Property Flashcards
Topics? (4)
(Ownership)
- Present Possessory Interests (Freeholds)
- Future Interests
- The Rule Against Perpetuities (RAP)
- Concurrent Estates
Types? (4)
(Ownership: Present Possessory Interests (Freeholds))
- Fee Simple Absolute
- Fee Tail
- Defeasible Fees
- Life Estates
Structure?
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(Ownership: Present Possessory Interests (Freeholds): Fee Simple Absolute)
- Language = “To A & Her Heirs” or “To A’
- Characteristics
- Absolute Ownership
- Potentially Infinite Duration
- Freely Devisable
- Freely Descendible
- Freely Alienable
- Future Interest = No
Structure?
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(Ownership: Present Possessory Interests (Freeholds): Fee Tail)
- Language = “To A & the Heirs of Her Body”
- Characteristics
- Abolished
- Upon Death (Historically) = Passes to Lineal Blood Descendants
- Future Interest = Yes
- Reversion = Grantor
- Remainder = 3rd Party
Structure?
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(Ownership: Present Possessory Interests (Freeholds): Defeasible Fees)
- Fee Simple Determinable
- Language
- “To A So Long As”
- “To A UntiI”
- “To A During”
- “To A Provided That”
- Effect of Violation = Automatic Reversion to Grantor
- Characteristics
- Devisable Subject to Condition
- Descendible Subject to Condition
- Alienable Subject to Condition
- Future Interest = Possibility of Reverter
- Language
- Fee Simple Subject to Condition Subsequent
- Language
- ‘To A But If … Grantor Shall Have a Right of Entry”
- “To A Upon the Condition That… Grantor Shall Have a Right of Entry”
- Effect of Violation = No Automatic Termination
- Characteristics
- Devisable Subject to Condition Subsequent
- Descendible Subject to Condition Subsequent
- Alienable Subject to Condition Subsequent
- Future Interest = Right of Entry (Power of Termination)
- Language
- Fee Simple Subject to Executory Limitation
- Language
- “To A But If X Occurs … Then to B”
- Effect of Violation = Automatically Passes to 3rd Party
- Characteristics
- Devisable Subject to Condition Subsequent
- Descendible Subject to Condition Subsequent
- Alienable Subject to Condition Subsequent
- Future Interest = Shifting Executory Interest
- Language
- Interpretation of Defeasible Fees by Court
- Generally Disfavored
- Discourage Restraints on Alienation
- Presumption Against Forfeitures
- Clear DurationaI Language Required
- “To A for the Purpose?”
- “To A with the Hope?”
- “To A with the Expectation”
- Absolute Restraints on Alienation = Void & Unenforceable
- Generally Disfavored
Structure?
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(Ownership: Present Possessory Interests (Freeholds): Life Estate)
- Language
- “To A for Life” = Simple Life Estate
- “To A for B’s Life” = Pur Autre Vie
- Rights of Life Tenant = Ordinary Uses & Profits
- Duty Not to Commit Waste
- Affirmative Waste (Voluntary Waste)
- Natural Resources
- Prior Use
- Open Mines Doctrine
- Reasonable Repairs & Maintenance
- Expressly Authorized by Grantor, OR
- Normal Use of the Land
- Prior Use
- Natural Resources
- Permissive Waste
- Obligation to Repair
- Obligation to Pay Interest on Encumbrances
- Obligation to Pay Taxes
- No Obligation to Insure the Premises
- Ameliorative Waste
- Exception: Unanimous Consent by Future Interest Holders
- Affirmative Waste (Voluntary Waste)
- Future Interest = Reversion or Remainder
- Reversion = Grantor
- Remainder = 3rd Party
Two types?
(Ownership: Future Interests: Interests Retained by Grantee)
- Remainder
- Executory Interest
Structure?
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(Ownership: Future Interests: Interests Retained by Grantee: Remainder)
- General Characteristics
- Created by Express Grant in Same Instrument
- Must Follow Preceding Estate
- Life Estate, OR
- Term of Years
- Possessory = Natural Expiration of Preceding Estate
- Cannot Divest Prior Estates
- Can Never Follow Fee Simple or Defeasible Fees
- Vested Remainder
- Requirements
- Created in an Ascertained Person
- Not Subject to Condition Precedent
- Sub-classification
- Indefeasibly Vested Remainder = “To A for Life, Remainder to B”
- Vested Remainder Subject to Complete Defeasance (aka Vested Remainder Subject to Total Divestment
- Condition Subsequent
- Inherent Limitation
- Vested Remainder Subject to Open
- Class-Closing Rule (Rule of Convenience)
- Exception: Womb Rule
- Class-Closing Rule (Rule of Convenience)
- Requirements
- Contingent Remainder
- Requirements
- Created in an Unascertained Person
- Heirs of Living Person, OR
- Subject to a Condition Precedent
- Failure Condition Precedent = Reversion to Grantor
- Satisfaction of Condition Precedent = Indefeasible Remainder
- Destructibility
- Common Law = Destructibility
- Modern Law = No Destructibility
- The Rule in Shelley’s Case = “To B for Life, Then to B’s Heirs” & B is Alive
- Common Law = Doctrine of Merger
- Modern Law = Rule in Shelley’s Case Abolished
- Doctrine of Worthier Title = “To B for Life, Then to O’s Heirs”
- Effect of Doctrine
- B = Life Estate
- O = Reversion
- Rule of Construction
- Effect of Doctrine
- Created in an Unascertained Person
- Requirements
- Transferability
- Devisable = Yes
- Descendible = Yes
- Alienable = Yes
Structure?
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(Ownership: Future Interests: Interests Retained by Grantee: Executory Interest)
- Shifting Executory Interest
- Springing Executory Interest
Structure?
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(Ownership: The Rule Against Perpetuities (RAP))
- The Rule
- Measuring Life
- Applicable Future Interests
- Contingent Remainders
- Vesting?
- Executory Interests
- Vesting?
- Vested Remainders Subject to Open
- Vesting?
- All or Nothing Rule
- Contingent Remainders
- What Might Happen?
- The Fertile Octogenarian Rule
- Unborn Widow
- Slothful Executor
- Precocious Toddler
- Charitable Exceptions
- Can Be Perpetual
- Charity to Charity
- Modern RAP
- Wait & See
- Uniform Statutory Rule Against Perpetuities
- Common Law Valid
- 90 Years
- Cy Pres Doctrine (“As Near As”)
Structure?
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(Ownership: Concurrent Estates)
- Joint Tenancy = “To A & B as Joint Tenants with the Right of Survivorship
- Tenancy by the Entirety = “To H & W with the Right of Survivorship”
- Tenancy in Common = “To A & B as Tenants in Common”
- Rights & Duties of Co-Tenants
Structure?
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(Ownership: Concurrent Estates: Joint Tenancy)
- Characteristics
- Right of Survivorship
- Transferability
- Devisable = No
- Descendible = No
- Transferable = Yes
- Creation
- 4 Unities Required
- Time
- Title
- Interest
- Possession
- Express Language of Right of Survivorship
- Straw Man Conveyance
- 4 Unities Required
- Severance
- By Voluntary Agreement
- Court Ordered Division
- Partition in Kind
- Partition by Forced Sale
- Inter Vivos Conveyance
- Buyer = Tenant in Common
- Contract to Sell = Severs Joint Tenancy at Time of Contract
- Equitable Conversion
- Mortgages
- Majority View = Does Not Sever the joint Tenancy
- Minority View = Severs the Joint Tenancy
- Forced Sale
- Judgment Liens
- Foreclosed Mortgages
- Lease by Joint Tenant
- Common Law = Severs the Joint Tenancy
- Modern Law = Does Not Sever the Joint Tenancy
- Murder of One Joint Tenant by Another
Structure?
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(Ownership: Concurrent Estates: Tenancy by the Entirety)
- Creation
- Valid Marriage
- 4 Unities Required
- Time
- Title
- Interest
- Possession
- Right of Survivorship
- Severance
- Divorce
- Mutual Written Agreement Between Husband & Wife
- Unilateral Conveyance = No Severance
- Execution by Joint Creditors
- Unilateral Creditors = No Severance
Structure?
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(Ownership: Concurrent Estates: Tenancy in Common)
- Presumed by Modern Law
- One Unity Required = Possession
- No Right of Survivorship
- Devisable = Yes
- Descendible = Yes
- Alienable = Yes
Structure?
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(Ownership: Concurrent Estates: Rights & Duties of Co-Tenant)
- Possession
- Wrongful Exclusion
- Adverse Possession Requires Ouster
- Rents from Co-Tenant
- Exclusive Possession
- Wrongful Exclusion
- Wrongful Exclusion
- Profits from Non-Tenants
- Carrying Costs & Repairs
- Taxes
- Mortgage
- Repairs
- Improvements
- Partition
- Duty Not to Commit Waste
- Affirmative Waste (Voluntary Waste)
- Permissive Waste
- Ameliorative Waste
- Right to Bring Action for Partition
Structure?
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(Natural Rights)
- Right to Exclude
- Trespass
- Action for Ejectment
- Private Nuisance
- Elements
- Plaintiff Has Interest in Land
- Unreasonable Interference with Use & Enjoyment of Land
- Unreasonableness?
- Harm to Plaintiff > Utility of Defendant’s Conduct, OR
- Harm to Plaintiff Greater Than Required to Bear without Compensation
- Unreasonableness?
- Defendant’s Conduct = Negligent Abnormally Dangerous or Intentional
- Elements
- Trespass
- Lateral & Subjacent Support
- Strict Liability
- Negligence
- Water Rights
- Riparian Rights
- Prior Appropriation
- Percolating Water (Groundwater)
- Surface Water & the Common Enemy Doctrine
Topics? (4)
(Landlord-Tenant)
- Leasehold
- Tenant’s Duties
- Landlord’s Duties
- Assignment v. Sublease
Structure?
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(Landlord-Tenant: Leasehold)
- Tenancy for Years (aka Estate for Years or Term of Years)
- Lease for Fixed Period of Time
- Dates Must be Specified
- Leases > One Year = Writing Required
- No Notice Required for Termination
- Periodic Tenancy
- Creation
- By Express Agreement
- By Implication
- No Mention of Duration but Payment Required at Specific Intervals
- By Operation of Law
- Oral Leases > One Year In Violation of Statute of Frauds
- Holdovers
- Automatic Renewal
- Termination = Valid Notice Required
- Notice Must Be in Writing
- At Least One Period In Advance
- Exception: Leases > One Year = Only Six Months Notice Required
- Lease Must Terminate at the End of Natural Lease Period
- Exceptions = Freedom of Contract
- Creation
- Tenancy at Will
- Creation
- By Express Agreement
- By Implication
- Termination
- Creation
- Tenancy at Sufferance (aka Holdover Tenancy)
- Termination
- Evicts the Tenant, OR
- Elects to Hold Tenant to a New Tenancy
- Termination
Structure?
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(Landlord-Tenant: Tenant’s Duties)
- Duty to Pay Rent
- Breach in Possession
- Landlord May Evict, OR
- Continue Tenancy & Sue for Back Rent, BUT
- Self-Help Prohibited (aka Changing of Locks)
- Breach out of Possession
- Treat Breach as Surrender
- Minority View = Leave Premises Vacant & Sue for Back Rent, OR
- Majority View = Duty to Mitigate
- Breach in Possession
- Duty to Repair
- Lease is Silent
- Affirmative Waste (aka Voluntary Waste) = Intentional Acts of Destruction
- Removal of Fixtures
- Fixture?
- Express Agreement Controls
- Absence of Express Agreement
- Fixture?
- Removal of Fixtures
- Permissive Waste = Neglect
- Ameliorative Waste = Unauthorized Improvements
- Affirmative Waste (aka Voluntary Waste) = Intentional Acts of Destruction
- Express Covenant to Maintain
- Common Law
- Modern Law
- Lease is Silent
- Duty to Invited Third Parties = Must Keep Premises in Reasonably Good Condition
- Indemnification
- Tenant’s Tort Liability
Structure?
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(Landlord-Tenant: Landlord’s Duties)
- Duty to Deliver Possession
- Majority View = The English Rule
- Minority View = The American Rule
- Implied Warranty of Quiet Enjoyment
- Breach by Actual Wrongful Eviction
- Breach by Constructive Eviction
- Substantial Interference
- Notice to Landlord
- Tenant Must Vacate Within Reasonable Time
- Implied Warranty of Habitability
- Non-Waivable
- “Uninhabitable”
- Local Housing Standards, OR
- The Court
- Tenant’s Remedies
- Move Out & Terminate Lease
- Reduce Rent or Withhold Rent
- Repair & Deduct, OR
- Remain in Possession & Sue for Damages
- Retaliatory Eviction = Illegal
- Landlord’s Tort Liability
- Landlord’s Liability for Acts of Other Tenants = Generally No
- Exceptions
- Landlord Must Not Permit Nuisance on the Premises
- Landlord Must Control All Common Areas
- Exceptions
- Common Law = Caveat Lessee
- Latent Defects
- Injuries Resulting from Negligent Voluntary Repairs
- Common Areas
- Public Use
- Landlord Knows or Should Know
- That Tenant Makes Public Use of the Land
- Of Defect
- That the Tenant Will Not Fix Defect
- Landlord Knows or Should Know
- Short Term Lease of Furnished Dwelling
- Landlord’s Liability for Acts of Other Tenants = Generally No
Structure?
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(Landlord-Tenant: Assignment v. Sublease)
- Assignment = Transfer of Entire Interest
- Landlord & Tenant (aka Assignor)
- Privity of Contract = Yes
- Privity of Estate = No
- Landlord & Assignee
- Privity of Estate = Yes
- Covenants That Run with the Land
- Privity of Contract = No
- Privity of Estate = Yes
- Subsequent Assignment
- Landlord & Tenant (aka Assignor)
- Sublease = Transfer of Part of the Interest
- Landlord & Tenant (aka Lessee)
- Privity of Estate = Yes
- Privity of Contract = Yes
- Tenant (aka Lessee) & Sublessee
- Privity of Contract = Yes
- Landlord & Sublessee
- Privity of Contract = No
- Privity of Estate = No
- Landlord & Tenant (aka Lessee)
Topics? (5)
(Your Right’s in Another’s Land)
- Easements
- License
- Profit
- Covenant
- Equitable Servitude
Topics? (4)
(Your Right’s in Another’s Land: Easements)
- 2 Types of Easements
- 2 Forms of Easements
- Transfer of Easements
- Termination of an Easement
Structure?
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(Your Right’s in Another’s Land: Easements: 2 Types of Easements)
- Affirmative Easement
- Creation
- By Express Grant
- > One Year = Must Be In Writing
- Signed by Grantor
- Manifest Intent to Create Easement
- Describe the Land
- Identify the Parties
- By Implication
- Existing Use
- Two Properties Were Once a Single Tract of Land & Later Divided
- Apparent & Continuous Use on Servient Land
- Parties Intended that the Use Continue
- Reasonably Necessary to Use & Enjoyment of Dominant Land
- Existing Use
- By Necessity
- Previous United Ownership
- Absolute Necessity
- Necessity Existed At Time of Severance of Property
- By Prescription
- Actual Use
- Open & Notorious
- Adverse (Hostile)
- Continuous & Uninterrupted Use for Statutory Period
- By Express Grant
- Creation
- Negative Easement
- Recognized Negative Easements
- Common Law Negative Easements
- Light
- Air
- Subjacent or Lateral Support
- Stream Water from an Artificial Flow
- Minority Negative Easement
- Scenic View
- Common Law Negative Easements
- Creation = Expressly by a Writing Signed by the Grantor
- Always Appurtenant
- Recognized Negative Easements
Structure?
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(Your Right’s in Another’s Land: Easements: 2 Forms of Easements)
- Appurtenant
- Two Parcels of Land Required
- Land Benefited = Dominant Tenement
- Land Burdened = Servient Tenement
- Two Parcels of Land Required
- In Gross
Structure?
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(Your Right’s in Another’s Land: Easements: Transfer of Easements)
- Appurtenant
- Dominant Tenement = Passes Automatically
- Servient Tenement = Passes Automatically Unless BFP without Notice
- Exception: BFP without Notice
- In Gross = No Unless for Commercial Purposes
Types? (9)
(Your Right’s in Another’s Land: Easements: Termination of an Easements)
- Stated Conditions
- Merger
- Release
- Abandonment by Physical Act of Holder
- Estoppel
- Necessity
- Condemnation of Servient Tenement by Eminent Domain
- Destruction of Servient Tenement, OR
- Prescription
Structure?
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(Your Right’s in Another’s Land: License)
- Creation
- Invalid Oral Easement = License
- Revocable
- Exceptions
- Estoppel
- License Coupled with Interest
- Exceptions
Structure?
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(Your Right’s in Another’s Land: Covenant)
- Creation = Writing Required
- Types of Covenants
- Negative Covenant (aka Restrictive Covenant)
- Positive Covenant (aka Affirmative Covenant)
- Running with the Land
- Burden to Run
- Writing Required
- Intent of Original Parties
- Touch & Concern the Land
- Touch & Concern = Relate to the Land
- Horizontal & Vertical Privity
- Horizontal Privity = Successors in Interest
- Vertical Privity = Non-Hostile Connection Between Original Party & Sucessor
- Notice
- Actual Notice
- Imputed Notice
- Record
- Inquiry
- Benefit to Run
- Writing Required
- Intent of Original Parties
- Touch & Concern the Land
- Vertical Privity
- Burden to Run
Structure?
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(Your Right’s in Another’s Land: Equitable Servitude)
- Creation = Writing Required
- Exception: Implied Equitable Servitude
- Burden to Run
- Writing
- Exception: Implied Equitable Servitude
- Intent of Original Parties
- Touch & Concern the Land
- Notice
- Privity NOT Required
- Writing
- Benefit to Run
- Writing
- Intent of Original Parties
- Touch & Concern the Land
- No Notice Required
- No Privity Required
- Implied Equitable Servitude (General or Common Scheme Doctrine)
- Elements
- Common Scheme Existed Before 1st Sale
- Defendant Had Notice of Common Scheme
- Actual
- Inquiry
- Record
- Elements
- Defense = Changed Conditions
Topics? (4)
(Conveyance)
- Adverse Possession
- The Land Contract
- The Closing = Deed Becomes the Operative Contract
- Recording
Structure?
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(Conveyance: Adverse Possession)
- Elements
- Actual
- Exclusive
- Continuous
- Tacking = Permitted if Non-Hostile Nexus
- Tacking Not Permitted After Ouster
- Tacking = Permitted if Non-Hostile Nexus
- Open & Notorious
- Hostile
- Running of the Statute
- Disabilities
- Incapacity
- Infancy
- Imprisonment
Structure?
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(Conveyance: The Land Contract)
- Formalities
- Statute of Frauds = Writing Required
- Exception = Part Performance
- Part Performance = 2 of 3 Required
- Buyer Takes Possession
- Buyer Pays All or Part of Purchase Price, AND/OR
- Buyer Makes Substantial Improvement to Land
- Part Performance = 2 of 3 Required
- Exception = Part Performance
- Describe the Land
- Identify the Parties
- Intent to Sell
- Specify Price or State Some Other Consideration
- Signed by the Party to be Bound
- Statute of Frauds = Writing Required
- Implied Promises of Seller
- Marketable Title at the Closing = Unencumbered Fee Simple
- Unmarketable Title
- Adverse Possession
- Encumbrances, OR
- Servitudes
- Mortgages
- Zoning Violations
- Unmarketable Title
- No False Statements of Material Fact
- No Failure to Disclose Latent Material Defects
- Marketable Title at the Closing = Unencumbered Fee Simple
- Implied Warranties of Fitness & Habitability = Caveat Emptor
- Exception = Implied Warranty of Fitness & Workmanlike Construction
- Equitable Conversion
- Definition
- Buyer = Real Property Interest
- Seller = Personal Property Interest
- Upon Execution of Contract
- Death After Equitable Conversion
- Seller
- Buyer
- Damages or Destruction After Equitable Conversion
- Majority View = Risk on Buyer
- Minority View = Risk on Seller
- Definition
Topics? (4)
(Conveyance: The Closing = Deed Becomes the Operative Contract)
- Requirements
- Defective Deeds & Fraudulent Conveyances
- Types
- Recording
Structure?
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(Conveyance: The Closing = Deed Becomes the Operative Contract: Requirements)
- Lawful Execution of the Deed
- Writing Required
- Identify the Parties
- Describe the Property
- Signed by Grantor
- Delivery of Deed
- Actual Delivery
- Delivery by Escrow
- Deed Absolute on Face but Accompanied with Oral Conditions
- Implied Delivery
- Presumptions of Delivery
- Handed to Grantee
- Acknowledged by Grantor Before Notary
- Recorded
- Actual Delivery
- Acceptance by Grantee
Structure?
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(Conveyance: The Closing = Deed Becomes the Operative Contract: Defective Deeds & Fraudulent Conveyances)
- Void v. Voidable Deeds
- Void = Set Aside Even if BFP
- Forged
- Deed Never Delivered
- Fraud in Factum
- Voidable = Set Aside Only if No BFP
- Lack of Capacity
- Infancy
- Duress
- Breach of Fiduciary Duty
- Undue Influence
- Mistake
- Fraud in Inducement
- Void = Set Aside Even if BFP
- Fraudulent Conveyance
- Actual Intent to Hinder, Delay or Defraud Any Creditor of Grantor, OR
- Without Receiving a Reasonably Equivalent Value in Exchange
Structure?
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(Conveyance: The Closing = Deed Becomes the Operative Contract: Types)
- Quitclaim Deed = No Covenants
- Exception: Marketable Title at Closing
- General Warranty Deed = 3 Present & 3 Future Covenants
- Present Covenants = Breached at Time of Delivery
- Covenant of Seisin
- Covenant of Right to Convey
- Covenant Against Encumbrances
- Future Covenants = Breached if Grantee Disturbed While in Possession
- Covenant for Quiet Enjoyment
- Covenant of Warranty
- Covenant for Further Assurances
- Present Covenants = Breached at Time of Delivery
- Special Warranty Deed = 2 Promises by Grantor
- Grantor Has Not Conveyed to Another
- Free from Encumbrances Created by Grantor
Structure?
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(Conveyance: Recording)
- The Recording Statutes
- Race
- Notice
- Race-Notice
- Bona Fide Purchaser (BFP)
- Subsequent Purchaser
- For Valuable Consideratio
- Without Notice At Time of Conveyance
- Actual = Literal Knowledge
- Constructive
- Inquiry, OR
- Record
- Properly Recorded? = Must Record in Chain of Title
- The Shelter Rule
- Wild Deeds = No Record Notice
- Estoppel By Deed
Topics? (5)
(Contracts for Security Interests (Mortgages))
- Mortgages
- Deed of Trust
- Installment Land Contract
- Equitable Mortgage (Absolute Deed)
- Sale-Leaseback
Topics? (5)
(Contracts for Security Interests (Mortgages): Mortgages)
- Parties
- Creation of Legal Mortgage
- Transfers by Mortgagee
- Transfer by Mortgagor = Grantee Takes Subject to Mortgage if Mortgage Properly Recorded
- Default & Foreclosure
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(Contracts for Security Interests (Mortgages): Mortgages: Parties)
- Creditor = Mortgage
- Lien (Statutory Right to Redeem)
- Debtor = Mortgagor
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(Contracts for Security Interests (Mortgages): Mortgages: Creation of Legal Mortgage)
- Writing Required
- Material Information
- Parties
- Description of Land
- Recording Not Required
Structure?
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(Contracts for Security Interests (Mortgages): Mortgages: Transfers by Mortgagee)
- Methods of Transfer by Mortgagee
- Endorsement of Note & Delivery to Transferee, OR
- Execution of Separate Document of Assignment
- “Holder in Due Course” Requirements
- Negotiable in Form
- Original Note Endorsed & Signed By Named Payee
- Original Note Delivered to Transferee
- Good Faith
- For Value
- Effect = Holder in Due Course
- Not Subject to Personal Defenses
- Lack of Consideration
- Fraud in Inducement
- Unconscionability
- Waiver
- Estoppel
- Valid Defenses
- Incapacity
- IllegaIity
- Infancy
- Insolvency
- Material Alteration
- Duress
- Fraud in Factum
- Not Subject to Personal Defenses
Structure?
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(Contracts for Security Interests (Mortgages): Mortgages: Transfers by Mortgagor = Grantee Takes Subject to Mortgage if Mortgage Properly
Recorded)
- Recording Statutes Apply to Mortgages
- Liability After Transfer
- Buyer Takes Subject to a Properly Recorded
- Owner = Personally Liable
- Buyer = No Personal Liability but Property Subject to Foreclosure
- Buyer Assumes Mortgage = Both Buyer & Owner Liable
- Buyer = Primarily Liable
- Owner = Secondarily Liable
- Buyer Takes Subject to a Properly Recorded
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(Contracts for Security Interests (Mortgages): Mortgages: Default & Foreclosure))
- Possession Before Foreclosure
- Lien Theory = NO
- Title Theory = YES
- Foreclosure
- Deficiency = Judgment Against Debtor if Sale Proceeds < Loan
- Surplus
- Expenses of Sale, Attorneys’ Fees & Court Costs
- Accrued Interest on Foreclosed Mortgage
- Junior Lienholders
- Mortgagor (Debtor)
- Effect of Foreclosure
- Junior Lienholders = Interest in Property Terminated
- Senior Lienholders = No Effect
- Priorities
- First to Properly Record, First in Right
- Exception: Purchase-Money Mortgages
- Purchase-Money Mortgage
- Exception: Purchase-Money Mortgages
- Subordination Agreements
- Equitable Subrogation
- First to Properly Record, First in Right
- Right of Redemption
- Equity of Redemption (aka Common Law Right of Redemption) = Prior to Foreclosure
- Acceleration Clause
- Clog on Equity of Redemption = Void
- Statutory Right of Redemption = After Foreclosure
- Equity of Redemption (aka Common Law Right of Redemption) = Prior to Foreclosure
Structure?
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(Contracts for Security Interests (Mortgages): Equitable Mortgage (Absolute Deed))
- Parol Evidence Admissible
- BFP Purchasers Prevail
Topics? (2)
(Zoning & Constitutional Protection)
- Eminent Domain (aka The Takings Clause)
- Zoning Ordinances
Structure?
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(Zoning & Constitutional Protection: Eminent Domain (aka The Takings Clause))
- Possessory Taking (Condemnation) = Always a Taking
- Regulatory Taking = No Reasonable Economically Viable Use
- Total Taking (aka “Per Se” Taking) = No Reasonable Economically Viable Use of Entire Property
- Government Restrictions on Development = Benefit > Burden
- No Requirement that the Regulations Existed When Property Acquired
- Temporary Denial of Use of Property = OK if Reasonable
- Partial Taking
- Penn Central Balancing Test
- Nature of Government Action
- Level of Diminution in Value of the Owner’s Property
- Property Owner’s Reasonable Investment-Backed Expectations
- Penn Central Balancing Test
- Total Taking (aka “Per Se” Taking) = No Reasonable Economically Viable Use of Entire Property
- Public Use = Reasonable Belief that Taking Will Benefit the Public
- Just Compensation = Measured by the Loss to the Owner
- Invalid Taking
Structure?
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(Zoning & Constitutional Protection: Zoning Ordinances)
- Zoning Destroys Economic Value of Land = Regulatory Taking
- Nonconforming Use
- Zoning Variances
- Undue Hardship
- Public Will Not Suffer Substantial Detriment from the Variance
- Unconstitutional Exactions
- Test
- Essential Nexus
- Rough Proportionality
- Test