Property (JDA One Sheet) Flashcards
Easement
A non-possessory interest in the use of someone else’s land.
Easement in Gross
An easement in gross does not benefit the land, but rather benefits a person. One cannot transfer a personal easement in gross, but one can transfer a commercial easement in gross (e.g., utility lines).
Easement Appurtenant
An easement appurtenant benefits the land. The dominant estate is the piece of land that is benefited while the servient estate is the piece of land serving the benefit to the dominant estate. The dominant estate transfers to a successive owner automatically. The owner must make reasonable repairs to the easement and may go on the servient estate to do so. A servient estate, however, transfers with notice (actual, inquiry, or record. → Note: there is a strong presumption that recording acts do not apply to implied easements).
Easements - Creation of Easements
Easements can be created expressly, impliedly (by prior use or necesity), or by prescription.
Termination of Easement
Easements may be terminated in a variety of ways such as by their express terms, written release, merger of the dominent and servient tenements, prescription, estoppel, condemantion, or abandonment. For abandonmnet, mere nonuse of the easement is not sufficient to abandon it. There must be an act of abandonment.
Express Easement
There are two requirements for an express easement: (1) it must be in writing and (2) it must be signed by the grantor if it is for over a year (SoF).
Easement Implied by Necessity
An easement implied by necessity exists when: (1) there is a severance of a commonly owned parcel; (2) the necessity is strict (landlocked); (3) the necessity exists at the time of the severance and when the easement is sought.
Implied Easement from Prexisting Use
An implied easement from preexisting use exists when: (1) there is a previous use from a common owner who subdivides the land; (2) the use was continuous; (3) the use was reasonably necessary for the use and enjoyment of the benefited property; and (4) use was apparent (not hidden).
The previous use by the common owner who subdivided the land must be to the benefit of the now dominant property.
The period in time examined when referring to “previous use” is prior to the land being subdivided and conveyed.
(CRAP - continuous, reasonably necessary, apparent, previous use)
Easement by Prescription
An easement by prescription requires that use be (1) continuous; (2) hostile (without permission from the true owner); (3) actual; (4) open and notorious (visible); and (5) it must go on for the statutory period. (Think: elements of adverse possession w/o exclusivity requirement)
Termination of Easement - Merger
Merger occurs when a person or entity who owns the easement acquires title to the servient estate or when the owner of the dominant estate attains ownership of the servient estate. The easement is then extinguished. After a merger terminates an easement, the easement does not revive if the two estates are later separated.
Termination of Easement - Abandonment
Abandonment requires intent and an act. A mere statement is not enough. Nor is mere nonuse.
K of Sale - Equitable Conversion
[what if something happens to the property between when K of sale is signed but before deed is delivered?]
Before a deed is delivered, the contract of sale is signed. Under equitable conversion, as soon as the contract is signed (but before closing), the buyer’s interest is real property (the land he contracted to buy) and the seller’s interest is personal property (money he will get from the sale). Thus, the risk of loss remains on the buyer under equitable conversion, even if the seller remains in possession and control of the land.
K of Sale - Equitable Conversion
[What if a party to the K dies after the K of sale is signed but before the closing?]
The K will still go through. The seller’s interest is personal property (money from sale to seller’s estate). The buyer’s interest is real property (buyer gets the real property).
When does title pass?
Closing date is when title “officially” passes
Seller must give marketable title on the closing date (no need to do so before). If seller not able to give marketable title, the seller has a reasonable time (e.g. a couple of months) to sure up any defects so long as K or circumstances do not indicate that time was of the essence.
LSK - Merger
On the closing date, the contract for sale merges into the deed. Once this happens, the buyer can only sue on the deed.
Validity of a Deed
A valid deed requires (1) formalities, (2) proper delivery (keep in mind presumptions of delivery/non-delivery), and (3) acceptance
Deed Formalities
A deed must (1) ID the PTs (buyer must be alive @ time of closing. If buyer dies before closing, a new deed must be made to his estate); (2) describe the land (just enough to ID the property); (3) have words of grant; and (4) be signed by the grantor (b/c of SoF).
A deed must also be delivered. Delivery is a question of intent to pass presently. It doesn’t mean that physical delivery must take place.
Remember: a deed does not have to be recorded to be valid. It does not need to be given in exchange for consideration. It does not need a seal.
Deed - Presumptions of Delivery
Delivery is presumed if (a) the deed is given to the grantee or (b) the deed is recorded.
Deed given to Grantee w/ oral condition
The condition is ignored when the deed is unconditional on its face.
However, oral conditions are not ignored when they are (a) to show that the grantor did not intend to deliver the deed at all or (b) if the deed is delivered to a 3rd party and delivery is to made once a certain condition occurs. In this circumstance, delivery will “relate back” to the day the grantor delivered the escrow.
Deed - Presumptions of Non-Delivery
Delivery is presumed to not have occurred if the deed is: (a) In the grantor’s possession or (b) Merely given to grantor’s agent (b/c grantor probs has the power to get it back)
Can delivery be canceled?
No. To give property back, one must reconvey the deed and comply with the formalities required.
Acceptance of a Deed
Acceptance of a deed is presumed, but it can be rebutted by facts that show otherwise.
Quitclaim Deed
Grantor promises nothing and grantee gets whatever grantor has. Grantee cannot successfully sue on the deed.
Warranty Deed
Once deed is delivered, grantee can sue on the deed only (not on the K). In a warranty deed, the grantor gives six covenants that are implied unless specifically excluded
Upon breach of any of these 6 warranties, a buyer is entitled to the consideration received by the seller when they sold the land.
Under CL, remote grantees can sue only on future covenants, but some jurisdictions do not follow the CL rule.
What are the 3 Present Covenants in a Warranty Deed?
[More likely tested]
(PRESENT) - Present covenants are those given “presently” at the time the deed is handed over, and if not fulfilled, they are also breached at the time the deed is handed over. Present covenants do not run w/ the land, and only the grantee that the grantor conveyed the property to can sue on them. The three types of present covenants include:
Right to Convey (“I can sell it”) - grantor promises that grantor can convey title (someone else doesn’t have the right of first refusal)
Covenant of Seisin (“I own it”) - Grantor promises that grantor has title and possession
No Encumbrances (“I can sell it without any strings attached”) - Grantor promises that there are no easements, liens, or encumbrances on the property that are not stated in the deed
What are the 3 future covenants in a Warranty Deed?
FEWture Covenants include:
- Covenant of Further Assurances (“Once I convey title, you will not be disturbed”) - grantor states that if he forgot to do something to pass title (e.g. sign something or give something necessary to buyer), he will do so
- Covenant of Quiet Enjoyment (“If you are disturbed, I will defend you”) - grantor promises that grantee will not be disturbed by a third party asserting a valid claim
- Covenant of Warranty (“After I defend you, I will make it right”) - grantor will defend grantee if there is such a third-party claim
Implied Warranty of Habitability
When a new home is purchased from a developer, there is an implied warranty of fitness and habitability. A buyer may recover damages for losses resulting from defective or poor construction.
These defects must be (1) discovered within a reasonable time and (2) cannot be attributable to later changes in the structure or normal deterioration.
Does a seller have to disclose defects?
Ordinarily, seller does NOT have to disclose defects unless they are: (1) not obvious; (2) he knows or should know of them; AND (3) the defect is not serious.
However, seller cannot actively conceal or misrepresent defects even if there is an “as is” clause
Recording Acts: Step 1
Common Law Rule
Under the CL rule, a grantor can convey only those rights that the grantor had at the time of conveyance. Thus, common law follows the “first in time, first in right” principle. All states have recording statutes that change the results of the common law principle.
What kind of Recording Act is This?
“ A conveyance of an interest in land is not valid against any subsequent purchaser for value without notice unless it is recorded” “
“No conveyance is valid against a subsequent bona-fide purchaser who has no notice of the original conveyance, unless the conveyance is first recorded.”
Notice statutes protect subsequent bona fide purchasers for value who take without notice of the earlier transaction.
Focus = Was the second buyer a BFP? (AKA Was the second buyer on any notice of the previous sale and did they pay a fair price?). If so, 2nd buyer wins.