PROPERTY MBE Flashcards

Question

Assigment vs Sublease

Answer 1

Assigment - Assign lease to 3P ->new guy is now responsible, but if person doesn’t pay rent -> can still go after you unless a novation Sublease - Giving away only a portion of the lease term Original T stays liable for the rent unless there is a novation **** any lease that says assigment or sublease is not valid or delegation of duty is valid****

Answer 2

if landlord sells prop or building to a diff person -> it is allowed, but if new guy wants to be paid then he must give notice that he is in charge

Answer 3

Federal law that prohibits discrimination in the sale or rental of property based on race, color, religion, sex, disibility, or family status (having children when under 18 or being pregnant)

Answer 4

Chattel that becomes so attached to the land that removable of it would cause damage

Answer 5

When there is a conflict the state where the property is located will apply

Answer 6

If the document says which law applies -> you use that

Answer 7

You go by local law of the state

Answer 8

Right to come onto someones land to do something

Answer 9

1. Writing 2. By prescription Do it for statutory period of time -> you don’t get title but you get the right to do it Elements: (1) Continuous—for the applicable statutory period (2) Open and notorious—owner knows or should know of use (3) Actual (4) Hostile 3. Implication - Implied from prior use - If someone has a big piece of property and does - something for 30 years and then sells half the land -> can continue to do it 4. Necessity Have to use property because there is no other way It can’t be convenient it has to be necessary

Answer 10

LAST FOREVER unless terminated ways to terminate: 1. Time 2. Agreement 3. Merger -> you buy the property that you had the easement on 4. Abandonment - Leave and express an intent not to return

Answer 11

Promise for promise - Promise to let you do something - Always in writing - Generally lasts forever Covenant runs with the land - Writing - intent - Notice - Privity - Touch and concerns the land - If its about the use of the property Never personal!!! Ex: “i will let you use the pool b/c ur an olympic swimmer”

Answer 12

If you don’t do what you are supposed to do Seeks an injunction

Answer 13

Big piece of land cut up into 100 difference lots and there are restrictions on all the lots If the restrictions are enforceable to everyone + there is notice -> it is allowed enforceble if: (1) Common scheme — developer evidenced intent to create a negative servitude under a common scheme for all subdivided parcels Common scheme may be evidenced through: Recorded plat, General pattern of restrictions, and/or Oral representations to early buyers (2) Notice — owner of the subject lot had notice of the covenants in the deeds of other subdivision lots Notice may be one of three types: Actual — literal knowledge of covenants, Inquiry — neighborhood character indicates a common restriction, or Record — chain of title for the owner’s lot includes a prior deed containing a negative covenant/servitude

Answer 14

If more people enter the community -> still ok Only way is if the purpose and nature of the entire place changes (now its commercial) -> then restrictions won’t apply anymore

Answer 15

allows a waiver from an ordnance

Answer 16

Right to enter the property but revocable at the will of the grantor ie: can kick you out anytime Football tickets, concert, If its coupled with an interest -> not revocable

Answer 17

Interest to enter land to take things off of the ground Drilling, mining, plucking fruit

Answer 18

Gov can take private property for public use if they pay just compensation Public use can be really anything Casino, hotel, highway, park

Answer 19

Lake/Pond/River When two people live on property near water and both share the water Either can use reasonable amount of it Snow/Rain Owner can use whatever reasonable to alter the flow of it Even if it harms the other person a bit

Answer 20

If crops are on property naturally -> real property If crops were planted -> personal property Both go with the property Unless -> tenant had a right to harvest prior to lease ending or express agreement

Answer 21

If you blow stuff up on your land and it hurts a neighbor's land -> you may be liable Undeveloped property - Strictly liable Developed property - Strictly liable if damage would have happened anyway If not -> negligence If you allow someone to come and dig -> hurts a neighbor -> gonna be liable for negligence

Answer 22

Private: - unreasonable interference with the use and enjoyment of property - Would it bother a reasonable person? Public: - Effects the public at large - Usually brought by a gov general - Usually bothers everyone - Must prove special damages

Answer 23

- Development where individual owners have to pay dues to the association (HOA) - Provide services to the general area and enforce rules

Answer 24

- Declaration that describes the boundaries of the units and the rules that condo will be governed by - Obligations and shares for each owner to determine taxes and maintenance - Own the 4 walls and can get a mortgage on it Own the common areas as TIC with the other people who live in the condo - Cannot partition the common areas

Answer 25

Owners are required to belong and pay dues

Answer 26

Corporation that owns one or a series of buildings They lease it to other shareholders Mortgage on entire building If you don’t pay it -> it effects the entire building b/c they won’t have enough $$ to pay

Answer 27

Governing Documents - Declarations and other docs tht set out the rules and regulations of the property Association: runs the associations and enforces rules Board of Directors: group that meets to enforce and can hire a manager Developer Creates the property and over time hands over the property to the association and then developer goes away - 2 years and ⅔ votes to terminate the developer Developer cannot take power or change the declaration

Answer 28

- Has power to act reasonably necessary for the members - levy, fees, penalties, assessments - Must act fair and and use ordinary care in managing property/finances - Burden is on member to prove that board breach - Can improve common areas Rules: must be reasonably related to further a legitimate purpose - Cannot discriminate - Can have reasonable inspections - Association can sue on its own name - Duty to act in good faith and act as an ordinary board member of a common interest owned community - Board members are not jontly/severally liable -> only liable for percentage they own

Answer 29

Must be in writing (SOF) If no writing -> can get out via: Take possession Full or partial payment Improvements to the land *MOST JRD REQUIRE TWO OF THESE TO OCCUR*

Answer 30

Needs to include price, parties, basic description, any conditions, and signed by the party to be charged Doesn’t have to be written by a laywer Can be on a napkin if it has the required terms

Answer 31

On the day that you sign the contract -> you are handing over equitable title to prop but seller maintains legal title On this day -> risk of loss passes to the buyer

Answer 32

Marketable title: Free of any liens or encumbrances

Answer 33

Time is usually NOT of the essence in a land sale contract

Answer 34

On the day of closing -> the real estate contract and the deed merge and now the deed controls going forward Cannot sue on the real estate contract -> on the deed only !!!!

Answer 35

Seller has a duty to disclose material defects that cannot be seen by the buyer If they can be seen -> no duty to disclose

Answer 36

loan you get to buy your house - always gets priority (gets paid back first)

Answer 37

Equitable Right of Redemption the period from notice of foreclosure and the foreclosure sale - They can go find the money and get the property back Never waived!!!! Even in mortgage docs Statutory Period of time after the forcelsoure sale (additional time you may have by statue to get prop back) Not automatic

Answer 38

When bank gives you money - only have a lien You have legal title so you can sell it

Answer 39

Bank holds legal title of property -> you only have an equitable interest to live there You can’t sell it b/c bank has title When two joint tenants take out a mortgage -> the bank gets title so the JT is severed to TIC

Answer 40

If someone assumes your mortgage -> they become primarily liable, but can go after you secondarily unless novation

Answer 41

You take the property even though there is still a mortgage on it but the original person is still liable to pay it -> new buyer is not paying HOWEVER If the OG owner doesnt pay -> the bank is gonna foreclose on the prop RISKYYYY AFFFF

Answer 42

Instead of going through all the proceeding you skip it by giving the deed to the bank or whoever is owed the money

Answer 43

If there is a foreclosure sale -> any of the mortgages AFTER that didn’t get paid (junior ones) will be wiped out as long as there was notice and they were joined

Answer 44

House was worth 200k -> at foreclosure sale only sells for 150k -> will go after you via deficiency judmt for the 50k IF THERE IS EXTRA ONLY GOES TO HOMEOWNER IF ALL LEINS ARE PAID

Answer 45

Agree to pay 200k mortgage but will make the deposits monthly -> only get title when you pay the mortgage in full Seller doesn’t have to give marketable title until all payments are made

Answer 46

Piece of paper that transfers legal title on closing

Answer 47

- To be considered marketable title -> the land must be free of encumbrances such as mortgages, restrictive covenants, easements, and violations of zoning ordinance ***Violation of building code is not an encumbrance ***

Answer 48

Present: 1. Seisin 2. Right to convey 3. Covenant against encumbrances Future: 4. Quiet enjoyment 5. Warranty 6. Further assurances

Answer 49

Promising all 6 above since property was developed or created (forever)

Answer 50

Promising all 6 since seller has had title (current seller only)

Answer 51

Not making any promises regarding title

Answer 52

The deed has to be in writing (SOF) - Delivery - Intent - Did seller intent to give it to you does not have to be physical Acceptance - It is presumed unless otherwise stated Merger - Day of closing -> real estate contract merges and now all terms are governed by deed and you can only sue on deed Description of Property - Must be reasonably definite and describe the means and bounds of the property

Answer 53

can transfer by will, but if no will -> intestate

Answer 54

Leave your prop in will but while alive -> sell it -> you don’t get anything

Answer 55

Leave you property, but then you die -> prop goes into the residuary

Answer 56

Leaves property with a lien -> estate can pay the lien so you can get prop free + clear

Answer 57

Live on property for statutory period of time + all other elements Intentional transfer -> you get someone to stay while you go away for sometime -> still counts (tacking) Open Continous Exclusive Actual Notorious Hostile (not getting consent)

Answer 58

Lawyer non-lawyer Real estate broker Mortgage broker

Answer 59

Non-lawyer can do a closing

Answer 60

Agent for seller - needs to be a paper in writing saying the agent has authority to sign the seller - equal dignity rule EXCEPTION: if you are the agent of a corp and already have authority to sign on behalf -> don’t need a separate paper

Answer 61

Pays value No notice Who is not a BFP: creditors adverse possession gift Will MORTAGEES (BANKS) ARE BFP!!!!!

Answer 62

“No conveyance shall be good against a subsequent purchaser for value without notice” Last BFP wins!

Answer 63

“No conveyance shall be good against whoever first records” First person to record wins

Answer 64

“No conveyance shall be good against subsequent purchaser for value without notice who first records” Last BFP + had to have recorded

Answer 65

Someone who normally would loose - can win O gives to A on Monday - don’t record O gives to B on Tuesday - records B gives it to C as a gift - C wins b/c she is sheltered !!

Answer 66

Out of chain of title J gives to I on Monday - no record I to R on Tuesday - wild deed J gives to N - no record N wins b/c the second one was not by the original grantor

Answer 67

On day of closing try to convey prop -> but there was a technical issue and the seller did not have legal title at the time Glitch is fixed year/month/weeks later Title automatically will go to the buyer

Answer 68

you can only use land this way