Real Property Flashcards
For a fee simple absolute, what is the:
- Language to create
- Duration
- Transferability
- Future interest
Language to create
- “To A and his heirs.”
- “To A.”
Duration
- Absolute ownership of potentially infinite duration
Transferability
- Devisable
- Descendible
- Alienable
Future interest
- None
For a fee tail, what is the:
- Language to create
- Duration
- Transferability
- Future interest
Language to create
- “To A and the heirs of his body.”
Duration
- Lasts only as long as there are lineal blood descendants of grantee
Transferability
- Passes automatically to grantee’s lineal descendants
Future interest
- Reversion (if held by grantor)
- Remainder (if held by third party)
- Possibility of reverter (held by grantor)
What are the different types of defeasible fees?
- Fee simple determinable
- Fee simple subject to a condition subsequent
- Fee simple subject to an executor limitation
For a fee simple determinable, what is the:
- Language to create
- Duration
- Transferability
- Future interest
Language to create
- “To A so long as …”
- “To A until …”
- To A while …”
Duration
- Potentially infinite, so long as event does not occur
Transferability
- Devisable, subject to condition
- Descendible, subject to condition
- Alienable, subject to condition
Future interest
- Possibility of reverter (held by grantor)
For a fee simple subject to condition subsequent, what is the:
- Language to create
- Duration
- Transferability
- Future interest
Language to create
- “To A, but if X event happens, grantor reserves the right to reenter and retake.”
Duration
- Potentially infinite, so long as the condition is not breached and, thereafter, the holder of the right of entry timely exercises the power of termination
Transferability
- Devisable, subject to condition
- Descendable, subject to condition
- Alienable, subject to condition
Future interest
- Right of entry/power of termination (held by grantor)
For a fee simple subject to an executor limitation, what is the:
- Language to create
- Duration
- Transferability
- Future interest
Language to create
- “To A, but if X event occurs, then to B.”
Duration
- Potentially infinite, so long as stated contingency does not occur.
Transferability
- Devisable, subject to condition
- Descendible, subject to condition
- Alienable, subject to condition
Future interest
- Executory interest (held by third party)
For a life estate, what is the:
- Language to create
- Duration
- Transferability
- Future interest
Language to create
- “To A for life.”
- “To A for the life of B.”
Duration
- Measured by life of transferee or
- Measured by some other life (i.e., pur autre vie)
Transferability
- Devisable, if pur autre vie and measuring life still alive
- Descendible, if pur autre vie and measuring life still alive
- Alienable, if pur autre vie and measuring life still alive
Future interest
- Reversion (if held by grantor)
- Remainder (if held by third party)
What do the fee simple determinable and the fee simple subject to condition subsequent share?
What is their distinction?
They both must have:
- Clear durational language
But just the fee simple subject to condition subsequent needs:
- Explicit right to reenter
In the following example, what does A have? Why?
“To A for the purpose of constructing a daycare center.”
Fee simple absolute
The restriction is not based on clear durational language
Courts disfavor restrictions on free land use
So a court would not find this to be a defeasible fee
In the following examples, what do A and O have? Why?
- “To A so long as she does not attempt to sell.”
- “To A so long as she does not attempt to sell until 2016, when coulds on the title will be resolved.”
- A has a fee simple absolute; O has nothing.
- Absolute restraints on alienation are void.
- A has a fee simple determinable; O has a possibility of reverter.
- Resonable, time-limited restraints on alienable are valid.
In the following example, what does A have? Why?
“To a for life, but in no event more than 10 years.”
A has a term of years
To have a life estate, it must be measured in explicit lifetime terms, and never in terms of years
What are the two important rules regarding life estates?
- The life tenant is entitled to ordinary uses and profits from the land
- The life tenant cannot commit waste
What are the different types of waste?
-
Affirmative waste
- Willful destruction that causes a drop in value
-
Permissive waste (i.e., neglect)
- Neglect that allowed the land to fall into disrepair
-
Ameliorative waste
- Actions that enhance the property’s value
What is the rule regarding waste and natural resources?
A life tenant cannot commit affirmative waste, which includes consuming or exploiting natural resources (e.g., timber, oil, minerals, etc.), unless:
“PURGE”
- Prior Use
- Life tenant may consume or exploit if:
- Prior to thegrant, the land was exploited
- Parties have not agreed otherwise
- Open mines doctrine is followed
- Life tenant may consume or exploit if:
- Repairs
- Life tenant may consume or exploit if:
- For purporses of repairs or maintenance
- Life tenant may consume or exploit if:
- Grant
- Life tenant may consume or exploit if:
- Granted the right to do so
- Life tenant may consume or exploit if:
- Exploitation
- Life tenant may consume or exploit if:
- The land is only suitable for exploitation (e.g., quarry)
- Life tenant may consume or exploit if:
What is the rule regarding a life tenant’s obligation to repair?
What about paying taxes?
- The life tenant is only obligated to maintain the premises in reasonably good repair
- The life tenant is obligated to pay all ordinary taxes on the land, to the extent of either:
- Income and profits from the land
- The land’s fair rental value (if no income or profits)
Why is a life tenant prohibited from committing ameliorative waste?
Can a life tenant ever commit ameliorative waste?
Property honors sentimental value
Ameliorative waste is only allowed if:
- All future interest holders are known and consent
What are the future interests capable of creation in the grantor?
Explain the accompanying present estates
- Possibility of reverter
- Accompanies fee simple determinable
- Right of entry/power of termination
- Accompanies fee simple subject to condition subsequent
- Reversion
- Accompanies any estate transfer of some lesser amount than what the grantor started with, other than those listed above
What are the future interests capable of creation in transferees?
What are their sub-types?
- Vested remainder
- Indefeasibly vested remainder
- Vested remainder subject to complete defeasance
- Vested remainder subject to open
- Contingent remainder
- Executory interest
- Shifting executory interest
- Springing executory interest
What present estates does the remainder accompany?
What present estated does the remainder never accompany?
How do you remember this?
Remainders accompany:
- Life estate
- Term of years
Remainders never accompany:
- Defeasible fees
Remember:
- Jack Johnson is a patient and polite remainderman
- He waits for the present estate to naturally end
- He never gets in the way of the present estate
When is a remainder vested?
When is a remainder contingent?
It is vested if both:
- Created in an ascertained person
- Not subject to any condition precedent
It is contingent if either:
- Created in an unascertained person
- Subject to a condition precedent
What is the old common law rule of destructibility relating to contingent remainders?
What is the modern common law rule?
Old rule
- At common law, a contingent remainder was destroyed if it was still contingent at the time the preceding estate ended
Modern rule
- At common law, a contingent remainder is not destroyed if it is still contingent at the time the preceding estate ends
- If that happens, the estate reverts back to the grantor (or his heirs), who holds it subject to the contingent remainderman’s springing executory interest
What is the R__ule in Shelley’s Case?
What type of rule is it (i.e., of law or construction)?
What is the modern approach?
The Rule in Shelley’s Case
- If O conveys “To A for life, then to A’s heirs”
- The present and future interests merge
- A has a fee simple absolute
- A’s heirs have nothing
- O has nothing
It is a rule of law (i.e., still applies even if contrary intent)
Modern approach (including Virginia)
- If O conveys “To A for life, then to A’s heirs”
- The present and future interest do not merge
- A has a life estate
- A’s heirs have a contingent remainder
- O has a reversion
What is the Doctrine Against Worthier Title?
What type of rule is it (i.e., of law or construction)?
What is the modern approach?
The Doctrine Against Worthier Title
- If O is alive
- And conveys “To A for life, then to O’s heirs”
- A has a life estate
- O’s heirs have nothing
- O has a reversion
It is a rule of construction (i.e., doesn’t apply if contrary intent)
- So if in addition to using the above language, O clearly intended to create a contingent remainder in his heirs, then that intent is binding
Modern approach
- It still applies in most states, but
- IT DOES NOT APPLY IN VIRGINIA
When is a remainder indefeasibly vested?
What happens if the holder of the remainder predeceases the holder of the present estate?
When the holder is certain to acquire the estate with no strings attached
The indefeasibly vested remainder passes by will (devises) or intestacy (descends)
When is a vested remainder subject to complete defeasance?
When the remainderman’s right to possession could be cut short by a condition subsequent
When is a vested remainder subject to open?
When the remainder is vested in a group and:
- At least one member of the group is qualified to take,
- But each member’s share is subject to dimunition because additional members can still join
For purposes of a vested remainder subject to open, how do you determine if a class is open or closed?
What is this rule called?
The rule of convenience
- A class is closed when any member can demand possession
What is a shifting executory interest?
What is a springing executory interest?
What do they follow?
Shifting executory interest
- Cuts short someone other than the grantor
- Follows a fee simple subject to executory limitation
Springing executory interest
- Cuts short the grantor
- Follows a fee simple subject to executory limitation
What is the rule against perpetuities:
- At common law
- In Virginia
Common law
- Certain kinds of interests are void if there is any possibility, however, remove, that the given interest may vest more than 21 years after the death of a measuring life
Virginia
- Virginia has adopted the Uniform Statutory Rule Against Perpetuities
- The Uniform Rule adds:
- If the interest passes the 21-year common law rule, the interest is still void if it will actually vest or terminate within 90 years after its creation
- The Uniform Rule adds:
What is the four-step technique to evaluating RAP problems?
(Additional step for Virginia)
- Identify the future interests
- Identify the conditions precedent
- Identify a measuring life
- Determine whether the interest holders can or cannot take within 21 years of the measuring life’s death
- Determine whether the interest holders will or will not take within 90 years after the interest’s creation
What future interests does the RAP apply to?
What future interest does the RAP not apply to?
RAP only applies to:
- Contingent remainders
- Executory interests
- Certain vested remainders subject to open
RAP does not apply to:
- The grantor’s future interests
- Indefeasibly vested remainders
- Vested remainders subject to complete defeasance
How do you identify a measuring life for purposes of RAP?
The measuring life must be grant-specific
(i.e., the grant is specifically dependent on that life)
What are the two bright-line rules for RAP?
- A gift to an open class that is conditioned on the members surviving to an age beyond 21 violates RAP
- So the entire class is void, and it becomes:
- Reversion to grantor
- So the entire class is void, and it becomes:
- An executory interest with no limit on the time within which it must vest violates RAP
- So it either becomes:
- Possibility of reverter (“so long as” language)
- Nothing (“but if” language)
- So it either becomes:
Can a gift from one charity to another violate the RAP?
No
Reform of the RAP:
What is the “wait and see” or “second look” doctrine?
The validity of any suspect future interest is determined on the basis of the facts as they now exist at the end of the measuring life
Reform of the RAP:
What is the USRAP?
What does it add?
Uniform Statutory Rule Against Perpetuities
Adds a brigher-line 90-year vesting period (i.e., even if the common law RAP 21-year period is satisfied, the grant is void if it will not vest within 90 years of the grant)
What do both the “wait and see” doctrine and USRAP embrace?
Cy pres doctrine
- Means: “as near as possible”
- If a given disposition violates the rule, a court may reform it in a way that most closely matches the grantor’s intent while complying with the RAP
Reduction of offensive age contingency
- If a property interest would violate the rule because it is contingent upon any person attaining or failing to attain an age in excess of 21 years, the age contingency shall be reduced to 21 years as to all persons subject to the same age contingency
What are the different forms of concurrent ownership (i.e., concurrent estates)?
- Joint tenancy
- Two or more persons
- Right of survivorship
- Tenancy by the entirety
- Married partners
- Right of survivorship
- Tenancy in common
- Two or more persons
- No right of survivorship
What does right of survivorship mean?
What are its implications?
When one person dies, his interest automatically goes to the other person
Because of this:
- It is not:
- Devisable (in a will)
- Descendable (intestate)
- It avoids probate
How do you create a joint tenancy?
- Include the four unities (T-TIP)
- Joint tenants must take their interests:
- Time (at the same time)
- Title (by the same title)
- Identical interests (with identical interests)
- Possession (with right to possess the whole)
- Joint tenants must take their interests:
-
Clearly express the right of survivorship
- Joint tenancies are disfavored, so if you don’t do this you won’t have one
- They are disfavored because joint tenants avoid probate
When would you use a straw?
How would you do it?
Use a straw if you hold property in fee simple absolute and you want to hold if in joint tenancy
If A wants to hold property he owns in fee simple absolute in joint tenancy with B, he must:
- Convey the property to a straw
- Have the straw convey the property to A and B as joint tenants with the right of survivorship
Note: this ensures that the four unities (T-TIP) are met
How do you sever a joint tenancy?
(SPAM)
- Sale
- Partition
- And
- Mortgage
When one member of a joint tenancy sells her interest, what happens?
Can she do so secretly?
This disrupts the four unities,
- So the buyer
- Becomes a tenant in common
- But to there were more than two joint tenants, for others
- The joint tenancy remains intact
A joint tenant may sell secretly even without the others’ knowledge or consent
At what point does a joint tenant’s sale of her interest sever the joint tenancy as to her?
Why?
When she merely enters into a contract for the sale of the interest (i.e., before the actual sale)
This is because of the doctrine of equitable conversion, which holds that equity regards as done that which ought to be done
What are the different ways in which a joint tenancy interest may be partitioned?
- Voluntary agreement
- Peaceful way to end the relationship
- Partition in kind
- Court action for physical division if in the best interests of all (e.g., farm or vineyard)
- Forced sale
- Court action for sale and proportionate division of proceeds if in the best interests of all (e.g., joint tenants cannot get along on the same property)
What happens if a joint tenant executes a mortgage or lien on his share of the joint tenancy?
In a minority jurisdiction following the title theory of mortgages:
- The joint tenancy will be served as to that share
In a majority jurisdiction following the lien theory of mortgages:
- The joint tenancy will not be served as to that share
VIRGINIA FOLLOWS THE LIEN THEORY
How do you create a tenancy by the entirety?
In states that recognize the tenancy by the entirety, it arises presumptively
A tenancy by the entirety is created in any grant to married partners, unless stated otherwise
In a tenancy by the entirety:
- What creditors can access it?
- When can the tenants convey?
- Creditors
- Only creditors of both parties can access the tenancy (i.e., creditors of just one party cannot touch the tenancy)
- Unilateral conveyance
- Tenants can only convey bilaterally (i.e., neither tenant, acting alone, can defeat the right of survivorship by unilateral transfer to a third party)
What are the three distinguishing features of a tenancy in common?
- Presumption
- The presumption favors the tenancy in common
- Because it does not avoid probate
- The presumption favors the tenancy in common
- Ownership and possession
- Each co-tenant both:
- Owns an individual part and
- Has a right to possess the whole
- Each co-tenant both:
- __Transferability
- Each interest is:
- Devisable
- Descendable
- Alienable
- So, there are not survivorship rights
- Each interest is:
What are the rights and duties of co-tenants regarding possession?
Wrongful ouster
- A co-tenant who excludes another co-tenant (who, after all, has rights to possess the whole) has committed wrongful ouster
What are the rights and duties of co-tenants regarding rent from:
- Co-tenants in exclusive possession
- Third parties
Rent from co-tenants in exclusive possession
- If a co-tenant commits wrongful ouster, he must pay rent to the ousted co-tenant covering the period of exclusive possession
- But, absent ouster, a co-tenant in exclusive possession does not owe any rent to other co-tenants
Rent from third parties
- A co-tenant who leases all or part of the premises to a third parties must account (via an equitable accounting action) to his co-tenants for their fair share of the rental income
What are the rights and duties of co-tenants regarding adverse possession?
No ouster
- Unless a co-tenant ousted other co-tenants, his exclusive possession for the statutory adverse possession period will not give him title to the exclusion of the others
- This is because the hostility requirement is missing
Ouster
- If a co-tenant ousted other co-tenants, his exclusive possession for the statutory adverse possession period will give him title to the exclusion of the others
What are the rights and duties of co-tenants regarding carrying costs?
Each co-tenant is responsible for his pro rata share of carrying costs
E.g., taxes and mortgage interest
What are the rights and duties of co-tenants regarding repairs?
A co-tenant who makes reasonably necessary repairs enjoys a right of contribution, provided he told the others of the need
What are the rights and duties of co-tenants regarding improvements?
During the life of the co-tenancy, there is no right to contribution for improvements (i.e., these are inherently subjective)
However, at partition, the improving co-tenant is:
- Entitled to a credit equal to any increase in value from the improvement
- Liable for any drop in value caused by the improvement
What are the rights and duties of co-tenants regarding waste?
A co-tenant must not commit waste
A waste action resides during the life of the co-tenancy (i.e., no need to wait until partition)
What are the different leasehold (i.e., non-freehold) estates?
- Tenancy for years
- A lease for a fixed period (i.e., could be 1 day or 10 years)
-
Periodic tenancy
- A lease for successive intervals
- Tenancy at will
- A lease for no fixed duration
- Tenancy at sufferance
- A lease created when T wrongfully holds over
What are the distinguishing characteristics of a tenancy for years?
- Creation
- If > 1 year, must be in writing
- Termination
- Because it is for a fixed period, no notice required
What are the distinguishing characteristics of a periodic tenancy?
- Creation
- May be express (e.g., T o T from month-to-month)
- May be implied by:
- No mention of duration, but rent paid at set intervals
- E.g., rent paid monthly, so month-to-month periodic tenancy
- Oral term of years, but violates statute of frauds
- E.g., 5 year lease at $100/month, but not in writing, so month-to-month periodic tenancy
- Holdover
- E.g., T holds over after expiration of 1-year lease, but sends an additional month’s rent to L, who cashes it, so month-to-month periodic tenancy
- No mention of duration, but rent paid at set intervals
- Termination
- Notice
- Usually, written notice is required, at least equal to the period itself (subject to freedom of contract)
- E.g., notice to terminate month-to-month periodic tenancy must be 1 month prior
-
Exception: year-to-year or greater
- Notice need not be > 6 months prior (subject to freedom of contract)
- Usually, written notice is required, at least equal to the period itself (subject to freedom of contract)
- Timing
- Periodic tenancy must end at the conclusion of a natural lease period
- E.g., notice to terminate month-to-month lease on 5/15 terminates effective 6/30
- Periodic tenancy must end at the conclusion of a natural lease period
- Notice
What are the distinguishing characteristics of the tenancy at will?
- Rare
- Courts will strain to avoid this tenancy
- Creation
- Must expressly agree to have this tenancy, otherwise courts will imply a periodic tenancy
- Termination
- By definition, may be terminated by either party at any time
- But reasonable demand to vacate is usually needed
What are the distinguishing characteristics of a tenancy at sufferance?
- Duration
- Lasts only until L either:
- Evicts T
- Elects to hold T to a new tenancy
- Lasts only until L either:
What are a tenant’s duties?
- T’s liability to third parties
- T’s duty to repair
- T’s duty to pay rent
What is a tenant’s liability to third parties?
- T is responsible for keeping the premises in good repair
-
Even if L promises to keep the premises in good repair, T will be liable for injuries to third parties that he invited
- __This is true even if T may be able to seek indemnification from L
What is a tenant’s duty to repair?
If the lease is silent:
- Repairs
- T must maintain the premises by making routine repairs other than those due to ordinary wear and tear (e.g., unclog sink, but not replace worn shower tiles)
- Waste
- T must not commit waste:
- Voluntary (i.e., overt destruction)
- Permissive (i.e., neglect)
- Ameliorative (i.e., changes that enhance value)
- T must not commit waste:
If the lease expressly requires T to maintain the property in good condition:
- At common law, historically:
- T was liable for any loss to the property,
- Including loss due to a force of nature
-
Today, the majority view:
- T is not liable for loss due to a force of nature
- T may end the lease if premises are so destroyed
What has a tenant done if she removes a fixture?
Committed voluntary waste
T must not remove a fixture, even if she installed it
FIXTURES PASS WITH OWNERSHIP OF THE LAND
What is a fixture?
What are some examples?
A once movable chattel that, by virtue of its annexation to realty, objectively shows the intent to permanently improve the property
E.g., heating systems, custom storm windows, furnace, lighting
How do you determine if a tenant installation qualifies as a fixture?
- Express agreement controls
-
Absent agreement, an item is a fixture if:
- Removal will cause substantial harm to the premises
What if a tenant breaches his duty to pay rent?
If T breaches this duty and is:
-
In possession
- L may either:
-
Evict through the courts
- And recover rent during the time T is a tenant at sufferance
- Continue the relationship
-
Evict through the courts
- L may not:
- Engage in self-help (e.g., changing locks, forcibly removing T, removing T’s items)
- Self-help is punishable civilly and criminally
- L may either:
-
Out of possession
- L may: (“S I R”)
- Surrender (i.e., treat T’s abandonment as an offer of surrender and accept it)
- Ignore (i.e., hold T responsible for unpaid rent, just as if T were still there - minority)
-
Re-let (i.e., replace T and hold T responsible for any deficiency in rent)
- L must at least try to re-let (majority rule)
- L may: (“S I R”)
What are a landlord’s duties?
- Duty to deliver possession
- Implied covenant of quiet enjoyment
- Implied warranty of habitability
- Duty to avoid retaliatory eviction
What is the majority rule regarding a landlord’s duty to deliver possession?
What is the minority rule?
Majority rule (English rule)
- L must give T actual possession
- So if at the start of T’s lease, a prior holdover is still in possession, L has breached
Minority rule (American rule)
- L must give T legal possession
- So if at the start of T’s lease, a prior holdover is still in possession, it is T’s problem
What is the implied covenant of quiet enjoyment?
What types of leases does it apply to?
When is it breached?
Definition
- T has a right to quiet use and enjoyment without interference from L
Application
- Applies to both residential and commercial leases
Breach
- L breaches when:
- Actual wrongful eviction
- Constructive eviction
What is constructive eviction?
(“SING”)
- Substantial Interference
- Due to L’s actions or inactions (e.g., not addressing a flooding problem)
- Notice
- T must notify L of the problem
- L must fail to address the problem in response
- Goodbye
- T must vacate within a reasonable time after L’s failure
For purposes of the implied covenant of quiet enjoyment, is a landlord liable for the acts of other tenants?
Generally, no. Except:
- L must not permit a nuisance on-site
- L must control common areas
What is the implied warranty of habitability?
What supplies the standard?
What are examples?
The premises must be fit for basic human dwelling
The standard may be supplied by:
- Housing code
- Case law
Examples:
- Not heat in winter
- No plumbing
- No running water
What is a tenante entitled to when his landlord breaches the implied warranty of habitability?
(“MR3”)
- Move out and end the lease
- Repair and deduct cost from rent
- Reduce rent or withold rent until a court determines FV
- Witheld rent typically must be placed in escrow
- Remain in possession, pay rent, and seek money damages
What is a landlord’s duty to avoid retaliatory eviction?
If T lawfully reports L for housing code violations, L cannot penalize T by (for example):
- Raising rent
- Ending the lease
- Harrassing T
- Taking any other reprisals
What is the difference between the assignment and the sublease?
Assignment
- T transfers his interest in whole
Sublease
- T transfers his interest in part
When can T transfer his interest in a lease?
Either
- In the absence of a prohibition in the lease
- If T obtains prior written approval based on a prohibition
Once L consents to one transfer by T (via assignment or sublease), can T make future transfers?
Yes, unless L reserved the right to object in the future
If T1 assigns his interest in a lease to T2, what are the relationships between these parties and L?
L and T2
- Privity of estate
-
NOT privity of contract, unless:
- T2 assumes all promises in T1’s lease
L and T1
- Privity of contract
- So, T1 and L are secondarily liable to eachother
What does privity of estate mean?
Parties in privity of estate are liable to eachother for all the covenants in the original lease that “run with the land”
E.g., promises to pay rent, paint the premises, repair the premises
What does privity of contract mean?
Parties in privity of contract may be liable (possibly secondarily) for breaches of the contract (rather than mere breaches that run with the land)
L leases blackacre to T1.
T1 assigns to T2.
T2 assigns to T3.
T3 engages in flagrant abuse to premises.
Who can L proceed against?
T3, because L is in privity of estate with him.
T1 because L is in privity of contract with him.
NOT T2 because L is neither in privity of estate nor privity of contract with him (unless T2 assumed all promises in T1’s lease)