Property Flashcards
Fee Simple (Absolute)
Strongest estate with full possessory rights now & in the future. No restraints on alienation
“O to A” & “O to A and his heirs”
Fee Simple Determinable
An estate that lasts until the happening of an event. Uses conditional language such as “so long as, during”. Automatic possibility of revertor in grantor.
If not followed by estate in grantor but to third party, then third party has executory interest
Fee Simple Subject to Condition Subsequent
Estate where grantor retains power to terminate upon happening of event. Uses “but if” languge. Grantor must exercise right of re-entry or subject to laches defense.
If not followed by estate in grantor but to third party, then third party has executory interest
Life Estate
Estate that lasts for duration of person’s life. Follwed by either
reversion (back to grantee) or remainder (goes to someone else)
vested remainder= no conditions to get it
contingent remainder= get it if they fullfill certain conditions
Life tenant must pay property taxes/interest on mortgage to the extent they derive income from land or lands reasonable rental value
Adverse Possession
Involves acquisition of title by occupier of land w/out consent of true owner. Possession must be:
- Open and Notorious (would put reasonable person on notice)
- Actual and Exclusive (only possesor uses the property)
- Hostile or Adverse (no permission or consent)
- Continuous (constant use)
- for Statutory Period
Class Gifts (rule of convenience)
class closes when a class member can call for the distribution of their share absent a contrary intent in instrument to include all members of a class whenever born
Joint Tenancy
requires that the 4 unities are met:
- time (acquired @ same time)
- title (hold title in same instrument)
- interest (identical– same type & duration)
- possesion (each have right to possess)
+ express right of survivorship
Tenancy in Common
Title in co-owners is presumed to be tenancy in common unless otherwise stated
No right of survivorship
Severance of Joint Tenancy – by conveyance
When a joint tenant conveys their interest to a third person, it severs the joint tenancy, & creates a tenancy in common
Severance of Joint Tenancy–by Mortgage/Lien
In majority lien theory states, mortgages/liens do not sever the joint tenancy on creation of the mortgage/lien. If mortgaging joint tenant dies, surviving joint tenant gets property free of the mortgage & lender gets nothing
In minority title theory states, mortgages/liens sever the joint tenancy on creation of the mortgage/lien. Become tenants in common. Lender/mortgagee holds a mortgage on the 1/2 tenancy in common interest owned by mortgaging co-tenant. If mortgaging co-tenant dies, mortgage survives on that 1/2 tenancy in common interest.
Co-tenants Right
to Possess All Property
Co-tenants have a right to possess all of the property BUT co-tenants out of possession can’t bring a possessory action or claim that posessing co-tenant owes them rent absent an ouster (wrongful exclusion from possession)
Co-tenants Right
to Retain Profits
Co-tenant in possession has the right to retain profits made from their use of the property, & there is no need to share these profits w/ other cotenants or reimburse them for rent, absent a written agreement OR if the profits are made from uses that deplete the property value (like mining)
Co-tenant Right
to Share in Rents from Third Parties
co-tenants out of possession have the right to their pro-rata share in rents/ profits from third parties in all circumstances
Co-tenants Contribution for Necessary Repairs
A co-tenant who pays more than their pro-rata share for necessary repairs, is entitled to contribution from other co-tenants in an action for accounting/partition– but there’s no right to contribution for mere improvements.
In addition, majority of courts permit an independent action for contribution if the repairs are necessary and re-pairing co-tenant first gives notice to other co-tenants
Co-tenants Duty
to Pay Taxes & Mortgage Payments
each co-tenant has a duty ot pay their share of property taxes/ mortgage payments.
Co-tenant who is not in possession & makes these payments is entitled to contribution from other co-tenants.
Co-tenant who is in sole posession & makes these payments is only entitled to reimbursement in the amount that exceeds fair rental value of the property.
Landlord /Tenant Roadmap
- Identify the type of lease (what type of lease is it?)
- Discuss whether there is a failure to pay rent
- Discuss whether there are any defenses to tenant’s failure to pay rent
- Discuss any issues arising from the assignment of the lease by landlord or tenant
Term of Years Lease
has a set start & end date , automatically terminates
on the end date, and does not renew absent the exercise
of a renewal clause