Real Property

Question 1

What is earnest money

Answer 1

Earnest money is liquidated damages in a real property sale. When LD is outweighted by actual damages, LD is ok.

Question 2

What happens to a prematurely recorded deed?

Answer 2

It falls outside of the chain of title.

Question 3

When can a non judicial foreclosure be permitted?

Answer 3

Nonjudicial foreclosure permitted if power of sale clause; can be overturned if grossly inadequate.

Question 4

Does the grantor of general warranty deed have to defend a claim against grantee?

Answer 4

Yes, as long as the grantee doesn’t win. If he wins, then it wasn’t a valid claim.

Question 5

Can you sell property without actually owning at the time?

Answer 5

Yes, Seller need not transfer title until closing or reasonable time thereafter, unless time is of essence. So you can sell property without legal title as long as you have the legal title by closing.

Question 6

What can the court do when there is a default in land installments?

Answer 6

If buyer default on land installment, Court can: (1) require seller to foreclose, (2) give buyer equitable right redemption, (3) give seller ownership but restitution to buyer (if payments exceed damages).

Question 7

What does it mean to adeem?

Answer 7

Adeem by extinction: asset not owned by testator at time (or is fundamentally changed/destroyed).

Adeem by satisfaction: property was given during testator’s life.

Question 8

Due on sale clause vs acceleration vs encumbrance vs defeasance

Answer 8

Acceleration: entire is due if default;

due on sale: entire due if sell w/o perm;

due on encumbrance: accelerate if debtor gets 2nd mortgage or other encumbrance;

Defeasance: Requires creditor to give legal title and release lien upon completed payments. If can’t pay acceleration, lender can foreclose on property.

Question 9

What is after acquired title?

Answer 9

You can convey if you don’t own the property. Through after acquired doctrine, if and when you receive that property, it will automatically pass through you and to the person you sold it too. Bc of the estopel by deed doctrine, you can’t assert a right to that property.

Question 10

What are the FHA rules for property?

Answer 10

Doesn’t apply to:

(1) Owner occupied dwellings up to 4 units
(2) owner of <3 SFH
(3) sale of SFH
(4) incidental lording
(5) religious organizations

Discriminatory advertisement is always actionable.

Question 11

What’s priority for mortgages?

Answer 11

PMM has priority but in absence of PMM, priority is based on order.

Question 12

What is lapse?

Answer 12

lapse causes a will to fail if beneficiary is predeceased by testator. When lapse occurs, it doesn’t go to heirs, it goes to the general estate.

Question 13

What merges with the deed?

Answer 13

Contract merges with deed. Can’t sue for oral agreement of land if the contract already merged with the deed. Would have to sell under the deed.

Question 14

Zoning ordinance to abide by make title unmarketable?

Answer 14

Merely having ordinances to abide by does not make a title unmarketable but a violation of it does.

Question 15

When must you object on unmarketability?

Answer 15

Any objection of unmarketability must be done prior to closing.

Question 16

What is abandonment and what are the rules?

Answer 16

It’s when a tenant leaves in violation of the lease. If tenant abandons, offer is accepted by express agreement or possession + use or re-rent. If not accepted then duty to mitigate but not in minority rule.

Question 17

What are the life tenant duties?

Answer 17

Life tenant must pay all current charges up to financial benefit received, must prevent waste, and make reasonable repairs.

For waste: cant decrease value (affirmative), cant ignore or neglect (permissive), or raise value for unnecessary reasons that change the condition of it (ameliorative.)

Question 18

What is waste for tenants?

Answer 18

cant decrease value (affirmative), cant ignore or neglect (permissive), or raise value for unnecessary reasons that change the condition of it (ameliorative.)

Question 19

is there warranty of habitability for new homes?

Answer 19

Implied warranty of habitability is present for newly created homes. This extends to subsequent purchasers for latent defects.

Question 20

If a deed isn’t signed by the purchaser, are they still liable?

Answer 20

Accepting deed is enough to be liable to mortgage. Don’t need signature of purchaser.

Question 21

Assignment vs sublease?

Answer 21

Assignment is the transfer of the remainder of the lease. Sublease is only part of it and it comes back to the original tenant. For assignment, both can be held liable. For sublease, only the original tenant.

Question 22

Can a future interest be conveyed? What happens if they die before they get it?

Answer 22

If someone has a future interest and conveys it to someone else and then that person dies, then that 3rd party still gets it.

Question 23

Does a deed in lieu of foreclosure extinguish debts?

Answer 23

It only extinguishes the mortgage that foreclosing, not junior debts.

Question 24

can judgment lien attach to a debtor’s property?

Answer 24

Yes, as long as the judgmenet is properly filed in the land records. However, it only attaches to land that the debtor owned at the time. If the debtor had conveyed the land and the buyer records before the creditor files, the lien will not attach.

Question 25

What are the requirements of a deed?

Answer 25

(1) Written and signed by grantor
(2) identifies grantor and grantee
(3) Identifies land
(4) includes words of transfer

Question 26

Must a deed be delivered?

Answer 26

Yes it must during the grantor’s lifetime or else it is void.

Question 27

What are some presumptions of delivery

Answer 27

(1) physical delivery
(2) Recording
(3) unconditional delivery to agent (watch out for this)
(4) Grantee obtains possession

Question 28

Are presumptions of delivery rebuttable?

Answer 28

Yes, by evidence that grantor did not intend to transfer ownership. This includes any conditional delivery.

Question 29

Whose PMM is senior, a owner seller or owner buyer?

Answer 29

Owner seller

Question 30

What is inquiry notice?

Answer 30

When a buyer knows or should know of circumstances that would prompt a reasonable person to investigate such as visible use of property by someone else.

Question 31

Can an easement holder expand use of easement?

Answer 31

Yes, as long as it does not unreasonably damage or interfere with use or enjoyment.

Question 32

Are easements subject to recording?

Answer 32

Yes and can be held extinguished if it isn’t filed before someone else purchases property that owns land with the easement.

Question 33

When a tenancy is over and tenant missed last month of payment, what happens?

Answer 33

The tenancy has been terminated but the landlord has a cause of action for breach of contract.