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MBE ISA > PROPERTY MBE > Flashcards

PROPERTY MBE Flashcards

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1
Q

Fee Simple Absolute

A

100% of ownership forever

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2
Q

Life Estate

A

100% control of property for your life
Can do whatever you want minus commitinig waste
“O to A for life”

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3
Q

Reversion (Life Estate)

A

Interest goes back to grantor
You give a life estate and it goes back to you during your life
Life tenant must pay interest on the mortgage + taxes (not principal)

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4
Q

Remainder (life estate)

A

Person who gets the property after the life estate runs out
“Then to”

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5
Q

Contingent remainder

A

Something has to happen before they get it
“Then to bob if…”

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6
Q

Vested remainder

A

Automatically gonna get it -> nothing is stopping you

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7
Q

Vested remainder subject to open

A

Class of people
“Then to bob’s kids”
As long as one child is alive -> ok

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8
Q

Vested remainder subject to total divestment

A

O to A for life, then to C, but if C has no children, then to D
If something can be taken away -> its subject to be wiped out

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9
Q

Fee Simple Determinable with a…?

A

Convey property “so long as” “as long as” you do something
If the condition is broken -> goes back to the grantor

Possibility of Reverter

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10
Q

Possibility of Reverter

A

If you break the condition -> you can go take the property back automatically

Fee simple determinable

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11
Q

Fee Simple Subject to Condition Subsequent with a…?

A

Convey land to you, “but if” something happens then grantor gets prop back

Right of Reentry

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12
Q

Right of Reentry

A

Once that thing occurs, grantor can get prop back and re-enter but they must act to get the land back

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13
Q

Rule Against Perpetuity (RAP)

A

Interest must vest within 21 years within the life in being

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14
Q

Joint Tenancy

A

Two people own property as joint tenants
Right of survivorship
You get the entire thing when the other person died automatically
Trumps a will
Can always convey interest -> without permission of other tenant

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15
Q

Tenancy in Common

A

If you convey it -> JT is severed and new person enters as tenancy in common (TIC)
No right of survivorship
Heirs get the property

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16
Q

Tenancy by Entirety

A

Ownership between two married people
Right of survivorship
Must not convey without consent of other
Divorce will severe the tenancy

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17
Q

Partition

A

Two tenants get in a fight so they can divide the property in half
Its allowed unless its not practical

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18
Q

Contribution

A

If one co-tenant is paying the taxes and mortgage -> one tenant may seek contribution to recover the amount
If in sole possession -> may only recover amount to the extent that it exceeds the market value of the property

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19
Q

Rent - CO TENANTS

A

Out of possession co-tenant may share in rents and profit of property
But if tenant is in possession -> cannot collect rent unless they are damaging the property

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20
Q

Repairs

A

Co-tenant cannot get contribution for repairs on property
If repair was necessary and you refuse -> can still do it and can collect

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21
Q

Improvements

A

Co-tenant cannot get contribution for improvements unless increases rents and profits
Thats on you if you wanna fix something

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22
Q

What are the four types of tenancies?

A

Periodic
- start date and then goes on for a period of time
- renews unless the termination date
- must give notice
- Month to month
- One month notice
- Year to year
- 6 months, day to day

Years
- start date and end date
- no notice required

At Wil
- no specific term until one party terminates - no notice

Sufferance
- hold over tenant
- parties are bound by original terms
- end by leaving or eviction

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23
Q

Landlord Duties (4)

A
  1. Give possession of property on the first day of lease term
    - if not, lease is done
  2. Basic Repairs
  3. Warranty of Habitability
    • Must be heat in the winter - AC in the summer
    • Has to be livable
    • Cannot violate any health or safety code
    • If WOH is breached -> tenant can refuse to pay
      rent
  4. Warranty of quiet enjoyment
    • Landlord has to make it so that the tenant can
      live quietly in their home
      Cannot be a nuisance to the ppl living there
      • A party one night or inconvenience -> not
        going to be a breach
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24
Q

Tenant Duties

A

Pay rent
If prop is destroyed -> tenant doesn’t have to pay rent
Canot commit waste and cannot allow for waste to occur by not doing something
Give landlord notice of something that needs to be repaired
Basic repairs

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25
Q

Assigment vs Sublease

A

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**

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26
Q

Landlord Sells

A

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

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27
Q

Fair Housing Act

A

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)

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28
Q

Fixtures

A

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

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29
Q

Governing Law for Property Disputes

A

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

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30
Q

Deed or Will (law applies)

A

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

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31
Q

Mortgage Issue/ Collateral

A

You go by local law of the state

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32
Q

Easement

A

Right to come onto someones land to do something

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33
Q

How do you create an easement? (4) ways

A
  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
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34
Q

How long do easements last/ how do they terminate (4)?

A

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
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35
Q

Covenant

A

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”

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36
Q

Equitable servitude

A

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

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37
Q

Implied Reciprocal Servitude

A

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

38
Q

Common scheme

A

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

39
Q

Variance:

A

allows a waiver from an ordnance

40
Q

License

A

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

41
Q

Profit

A

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

42
Q

Taking

A

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

43
Q

Water Rights

A

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

44
Q

Crops

A

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

45
Q

Adjoining Land - Strict Liability

A

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

46
Q

Nuisance

A

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

47
Q

Common Interest Owned Community

A
  • Development where individual owners have to pay dues to the association (HOA)
  • Provide services to the general area and enforce rules
48
Q

Condominium

A
  • 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
49
Q

Property Owners Associations

A

Owners are required to belong and pay dues

50
Q

Co-Op

A

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

51
Q

Forming a Common Interest Owned Community

A

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

52
Q

Board

A
  • 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
53
Q

Real Estate Contract

A

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

54
Q

Terms of Land Sale

A

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

55
Q

Equitable conversion

A

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

56
Q

What kind of title does a real estate contract convey?

A

Marketable title: Free of any liens or encumbrances

57
Q

Time of Essence

A

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

58
Q

Merger

A

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 !!!!

59
Q

Duty to Disclose

A

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

60
Q

Purchase money mortgage

A

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

61
Q

Redemption (Right of Redemption & Statutory)

A

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

62
Q

Lien Theory

A

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

63
Q

Title Theory

A

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

64
Q

Assumable Mortgage

A

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

65
Q

Subject to the Mortgage

A

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

66
Q

Deed in lieu of foreclosure

A

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

67
Q

Foreclosure Sale - junior mortgages

A

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

68
Q

Deficiency

A

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

69
Q

Installment Payments

A

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

70
Q

Deed

A

Piece of paper that transfers legal title on closing

71
Q

Marketable Title: free of 4 things

A
  • 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 **

72
Q

Warranty Deed (6 Promises about Property)

A

Present: 1. Seisin
2. Right to convey
3. Covenant against encumbrances

Future: 4. Quiet enjoyment
5. Warranty
6. Further assurances

73
Q

General Warranty Deed

A

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

74
Q

Special Warranty Deed

A

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

75
Q

Quit Claim Deed

A

Not making any promises regarding title

76
Q

Formalities of Deed

A

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

77
Q

Transfer of Title - Will

A

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

78
Q

Ademption

A

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

79
Q

Lapse

A

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

80
Q

Land with Liens

A

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

81
Q

Adverse Possession

A

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)

82
Q

Who can draft, review and fill out docs?

A

Lawyer
non-lawyer
Real estate broker
Mortgage broker

83
Q

Who can do a closing?

A

Non-lawyer can do a closing

84
Q

Can an agent sign on behalf of a seller?

A

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

85
Q

What is a BFP? Who is not a BFP?

A

Pays value
No notice

Who is not a BFP:
creditors
adverse possession
gift
Will

MORTAGEES (BANKS) ARE BFP!!!!!

86
Q

Notice Statue

A

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

87
Q

Race Statue

A

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

88
Q

Race Notice Statue

A

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

89
Q

Shelter Rule

A

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 !!

90
Q

Wild Deed

A

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

91
Q

After Acquired Title

A

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

92
Q

Restrictive covenant

A

you can only use land this way

MBE ISA (3 decks)

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