Real Property

Question 1

class gifts

Answer 1

when the property is transferred from the grantor

• -if its a will, it’s upon the grantors death
• • if its a trust, then immediately

it closes when any member of the class has a present possessory interest in the property.

if you have a child in the womb, that child is included as well

as for the children born later, they get nothing.

Question 2

whenever you see great grandchildren in a fact pattern

Answer 2

there’s likely to be a RAP problem

Question 3

holdover tennant

Answer 3

if you are a holdover commercial tenant, you will be locked into a brand new one-year month to month tenancy

if you are a holdover residential tenant you will be a holdover tenant month to month.

Question 4

restrictive covenents

Answer 4

a huge plot of land that is divided up into a common development scheme with a covenant that was recorded with the original deed. these covenants run with the land. and each plot owner is on notice and can enforce against all other plot owners.

one of the original owners in the development scheme will sell to a new owner, who doesn’t have the restrictive covenant in the deed.

the answer is yes, if there was notice

common suburban scheme developments notice

Question 5

fixtures

Answer 5

to determine whether a tenant can remove a chattel from a residential piece of property

*** how much damage will be caused to the real property when the chattel is removed.

tenant’s intent when they installed the fixture.

prior to a commercial lease expiring, the tenant can remove all fixtures

Question 6

escrow period

Answer 6

escrow period==the days between the buyer signing and closing , the buyer is considered to be the equity owner of the property, so if the property is destroyed, the buyer is liable.

the moment you buy a piece of property, buy homeowner’s insurance

Question 7

equitable conversion

Answer 7

once you enter into a land sale agreement, the buyer or the seller can demand specific performance.

the estate of the developer can demand specific performance that the landowner go through with the sale.

Question 8

exoneration

Answer 8

?

Question 9

adverse possession

Answer 9

elements:

1) use the property as if you were the true owner
2) ?
3) ?
4) ?

if there is consent to use the land, there is a license, not adverse possession

Question 10

incompetency and adverse possession

Answer 10

this applies if the incompetency exists at the outset of adverse possession. the period of adverse possession is tolled until the person turns 18 or becomes competent.

if you become incompetent in the middle of adverse possession, then it doesn’t toll

Question 11

in order to have a valid conveyance

Answer 11

the deed must adequately describe the land being conveyed

Question 12

general warranty deed

Answer 12

Present covenants:

1) covenant of seisen– I possess the property
2) the covenant of the right to convey
3) the covenant against encumbrances

Future covenants that run with the land. they can be enforced by the buyer and subsequent buyers as well as against the original grantor:

1) the covenant of quiet enjoyment– the grantor indemnifies the grantee and all subsequent grantees against claims of title brought by third parties
2) covenant of general warranty– no one else has claim to the land
3) covenant of future assurances- grantor will take necessary measures to protect grantee’s title.

Question 13

purchase money mortgage

Answer 13

a mortgage given to a third party lender (the bank) who is lending money to the mortgagor (buyer of property) to purchase that property.

your purchase money mortgage is going to take precedent over other mortgages on the land.– BUT this mortgage must be recorded and is subject to recording statutes.

Question 14

Notice jurisdiction

Answer 14

last BFP wins

you get to take advantage of the shelter doctrine, you get to step into the shoes of the BFP.

Question 15

race notice

Answer 15

“without notice” “first recorded”

the first BFP/mortgagee who records before anyone else is the winner

Question 16

riparian water rights doctrine (majority)

Answer 16

a riparian is anyone who owns land that abuts a river or stream. the reasonable use rule: DOMESTIC USE trumps commercial and agricultural rule

Question 17

prior appropriations doctrine (minority)

Answer 17

first person to make sure of the water trumps

Question 18

a fee simple determinable/ fee on limitation (NY) always has

Answer 18

a possibility of reverter.

To A so long as…

If the stated condition is violated, the forfeiture is automatic.

Question 19

a fee simple subject to condition subsequent/ a fee on condition

Answer 19

“To A, but if X occurs, grantor reserves the right to enter and retake.

This estate is not AUTOMATICALLY TERMINATED, but it can be cut short at the grantor’s option

Future interest: the right of reacquisition

Question 20

a fee simple subject to executory limitation

Answer 20

“to A, but if X event occurs, then to B”

Just like the fee simple determinable only now if the condition is broken, the estate is favorably forfeited in favor of someone other than O, the grantor.

Accompanying future interest? The shifting executory interest.

Question 21

life estate

Answer 21

an estate measured in explicit lifetime tenure,never in terms of years, that would create a leasehold interest

Question 22

life estate pur autre vie

Answer 22

a life estate measured by someone else’s life

Question 23

Life tenants and doctrine of waste

Answer 23

1) a life tenant is entitled to all ordinary uses and profits from the land
2) a life tenant must not commit waster or cause injury to the future interest holders entitlements

Question 24

voluntary or affirmative waste

Answer 24

a life tenant must not consume or exploit natural resources on the property, such as timber, oil or minerals unless on of four exceptions apply. PURGE:

PU PRIOR USE–if the prior tenants exploited the property, the life tenant may continue to do so

R–REPAIRS– life tenant may consume natural resources for repairs and maintenance

G-GRANTED– the life tenant may exploit if granted

E– EXPLOIT– the land is suitable only to exploit
e.g. Blackacre is a quarry

Question 25

Open mines doctrine

Answer 25

if mining were done on the land before the life estate began: the life tenant may continue to mine but is limited to mines already opened

Question 26

permissive waste

Answer 26

this occurs when the land falls into disrepair

the life tenant must simply maintain the premises in reasonably good repair.

the life tenant must pay the ordinary taxes associated with the land, based on income or profits from the land, or its fair rental value.

Question 27

ameliorative waste

Answer 27

the life tenant must not engage in acts that will enhance the property’s value unless: all future interest holders are known and consent.

Question 28

Future interests

Answer 28

there are three kinds:

1. a vested remander (3 kinds)
2. a contingent remainder
3. an executory interest (2 kinds)

Question 29

a remainder is vested if:

Answer 29

it is both created in an ascertained person and is not subject to any condition precedent.

Question 30

a remainder is contingent if:

Answer 30

it is created in an unascertained person OR is subject to a condition precedent, OR both.

Question 31

the indefeasibly vested remainder

Answer 31

the owner of this remainder is certain to acquire an estate in the future with no strings attached

Question 32

a condition precedent creates a

Answer 32

contingent remainder

Question 33

a condition subsequent creates a

Answer 33

a vested remainder subject to complete defeasance

Question 34

a class is open if

Answer 34

others can still join

Question 35

a class is closed when

Answer 35

no others can join; whenever any member can demand possession

Question 36

an executory interest

Answer 36

a future interest created in a transferee that is not a remainder and which takes effect by either cutting short some interest in:

another person (shifting) or

in the grantor and his heirs (springing)

Question 37

a shifting executory interest

Answer 37

always follows a defeasible fee and cuts short someone other than O, the grantor
e.g. “ To A and his heirs, but if B returns from Canada sometime next year, to B and his heirs.”

B has a shifting executory interest
A has a fee simple subject to B’s shifting executory interest.

Question 38

a springing executory interest

Answer 38

O conveys to A, if an when he marries. A is unmarried.

A has a fee simple subject to A’s springing executory interest and

O has a fee simple subject to A’s springing executory interest.

Question 39

In NY, executory interests and contingent remainders are the same and are called

Answer 39

a remainder subject to a condition precedent

Question 40

joint tenancy

Answer 40

joint tenants must take their interests: T-TIP

T– at the same time
T– by the same TITLE (instrument)
I– identical shares
P– the right to possess the whole

+ Grantor must clearly state the right of survivorship

Question 41

what are the distinguishing characteristics of the joint tenancy?

Answer 41

1) the right of survivorship– upon death, one joint tenant’s share goes automatically to the surviving joint tenant
2) a joint tenant’s interest is alienable, it is not devisable nor descendable

Question 42

Severance of joint tenancy

Answer 42

SPAM

S– sale
P– partition
A– and
M– mortgage

A joint tenant can sell or transfer her interest during her lifetime. Even without the other’s knowledge or consent.

Question 43

One joint tenants sale severs the joint tenancy as to the seller’s interest…

Answer 43

because it disrupts the four unities, thus the buyer is a tenant in common.