The BFP must be a BFP and record first to win. (CA)
recording system
race-notice language
“Every conveyance of real property is void as against any subsequent purchaser or mortgagee of the same property, in good faith and for a valuable consideration, whose conveyance is first duly recorded. . . .”
look for first, previously, prior
2nd exception
Shelter Rule
- Grantee from a BFP is protected like the BFP and prevails against all interests of which the BFP had no notice, even if the grantee has notice.
- The only person to whom the BFP cannot sell under the Shelter Rule is back to his own grantor (to prevent collusion).
we want to protect BFP ability to sell
Recording system
How a BFP can wipe a mortgage
O owns blackare and gets mortgage on blackacre from Bank A
Bank A does not record
next day, O sells to B = no knowledge or notice of mortgage
BFP = mortgage is gone! because her ownership supersceded the prior interest
Recording system
extras
Mother…
does not recording make invalid deed?
- Mother hubbard clause does not give notice
- Recording is not necessary for a valid deed! just for against 3rd parties
Wild deed
Servitudes
What is a servitude?
- An encumbrance as a right to limited use or control of a piece of land without possession of it → a burden on one’s estate for another’s benefit.
- Easements, licenses, profits, real covenants, and equitable servitudes.
Servitudes
License
- permission to enter the licensor’s land = revocable oral or written permission to do something that would otherwise be a trespass
- Can become irrevocable:
- coupled with another interest = perhaps combined with profit
- by estoppal
- CA requires written licenses
you cannot transfer a license
Profit a prendre
- a right to enter land one does not possess in order to take some resource (timber, minerals, game, fish)
similar to easement
Easements
generally
two types
two ways
- appurtenant = attached to a dominant piece of land
- in gross = personal to an individual
- affirmative = permitting activity on servient land
- negative = preventing activity on the servient land
Easements
Express Easement
- created by a deed, will, or written instrument that grants or reserves an easement
- can reserve an easement for a third party
- once recorded, it does not need to be identified in future grants
Easement
Implied by prior use
- severance of title to land held in common ownership
- There is an existing, “apparent” (upon reasonable inspection, and not necessarily visible) and continous use when severance occurs
- There is reasonable necessity (some jxn strict necessity)
- some jxn require the parties intend the continued use
when land is split up, existing use might persist over newly formed parcels
Easement
by estoppal
or the irrevocable license
- A license can no longer be revoked if the licensee expends labor or money in good faith and the licensor expects that reliance will occur
- CA and other jxns require writing
Easement
By Necessity
- severance of title to land held in common ownership
- CA and other states require that the parties intend the continued use
- Majority = strict necessity = no legal alternative = if it can be done it must be done = exhaust all other possibilities no matter how expansive
- Minority = reasonable necessity = access is inadequate, costly, difficult
- two ways to get it the easement
- cheapest route
- last parcel to landlock you = apportion the costs from the unlucky parcel that got forced the easement
The necessity must be created @ time of severance of title of commonland
usually used to create access for landlocked parcel
Easement
By prescription
basically by adverse possession
- open and notorious = such that a diligent owner would discover it
- adverse and under claim of right = same as AP
- actual and exclusive = some states permit minimal other users or general public, looser than AP
- Continuous and uninterrupted = same = if the owner interrupts the use sufficiently to cause it to cease and it restarts
- majority = must be a physical prevention
- minority = mere notice is sufficient to interrupt
Easement
Transfer of easements
- Appurtenant = pass with the dominant and servient estates, unless agreement otherwise
- in gross:
- CL = not transferable
- minority = only commerical are transferable
- one stock rule = all transferees must act unanimously
- Modern = all are transerfable unless the parties would not have expected the result or unreasonable burden occurs
Easement
Scope
- inferred from the intent of the parties and type of easement = presumed that anything reasonably necessary to the use and enjoyment of the easement is permitted = tech change
- CL = Easement cannot expand in scope to serve non-dominant land
- Minority = expanding easement
there is more
prescriptive easement = less susceptible to change because no original intent
- agreement to release the easement
- express easement ends if the servient parcel transferred the BFP and e.e was not recorded
- easement by necessity ends when the necessity ends
- destruction of the servient estate
- abandonment with the intent to abandon permanently
- Estoppal = servient owner relies on the dominant owner’s apparent abandonment. Non-use is not sufficient
- Merger = servient and dominant estates are acquired by one person
- Prescription = owner interferes with AP
- Expiration = if easement was temporary
- Condemnation = govt exercise eminent domain
Negative easement
- at CL = right to stop neighbor from:
- blocking light
- blocking air flow
- removing building support
- interefering with flow of water
- modern = views, solar access historical and agricultural conservation easements
to burden the successor = possibility of being sued
Real covenants
- promise must be in writing
- the parties must intend to bind successors
- promise must touch and concern the land
- covenanting parties must be in horizontal privity
- successor must be in vertical privity and take the same estate
- successor must take with notice of the burden
benefit successor = right to sue
Real covenants
- promise in writing
- parties must intend to bind successors
- promise must touch and concern the land
- successor must be in vertical privity and take same or lesser estate
Equitable servitude
- writing or a common plan
- intent of covenanting partners to bind successors
- the promise touches and concerns the land
- successors must have notice
- dont need privity cause it runs with land = attached to the land not the estate
Termination of and defenses
- Release = written release
- merger
- acquiescence
- unclean hands
- abandonment
- laches
- eminent domain
- estoppel
- relative harm
- prescription
- changed conditions
- constitutional restrictions