REAL PROPERTY Flashcards
RAP- EXCEPTION
Although the common law Rule Against Perpetuities applies to options to purchase real property, it does not apply to an option to purchase the property that is held by a current leasehold tenant
warranty of fitness or suitability
Builder or other commercial seller of a newly constructed residence gives a warranty of fitness or suitability to the buyer. When this warranty is not mandated by statute, the courts have implied such a warranty. The warranty covers material defects that could not have been uncovered by the buyer through a reasonable inspection prior to purchase.
exception to joint tennancy
Although as a general rule a joint tenant’s interest is freely alienable during his or her lifetime without the consent of the other joint tenant, that interest cannot be devised in a will. In this case, on the death of the husband, the wife’s interest in the joint tenancy immediately swelled and she became the sole owner of the land as the surviving joint tenant.
Like tenant’s duty to repair - exception
A life tenant is not responsible for damage caused by a third-party tortfeaser. The general rule that a life tenant has a duty to reasonably repair the property.
“equal dignities” rule
Under the “equal dignities” rule, when the act performed by an agent on behalf of the principal is required by law to be in writing, the agent’s authority must also be established in writing. Consequently, when an agent signs a deed, the agent’s authority must also generally be in writing.
equity of redemption
+
CLOG
After default but prior to foreclosure, a mortgagor retains the right to reclaim clear title to the property and prevent foreclosure; this right is known as the mortgagor’s “equity of redemption.” Courts routinely reject attempts by the mortgagee to deny the mortgagor this right (i.e., to “clog” the equity of redemption) prior to default, such as by the inclusion of a waiver clause in the mortgage. However, a mortgagor may waive the right to redeem after the mortgage has been executed in exchange for good and valuable consideration
