Real Property Flashcards
Fee Simple Absolute
FSA holder has all possible rights
may last forever- alienable, devisable, and descendible
terminate- owner dies without a will or heirs, and property escheats to state
Devisees take by ____
Heirs take by ____
Grantees take be _____
Devisees take by will
Heirs take by the laws of intestacy
Grantees take by inter vivos transfer
Fee simple absolute creation
“to A and his heirs”
VA “and his heirs” unnecessary
Defeasible estate
an estate that may terminate upon some happening or event before its maximum duration (forever in fee) has run
Fee simple determinable
created by durational language (for so long as, during, until, or while)
terminates automatically on happening of a named future event. the estate returns to the grantor
Fee simple subject to a condition subsequent
created by conditional language to occurrence of a condition that will terminate estate (provided however, however if, but if, on condition that, or in the event that)
POWER of termination MUST be EXPRESSLY reserved to the GRANTOR
Fee simple subject to executory interest
created by either durational or conditional language
termination occurs on the happening of an event that terminates the estate; property the passes to someone other than grantor
Fee tail
CL: an estate that descended to grantee’s children only
ML: fee tails are disfavored and are treated as fee simple absolutes
VA- abolished
Life Estate
life estates last for the duration of the grantee’s life
Life estate pur autre vie
the duration of the estate is measured by the life of someone other than the grantee
can be made defeasible
Non-freehold estates
term estate: estate that is limited in duration (basically landlord-tenant relationship)
Possibility of reverter
a future interest in the grantor that follows a determinable estate
creation: a fee simple automatically creates a possibility of reverter (no special language needed)
Upon the happening of the event, the land automatically reverts back to grantor
transferability: ML the power of termination is freely transferable, devisable, and descendible
NOT subject to RAP
Power of termination (Right of reentry)
a future interest in the grantor when the grantor attempts to create a FSSCS or a defeasible life estate
Creation: not automatic, must be spelled out in the conveyance or it does not exist
does not automatically revert, grantor must exercise right of reentry and take affirmative steps to retake the property
transferability: ML power of termination is descendible and devisable, not transferable inter vivos
NOT subject to RAP
Reversionary interest
a future interest retained by the grantor when the grantor transfers less than a fee interest to a third person
transferability: ML power of termination is descendible and devisable
NOT subject to RAP
Remainder
A future interest created in a third person that is intended to take effect after the natural termination of the preceding estate
Contingent remainder
any remainder that is not vested
Vested remainder
vested at the point it is created in an ascertainable person and is not subject to any condition precedent, other than termiantion of the preceding estate
Vested remainder subject to total divestment
a remainder that is presently vested but may be terminated on the happening of a future event
Vested remainder subject to open
a remainder that has been made to a class and has at least one member who is ascertainable who has satisfied any conditions precedent to vesting, but may have other members join the class later
Is the remainder vested?
ascertainable person
not subject to any condition precedent
“A to B for life, then to C”
Class openings
inter vivos conveyance: class opens at the time of the conveyance
testamentary conveyance: class opens at the death of testator
Class closing**
RAP can void a future interest (generally not applicable to vested interest except vested remainders subject to open); if any member of a class potentially claim in a way that violates the RAP, the entire class gift fails
Rule of convenience
Class closes as soon as one member of the class becomes entitled to immediate possession of the property
Executory interest
a future interest in a third person that cuts short the previous estate before it would have naturally terminated (because a fee estate has the potential to last forever, any interest created in a third party that follows the granting of a fee will always be an executory interest)
Shifting executory interest
the interest passes from one grantee to another (i.e. a grantee to a grantee (most common))
RAP applies
Springing executory interest
the interest transfers from a grantor to grantee
RAP applies
Waste
determines what someone who owns land can or cannot do with it
owner of a fee estate can do whatever she wants with the property but an owner of less cannot commit waste
Voluntary waste
a life tenant cannot intentionally or negligently damage property
if they do, they are liable for the damage
Permissive waste
a life tenant must take reasonable steps to avoid danger. failure to do so constitutes permissive waste and the life tenant will be liable
Ameliorative waste
a life tenant makes improvements to the land
CL- a life tenant not allowed to make substantial alterations unless authorized to do so and could be held liable for costs of restoring the land to its previous condition
ML- a life tenant is now allowed to commit ameliorative waste if:
1 market value of the remainderman’s interest is not impaired and
2 it is permitted by the remainderman OR a substantial and permanent change in the neighborhood justifies the improvement
Remainderman has standing to sue for past/future waste
vested remainderman: can sue for damages or an injunction to stop the waste from occurring
contingent remainderman: cannot sue for damages and can only sue for an injunction to stop the waste from occurring
Vested remainderman sue for waste?
damages or an injunction to stop the waste from occurring
Contingent remainderman sue for waste?
Cannot sue for damages and can only sue for an injunction to stop the waste from occurring
ML ameliorative waste
life tenant allowed if
1. market value of remainderman’s interest is not impaired
2 . it is permitted by the remainderman OR a substantial and permanent change in the neighborhood justifies the improvement
Doctrine of waste
Applies to mortgagor/mortgagee relationship
Applies to landlord/tenant relationship
Rule against Perpetuities (RAP)
CL: “no interest is good unless it must vest, if at all, not later than 21 years after some life in being at the creation of the interest”
Rule against perpetuities common parlance
Rules deals solely with possibilities.
If you can look at a future interest in a conveyance and can come up with an interpretation where someone could be claiming more than 21 years after everyone currently alive connected to the grant is dead, it violates the rule.
RAP application
does not apply to present possessory estates,
only applies to three future interests (executory interest, contingent remainder, and vested remainder subject to open), applies to purchase option and right of first refusal.
all other future interests are exempt from the RAP
Restraint on total alienation
“A to B, but if B ever tries to sell the property, the property will revert to A”
On a fee: generally not valid
On less than a fee: this will be upheld, if reasonable
Partial restraint on alienation
both are valid if reasonable
factors: scope, time, purpose, legitimate interests of the party, supported by consideration
Purchase option: A reserves right to buy back property at any time during A’s life
Right of First Refusal: if B attempts to sell during A’s life, B must first offer A buyback at the same price
Tenancy in common
each co-tenant owns an undivided possessory interest in the whole of the property
Joint tenancy
each co-tenant owns an undivided possessory interest in the whole of the property AND has a right of survivorship
Right of survivorship
jointly owned property passes to surviving co-tenant automatically
ML a conveyance to two or more people to jointly own property is presumed to create a tenancy in common, unless specifically stated otherwise
MUST use language to demonstrate the right attached to the grant
Creation of a joint tenancy
(TTIP)
Time
Title
Interest
Possession
Differences between joint tenancy and tenancy in common
right of survivorship
four unities (time, title, interest, and possession)
Tenancy by the entirety
reserved for married couples
Each spouse has an undivided interest in the whole of the property and a right of survivorship, unless expressly stated otherwise
Only created by deed or will not descent
Severance: tenancy by the entirety
only when the spouses jointly convey to a third party, one spouse conveys to the other spouse, or the couple divorces
Severance: Joint tenancy
Creates a tenancy in common
done by an inter vivos act of the parties
can seek a partition action
joint tenant sells his interest
joint tenant mortgages
Lien theory jurisdiction
(majority)
mortgage is viewed as a lien on the property, will not sever interest
mortgage encumbers only the portion belonging to the mortgagor
if mortgagor dies, the living joint tenant inherits the whole free of the mortgage. if there is a foreclosure before mortgagor dies, foreclosure severs the joint tenancy.
Title theory jurisdiction (minority)
mortgage is viewed as a title to the property, will sever
mortgage encumbers only the portion belonging to the mortgagor
VIRGINIA
Partition
each co-tenant has the right to seek partition of the property
Voluntary partition
done by exchange of deeds or selling the property and dividing the proceeds
Involuntary partition
is the result of a partition action filed by one or more co-tenants in court
Co-tenant possession
each co-tenant entitled to possess the whole property
Co-tenant profits
profit produced by one of the co-tenant’s efforts, then the other co-tenants have no right to share in those profits
profit generated by a third party, then all co-tenants are entitled to a proportionate share
Co-tenant expenses
taxes/mortgage payments- each co-tenant must pay a proportionate share
repairs- no direct duty of repair imposed, however a co-tenant who makes repairs to the property may be compensated for the amount of the repair
improvements- no duty imposed. if one co-tenant chooses to improve the property, they cannot get contribution from the other co-tenants. exception: if the property is sold, any amount attributable to the improvement goes to the tenant who made the improvement
Landlord-tenant question
- what type of tenancy?
- what is the dispute?
(rent, premises condition, possession, improvements) - Has the LL/T transferred their interest in the property?
Lease creation
oral or in writing (required for a term longer than a year)
implied lease- through conduct of the parties
Term of Years tenancy
creation: express agreement between LL and T for a term specified in the lease
termination: automatically at the end of the period, no notice required
Periodic tenancy
Creation: expressly or by implication with a holdover tenant
termination: LL or T must give appropriate notice of intent to terminate (in writing if specified in the lease or state statute, otherwise orally) equal to the rental period, up to a maximum of six months
(ex. 1 month tenancy= 1 month, 3 month tenancy = 3 months, 1 year tenancy = 6 months)
Timing of notice: notice is good whenever given but does not take effect until the start of the next rental period