Property I Flashcards
Adverse possession (elements)
- Statutory period
- Actual possession
- Exclusive possession
- Adverse possession
- Open and notorious possession
- Claim of right
- Continuous possession
Statutory period
i. Tacking
1. Successive statutory periods can be tacked
2. Requires privity
Actual possession
i. Physically use land as reasonable owner would given character, location, and nature of the land
1. Color of title
a. Defective document that transfers title
Exclusive possession
i. Owner or public do not share possession
Adverse possession
i. Without consent from owner
Open and notorious possession
i. Visible and obvious such that reasonable owner would notice upon inspection of the land
Claim of right
i. Good faith
1. Mistaken possession
ii. Bad faith
1. Knowing trespass
iii. Objective
1. State of mind is irrelevant
Continuous possession
i. Continuously used as reasonable owner would given character, location, and nature of the land
Capture
a. Foxes (Post)
i. Uninterrupted pursuit
ii. Mortal wound
b. Fish (Shaw)
i. Pursuit
ii. Power and control that shows no intent to abandon
iii. Absolute certainty against possibility of escape not required
c. Whales (Ghen)
i. Kill with bomb-lance
ii. Capture
Gifts
a. Types of gifts
i. Testamentary gifts
ii. Inter vivos gifts
Inter vivos gifts
b. Donative intent
i. Must intent to make:
1. Irrevocable
2. Present transfer
3. Of ownership
c. Delivery
i. Manual
1. Physical transfer
ii. Constructive
1. Physical transfer item that gives access to gift (i.e., key)
iii. Symbolic
1. Physical transfer item that symbolizes the gifted item
2. Letters in Gruen
d. Acceptance
i. Acceptance is presumed if value added for donee
Present possessory estates
a. Fee simple absolute
i. “to X and his heirs”
b. Life estate
i. “to Y for life”
c. Term of years
i. “to Z for A years”
Defeasible estates
a. Fee simple determinable (FSD)
i. Durational
1. “as long as”
2. “while”
3. “until”
4. “during”
b. Fee simple subject to condition subsequent (FSSCS)
i. Conditional
1. “provided that”
2. “but if”
3. “on condition that”
c. Fee simple subject to executory limitation (FSSEL)
i. Executory
1. If future interest held by transferee, then executory
2. If future interest held by transferor, then FSD or FSSCS
Waste
a. Affirmative
i. Voluntary act reduces value of property
b. Permissive
i. Inaction reduces value of property
c. Ameliorative
i. Affirmative act increases value of property
Open mines doctrine
d. Open mines doctrine
i. Permits life tenant to commit voluntary waste on land by depleting it of natural resources
1. Only if mining was previously done on the land and
2. Mines were open at the time the life tenant took possession
Restraints on alienation (absolute)
a. Absolute
i. Unreasonable
Future interests of transferors
i. Reversion
1. When transferor gives less than he has
ii. Possibility of reverter
1. Follows FSD
iii. Right to entry
1. Follows FSSCS
Future interests of transferees
i. Remainder
1. Vested
a. Vested remainder
i. Ascertainable person
ii. No condition precedent
b. Vested remainder subject to divestment
i. Ascertainable person
ii. No condition precedent
iii. Condition subsequent
c. Vested remainder subject to open
i. Ascertainable person
ii. No condition precedent
iii. Class could grown
2. Contingent
a. Either
i. No ascertainable person
ii. Condition precedent
ii. Executory interest
1. Springing
a. From transferor
2. Shifting
a. From transferee
Rule Against Perpetuities
a. Language of rule
i. No interest is good unless it must vest, if at all, no later than 21 years after some life in being at the creation of the interest
b. Analytical framework
i. Identify present and future interests
ii. Does RAP apply?
1. RAP applies to:
a. Contingent remainder
b. Executory interest
c. Vested remainder subject to open
iii. List lives in being
iv. “Give birth” to afterborn children
v. “Kill” all lives in being and establish RAP line (+21 years)
vi. Possibility that interest will vest beyond RAP line?
1. If possible, then strike interest and reclassify
2. If not possible, then interest is valid
c. Classic problems
i. Fertile octogenarian
ii. Unborn widow
iii. Slothful executor
Tenancy in common
a. Tenancy in common
i. Each cotenant has an undivided right to use and possess the whole property and a fractional interest in the property
1. Default
Joint tenancy with right of survivorship
b. Joint tenancy with right of survivorship
i. Each cotenant has an undivided right to use and possess the whole property
ii. Each joint tenant has a right of survivorship, which means when a joint tenant dies interest passes automatically to the other joint tenants
iii. Requires express intent to create joint tenancy (writing)
1. “Jointly and severally” not enough (Taylor)
iv. Four unities
1. Time
a. Same time
2. Title
a. Same instrument
3. Interest
a. Shares equal in size and duration
4. Possession
a. Equal right to possess, use, and enjoy whole property
v. If joint tenant leases interest, lease ends at:
1. End of lease term or
2. Death of lessor
vi. Severance
1. Transfer during lifetime severs joint tenancy
Tenancy by entirety
i. Only ended by death, divorce, or agreement
ii. Requires:
1. Express intent
2. Four unities
3. Valid marriage
iii. Rights:
1. Use and possess whole property
2. Right of survivorship
Mortgages and leases (tenancy in common)
i. Tenant in common can (without ending tenancy in common)
1. Lease interest
2. Mortgage interest
Mortgages and leases (joint tenancy)
i. Joint tenant can (without ending joint tenancy)
1. Lease interest (Tenhet)
2. Mortgage interest
a. Majority rule
i. In “lien theory” jurisdiction, mortgage does not sever a joint tenancy
b. Minority rule
i. In “title theory” jurisdiction, mortgage severs joint tenancy
1. Apply both
c. Death
i. If joint tenant mortgages their interest and dies before paying back the loan, mortgage disappears
Mortgages and leases (tenancy by entirety)
i. Lease
1. Requires consent of both parties
ii. Mortgage
1. Tenant cannot mortgage individual share
2. Creditors of one spouse cannot place lies on tenancy by entirety property unless debt is shared
Partition
a. Partition in kind
i. Divides up land into shares for each tenant in common
b. Partition by sale
i. Divides up proceeds from sale among tenants in common
c. Rule
i. Presume partition in kind
ii. Court will order a partition by sale if:
1. Property cannot be conveniently partitioned in kind and
2. It is in best interests of the parties
a. “Best interest”
i. Majority rule
1. Best interest maximizes economic value
ii. Minority rule
1. Best interest takes into account multi-factor approach not limited to economic factors (Ark Land Co.)
a. Consider both in essay
b. Use majority in multiple choice
Ouster
a. Ouster
i. Cotenant in possession
ii. Refusal or attempted refusal to use entire property
iii. Often raises adverse possession issue
1. When A ousts B, A is in adverse possession of property
Accounting action
When a cotenant seeks to obtain their share of rents or profits generated by the property
Contribution action
When a cotenant seeks reimbursement for expenses they paid for the operation or maintenance of the property
Duty to pay rent for exclusive possession
a. Majority
i. No duty to pay rent to other cotenant(s)
ii. Unless cotenant was ousted
b. Minority
i. No duty to pay rent to other cotenant(s)
ii. Unless cotenant was ousted
iii. Non-ousted cotenant entitled to credit for rental value of exclusive occupancy (Esteves)
Duty to share rent paid by third party
a. In possession
i. Non-leasing cotenant(s) in possession are not entitled to share in rent paid by third parties
b. Out of possession
i. Non-leasing cotenant(s) out of possession are entitled to share in rents paid by third parties
Duty to share profits from resources
a. Cotenant(s) entitled to proportionate share of all profits derived from the land
Duty to contribute to operation, maintenance, and repairs
a. Duty to pay proportionate share of expenses (Esteves)
Duty to contribute to costs of improvements
a. No duty to contribute to costs of improvements
Term of years
i. Duration
1. Fixed period of time
ii. Creation
1. Express
iii. Termination
1. Ends when agreed period ends
iv. Notice
1. No notice required (automatically ends at end of term)
v. Statute of frauds
1. Applies to length of initial period
2. More than a year needs to be in writing
Periodic tenancy
i. Duration
1. Initial fixed period
2. Automatically continues
ii. Creation
1. Express
2. Implied
iii. Termination
1. Either party may terminate
iv. Notice
1. Advance notice of termination
a. Initial period
i. One year or more
b. Notice period
i. 6 months
c. Initial period
i. Less than a year
d. Notice period
i. Equal to length of period
v. Statute of frauds
1. Applies to length of initial period
2. More than a year needs to be in writing
Tenancy at will
i. Duration
1. No fixed duration
2. Continues so long as both parties agree
ii. Creation
1. Express or implied
a. Implied
i. When tenancy doesn’t fit other categories
ii. When person informally letting them be there
iii. When lease is subject to but fails statute of frauds
iv. When tenant is on property before lease fully negotiated
iii. Termination
1. Either party may terminate
iv. Notice
1. Notice required
2. Reasonable time to leave premises
Tenancy at sufferance
i. Duration
1. Until eviction or renewal
ii. Creation
1. After lease term ends
2. Holdover tenant wrongfully stays in possession
iii. Termination
1. Landlord can:
a. Evict tenant
b. Renew tenancy
i. Same duration as original
iv. Notice
1. No notice require
Liability for personal injury
i. Landlord has no duty to make premises safe unless:
1. Concealed latent defects
2. Common area defects
3. Negligent repairs
4. Breach of agreement to repair
5. Defects in premises leased for public use
Duty to deliver possession
i. Landlord is obligated to deliver the legal right of possession to the tenant when the lease term begins
1. Majority
a. Landlord must deliver actual possession of the premises to tenant when least term begins, in addition to legal right to possession
2. Minority
a. Landlord only obligated to deliver the legal right to possession to tenant when the lase term begins, unless lease provides otherwise
Implied covenant of quiet enjoyment
i. Landlord will not wrongfully interfere with tenant’s possession of the property
1. Breached through:
a. Constructive eviction
i. Wrongful conduct
1. Acts (e.g., blocking access, nuisance, harassing tenant’s customers, etc.) or
2. Omissions (e.g., landlord breaches statutory duty, fails to repair under lease or CL exceptions, allows nuisance)
ii. By the landlord
1. Exception
a. By third party if landlord has control over third-party conduct
iii. That substantially interferes with the tenant’s beneficial use and enjoyment of the leased property
2. Applies to:
a. Residential leases
b. Commercial leases
3. Procedure
a. Notify the landlord about the problem
b. Provide landlord with reasonable time to fix the problem
c. Vacate the premises if the problem is not fixed (Paolucci)
Implied warranty of habitability
i. Requires:
1. Landlord to maintain “bare living requirements” and that ensure that premises are fit for human occupation
a. Landlord is not required to maintain “perfect conditions at all time”
b. Landlord must have reasonable time to fix defects
2. Substantial compliance with building and housing codes provides evidence of habitable premises (Jobe)
3. But showing a code violation is not requires to show breach by landlord
ii. Applies to:
1. Residential leases
iii. Procedure
1. Notify the landlord about the problem
2. Provide landlord with reasonable time to fix the problem
3. Tenant is not required to vacate the premises
Remedies and damages for implied warranty of habitability
- Remedies available to tenant
a. Four options:
i. Move out and sue for damages
ii. Repair and deduct the cost of repairs
iii. Remained and withhold rent (forces landlord to fix problem)
iv. Remain and continue paying rent (later sue for damages) - Damages available to tenant
a. Fair rental value as warranted minus the fair rental value unrepaired
b. Rent (according to lease) minus the fair rental value unrepaired
c. “Percentage diminution” based on degree of reduction of tenant’s use and enjoyment of premises reduced by uninhabitable conditions and time
Transferring tenant’s interest
i. Generally
1. Tenant entitled to transfer interest to third parties
2. Unless lease requires landlord’s consent
ii. Consent
1. If consent required, either:
a. Landlord has sole discretion (majority)
b. Landlord may refuse consent for a commercially reasonable objection (minority)
c. No standard specified
i. Consider
1. Both majority and minority
Assignment
- Tenant transfers entire interest to third party
a. Lessee and lessor
i. Privity of contract
b. Lessee and assignor
i. Privity of contract
c. Lessor and assignee
i. Privity of estate
Sublease
- Tenant transfers part of interest in lease premises to a third party
a. Lessee and lessor
i. Privity of contract
ii. Privity of estate
b. Lessee and sublessee
i. Privity of contract
ii. Privity of estate
c. Lessor and sublessee
i. Neither
Privity
- Transfer of land via purchase, inheritance, or reasonable connection (deed or will)
Tacking
- Successive statutory periods can be tacked
- Requires privity
Good faith (claim of right)
- Mistaken possession
Bad faith (claim of right)
- Knowing trespass
Objective (claim of right)
- State of mind is irrelevant
Donative intent
i. Must intent to make:
1. Irrevocable
2. Present transfer
3. Of ownership