Real Property

Question 1

land acquisition issues

AL’S CDs Dont Record

Answer 1

adverse possession
land sale 
security interest
conveyance by deed
delivery by deed
devise by will
recording acts

Question 2

adverse possession

a o h c

Answer 2

adverse possession allows one who has wrongfully entered a property to obtain possession of that property when there has been actual possession, which is open and notorious, hostile and continuous for the statutory period

actual - claimant must have exclusive use of the property which means he must physically occupy the space.
true owner must be excluded and must not be open to gen public
claimant may only claim possession of the part of the property actually used

open and notorious - claimant must possess and use the property in a way that a true owner would and sufficient to put the true owner on notice

hostile - possession of the land must be without the owner’s consent. mistake with occupation counts as hostile

continuous - possession must be continuous for the statutory period. usually 20 yrs, owner must not re-enter or starts over, seasonal must match seasonal

Question 3

tacking

Answer 3

one adverse possessor may tack his time with time of another adverse possessor to meet the required statutory period if they are in privity

Question 4

effect of adverse possession

Answer 4

does not convey title, however the title can quieted and made marketable by a judicial action

Question 5

land sale contract

k law, m d r

Answer 5

the contract for a conveyance of an interest in real estate typically governs the agreement until the time of closing, at which time the deed becomes the operative document governing the land

Question 6

k law

Answer 6

a contract for the sale of an interest in land
SOF applies- k in writing, name the parties, signed by the party to be bound, state some consideration
part performance - possession plus payment, substantial improvements, conveyance made by seller

Question 7

marketable title

Answer 7

implied promise in every land sale K that the seller covenants to transfer marketable title at the time of closing. marketable title is title free from reasonable doubt about the seller’s ability to convey what he purports to convey

Question 8

doctrine of equitable conversion

Answer 8

once the K is signed, the buyer is deemed owner of the property. if property is destroyed, buyer assumes risk

Question 9

remedy

Answer 9

can sue for damages (difference between the market price and the contract price ) or specific performance because land is unique

Question 10

specific performance

Answer 10

a permanent injunction in contract where the court forces the defendant to perform on the contract as as promised. req’s
contract valid
contract conditions imposed on P have been met
inadequate legal remedy - its land
mutuality - both parties must be eligible to have their performance ordered by the court
feasibility - injunction can not be too difficult for the court to enforce
no defenses - laches or unclean hands or defenses to K such as SOF

Question 11

security interest in land

m d iK

Answer 11

mortgage - a mortgage is a financing agreement that conveys a security interest in land where the parties intend the land to be collateral for the loan
req’s:
writing - SOF exception equitable mortgage if mortgagor delivers deed to mortgagee

Question 12

rights of parties

Answer 12

rights of parties - the buyer-mortgagor has the right to possession of the property and the title, the creditor-mortgagor has a lien which grants the right to look to the land in the event of default

Question 13

foreclosure

Answer 13

a process by which the mortgagee may reach the land in satisfaction of the debt if the mortgagor is in default
judicial - must foreclose by proper judicial proceeding
-priority of loans - after land is sold, the proceeds go to satisfy any debts secured by the property. debts are paid in descending order of priority (usually chronologically) and each creditor is entitled to full payment before a lower ranking creditor receives any
purchase money mortgage - has priority over all others but can not get a deficiency judgment against debtor
- antideficiency statutes - limit a lender from receiving more than the value of the loan. excess returned to debtor after foreclosure sale
deficiency judgment - occurs when the property is worth less than the amount that the debtor owes. a lender may sue the debtor personally for the difference if:
there was a judicial foreclosure and not a PMM

Question 14

deed of trust

Answer 14

is similar to a mortgage except the debtor is a trustor and the deed is given to a third party trustee

Question 15

installment K

Answer 15

buyer makes a down pymnt and pays off the balance in installments. buyer does not receive a deed until the land is paid off, typically if the buyer defaults, the land goes back to the seller and keeps the installment pymnts

Question 16

conveyance by deed

r 3 d m

Answer 16

a deed is a document that serves to pass legal title from the grantor to the grantee when it si lawfully executed and properly delivered

Question 17

deed req’s

Answer 17

a deed must meet the formalities to be lawfully executed 
identification of parties
signature of the grantor
adequate description of the party
no consideration is required

Question 18

3 types of deed

q gw sw

Answer 18

quitclaim - conveys whatever interest the grantor actually has in the property but contains no warranty of title

Question 19

general warranty deed

3p sra 3f wqf

Answer 19

warranty against all defects in title and contains six covenants for title

seisin - warrants he owns what he is conveying
right to convey - has the power to make the conveyance
against encumbrances - no encumbracnces

warranty of title - will defend should there be any lawful claims of title
quiet enjoyment - promises no third party disturbance of possession
further assurances - any future actions to perfect title

Question 20

real covenant

Answer 20

real covenants are promises between two or more parties which meet certain technical requirements where they intend the promise to be binding on future holders of the land. The requirements are different whether they burden or benefit the land. The remedy for breach is money damages.

Question 21

real covenant req;s

burden - w i h&v n

Answer 21

writing - must be in writing
intent - must intend for the burden to run with the land
touch and concern land - restricts the usage of the servient parcel
h v v privity - h refers to the original promising parties
v refers to successor who is now the holder of the interest
notice - can be actual, constructive or inquiry

Question 22

rel covenant req’s and equitable servitudes

benefit

Answer 22

written - must be in writing
intent - must intend to bind successors
touch and concern - promise benefits dominant parcel
vertical privity only and no notice required

equitable servitudes are the same as covenants bt no notice requried and enforced in equity

Question 23

implied reciprocal servitude

Answer 23

court can imply a reciprocal equitable servitude if the original owner intended a common scheme or plan and the purchaser has notice of the scheme

common plan or scheme can be evidenced by a recorded plat, a general pattern of restrictions or representations to early buyers

notice can be actual, constructive, or inquiry. visual inspection gives appearance of conformance to certain standards

remedy is injunction

Question 24

termination of covenants

Answer 24

by agreement of all parties in a sufficient writing

abandonment of action

changed circumstances

Question 25

easement

Answer 25

an easement is the right to use the land of another and are nonpossessory property interests. the parcel that is burdened is the servient estate and the parcel that is benefited is the dominant estate

Question 26

express easement

Answer 26

is created in writing including one that satisfies the statute of frauds

Question 27

scope of easement i

Answer 27

intended to meet both present and future needs of the dominant parcel due to normal, foreseeable development

Question 28

easement by prescription

Answer 28

created by actual possession or use, open and notorious, hostile to the true owner and continuous for the statutory period

Question 29

easements - sale of servient land

Answer 29

passes automatically unless new owner is BFP (valu, without notice)

Question 30

recording acts

Answer 30

mechanism to protect a subsequent purchaser from a prior inconsistent transaction

cl - first in time, first in right
most jurisdictions use a notice, race-notice or race statute which offer varying levels of protection

Question 31

marketable title

Answer 31

every land sale has a presumption of marketable title and is title free from reasonable doubt

Question 32

merger

Answer 32

once deal has closed, the K merges into the deed and the deed will control

Question 33

joint tenancy

Answer 33

2 or more own the a single unified interest with rights of survivorship. 4 unities. must devise or convey their interest during their life

Question 34

Severance

Answer 34

moving out will not destroy JT
inter vivos transfer will sever the jt and create a tenancy in common with the parties whose interests have been transferred

Question 35

tenants in common

Answer 35

have no right to survivorship and own an individual aprt with the right to possess the whole

Question 36

execution of a deed

Answer 36

writing, identifies parties, signed by grantor, property description adequate

Question 37

co-tenants in possession

Answer 37

have the right to retain profits from their own use of property but must share net rents from third parties

Question 38

co-tenants

Answer 38

must share costs for necessary repairs but not for improvements

Question 39

landlord duties

Answer 39

must maintain all common areas, fix latent defects of which he is aware, and if repairs made, then nonnegligently

Question 40

defense to rent

constructive eviction

Answer 40

req's
premises are virtually uninhabitable
notice to landlord
fails to respond
tenant moves out

Question 41

breach of warranty of habitability

Answer 41

applies to residential leases only and requires that the premises be fit for human habitation. if not habitable, tenant has option of
terminating lease and move out
make repairs and deduct from rent
pay reduced rent, stay on premises and sue for damages

Question 42

implied covenant of quiet enjoyment

Answer 42

landlord warrants that he or anyone acting for him will not interfere with the tenant’s use of land. not responsible for strangers

Question 43

easement

Answer 43

an easement is the right to use the land of another and are a nonpossessory interest in land. may be affirmative (right to do something) or negative (prevents landowner form doing something on his own land), appurtenenant (with the land) or in gross( person has right)

Question 44

creation of easement 5

e i n p e

Answer 44

express - complies with SOF ,grantor can reserve right to use
implication 4 - req’s land was originally one parcel, land is severed into more than one parcel, use of the property existed prior to severance, easement is reas. necessary to enjoyment of land
necessity - common ownership, easement is trictly necessary, prior use not required
prescription - actual, open, hostile, continuous
estoppel - allows use of the property that user will change position in reliance on continuation