Real Property Flashcards
Three interests in land:
- Estate
- Easement
- Restrictive covenant
Present POSSESSORY estates:
Freehold and Landlord-Tenant (Non-Freehold)
Estates with future rights in possession:
Future interests
Fee Simple Absolute must be fully
Alienable. No DIRECT restraints on transfer of ownership.
Any attempt at direct restraint on alienation is:
Void. Which means you ignore the restriction.
Difference b/t language of ‘conditions’ from language on restrictions of transferability:
Conditions may be imposed on a FSA,
but any attempt to limit the RIGHT OF TRANSFER is void.
EXCEPTION to restriction on transferability in FSA:
Right of first refusal.
Cts presume a FSA was granted unless:
language shows a CLEAR INTENT to do otherwise.
Life Estate Pur Autre Vie: If life tenant dies b/f the measuring life then:
PAV Life estate passes to the estate of the PAV life tenant and continues until the measuring life dies.
Three types of waste:
- Voluntary Waste
- Permissive Waste
- Ameliorative Waste
Voluntary Waste:
any AFFIRMATIVE action
beyond the right of MAINTENANCE
that causes HARM to the premises
(Maintenance: Normal use of the land)
General Rule of WASTE: Life Tenant _______ the estate.
MAINTAINS
Life tenant is responsible for paying:
The INTEREST on the mortgage, not any of the principal.
Property Tax.
Life tenants and property tax:
LT must pay all taxes on the property - if they fail to do so then life estate is forfeited.
Three things to do to avoid liability for permissive waste:
- Repairs
- Taxes
- Pay mortgage debt (interest)
Life tenant and repairs:
LT has obligation to make ORDINARY repairs but NOT replacements.
Ameliorative Waste
Occurs when LT alters the property substantially thereby INCREASING the value of the land.
General Rule for Ameliorative Waste:
If CHANGED CONDITIONS make the property RELATIVELY WORTHLESS, then the LT can alter the property w/o incurring liability to the holder of the future interest.
Seisen
Holder of seisen is the TAXPAYER
General Rule: Future Interests:
the INTEREST exists now but POSSESSION will not take place (if at all) until some time in the future.
Future interests retained by the GRANTOR (3)
- Reversion
- Possibility of reverter
- Right of entry.
Future interests given to the GRANTEE (2)
- Remainder
2. Executory interest
General Rule: REVERSION
A reversion in the GRANTOR arises whenever the grantor conveys away LESS THAN the FULL durational estate that the grantor had.
Hypo: O –> A(forlife) –> B(forlife). What interests?
A: Life Estate
B: Life Estate pur autre vie (for the duration of A’s life)
O: Reversion.
If B dies then A will receive a reversion for life.
Magic Words for Fee Simple Determinable: (4)
- So long as
- While
- During
- Until
Possibility of reverter goes with:
Fee Simple Determinable
HYPO: O –> A and his heirs for so long as no liquor is consumed on the premises. What interests?
A: FS determinable
O: Possibility of reverter
Fee simple on condition subsequent goes with:
Right of Entry
Hypo: O –> A and her heirs; provided however, that if liquor is ever consumed on the property the O shall have the right to retake. What interests?
A: FS on condition subesquent
O: Right of Entry
Does the title go back to grantor automatically with Right of Entry?
No.
Does title go back to grantor automatically with possibility of reverter?
Yes.
Magic words for Fee Simple on Condition Subsequent: (3)
- Provided, however
- but if
- on condition that
words must be followed by language that expressly reserves the right of the grantor to retake the property
Spotting a REMAINDER in a third party:
A future interest in a third party grantee that comes NATURALLY and IMMEDIATELY on the termination of the preceding estate.
Vested remainder:
If nothing stands in the way of its becoming possessory on the natural expiration of the preceding estate. (Taker is ascertainable and no conditions to the taking.)
Hypo: O –> A(forlife), then to B and his heirs if B survives A. Interests?
A: Life Estate
B: Contingent Remainder
Contingent Remainders:
Where there is a condition that must be satisfied before interest in property becomes possessory.
Vested remainders subject to open rule:
Where a remainder interest is conveyed to a group of UNNAMED PERSONS whose members are NOT YET FULLY KNOWN the class remains OPEN to allow for future persons who qualify as class members by satisfying the class description
Hypo: O –> A for life, then to A’s children. At time O makes the grant A has 3 children: B, C, and D. Interests?
A: Life Estate
BCD: vested remainder subject to open: it is open to allow for the birth of future siblings.
Rule of convenience: (Regarding Vested Remainders Subject to Open)
Class closes whenever ANY member of the class is entitled to a distribution.
Hypo: O –> H for life, then to H’s Widow. At time of conveyance H is married to S. Interests?
H: Life Estate
H Widow: Contingent remainder. Remainder is contingent b/c we can only know who H’s widow is when he dies.
S: When the conveyance is made S has no interest.
O: Reversion (If H is unmarried when he dies, the property will revert to O.)
When do remainders become possessory?
only upon the NATURAL (patient and kind) expiration of the previous estate.
Identifying an Executory Interest:
Operates to CUT SHORT the estate that comes before it.
O –> A for life, then to B and his heirs; but if B predeceases A, then to C. Interests?
A: Life Estate
B: FS subject to Executory Interest
C: shifting Executory Interest
Rule Against Perpetuities in Georgia
Cts will ‘wait and see’ if a particular conveyance vests w/i statutory period of 90 years.
When does RAP apply? (3 interests)
- Executory Interests
- Contingent remainders
- Vested remainders subject to open
Two Concurrent Estates in Land:
- Joint Tenancy
2. Tenancy In Common
Rule regarding creation of Joint Tenancies: What must be present and when?
Four unities must be present at the outset in order to create a JT. (TTIP)
Time, Title, Interest, Possession
What four unities must be present to create a joint tenancy? (TTIP)
Time - interests must have vested at the same time
Title - grand must be made in the same instrument
Interest - must have the same KIND and AMOUNT
Possession - same rights of possession
Modern presumption of concurrent estates in land create:
a tenancy in common
What magic words must be used to create a joint tenancy?
“joint tenants with right of survivorship.” RIGHT OF SURVIVORSHIP must be stated EXPRESSLY in the language of the grant.
Right to partition joint tenancy: (2 ways)
- Partition by voluntary agreement.
2. File and action for partition
Special thing about joint tenancy:
It carries the right of survivorship and therefore cannot be conveyed in a will. The surviving tenants absorb the dead tenants interest.
General rule on severance of a joint tenancy: It occurs when:
ANY one of the four unities is disturbed.
Ways to sever: (3)
- Sale
- Contract to convey
- Creditor’s Sale
General rule on severance regarding creditor’s sale:
NO severance until judicial sale actually takes place.
What is the default tenancy?
Tenancy in Common
What unities are required to create a TC?
Just one. Unity of possession: Each co-tenant is entitled to possess the whole of the property.
Rule for co-tenants and profit sharing. Co-tenants generally:
do not account to others for their share of the profits unless it falls into one of the four exceptions.
What are the four exceptions to the profit-sharing rule for co-tenants? LOAD
- Lease of the property by a co-tenant to a third party.
- Ouster - acct’ing required if one co-tenant keeps another co-tenant off the property OR claims right of exclusive possession.
- Agreement to share.
- Depletion of natural resources.
Contribution concerns the right of:
one co-tenant to force the other co-tenant to pay their fair share of some expense on the property
Contribution from co-tenants required for: (3)
- Necessary repairs
- Mortgage payments
- Taxes
Contribution from co-tenants is NOT required for:
Non-necessary improvements, though this will be considered later during partition or sale of the property.
Five Landlord-Tenant Estates:
YUP WS
Tenancy for years Usufruct Periodic tenancy Tenancy at Will Tenancy at Sufference
How to create a tenancy for years in GA?
2 ways
- EXPRESS intent to create TfY instead of an usufruct, OR
2. Lease in excess of five years.
Two dates that must be specified for a tenancy for years? Definite:
- Beginning date, and
2. Ending date.
Usufruct:
A “tenancy of years” in GA that lasts less than five years.
Notice required to terminate a tenancy for years or usufruct:
NONE. Terminates automatically.
Periodic tenancy:
Tenancy that continues for successive periods until terminated by proper notice.
Key phrase is REPEATING. Estate rolls on until one party gives PROPER NOTICE.
Three ways to create a periodic tenancy:
EIO
- Express agreement
- By implication (No agreement as to duration)
- By operation of law.
a. Oral lease that violates the statute of frauds
b. Holdover tenant
General rule in creating periodic tenancies by implication:
If the lease does not specify how long the tenancy is to last then it is presumed to be a periodic tenancy measured by the frequency of the rent payment. (Ex. month to month if rent is paid monthly)
How does a periodic tenancy terminate?
Valid notice.
What constitutes valid notice to terminate periodic tenancies? (2 elements)
- Enough time (equal to the length of the period of tenancy - except for cases of year to year tenancy in which only 6 mo. is required.)
- Effective date: Date specified in notice must be at the END of the period of tenancy.
Tenancy at Will, In GA:
When no time is specified for termination of a tenancy.
Notice requirement for termination of tenancy at will for both the landlord and the tenant:
Landlord must give 60 days notice to terminate
Tenant must give 30 days notice to terminte
Termination of tenancy at will by operation of law (5 ways)
DWATL
- Death of either party
- Waste by the tenant
- Assignment by the tenant
- Transfer of title by landlord
- Lease by landlord to third party.
Tenancy at sufferance arises when:
tenant wrongfully remains in possession after the expiration of lawful tenancy.
e. g. Holdover tenant.
Two options for landlord to cure tenancy at sufferance:
- Sue to evict: sue in TRESPASS, recover DAMAGES. (In GA LL must continue to provide utilities until eviction is complete.)
- Impose new periodic tenancy.
Rules for imposing a new periodic tenancy on a tenant at sufferance: Residential:
If expired tenancy was for less than a year - new tenancy is measured by the period covered by rent payment. RESIDENTIAL - month to month.
Can a LL demand a raise in rent from a holdover tenant?
Yes, IF LL gave tenant notice BEFORE the expiration of the lease.
Two duties of the tenant:
- Duty to pay rent
2. Duty to maintain
If the premises are destroyed w/o fault to the tenant, can he terminate the lease?
Yes, if he chooses.
LL remedies for failure to pay rent: May do two things:
LL may sue for damages AND terminate the lease - evicting the tenant from the property AFTER a 7 day grace period for the tenant to pay rent.
GA, LL remedies for unjustifiable abandonment: (3)
LL can:
- Terminate the lease - T has no further rent obligations
- Relet the property holding T liable for any deficiency in rent.
- Let property remain vacant while collecting rent from T.
Duty of LL to deliver possession of leased premises:
LL must deliver ACTUAL possession of the premises to the T when the lease begins. If not, LL is in breach.
Does a LL have a duty to repair if T’s interest is a usufruct?
Yes.
Every lease includes implied covenant of quiet enjoyment, which is landlord’s:
implied promise not to interfere w/ the tenant’s quiet enjoyment of the leased premises
(both residential and commercial.)
Three ways LL can breach implied covenant of quiet enjoyment:
- Total eviction
- Partial eviction
- Constructive eviction
Where partial eviction occurs BY the LANDLORD what can tenant do?
Stay on what is left for free.
What can tenant do when partial eviction occurs by someone OTHER than the LL?
Rent is proportionally reduced to reflect the amount taken.
Constructive eviction occurs when LL fails to provide:
some service that LL is obligated to provide AND that failure makes the property uninhabitable.
(Does not involve actual exclusion from the premises.)
Four requirements to establish constructive eviction:
Lf Si N&RtR A
- Must be LANDLORD’s failure to provide some svc (not a third party)
- There must be a SUBSTANTIAL INTERFERENCE w/ T’s quiet enjoyment
- T must give LL NOTICE and reasonable time to repair, AND
- T must abandon w/i a reasonable time.
What does T have to do to transfer usufruct?
Must first obtaining LL’s consent.
Assignments:
Transfer of ALL remaining lease
T2 will hand in keys
Sublease:
Transfer of only a part of the remaining lease
T1 will hand in keys
Key to assignments: Lease involves what two things:
- A contract: creating PRIVITY OF K b/t parties of the lease agreement.
- A conveyance of an ESTATE, of an interest in LAND, creating PRIVITY OF ESTATE b/t parties.
Assignment: Successive assignees can be liable for rent to LL if there is either:
- Privity of estate, or
2. Privity of K
Privity of Estate exists b/t:
Present LL and Present T
Privity of K exists only when:
there is an agreement (K) b/t LL and the particular T that LL seeks to recover rent from.
Covenant to pay rent runs with the land and therefore is enforceable based on either: (2)
- Privity of estate, or
2. Privity of K
Common sense test for covenants that touch and concern the land. If the covenant makes the property either:
MORE VALUABLE or
MORE USEFUL
then it touches and concerns the land.
Sublease: Subtenants are generally not liable for rent to:
the LL.
SubT is in privity w/ sublessor, not LL.
LL can recover from anyone w/ whom he is in privity. (Usually not a sublessee b/c no privity.)
In the case of a sublease, who keeps the estate?
The sublessor.
Will the sublessee be liable to LL on lease covenants?
No. But sublessor continues to be liable.
Non-assignment clause:
Clause that says T may not assign or sublet w/o the express permission of the LL
Validity of non-assignment clauses:
Fully enforceable, BUT courts will STRICTLY CONSTRUE. SO non-assignment does not prohibit a sub-lease and vice versa.
Waiver of non-assignment clause:
Permission given once waives the clause for all time unless LL states otherwise at the time of transfer.
Does a partial taking under eminent domain release T from rent obligations?
No. T must pay FULL RENT.
What does T get in the event of a partial taking? Amount equal to:
the rent that was to be paid over the remainder of the lease term for portion of the property that was condemned.
Does T continue to pay rent under a complete taking?
No. This extinguishes the lease and T is excused from paying further rent.