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Property Flashcards

1
Q

Freehold Estates: (3)

Non-Freehold Estates: (1)

A
  1. Fee Simple Absolute
  2. life Estate
  3. Fee Tail
  4. Landlord Tennant
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2
Q

Garth conveys large home “to Reba for life” Reba sells her life estate to AL. AL dies after Reba.

  1. Reba_____
  2. AL_____
  3. After AL dies____
  4. General Rule:______
A
  1. life estate
  2. life estate measured by Reba life
  3. Property stays with AL’s estate till Reba dies
  4. life tenant dies before measuring life property stays with life tenant until measuring life dies.
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3
Q

LIFE ESTATE HOLDER

  1. What is the general law on WASTE:
  2. What is the key word?
A
  1. life tenant must “maintain” the estate

2. “maintain”

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4
Q

LIFE ESTATE HOLDER

  1. Voluntary Waste:
  2. So maintaining life tenant can do what?
    ex:
A
  1. any affirmative action beyond general maintenance that cause harm.
  2. continue to use the land as normal

farm the land
coal mine

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5
Q

LIFE ESTATE HOLDER

  1. Permissive Waste:
  2. 3 things life tenant must do to avoid permissive waste
A
  1. Permissive waste is failure to maintain
  2. Taxes
  3. Maintenance
  4. Mortgage debt
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6
Q

LIFE ESTATE HOLDER

How is the obligation to repair, pay taxes and pay mortgage interest limited (3)

A
  1. limited to rents or profits of land
  2. no rents or profits then reasonable value
  3. not using or no income = NO obligation
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7
Q
  1. What is AMELIORATIVE waste:
    ex. old mansion surrounded by oil refinery. B life tenant wants to tear down and make land available for other uses. Can B do so? If so why? (four words)
A
  1. life tenant alters property substantially but increase value of land
  2. yes (changed condition / relatively worthless)
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8
Q
  1. What is a future interest:

2. 2 claissifications of future interests

A
  1. an interest that exists now but possession will not take place till later if ever
  2. Future inrest in GRANTOR
  3. Future intrest in GRANTEE
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9
Q

Future interests retained by Grantor: (3)

Future interests retained by Grantee: (2)

A
  1. Reversion
  2. Possibility of Reverter
  3. Right of Re-Entry
  4. Remainder (vested or contingent)
  5. Executive Interest
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10
Q
  1. O conveys Blackacre to A for life and A is 86. Later A leases Blackacre to B for 50 years.

A:____ B:___O:____

  1. Ten years after A gives B the 50 year lease A dies:

A:___B:___O:___

A
  1. A: Reversion for life
    B: Non-FreeHold estate
    O: Reversion FSA

2.
A: Nothing
B: Nothing
O: FSA

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11
Q

O conveys Blackacre to A and his heirs, provided however, that if liquor is ever consumed on the premises then O or O’s heirs shall have the right to re-enter and retake the premise.

A:___O:___

A

A: Fee Simple on Condition Subsequent

B: Right of Re-Entry

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12
Q
  1. All future interests a grantor may have are:

2. Inter vivios:

A
  1. Vested

2. Transfer during life

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13
Q

A remainder is a future interest in a ___ that comes ___and ___on the ___of proceeding estate.

Remainders are generally (2):

A

3 rd party
naturally
immediately
termination

  1. Vested
  2. Contingent
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14
Q
  1. Contingent Remainder:
  2. O conveys Blackacre to A for life then to B and his heirs if B survives.

A:___B:___O:____

A
  1. taking property subject to a condition precedent
  2. A: life estate
    B: contingent remainder
    O: reversion FSA
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15
Q

O conveys Blackacre to A for life then to B and his heirs when B reaches 21 (B is 15).

If A dies and B is 18

A:___B:___O:___

A

A: life estate
B: springing executive interest
O: Reversion FSA

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16
Q

O conveys Balckacre to A for life, then to A’s children. At the time O makes this grant, A has three children B,C and D.

A:__B:__C:__D:__

  1. B C and D’s rights are also sometimes called?
A

A: life estate
B: vested remainder subject to open
C: vested remainder subject to open
D: vested remainder subject to open

  1. Vested remainder subject to partial divestment
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17
Q

Testators Will devises Blackacre “to A’s children” at the time the will is executed, A has two children, B and C. After the will is executed and before Testator dies, A has another child, D, and child B dies. Then Testator dies. Finally, two years after Testator date, A has another child E.
B:__C:__D:__E:__

A

B: nothing (member of class who predeceases testator

C: FSA

D: FSA

E: Nothing (Rule of Convenience

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18
Q

O conveys Blackacre to A so long as the property is used for residential purposes; and if the property is ever used for other than residential purposes, then to B and heirs.

A:__B:__

A

A: FSA subject to executory interest

B: executory internest

  • But this would violate RAP so (jj)
    A: Fee Simple Determinable
    B: Nothing
    C: Possibility of Reverter
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19
Q
  1. What does modern say about the RAP

2. What interest always violates RAP

A

1.Many states adopt “wait and see” / apply 90 year period

  1. Executory Interest
    Contingent Remainder
    Vested Remainder Subject to Open
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20
Q

O conveys Blackacre to A and heirs for so long as no liquor is consumed on the premises; and if liquor is consumed on the premises during the lifetime of A and B or within 21 years after the death of the survivor of A or B then in that event title shall pass to B and his heirs.

A:___ B:___O:___

A

A: FSA subject to executory interest

B: executory interest

C: possibility of reverter

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21
Q
  1. What is the general rule Right of First Refusal and RAP?
  2. B conveys Blackacre to F and his heirs; but if F and his heirs ever try to sell the property G and his heirs have right of first refusal.
A
  1. Right of first refusals will violate RAP if they can be exercised outside the time period of the rule.
  2. F: FSA
    G: Nothing (violates RAP)
    B: Nothing
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22
Q

O conveys Blackacre to Mary for life, then to such of Mary’s children as reach age 30. Mary is now 87, and she has three children, all in their 60’s.

Mary:___Mary’s Children_____ (intended)

  1. Violate RAP
  2. What is the rule as it relates to 2 called?
A

Mary: life estate

Mary Children: vested remainder subject to open

  1. yes
  2. Fertile Octogenarian Rule
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23
Q

O conveys Blackacre to Mary for life, then to such of Mary’s children as reach age 30. Mary is now 87, and she has three children, all in their 60’s.

What interest do Mary’s existing children have?

Mary:___Mary’s Children_____ O:___

A
  1. None - general rule if violate RAP then any member of class interest is void.
  2. Mary: life estate
    Mary’s Children: nothing
    O: Reversion
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24
Q

not card

What are the three concurrent estates in land with brief definition: (3)

A
  1. Joint Tenancy - as joint tenants with right of survivorship
  2. Tennant in Common - as tenants in common or any language that is not Joint tenancy - no right of survivorship to other tenants
  3. Tenancy by Entirety - has TTIP + marriage, right of survivorship
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25
Q
  1. What are the magic words are necessary for Joint Tenancy?
  2. What test is used?
A
  1. “as joint tenants w/ right of survivorship”
    “in joint tenancy w/ right of survivorship”
  2. TTIP

Unity Time - vest at same time
Unity Title- conveyed same title
Unity Interest- same amount of interest
Unity Possession- same rights of possession

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26
Q
  1. Severance:
  2. Severance generally occurs if:
  3. What can’t sever a joint tenancy:
A
  1. an involuntary termination of joint tenancy
  2. any of the four UNITIES TTIP
  3. A Will (must sever while alive)
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27
Q

In 1971 Ringo mortgages his 1/4 interest in his joint tenancy with John, paul and George.

1 What happened:
A)Majority _____Theory
B)Minority_____Theory

A

A) Majority - Lean Theory no severance

B) Minority - Title Theory severance occurs

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28
Q

On January 1 Ringo enters into a contract of sale of his interest in joint tenancy, with closing to be on April 1.

  1. What happened:
  2. What is doctrine called:
A
  1. Severance occurred on January 1

2. Doctrine of Equitable Conversion

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29
Q

What are the 4 exceptions to Co-tenant not having to share profits? (general rule co-tenants do not have to account to another co-tenant for his share of profits)

A
  1. Ouster -denies use to other co-tenant
  2. Agreement -agree to share
  3. Lease - co-tenantleases to 3rd party
  4. Depletion -co-tenant depletes resources
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30
Q

Co-tenant

  1. Contribution:
A
  1. The right of one co-tenant to force another co-tenant to pay their share of expenditures made on a property
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31
Q 
Co-tennat have to contribute:
A) adding a house 
B) who could co -tenant get 
C)Fixing Barn
D)pay Mortgage
E)pay taxes
A 
A) no 
B) tenant could get profits on resale 
C) yes 
D) yes 
E) yes all  types gov assessed taxes
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32
Q

NON-FREEHOLD ESTATES

4 Landlord - Tennant Estates are:

A
  1. Tenancy for the Years
  2. Periodic Tenancy
  3. Tenancy at Will
  4. Tenancy at Sufferance
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33
Q
  1. What is the key thing about Periodic Tenancy ?

2. How is Periodic Tenancy created? (3)

A
  1. estate continues until one party gives notice
  2. Agreement
  3. Implication
  4. By law
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34
Q
  1. Cher leases Blackare to Madonna for #100 per month commencing on 1/1/2007, but the lease is silent as to duration. Madonna pays first months rent. What tenancy os created and how?
  2. Whats the general rule if a lease does not specify how long the tenancy is?
A
  1. Periodic Tenancy - By implication

2. Presumed Periodic Tenancy

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35
Q
  1. What are the two situations in which a Periodic Tenancy is created by law?
A
  1. Oral lease violates SOF

2. Holdover Tenant

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36
Q

What 2 things do you need for valid Notice re terminating a periodic tenancy?

A
  1. Time - same amount of time equal to the period
  2. Effective Date - date must be at the end of the period of the tenancy (if started on 15th of month must end on the 15th even if give more than a month notice)
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37
Q

5 ways At Will Tenancy terminate by law:

A
  1. Death of either party
  2. Waste - voluntary-permissive-amielative
  3. Assignment by tenant
  4. Title transfer landlord
  5. Lease by landlord
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38
Q
  1. Duty of tenant to pay rent?
  2. Duty to maintain premises lease is silent?
  3. Premises are destroyed not tenants fault what will generally tenant be able to do?
A
  1. yes
  2. tenant can’t commit Waste
  3. terminate the lease
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39
Q
  1. Lease includes “Tenants Covenant to Repair” :
  2. Whats the modern view once Tenants Covenants to repair:
  3. Modern view premises destroyed by fire not tenants fault and there is a “Tenants Covenant to Repair.” :
A
  1. makes tenant responsible to maintain and repair leased premises - tenant absolute insurer - except for wear and tare
  2. responsible for everything and wear and tear
  3. tenant will not have to rebuild - unless expressly stated
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40
Q
  1. Implied Covenant of Quite Enjoyment?

2. How is it breached (3)?

A
  1. Every lease (residential, commercial) landlord promise NOT to interfere with enjoyment of leased premises
  2. Total Eviction
  3. Partial Evciiton
  4. Constructive Eviction
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41
Q
  1. Constructive eviction:

2. 4 requirements of Constructive Eviction:

A
  1. landlord fails to provide some service that the landlord is obligated to provide and failure makes property uninhibital
  2. Landlord (not 3rd party) fails to provide service
  3. Substantial interference of quite enjoyment
  4. Notice to Landlord
  5. Tenant abandons with-in reasoanvble time
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42
Q

Liability of Successive Landlords: Tennant sues Landlord (i.e. Landlord sells his property)

  1. What is the general rule Original landlord?
  2. What is the general rule successor landlord?
    Liable if? (2)
  3. Successor landlord under privity of estate if covenant ______?
A
  1. Original landlord continues to be liable because of Privity of Contract.
  2. Privity of Contract or Privity of Land
  3. Runs with the land.
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43
Q

Landlord 1 leases apartment to Tennant. Landlord 1 sells apartment to Landlord 2.

A) Tenant sues landlord 2 to enforce covenant in original lease…ok claim under Privity of Contract?

B) What could change answer to A?

C)Tennant sues landlord 2 under Privity of Estate?

D) Can Tenant sue Landlord 1. Privity of Estate? privity of Contract?

A
  1. N0 - No privity of Contract
  2. landlord 2 expressly assumed
  3. Maybe if Covenant “runs with the land”
  4. No
    Yes
44
Q
  1. Non-Assignment or Non-Sublease clause?
  2. Are these clause valid/
  3. What does it mean that courts strictly construe clauses?
  4. If Tennant violates is sublease void?
A
  1. A clause that states tenant many not assign or sublet w/out permission of landlord
  2. Today all courts say yes (despite restrictions alienation)
  3. wording that prohibits sublease does not prohibit assignment and vice versa
  4. No Voidable - Landlord must take action
45
Q

5 exceptions to general rule that landlord has no duty for injures sustained on property?

A
  1. Latent Defects
  2. Short term lease furnish apartment
  3. Common passage ways
  4. Negligent Repairs by Landlord
  5. Public use
46
Q

Landlord leases house. The steps to house are rotten. No evidence that landlord knows but he painted the steps a week prior to renting. Tenant uses steps and they collapse, injuring the Tenant?

  1. Landlord liable?
  2. General Rule?
  3. What was a latent defect?
A
  1. yes
  2. landlord is under a duty to disclose defects he knows or has reason to know
  3. a defect that the Tennant does not know of and a reasonable person in Tenants position would not discover.
47
Q

What is the scope of Landlord duty in regards to defects?

A
  1. Landlord has a duty to disclose but no duty to repair.
48
Q

Patron goes into a bar and is seriously injured when he trips on a broken wooden floor.

  1. landlord liable?
  2. what 3 requirements are needed to involve Public Use Exception>
A
  1. yes
  2. landlord must or should have known of major defect
  3. landlord must or should know tenant will not fix
  4. landlord must or should know public will use.
49
Q

If there is no agreement as to what a fixture is what four factors do you look at?

A
  1. degree of attachment
  2. degree of harm is removed
  3. general custom
  4. is it a trade fixture
50
Q
  1. What is an easement?
  2. So the key concept is Right of ______.
  3. 2 types of easements:
A
  1. Non-possessory interest in land involving the right to use the land.

2 Right of Use

  1. Easment Appurtenant
  2. Easment in Gorss
51
Q

Easment Appurtenant:

Easment in Gross:

A

An easement that directly benefits the use and enjoyment if a specific parcel of land.

(our driveway to russels)

No dominant estate, one parcel of land which property in burdened
(utility gas lines / railroad)

52
Q

Easments can be created in 3 ways

A
  1. express
  2. implied
  3. by prescription
53
Q
  1. Express _____ of easement to some one else.
  2. Express _____ of easement when land is sold to another person.
  3. example of 2
A
  1. Grant
  2. Reservation
  3. You own large farm in IOWA you sell a portion of the farm BUT reserve a right to a portion of the land for an easement
54
Q

2 ways an implied easement arises:

A
  1. Previous use Common Grantor

2. Absolute Access Rule

55
Q

Bill sells part of large farm to George. In deed Bill does not retain an easement to continue use of road. George denies use of road build a fence. Bill now can only use a road that is very inconvenient.

  1. Can Bill continue use?
  2. What 3 things do you need to satisfy previous use
A
  1. Yes - implied use presumes common grantor
  2. Continues
  3. Apparent / Obvious
  4. Reasonably Necessary
56
Q
  1. How is an Easement by Prescription created?
  2. Four requirements
  3. Dolly and Tammy own adjoining lots. Everyday Dolly drives over part of Tammys lot to get into Dollys garage. Dolly does so for 20 years then Tammy tries to fence off Dolly. Can Dolly do this?
A
  1. by creating an easement like adverse possession
  2. adverse
  3. continues (20 years)
  4. visible to owner
  5. hostile w/out permission
  6. No (Dolly has easement by prescription)
57
Q
  1. What does the Transfer of Easement in Gross largely depend on ?

Tipper owns a farm in Tennesse. She grants two easements in gross; one to Southern Railway to run tracks and one to her friend Hillary to go fishing.

  1. Can Southern Transfer Easement?
  2. Can Hillary Transfer Easement?
A
  1. Is it Commercial or Personal
  2. Yes
  3. No - personal
    * Hillarys is in gross because she does not own adjoining land
58
Q
  1. What is the general rule of the burden of easement being transferred to subsequent owners?
  2. How is the successor in interest put on Notice? (3)
A
  1. they are bound as long as there is Notice
  2. Actual / Express
  3. Constructive
  4. Inquiry
59
Q

Mia conveyed an express easement over her lot to Woody and the deed of easement was properly recorded. Later Mia transfers to Seinfeld but deed does not mention the easement previously granted to Woody, Does Seinfeld take the property subject to burden? Any exception?

A
  1. Yes - Seinfeld has constructive notice

2. If Seinfeld took property as Bona Fide Purchaser without Notice

60
Q

Scope of Easement

  1. What is the general rule
  2. What is silent on USE 2 presumptions:
A
  1. Any specific terms of Easement control question of use
  2. Easement is perpetual
  3. use is reasonable for development of dominate estate (what would have been contemplated at time of granting)
61
Q
  1. How is an irrevocable license created (2) in easement question?
  2. Donald grants Marla an “oral easement” Later Marla goes out on Donald’s land and clears up weeds a puts expensive stone walking in, what has happened?
A
  1. easement fails due to SOF which creates a license
  2. Money is spent in furtherance the oral license and becomes irrevocable

Marla 1. acquired a license and 2. made it irrevocable by adding stone

Donald is estopped from terminating license

62
Q
  1. Restrictive Covenant: does what?
  2. What 2 categories do Restrictive Covenants fall into?
  3. Both involve a written promise (usually in a deed) so how do you tell the difference?
A
  1. gives the holder go the interest the right to restrict some 3rd party in use of her land.
  2. Covenants
  3. Equitable Servitudes
  4. Where enforced: Court of law=Covenant
    Court of Equity=Equitable Servitude
63
Q

What 4 requirements to enforce a Restrictive Covenant?

A
  1. Intent
  2. Notice
  3. Touch and Concern
  4. Privity
64
Q

2 types of Privity for a Restrictive Covenant:

A
  1. Horizontal

2. Vertical

65
Q
  1. What must you distinguish between in regards to what kind of Privity (Horizontal or Vertical) must be present to enforce a Covenant?
  2. On a Bar Exam you should look for:
  3. If successor in interest is Plaintiff they are:
  4. If successor in interest is Defendant they are:
A
  1. Benefit form the Burden of the Covenant.
  2. Successor in interest (property passed)
  3. seeking benefit of Covenant
  4. seeking to quash the burden of the covenant
66
Q
  1. If the successor in interest is a DEF fighting the burden what type of privity is needed?
A
  1. Horizontal and Vertical
67
Q
  1. Vertical Privity exists:
  2. Horizontal Privity exists:

There must be a ______ of the property between the _____ parties.

A
  1. if those who subsequent obtain the property must take Full Estate held by predecessor
  2. original parties share same interest in the land. There must be a conveyance of properties between original properties

CONVEYANCE ORIGINAL

68
Q
  1. If the successor in interest is a PLAINTIFF fighting for benefit of covenant what type of privity is needed:
  2. What is the general rule on the benefit side of covenant:
A
  1. vertical
  2. the holder of any succeeding possesory estate MAY enforce benefit of the promise as a covenant of law.

No Horizontal privity required

69
Q

Sam and Diane agree to a covenant Sam builds fence and Diane and her heirs agree to maintain. Agreement was written and recorded Diane sells to Frazier. Sam sues for damages to recover from Frazier for failure to maintain.
1. What does Sam need to be able to recover?

A
  1. intent
  2. notice
  3. touch and concern
  4. privity Horizontal and Vertical
70
Q

Sam owns a lot. Sam sells a portion of his lot to Diane. In the deed there is a promise that Diane will maintain a fence that Sam will build. Sam sells his property to Norm. Diane sells her lot to Frazier. What must Norm show to prevail against Fazier? Will Norm prevail?

A

Intent
Touch and Concern
Horizontal and Vertical Privity

  1. No - Horizontal privity does not exist.
71
Q
  1. What must you show to enforce the burden of promise as an equitable servitude?
  2. What must you show to enforce the benefit of a promise as an equatable servitude?
A
  1. Intent
    Notice
    Touch and Concern
  2. Intent
    Touch and concern
72
Q
  1. what are the elements for adverse possesion (AP)?
  2. What happens to true owners rights once AP occurs?
  3. So issue for the person on the land is are they ______ or _____?
A 
1. Hostile                                 
   Exclusive
   Lasting
   Uninterrupted
   Visible 
    Actual
  1. Owner looses right to EJECTMENT and TITLE to property
  2. Trespassing or have Title?
73
Q

X goes on property under a color of title to 100-acre farm but actually only posses 85 acres. Statutory period runs and all other requirements of adverse possession are met.

  1. what is color of title?
  2. what does x get?
A
  1. making claim to land but it is not valid
  2. 100 acres by adverse possession
    85 adverse possessed
    15 constructive adverse possession
74
Q
  1. SOF happy to sale of real property?

2. What must it include?

A
  1. yes
  2. Description of property
  3. Price
  4. name of parities (signed)
75
Q

What 2 requirements are needed to rely on part performance exception to SOF real property?

How does Buyer geneally satisfy the second requirement? (3ways)

A
  1. Oral K must be clear

2. Acts of part performance must clearly prove up existence of contract

76
Q
  1. What is the general rule re marketable title in a land sale K?
  2. What is marketable title?
A
  1. Implied Covenant that seller is dealing in marketable title
  2. Title that a reasonable buyer would accept, minor defects ok

Minor defects = 1/4 encroachment on other property ok, not 8 feet.

77
Q

What 3 things satisfy Implied Covenant of Title?

A
  1. Proof of Title
  2. Free of encumbrances
  3. Delivery of Title on closing day
78
Q
  1. What does free of encumbrances mean?
  2. What would seller need to do if there was an encumbrance?
  3. L leases a farm to T for 5 years w/ an option to purchase at the end of the lease. 2 years into lease L contracts to sell to B. The contract w/ B does not mention T’s option to buy. L brach implied warranty ? Why?
A
  1. NO - easements, restrictive covenants, mortgages, options ect…
  2. Disclose
  3. YES - valid option on property and not disclosed
79
Q
  1. what are the measure of damages for breach of sale of real property?
  2. Liquidated damages (bar exam) clause for brach of sale of real property?
  3. what must it be:
  4. Specific performance available buyer / seller?
A
  1. difference between contract price and the value of property?
  2. For bar means buyers deposit can be forfieted
  3. reasonable not exceed 10%
  4. yes (land is unique)
80
Q
  1. what if there are defects on property that render property unfit for ordinary purposes? can buyer rescind?
  2. what changes answer?
  3. Duty to disclose?
A
  1. NO “caveat emperor”
  2. seller actively conceals defects
  3. NO but can’t conceal
81
Q
  1. what happens when a deed is accepted at closing?
  2. what could change the above answer (2)?
  3. what 2 requirements for Deed to pass title:
A
  1. the sale K is extinguished and its provisions
  2. K specifies it survives
  3. provisions in the deed itself
  4. execution
  5. delivery
82
Q
  1. Is Deed subject to SOF?
  2. Who signs?
  3. The Deed must ______ or Deed will be ______. (what must deed do)?
A
  1. yes
  2. the Seller (transferor) of property NOT buyer
  3. describe land with sufficient accuracy or will be void for vagueness and NOT pass title
83
Q
  1. what is the test to determine if a Deed is delivered?
  2. Grantor starts to hand a deed gift to daughter & daughter says no you keep it mama safer with you. Constitute delivery?
  3. what does a recorded Deed raise?
A
  1. Grantor had necessary intent (do not need physical delivery)
  2. Yes - grantor intended delivery
  3. a presumption of delivery
84
Q
  1. once delivery of Title occurs what affect does returning title have?
  2. can you use parol evidence to show intent of Grantor re delivery of a Deed?
  3. what is the presumption if Grantor dies before delivering of Deed?
A
  1. None
  2. Yes (comments - actions)
  3. No delivery of Deed (can be rebutted by Grantee)
85
Q

Language of deed is “X to H” but in handing over deed X tells H “of course you this is not effective until you marry G.” X:____ H:_____ What rule is this called:____

A

X: nothing
H: FSA

Plurality Rule says ignore oral condition and consider delivery complete.

86
Q
  1. Quitclaim deed?

2. If grantor makes promises regarding title, what are those called?

A
  1. a Deed in which grantor makes no promises

2. Covenants

87
Q

Deeds that include the 6 traditional forms of Covenants for title are called?

What are the 6 Covenants and how broken down (2)?

A

General Warranty Deeds

PRESENT COVENANTS

  1. Covenant Seison
  2. Covenant Right to Convey
  3. Covenant Against Encumbrances

FUTURE COVENANTS

  1. Covenant Quite Enjoyment
  2. Covenant of Warranty
  3. Covenant of Future Assurances
88
Q
  1. Estoppel by Deed Doctrine

2. What does the above let grantee due?

A
  1. Courts say Grantor gave an Implied Covenant that title will be conveyed to grantee
  2. sue to compel title from grantor
89
Q
  1. what does a sale to a bona fide purchaser do to earlier grantees in regards to estoppel by deed doctrine?
  2. K conveys Blackacre to L but K does not own Blackacre. 5 months later G true owner of Balckacre conveys to K.
    If L sues for title who wins?
A
  1. cuts their right to rely on Doctrine of Estoppel

2. L because he can use Estoppel by Deed Doctrine

90
Q
  1. K conveys Blackacre to L but K does not own Blackacre. 5 months later G true owner of Balckacre conveys to K. K then conveys to M a bona fide purchaser. M has no knowledge of earlier conveyance to L. If M sues who wins?
A
  1. M because bonafide purchaser cuts off estoppel by deed argument by K.
91
Q

Recording Deeds Statutes

Notice:
Race:
Race Notice:

A
  1. any BFP who takes w/out notice keeps
  2. whoever records first (BFP or not) keeps the property
  3. BFP takes w/out notice and records
92
Q
  1. What is Record / Constructive Notice:

2. To import Record / Constructive Notice where must deed be recorded:

A
  1. Notice arising from the record

2. Direct chain of title

93
Q

INQUIRY NOTICE

  1. In order to be a BFP who takes with out notice what must you do ?
A
  1. must examine land and make inquiry as to an unexplained uses or possessions?
    * subsequent purchaser will be charged with notice of whatever she finds after physical inspection.
94
Q

Title Searching

  1. What are you looking for (2) ?
  2. What is the concept of “legal binds” when doing title search
  3. Deed must record during Grantors of ______ otherwise recorded too ______ or to ______.
A
  1. Encumbrances (easements, mortgages)
  2. granter passion property onto someone else outside link chain
  3. Only look at Grantors actions during ownership
  4. Record ownership - early or late
95
Q

O sells to A, no recording. Then O sells to B and B records promptly. Next A records. Finally B sells the farm to C and C had no actual notice of the earlier sale to A.

  1. Since A recorded before C is charged with/ constructive notice of sale to A?
  2. Explain what C buyers would have seen when conducted chain of title search?
A
  1. No - A recorder too late and therefore outside chain of title
  2. C’s lawyer would never see A because A recorded too late, after B recorded therefore outside chain of title.
96
Q

To qualify as a BFP without Inquiry notice, the subsequent purchaser must?

A

Make a physical inspection of the property and investigate any unexplained possession or uses.

97
Q
  1. What is a security interest in real property?

What are the three types of security interests?

A
  1. A device to secure a loan on the property
  2. Mortgage
  3. Deed of Trust
  4. Land sale Contract
98
Q
  1. A mortgage is given by the ______ ( ) to the _____ ( ).
  2. What happens if loan is not paid in full?
A
  1. Debtor (mortgagor)
    Creditor (mortgagee)
  2. Sheriff sells the land at court ordered foreclosure sale.
99
Q
  1. A Deed of Trust is given by the _____to a _______ who holds the Deed of Trust until the loan is paid in full.
  2. What 2 options does a trustee have if the loan is not paid?
A
  1. Debtor Trustee
  2. Obtain court order for foreclosure on the property
  3. Sell the property by himself at a public auction
100
Q
  1. can a Right of Redemption ( mortgage) be waived?
  2. An attempt to waive Right of Redemption in original mortgage or Deed of Trust is called _____ and is prohibited.
  3. Statutory Right of Redemption?
A
  1. No - exception if new consideration and terms given
  2. Closing
  3. alf the states yes typically 6 months to a year.
101
Q

F mortgaged fam house to Bank 1. Later takes out a second mortgage from Bank 2. F needs new stable so takes out a mortgage from Bank 3. later another loan from Bank 4 and they took a mortgage. Later another loan from bank 5 and they take a mortgage. F can’t pay and Bank 3 forecloses. What happens to all the mortgages and why?

A 
Bank 1  - continues - senior mortgage
Bank 2 - continues -senior mortgage
Bank 3 - forecloses 
Bank 4 - wiped out - junior mortgage
Bank 5 - wiped out - junior mortgage
102
Q

Ex. of F and 5 mortgages 3 forecloses (card 101 cont)

So Bank 4 and 5 are wiped out and Bank 1 and Bank 2 still have their senior interests. What does the buyer of
forecloses on mansion take ? Does bank 1 and 2 automatically y get paid?

A

property subject to Bank 1 and 2 mortgages

No

103
Q

F mortgaged her horse farm to B 1 who recorded. F them granted an easement to neighbor C which was recorded. F then mortgaged her farm to B2 who recorded. Finally F gave a three year lease to some stables to M. F stops paying mortgage to B2 and B2 forecloses. Purchaser will take property subject to.

  1. B1
  2. Easment
  3. Lease
  4. Whats the moral of the story
A
  1. Yes -senior interest
  2. Yes -senior interest
  3. No-junior interest
  4. all junior interests get wipes out
104
Q

What happens if foreclosures sale doe NOT raise sufficient funds to pay off mortgage, what can mortgagee do?

A

Mortgagee / creditor can sue Mortgagor / Debter personally for balance

105
Q
  1. If a Grantor transfers title to the property, the Grantee will take the property subject to?
  2. What is Buyers / Grantees personal liability on existing mortgage?
  3. But what can happen as it relates to question #2, if mortgage is not paid?
A
  1. Any mortgage
  2. None unless specifically assumes
  3. If mortgage not paid property could be foreclose and Grantee is subject to losing the property in foreclosure sale (* remember senior mortgages)
106
Q

C mortgaged farm to B Bank. C later sold farm to M subject B Banks mortgage and M assumes mortgage. 2 years later M sells farm to P who takes property subject to B Banks mortgage. P fails to pay mortgage to B Bank. B Bank forecloses and sells farm for less due on mortgage. B Bank sues what result?

  1. C 4. What could happen to P after foreclosure sale?
  2. M
  3. P 5. What could P do?
A
  1. Prevails - C signed original note (remember fact pattern is not M purchasing farm from C and paying off mortgage, like typical home resale)
  2. Prevails- M assumed
  3. No - P did not assume mortgage
  4. P could lose property subject to foreclosure sale
  5. P could pay delinquent mortgage

Property (1 decks)

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