Real Property Flashcards
Ways property can be transferred:
- Sale
- Gift
- Devise
- Intestate
Fee Simple
Largest possessor estate
Lasts forever
Ambigous grants create a fee simple
“to A” OR “to A and his heirs”
Defeasible Fees
May be terminated by the occurrence of an event
Fee Simple determinable
Limited by durational language
So long as, while, during
Fee Simple Subject to Condition Subsequent
Limited by conditional language
but if, provided that, on the condition
Possibility of Reverter
Grantor interest following fee simple determinable
Vests automatically
Right of Entry
Grantor interest following a FS subject to a condition subsequent
Does not vest, must be claimed
Fee Simple Subject to Executory Interest
Future interest vests in third party upon event
Held by transferee, not grantor
Executory Interest
Cuts short earlier interest
Divests that interest.
Life Estate
Present Estate limited by somebody’s life
Created by words “for life” or making contingent upon somebody’s death
Cannot pass by will or intestacy
Reversion
Future interest following a life estate, to grantor
Remainder
Future interest following a life estate to third party
Three Kinds of Waste
Affirmative
Voluntary
Ameliorative
Affirmative waste
voluntary conduct which decreases value
Permissive waste
neglect which causes a decrease in value
Ameliorative Waste
conduct which increases the value of property
Remainders can be?
Vested or contingent
A vested remainder
- has an ascertained grantee AND
2. Is not subject to a condition precedent
Class Gifts- Vested subject to open
Class gift where full membership is unknown.
Doctrine of Worthier Title
prevents against remainder in grantor’s heirs. Greats presumption of reversion t grantor
Shelley’s Can Rule
No remainder in grantee’s heirs. Creates fee simple absolute
Springing Executory interest
From Grantor
Shifting executory interest
From grantee
Rule Against Perpetuities
- When: intervivos transfers & devise
- What: Contingent remainders, executory interests, class gifts
- Who: Relevant & validating life
Must vest within 21 years.
Class Gifts RAP rule
If any member of class violates RAP, gift is void as a whole.
Rule of Convenience
Vests grant as soon as member of class is entitled to immediate possession. Optional way to save against RAP
Exceptions to Class Gifts Rule
- transfers of a specific dollar amount to each class member
- Transfers to a subclass that vest at a specific time
Exceptions to RAP
- Gifts between charities
- Options to buy property by current leaseholder
- Options in commercial transaction
Wait and See approach
Modern approach, wait a certain number of years to see if it vests. Often 90.
Exam still tests traditional version
Cy Pres
equitable doctrine that allows a court to reform transfer to avoid RAP
Three Kinds of Concurrent Tenancy
- Tenancy in Common
- Joint Tenancy
- Tenancy by the entirety
Tenancy in Common
Default concurrent interest
Separate undivided interest in property
No rights of surviorship
Joint Tenancy
Right of survivorship; PITT
- Possession
- Interest
- Time
- Title
Tenancy by the entirety
Joint tenancy between married people
Right of survivorship
Rent is divided by
ownership interests of each cotentant
Operating Expenses
Divided by ownership, can collect from other tenants
Improvements
no right to reimbursement among concurrent owners
Repairs
no right to reimbursement among concurrent owners
Proceeds
Divided among covenants based on ownership
Partition
Equitable remedy available to tenancy in common or JT
Divides property into distinct portions
Partition in kind or partition in sale
FHA prevents discrimination
In the sale, rental, financing, and advertising concerning dwellings.
FHA does not apply to
- Single-family housing without a broker
- Owner occupied buildings with four or fewer units
- Religious organizations and private clubs
FHA protects against discrimination in
- race
- color
- religion
- national origina
- sex (not orientation)
- disability
- and familial status
FHA prohibits specifically
- refusing to deal
- requiring different rents
- falsely denying that a unit is available
- providing different services to facilities
- stating a discriminatory preference
FHA allows for both _____ types of impact
Intent and Effect
Disparate treatment and disparate impact
Basic Rule of Confict of Laws
Law of the situs; place where property is located controls
Exceptions to Law of the Situs
- Instrument designates jurisdiction
- marriage cases
- mortgage cases where documents specify different state of repayment
Four types of tenancy:
- Tenancy for years
- Periodic tenancy
- Tenancy at will
- Tenancy at sufferance
Tenancy for Years
- fixed and ascertainable amount time
- created by agreement between landlord and tenant
- terminates automatically
Periodic Tenancy
- Can be created through express or implied conduct
2. Renews automatically until notice is given (usually one month in the period prior to final period)
Tenancy at Will
- May be terminated by either at any time for any reason
- Created through express or implied conduct/agreement
- Termination without notice
Tenancy at Sufferance
- Created when a tenant holds over from lease
- Created solely by actions of tenant
- Terminate in 3 ways
a. Tenant voluntarily leaves
b. Landlord evicts tenant
c. Landlord regents to tenant
Duty to mitigate damages
Majority rule is that landlord has to make reasonable efforts to rerent property
Minority rule is that no duty to mitigate. More common in commercial leases
Holder over Tenant
Wont leave after lease ends
Duty to deliver possession
Majority rule is that landlord must deliver actual physical possession of premises.
Minority rule is that only deliver legal possession.
Covenant of Quiet Enjoyment
landlord must control common areas, and prevent nuisance-like behavior of other tenants
Wholly or substantially unsuitable for intended purpose, tenant is constructively evicted