Property Flashcards
Ways to Transfer Property
- Sale
- Gift
- Devise
- Intestate Succession
Present Interests in Land
- Fee Simple
- Defeasible Fees
- Life Estate
- Fee Tail
Fee Simple
Capable of lasting forever
Created by “and his heirs” or ambiguous language
- don’t be fooled by words of intent or purpose
Defeasible Fees
May be terminated by the occurrence of an event, but capable of lasting forever
- Fee Simple Determinable
- Fee Simple Subject to Condition Subsequent
- Fee Simple Subject to Executory Interest
Fee Simple Determinable
Limited by specific durational language
Terminates automatically
Future Interest: Possibility of Reverter (held by grantor)
Fee Simple Subject to Condition Subsequent
Limited by specific conditional language
- Language must suggest that the grantor must exercise a right in order to take possession
Future Interest: Right of Reentry (held by grantor)
Fee Simple Subject to Executory Interest
Will end upon the happening of an event and the future interest will vest in a third party (someone other than the grantor)
Future Interest: Executory Interest
Executory Interest
Future interest that will divest an earlier interest
Life Estate
Present estate that is limited by a life
Created by “for life”
- if ambiguous, look for the grantor’s intent to create an estate that will end upon the death of a measuring life
Ends when the measuring life dies
Future interests -
Reversion (in grantor)
Remainder (in third party)
Three Kinds of Waste
- Affirmative
- Permissive
- Ameliorative
Affirmative Waste
Waste caused by voluntary conduct, which causes a decrease in value
Permissive Waste
Waste caused by neglect toward the property, which causes a decrease in value
Ameliorative Waste
Special situation where person in possession changes the use of the property and actually increases the value of the property
Doctrine of Waste Situations
- Future vs. Present Interest Holder
- Landlord vs. Tenant
- Co-tenant out of possession vs. Tenant in possession
- Mortgagee vs. Mortgagor
Concurrent Estates
Ownership or possession of real property by two or more persons simultaneously
Basic Rule: Concurrent owners each have right to use/possess the whole property (unless contracted otherwise)
Kinds of Concurrent Estates
- Tenancy in Common;
- Joint Tenancy; and
- Tenancy by the Entirety
Tenancy in Common
Default concurrent interest
- No right of survivorship
- Each co-tenant can transfer the property freely at death as well as during life
Joint Tenancy
Defining characteristic is the right of survivorship, whereby the surviving joint tenant(s) automatically take the deceased tenant’s interest
Grantor must make clear expression of intent; PLUS
survivorship language
Four unities must be in place
Four Unities
[PITT]
1) Possession: every joint tenant must have equal right to posses the whole of the property
2) Interest: joint tenants must have an equal share of the same type of interest
3) Time: joint tenants must receive their interests at the same time
4) Title: joint tenants must receive their interests in the same instrument of title
Severance
If any of the unities are severed, then the joint tenancy is terminated and terns into a tenancy in common with respect to the transferred share
Severance: Inter vivos transfer
A transfer during life will destroy the right of survivorship and convert the estate into a tenancy in common
Severance: Mortgages
Lien Theory (Majority): Mortgage is a lien and does not destroy the joint tenancy
Title Theory (Minority): Mortgage severs title and the tenancy between the joint tenants and creditor is converted into a tenancy in common
Severance: Leases
Split in jurisdictions
Some hold that a lease severs the joint tenancy
Others treat the lease as a temporary suspension of the joint tenancy
Tenancy by the Entirety
Joint Tenancy between married spouses
- Fifth unity is marriage
- right of survivorship
Tenants by the entirely cannot alienate or encumber their shares without the consent of their spouse