Property

Question 1

fee simple determinable

Answer 1

original holder has a potentially perpetual interest in prop but for the condition that automatically brings the interest to an end
look for SO LONG AS!!!
creates a possibility of reverter in the grantor

Question 2

rule against perpetuities does not apply to

Answer 2

• interests retained by the original grantor

Question 3

fee simple subject to condition subsequent

Answer 3

look for a semicolon followed by “but if”
not automatically terminated when the condition occurs
grantor retains the power to reenter

Question 4

executory interest

Answer 4

an interest held by someone other than the grantor
subject to RAP

Question 5

remainder

Answer 5

leftover interest in the life estate goes to someone other than the original grantor

Question 6

responsibilities of holders of life estates

Answer 6

1- reasonable upkeep of the property (including payment of taxes)
2- no depletion of natural resources EXCEPT with expression permission in the conveyance of the property or if the land was already being used for this purpose (open mines doctrine)

Question 7

co-tenants

Answer 7

co-owners of property
- joint tenancies
- tenancy in common

Question 8

what is the effect of a conveyance by either joint tenant

Answer 8

severs the joint tenancy and results in a tenancy in common

Question 9

right of partition (who has it and what is it)

Answer 9

• co-owners of a JT or TIC
• co-owner can force a division of the property or force a sale of the property and division of the proceeds

Question 10

constructive eviction

Answer 10

occurs when the landlord, by action or inaction, substantially interferes withe the tenant’s use and enjoyment of the property

Question 11

constructive eviction elements

Answer 11

1- substantial interference with property
2- notice to LL
3- LL had a reasonable time to repair
4- if LL doesn’t fix, the tenant MUST vacate the premises

Question 12

assignment

Answer 12

tenant transfers their entire interest to a third person

Question 13

what is the tenant’s right to assignment and sublease if the lease is silent on it

Answer 13

the tenant has the right to assign and sublease unless expressly forbidden in the lease

Question 14

privity of contract

Answer 14

original tenant remains liable on the lease to the LL even after an assignment

Question 15

privity of estate

Answer 15

assignee is liable to the LL for the period of time the assignee has the right to occupy the property under the assignment
assignee and LL are in privity of estate

Question 16

who can the LL sue in an assignment

Answer 16

LL can sue either the assignee or tenant (but not both) for the rent

Question 17

sublease

Answer 17

tenant conveys a portion of her interest to a third person

Question 18

obligation of the sublessee to the LL

Answer 18

sublessee has no obligation to the LL
sublessee only has obligations to the tenant to abide by the terms of the sublease

Question 19

for commercial tenants, the periodic tenancy for a hold-over tenant is

Answer 19

• year to year if the original lease was over 1 year
• based on frequency of rental payments if lease was less than 1 year

Question 20

for residential tenants, the periodic tenancy for a hold-over tenant is

Answer 20

month to month only

Question 21

sale of property by LL to buyer -> what is privity of contract here

Answer 21

the original LL is liable for all covenants (promises) in the lease to the tenant

Question 22

sale of property by LL to buyer -> what is privity of estate here

Answer 22

the buyer is liable for all promises that run with the land
promises that run with the land= promises that touch and concern the land

Question 23

if property subject to an easement is conveyed, the new honor must honor the easement if there was:

Answer 23

notice of the easement

Question 24

how does a purchaser of land get notice that there is an easement on that property?

Answer 24

• actual notice (easement is in the deed)
• record notice (easement is in a previous, recorded deed)
• inquiry notice (what a buyer would have discovered by visiting the property and asking questions)

Question 25

most common ways to terminate an easement

Answer 25

• merger: unity of title of both the benefitted and burdened property (the easement is extinguished even if one of the tracts later gets conveyed)
• abandonment: nonuse plus additional evidence of intent to abandon
• necessity: terminates when necessity ends

Question 26

doctrine of equitable conversion

Answer 26

after the contract has been executed, the buyer is considered the owner of the property so if the property is destroyed after execution of the contract, the buyer bears the risk of loss

ALWAYS APPLY unless the question says the jx follows other rules

Question 27

marketable title

Answer 27

title that a reasonable buyer would accept (no surprise liens, easements, etc)

title is not marketable
- if gained through adverse possession
- if the title has unexplainable gaps in chain of title
- encumbrances that reduce the value or restricts the use of the land

Question 28

is title obtained through adverse possession marketable

Answer 28

NO- A seller’s title gained in WHOLE or in PART through adverse possession is not marketable
unless the seller has obtained a judicial order in an appropriate action of quiet title

Question 29

what can the buyer do if the seller does not bring marketable title on closing

Answer 29

• walk away from the deal and seek damages
• accept the title

Question 30

if the seller has less land to sell than promised, the buyer has the option to:

Answer 30

• cancel the transaction and seek damages or
• go through with the closing at a reduced price

Question 31

what is required for effective delivery of a deed

Answer 31

• legal delivery (without physical delivery) if the grantor intends for the deed to have immediate effect
• physical delivery
• if deed was recorded, presumption that property delivery occurred

Question 32

notice statute

Answer 32

last BFP wins

Question 33

race-notice statute

Answer 33

first BFP to record wins

Question 34

race statute

Answer 34

first to record wins

Question 35

shelter rule

Answer 35

A BFP can subsequently deed the land to a party who had notice of the prior deed and make that party a BFP

a person who takes title from a BFP is protected by the BFP status (BFP gets to transfer the title that she got)

Question 36

“records first” or “first records”

Answer 36

race notice statute

if you don’t see those words, it is a notice jx

Question 37

subsequent purchaser takes “subject to” the mortgage

Answer 37

no personal liability for the new owner

original mortgagor remains responsible for the continued payment under the terms of the mortgage

can lose their investment in the land if the amount recovered in the foreclosure sale does not satisfy the underlying debt (but will not be liable for the deficiency)

Question 38

subsequent purchaser “assumes” the mortgage

Answer 38

new owner has personal liability for the mortgage

if the amount recovered in the foreclosure sale does not satisfy the underlying debt, the new purchaser will be liable for it

Question 39

notice of the foreclosure sale must be provided to who?

Answer 39

all junior mortgagees

Question 40

what is a junior mortgagee

Answer 40

anyone who placed their mortgage on the property after the mortgage that is foreclosing

Question 41

order of proceeds of a foreclosure sale

Answer 41

1- foreclosing mortgagee
2- junior mortgages (in order of priority)
3- mortgagor

Question 42

effects of a foreclosed mortgage

Answer 42

• mortgage that was foreclosed and all mortgages junior to that mortgage that had notice of the foreclosure sale are terminated
• juniors without notice and senior mortgages remain on the property
• any foreclosing or junior mortgage that was not fully paid can sue the mortgagor for a deficiency