Property Flashcards

1
Q

What are the three types of concurrent estates?

A

Joint Tenancy with a Right of Survivorship: A tenancy between two or more tenants in which the surviving interest goes to the surviving tenants. Joint tenants must take their interest (1) at the same time, (2) by the same title, (3) with identical, equal interests, and (4) with rights to possess the whole. A JTWROS is not descendible or devisable, but it is alienable inter vivos. Conveyance turns the JTWROS into a TIC, but a mortgage does not sever a JTWROS. If joint tenant’s convey part of their interest together, this does not sever the JTWROS. The grantees take the conveyed interest as tenants in common.

Tenancy by the Entirety: A tenancy created by the conveyance to married partners. Creditors cannot come after the tenancy to satisfy a debt and one spouse cannot unilaterally convey the tenancy to a third party.

Tenancy in Common: A tenancy in which each co-tenant owns an individual part with the right to possess the whole. Each interest is devisable, descendible, and alienable inter vivos.

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2
Q

How can a joint tenancy and a tenancy for entirety be severed?

A

Joint Tenancy: A joint tenancy can be severed if (1) the second-to-last joint tenant dies, (2) one of the joint tenants unilaterally conveys the property inter vivos, (3) the court orders a final partition degree, (4) one joint tenant mortgages their interest in a title theory jurisdiction (minority rule), or (5) one joint tenant intentionally kills another joint tenant.

Tenancy in Entirety: This tenancy can only be severed by death, divorce, mutual agreement, or execution by a joint creditor of both spouses.

A joint tenant’s mortgage on their interest does not sever the joint tenancy in a lien theory jurisdiction, and a multilateral inter vivos transfer of the interest by all joint tenant does not sever the joint tenancy.

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3
Q

What are the four leasehold estates?

A

Tenancy for Years: A lease for a fixed, determinable period. The tenancy automatically ends at its termination date.

Periodic Tenancy: A lease which continues for successive intervals (e.g., month to month) until either the landlord or the tenant gives proper notice of termination. The tenancy may arise by implication if the land is leased for the payment of rent at set intervals, an oral term of years violates the Statute of Frauds but the tenant pays rent, or rent is paid by a holdover tenant. Written notice is required to terminate a periodic tenancy. Notice is equal to the length of the lease interval unless the tenancy is year-to-year, which requires 6 months notice at common law and 1 months notice under the restatement.

Tenancy at Will: A lease with no fixed duration. The tenancy is terminable at the will of either party, unless the lease only give the tenant the right to terminate. Such an agreement is usually written, otherwise a periodic tenancy is presumed based on rent payments. Today, most states requires notice and a reasonable time to quit before termination takes effect.

Tenancy at Sufferance: A lease created when a tenant remains in possession of the property past the expiration of the lease. The tenancy lasts until the landlord evicts the tenant or elects to hold the tenant to a new tenancy. No notice of termination is required. If the landlord holds the tenant to a new lease, a commercial tenant will generally be subject to a year-to-year lease (assuming the original lease term was for one year or more) and a residential tenant will generally be subject to a month-to-month lease, with rent paid and computed based on the previous lease. However, if the landlord is allowed to hold a tenant to a higher rent if the landlord notified the tenant of the higher lease before the previous lease expired.

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4
Q

What are the tenant’s main duties?

A

Duty to Repair: A tenant has a duty to to maintain the premises by making routine repairs.

Duty Not to Commit Waste: There are three types of waste: (1) voluntary waste, waste attributable to willful destruction; (2) permissive waste, waste attributable to negligence; (3) ameliorative waste, waste that increases the value of the property.

Duty to Pay Rent: If a tenant fails to pay rent, the landlord can evict or sue, but the landlord cannot engage in self-help.

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5
Q

What can a landlord do if a tenant breaches but is out of possession?

A

Surrender: The landlord could choose to treat the tenant’s abandonment as an implicit offer of surrender, which the landlord accepts, thereby ending the lease.

Ignore: Do nothing and hold the tenant responsible for the unpaid rent until the natural end of the lease.

Re-Let (Majority Rule): Re-let the premises on the wrongdoer-tenant’s behalf, and hold the wrongdoer-tenant liable for any deficiency.

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6
Q

What are the landlord’s duties to tenants?

A

Duty to Deliver Possession of Premises: Most states follow the British Rule and require the landlord to put the tenant in actual possession of the premises at the beginning of the lease term. Under this view, the landlord is in breach if he has not evicted a holdover tenant at the beginning of the new tenant’s lease. A minority of states follow the American Rule under which the landlord’s obligation is merely to give the tenant the legal right to possession. Under this view, the new tenant must bring eviction proceedings against the holdover tenant.

Implied Covenant of Quiet Enjoyment: A tenant has a right to quiet use and enjoyment of the premises, without interference from the landlord or a paramount title holder. This covenant can be breached through actual, partial, or constructive eviction. Constructive eviction occurs if (1) there is a substantial interference with the premises based on the landlord’s actions or failures, (2) the tenant notifies the landlord of the problem, and (3) the tenant vacates the premises within a reasonable time after the landlord fails to remediate. A tenant does not have to pay rent if he is actually or partially evicted, but a tenant can only terminate the lease and recover damages if he is constructively evicted. Think CLAPS.

Implied Warranty of Habitability: The premises must be fit for basic human habitation. This only applies to residential leases. If this covenant is breached, a tenant can (1) move out and terminate the lease, (2) repair the defect and deduct the costs from future rent, (3) reduce or withhold rent until a court determines fair rental value, and (4) remain in possession, pay rent, and seek money damages.

Exceptions to Caveat Lessee - Under the doctrine of caveat lessee, a landlord was under no duty to make the premises safe. However, there are several exceptions to this rule. A landlord has a duty to (1) maintain common areas, (2) warn tenants of hidden latent defects, (3) complete repairs it assumes to make, (4) repair defects for short-term leases in public spaces, and (5) repair any defects for short-term leases of furnished dwellings.

Duty of Reasonable Care - Under the modern trend, landlords owe residential tenants a duty of reasonable care. Landlords are liable for injuries in tort resulting from ordinary negligence if the landlord had notice of a defect and an opportunity to repair it.

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7
Q

What are the difference between an assignment and a sublease?

A

An assignment is a transfer of the entire remaining term of the lease. After the assignment, the assignor remains in privity of contract with the landlord, but the assignee is now in privity of estate with the landlord.

A sublease is a transfer of the lease in which the lessor retains some part of the remaining term of the lease. After the sublease, the sublessor remains in privity of contract with the landlord, but the sublessee is now in privity of estate with the subleasor.

A landlord can prohibit a tenant from assigning or subletting without the landlord’s prior written approval. However, a landlord waives this right if he consents to one transfer by a tenant, unless the landlord expressly reserves this right.

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8
Q

What are the types of easements?

A

An easement is a grant of a nonpossessory property interest that entitles its holder to some form of use or enjoyment of another’s land. An easement can be affirmative or negative. An affirmative easement is a right to go onto and do something on servient land, while an negative easement prevents the servient landowner from doing something otherwise permissable. Negative easements are recognized in light, air, support, and a stream of water from an artificial flow and can only be created expressly.

Easement Appurtenant: An easement appurtenant benefits the dominant tenement at the expense of the servient tenement. This type of easement passes automatically to transfers of the dominant and servient estates, regardless of whether it is mentioned in the conveyance. However, it does not automatically pass to a servient estate if the new owner is a bona fide purchaser without notice of the easement.

Easement in Gross: An easement in gross only burdens the servient tenement. An easement in gross is not transferrable unless it is for commercial purposes.

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9
Q

What are the different ways of creating an easement?

A

Prescription: An easement by prescription must satisfy the elements of adverse possession: (1) continuous and uninterrupted use for the given statute’s period, (2) open and notorious use (that is, it’s discoverable upon inspection), (3) actual use that need not be exclusive, (4) hostile use (meaning, use without the servient owner’s consent).

Implication: An easement by implication can arise from a preexising use and without any existing use. To find an easement by implication based on a preexisting use (1) the previous (prior to division) use on the servient part must be apparent and continuous AND (2) the parties must have expected that the use would survive division because it is reasonably necessary to the dominant tenement’s use and enjoyment. To find an easement without any preexisting use, the easement must be part of a subdivision plat (i.e., streets to houses) or a profit a prendre (i.e., a right to enter servient land and extract resources).

Necessity: An easement by 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.

Grant: An easement by grant must be memorialized in writing and signed by the holder of the servient tenement unless the duration is for less than 1 year.

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10
Q

What are the ways to terminate an easement?

A

Estoppel: The servient owner materially changes their position in reasonable reliance on the easement holder’s assurances or representations (such as that the easement will no longer be enforced).

Necessity: Easements by necessity expire as soon as the necessity ends, unless the easement was reduced to an express grant.

Destruction: Destruction of the servient land, other than through the willful conduct of the servient owner, will terminate the easement.

Condemnation: Condemnation of the servient estate by governmental eminent domain power will terminate the easement.

Release: A release given by the easement holder to the servient landowner will terminate the easement.

Abandonment: An easement holder takes a physical action that demonstrates an intent to never use the easement again.

Merger: An easement is extinguished when title to the easement and title to the servent land become vested in the same person. The duration of the servient estate must be equal to or longer than the duration of the dominant estate (and therefore the easement).

Perscription: A servient owner can extinguish an easement by interfering with it in accordance with the elements of adverse possession. All of the elements are the same, but exclusive use is not required.

Note: Misuse of an easement does not terminate the easement. Damages or an injunction are the appropriate remedy.

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11
Q

What is a license?

A

A license is a mere privilege to enter another’s land for some delineated purpose. A license is revocable at the will of the licensor. No writing is required. Common examples include cases involving tickets and neighbors talking by the fence.

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12
Q

What are the rules for restrictive covenants and equitable servitudes?

A

A covenant is a written promise to do (affirmative) or not do (restrictive) something related to land. Restrictive covenants are only applicable if the plaintiff is seeking money damages.

Burdens to Run in Covenants: For the burdens of a covenant to run, there must be (1) a writing, (2) an intent for the covenant to run, (3) the covenant must touch and concern the land, (4) horizantal and vertical privity, and (5) notice of the promise (actual, inquiry, or record notice).

Touch and Concern: Restrictive covenants touch and concern the land if they restrict the burdened parcel owner in her use of that parcel of land. Affirmative covenants touch and concern the land if they require the holder of the servient estate to do something that increases her obligations in connection with the land.

Horizonal Privity: Horizontal privity refers to the nexus between the original promising parties (A and B). It requires that they be in succession of estate, meaning that they were in a grantor-grantee or landlord-tenant or mortgagor-mortgagee relationship when the covenant was created.

Vertical Privity: Vertical privity refers to the nexus between the successor in interest (A-1) and the originally covenanting party (A). It simply requires some non-hostile nexus, such as contract, devise, or descent.

Benefits to Run for Covenants: The requirements for benefits to run are the same as those required for the burdens to run with the exception of horizontal privity and notice.

Touch and Concern: The benefit of a covenant touches and concerns the land if the promised performance benefits the promisee and her successors in their use and enjoyment of the benefited land.

An equitable servitude is a promise that equity will enforce against successors of the burdened land regardless of whether it runs with the land at law, unless the successor is a bona fide purchaser.

For an equitable servitude to bind successors, there must be (1) a writing, (2) an intent that the promise be enforceable by and against successors, and (3) notice (only applies to successors burdened by the servitude)

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13
Q

What is the Common Scheme Doctrine?

A

Under the common scheme doctrine, the court will imply a reciprocal negative servitude to hold the unrestricted lot holder to the promise. There are two elements: (1) the subdivider had a general scheme of residential development which included the defendant’s lot and (2) the defendant had notice of the promise contained in those prior deeds when it took.

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14
Q

What are the defenses to enforcing an equitable servitude?

A

Defenses to enforcing an equitable servitude include (1) significant changes in neighborhood conditions, (2) unclean hands, (3) acquiescence by the benefited party, (4) estoppel, and (5) latches.

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15
Q

What are the rules for adverse possession?

A

Adverse possession is met where there is (1) continuous use throughout the statutory period (use must be of a type the usual owner would make; tacking is allowed), (2) open and notorious possession (i.e., use must be sufficiently apparent to put the true owner on notice that the trespass is occurring), (3) actual and exclusive possession (constructive possession allowed if taken under color of title), and (4) hostile possession (i.e., without the owner’s permission).

Continuous Use: An adverse claimant’s possession must be continuous throughout the statutory period. Continuous use only requires a degree of occupancy and use that the average owner would make of the property. The statutory period can be met if there is privity between multiple possessor. However, intermittent periods of occupancy are not sufficient.

Open and Notorious: The adverse possessor’s occupation must be sufficiently apparent to put the true owner on notice that the trespass is occurring.

Actual and Exclusive: An adverse possessor will gain title only to the land he actually and exclusively occupies. However, if the adverse possessor enters a property under color of title (i.e., an invalid deed), he is deemed to be in constructive possession of all the land that the deed describes so long as he is in actual possession of a reasonable portion of that land.

Hostile: The adverse possessor occupies the property in a hostile manner if he enters the property without the owner’s permission. The possessor’s state of mind is irrelevant. Adverse possession is not created between co-tenants unless one co-tenant ousts the other or makes an explicit declaration of exclusive dominion. Additionally, a possessor that enters the property under an invalid deed is in hostile possession. However, if a grantor stays in possession of land after it is conveyed, the grantor is presumed to be there with the permission of the grantee (the same applies for a holdover tenant).

The statute of limitations does not run against a true owner who is afflicted with a disability at the inception of the adverse possession.

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16
Q

What is the doctrine of equitable conversion?

A

Under the doctrine of equitable conversion, once the contract is signed, equity regards the buyer as the owner of the real property. The contract conveys equitable title to the buyer. The buyer bears the risk of loss is the property is destroyed and the contract will remain enforceable, even if the buyer or seller dies.

17
Q

What are the promises implied in land sales contracts?

A

First, the seller promises to provide marketable title by the closing. This means the seller warrants the following: (1) not part of the property rests on adverse possession, (2) the property does not contain any encumbrances (e.g., mortgages, liens, non-beneficial and unknown easements, restrictive covenants, options to purchase, and significant encroachments), (3) the property does not violate existing zoning restrictions, and (4) future interests in the property are not held by unborn or unascertained parties. If marketable title is not provided at the closing, the seller is allowed to provide marketable title within a reasonable time after the closing, so long as time is not of the essence.

Second, the seller promises not to make any false statements of material fact, conceal defects, or neglect to disclose known defects in the property. To be liable for failure to disclose (1) the seller must have known or have reason to know of the defect, (2) the seller must have realized the buyer was unlikely to discover the defect, and (3) the defect must have been serious enough that the buyer would reconsider the purchase.

Note: A land sale contract will not contain implied warranties of fitness or habitability. Caveat emptor is the common law norm. Exception: The implied warranty of fitness applies to any new house by a builder.

18
Q

What must happen for legal title to pass from the grantor to the grantee?

A

The deed must be lawfully executed and delivered (LEAD). A lawfully executed deed must be in writing and include (1) the grantor’s signature, (2) an unambiguous description of the land, (3) an identification of the parties by name or description, and (4) words of intent to transfer. Delivery turns on the grantor’s intent that the title pass immediately. The grantor can accomplish delivery by handing the deed to the grantee, the deed is acknowledged by the grantor in front of a notary, the deed is recorded, or the deed is delivered to a third party (e.g., grantee’s lawyer or an escrow agent) with instructions to deliver the deed to the grantee.

19
Q

What are the four types of deeds?

A

Quickclaim: Conveys only what the grantor has at the time of the conveyance. Grantor does not provide any warranties related to the title.

General Warranty Deed: Warranty against all defects in title, including those attributable to the grantor’s predecessors. The general warranty deed contains the following present covenants: (1) the covenant of seisin (i.e., grantor owns the land), (2) covenant of the right to convey, and (3) the covenant against encumerances. The general warranty deed also contains the following future covenants: (1) the covenant of quiet enjoyment (i.e., grantee will not be disturbed by lawful third-party claims of title), (2) the covenant of warranty (i.e., defense and compensation related to lawful third-party claims of title), (3) the covenant for further assurances (i.e., promise to address and future defects with the title).

Special Warranty Deed: Contains all the same covenants as the general warranty deed, but the grantor makes these promises only on behalf of himself.

Statutory Special Warranty Deed: Assures (1) that the grantor has not conveyed the same estate or any interest therein to anyone other than the grantee and (2) that the estate is free from encumbrances made by the grantor.

20
Q

What are the rules for the recording system?

A

Whether a grantee takes a property subject to an encumbrance (e.g., a mortgage, lien, or easement) depends on the recording system. There are three main recording systems.

Race Jurisdiction: If the grantor records the deed before the grantee, the grantee will take the land subject to the encumbrance.

Notice Jurisdiction: If the grantee is not a bona-fide purchaser for value, the grantee will take the land subject to the encumbrance. A bona fide purchaser for value is a purchaser who pays valuable consideration for the land without actual, constructive, or inquiry notice of the prior conveyance.

Race-Notice Jurisdiction: If the grantee is not a bona-fide purchaser or the grantor recorded the deed first, the grantee will take the land subject to the encumbrance.

Note: The recording system does not defeat interests that arise from operation of law (i.e., adverse possession).

21
Q

What are the rules related to chain of title?

A

To give record notice to a subsequent taker, the deed must be properly recorded in the chain of title.

Shelter Rule: Anyone who takes from a BFP will prevail against any interest the BFP would have prevailed against. This is true even if the grantee had actual notice of a prior unrecorded conveyance.

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.

Estoppel by Deed: One who conveys reality 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. However, if the owner later conveys the land to a third-party, that party will likely be a BFP because the earlier deed was not in the chain of title.

22
Q

What are the rules related to mortgages?

A

Transfers: A mortgagee can transfer their interest by indorsing the note and delivering it to the transferee or executing a separate document of assignment. When a mortgagor transfers their interest in the property the transferee either assumes the mortgage or takes the property subject to the mortgage. If the transferee takes the property subject to the mortgage, only the transferor is personally liable to the lender for the mortgage. However, if the transferee assumes the mortgage, the transferee is primarily liable to the lender for the mortgage and the transferor is secondarily liable to the lender for the mortgage, but the lender can sue both.

Foreclosure: If the mortgagor defaults on a mortgage, the respective creditor can seek foreclosure. Mortages are organized in order or priority, with the first mortgagee to record having first priority and the last mortgagee to record having the last priority. If a mortagee forecloses, the mortgagee must be immediately paid from the proceeds of the forclosure sale. Any remaining proceeds are dispersed to the lower-priority mortgagees in order of priority. Lower-priority mortgagees (i.e., junior lienholders) can proceed against the mortgagor in a deficiency judgment. If all of the lower-priority mortgagees are paid, the mortgagor retains the surplus proceeds from the sale. However, the mortgages of higher-priority mortgagees (i.e., senior lienholders) will remain on the property following the sale. The foreclosing mortgagee must join the mortgagor and all junior lienholders in the foreclosure action, otherwise their respective mortgages will remain on the land.

Redemption: Any time prior to the foreclosure sale, the mortgagor has the right to redeem the land by freeing it of the mortgage. However, many states give the mortgagor a statutory right to redeem for some fixed period after the foreclosure sale has occurred. The mortgagor usually must pay the sale price of the property.

23
Q

What are the rules for zoning?

A

Variance: A grant that allows a landowner to depart from the literal restrictions of a zoning ordinance. The variance is granted or denied by administrative action.

Nonconforming Uses: Previously allowed uses of a property cannot be eliminated all at once unless just compensation is paid. Insubstantial changes of nonconforming are allowed, but substantial changes are not allowed.

Cumulative Zoning: A cumulative zoning ordinance creates a hierarchy of uses of land where a single-family home the highest use, followed for example by a two-family home (which is a lesser use), and then an apartment building (an even lesser use), and then a strip mall (even lesser), and then a factory (even lesser).

Noncumulative Zoning: Under a noncumulative zoning ordinance, land may be used only for the purpose for which it is zoned.

24
Q

What are the rules for rights incidental to land?

A

Lateral Support: Ownership of land includes the right to have the land supported in its natural state by adjoining land. A landowner is strictly liable if their excavation causes adjacent land to subside. However, if a landowner improves the land with buildings and an adjacent landowner’s excavation causes the improved land to cave in, the excavator will only be liable if he was negligent. Strict liability will only apply if the improvements in the land did not contribute to the land’s collapse.

Riparian Doctrine: Water belongs to those who own the land bordering a watercourse. Under the reasonable use theory, one owner’s use is not enjoinable unless it substantially interferes with the use of other riparian owners.

Prior Appropriation Doctrine: Water belongs to the state, but the right to divert is and use it can be acquired by an individual through their actual use.

Common Enemy Rule: An owner can take any protective measures to get rid of the water or combat its flow (for example, dikes or drainage changes).

Remedies: Trespass, private nuisance, continuing trespass, or ejectment or unlawful detainer.

25
Q

What are the rules for the Fair Housing Act?

A

The Fair Housing Act makes it illegal to take certain actions because of a person’s race, color, religion, sex, disability, familial status, or national origin including: (1) refusing to negotiate, rent, or sell housing or make available a mortgage loan or other financial assistance; (2) providing different terms or conditions for the sale or rental of a dwelling or for a mortgage or other financial assistance; and (3) falsely representing that a dwelling is not available for
inspection, sale, or rental. It is also unlawful under the Fair Housing Act to make, print, or publish any notice or advertisement that indicates any preference or limitation based on race, color, religion, sex, disability, familial status, or national origin.

When the Fair Housing Act applies, landlords must permit disabled tenants to make reasonable modifications to existing premises to accommodate their disabilities at the tenants’ own expense.

Exceptions: The Fair Housing Act does not apply to (1) owner-occupied buildings with four or fewer units in which persons live independently of each other; and (2) single-family homes sold or rented by an owner who owns no more than three single-family homes.