Real Property - AMP

Question 1

The Rule Against Perpetuities provides that certain interests in property are void if there is _____, however _____, that they may _____ more than _____ years after _____ at the _____.

Answer 1

any possibility

remote

vest

21

some life in being

creation of the interest

Question 2

The Rule Against Perpetuities applies to the following interests in property:

Answer 2

(i) contingent remainders;
(ii) executory interests;
(iii) class gifts (even if vested remainders);
(iv) options and rights of first refusal; and
(v) powers of appointment.

Question 3

The Rule Against Perpetuities provides that . . .

Answer 3

certain interests in property are void if there is any possibility, however remote, that they may vest more than 21 years after some life in being at the creation of the interest. The Rule applies to the following interests in property:

(i) contingent remainders;
(ii) executory interests;
(iii) class gifts (even if vested remainders);
(iv) options and rights of first refusal; and
(v) powers of appointment.

Question 4

_____ are not subject to the Rule Against Perpetuities.

Answer 4

Future interests in the grantor (i.e., reversions, possibilities of reverter, and rights of entry)

Question 5

Which interest violates the Rule Against Perpetuities and is stricken if it follows a defeasible fee and has no limit on the time within which it must vest?

Answer 5

An executory interest

Question 6

A possibility of reverter is the _____ retained by _____ who conveys a _____. Future interests in the grantor are not subject to _____.

Answer 6

future interest

a grantor

fee simple determinable (a defeasible fee)

the Rule Against Perpetuities

Question 7

At common law, the unities of _____ are required to create a _____.

Answer 7

time, title, interest, and possession

joint tenancy

Question 8

The unity of time requires that the interest of _____ joint tenant vest _____.

Answer 8

each

at the same time

Question 9

The unity of title requires that _____ joint tenants acquire _____ by _____.

Answer 9

all

title

the same instrument

Question 10

The unity of interest requires that the _____ of each joint tenant be _____.

Answer 10

interest

of the same type and duration

Question 11

The unity of possession requires that each joint tenant have the right to possession of _____.

Answer 11

the whole

Question 12

If these four unities are not present, a joint tenancy _____. Instead, a _____ results.

Answer 12

cannot be created at common law

tenancy in common: is a concurrent estate with no right of survivorship.

Question 13

A tenancy in common is a _____ estate with no _____.

Answer 13

concurrent

right of survivorship

Question 14

A tenancy by the entirety is a marital estate akin to _____ in that _____ are required for its creation, and _____. _____, however, is not required to create a joint tenancy.

Answer 14

a joint tenancy

four unities (plus a fifth—marriage)

the surviving spouse has the right of survivorship

Marriage

Question 15

All of the interests are valid under the common law Rule Against Perpetuities in a conveyance from O “to A for life, then to A’s widow for life, then to A’s __________.”

Answer 15

Children

Question 16

A contingent remainder is a remainder that . . .

Answer 16

is (i) subject to a condition precedent, or (ii) created in favor of unborn or unascertained persons.

Question 17

If O conveys property “to A for life, then to B’s heirs” and A predeceases B, at common law the heirs’ interest is void under the __________.

Answer 17

Rule of Destructibility of Contingent Remainders

Question 18

At common law, a contingent remainder had to vest _____ termination of the preceding estate or it was destroyed.

Answer 18

prior to or upon

Question 19

Under the Doctrine of Merger, whenever the same person acquires _____, a merger occurs resulting in _____ in _____. At common law, if the person acquired all of the interests except a contingent remainder, the merger would _____, and the contingent remainder would _____.

Answer 19

all of the existing interests in land, present and future

fee simple absolute

that person

would occur anyway

be destroyed

Question 20

Under the common law Rule in Shelley’s Case, a conveyance that purports to give a grantee a _____ with a _____ to the grantee’s heirs instead gives the grantee both _____ and .

Answer 20

freehold estate (e.g., a life estate)

remainder

the freehold estate

the remainder

Question 21

Under the common law Doctrine of Worthier Title, a remainder limited to the grantor’s heirs is _____, and the grantor retains _____.

Answer 21

invalid

a reversion in the property

Question 22

In general, a life tenant commits voluntary waste when he _____, unless _____.

Answer 22

Consumes or exploits natural resources on the property

(e.g., timber, minerals, oil).
However, there are exceptions to this rule which allow the life tenant to consume or exploit such resources:
(i) in reasonable amounts when necessary for repair and maintenance of the land;
(ii) when the life tenant is expressly given the right to exploit such resources in the grant (e.g., a mineral lease);
(iii) when prior to the grant, the land was used in exploitation of such natural resources, so that the grantor most likely intended the life tenant to have the right to exploit; and
(iv) in many states, when the land is suitable only for such exploitation (e.g., a mine).

Question 23

When a life tenant fails to make required repairs to the land or pay required carrying charges (e.g., interest on encumbrances, ordinary taxes), he commits _____.

Answer 23

permissive waste

Question 24

A life tenant commits permissive waste when he . . .

Answer 24

fails to make required repairs to the land or pay required carrying charges (e.g., interest on encumbrances, ordinary taxes), he commits _____.

Question 25

When a life tenant substantially changes the use of the property in a way that increases its value (e.g., he demolishes a run-down building), he commits _____. Courts will permit this when performed by a _____ when _____.

Answer 25

ameliorative waste

long-term tenant

neighborhood changes make the previous use infeasible

Question 26

A __________ restraint provides that any attempted transfer of the property is ineffective.

Answer 26

Disabling

Question 27

A disabling restraint provides that _____. Disabling restraints on any legal interest are_____.

Answer 27

any attempted transfer of the property is ineffective. A conveyance from “O to A, and neither A nor her heirs shall have the right to transfer the land or any interest therein” contains a disabling restraint.

void

Question 28

A _____ provides that if the grantee attempts to transfer the property, it is surrendered to another person.

Answer 28

forfeiture restraint

A conveyance from “O to A, but if A attempts to transfer the land or any interest therein during her lifetime, to B” contains a forfeiture restraint. Partial (i.e., limited in time and purpose) forfeiture restraints on legal interests generally are valid.

Question 29

A forfeiture restraint provides that _____. _____ on legal interests generally are valid.

Answer 29

if the grantee attempts to transfer the property, it is surrendered to another person

Partial (i.e., limited in time and purpose) forfeiture restraints

Question 30

A conveyance from “O to A, but if A attempts to transfer the land or any interest therein during her lifetime, to B” contains a _____.

Answer 30

forfeiture restraint

Question 31

A conveyance from “O to A, and neither A nor her heirs shall have the right to transfer the land or any interest therein” contains a _____.

Answer 31

disabling restraint

Question 32

A promissory restraint provides that _____. Partial promissory restraints on legal interests generally are _____.

Answer 32

that the grantee covenants not to transfer the property. A conveyance from “O to A, and A hereby covenants not to transfer the land or any interest therein without O’s consent” contains a promissory restraint.

valid

Question 33

A conveyance from “O to A, and A hereby covenants not to transfer the land or any interest therein without O’s consent” contains a _____.

Answer 33

promissory restraint

Question 34

In most states, when tenants by the entirety divorce, they hold the property as _____. On the other hand, in a minority of states, when tenants by the entirety divorce, they hold the property as _____.

Answer 34

Tenants in common

joint tenants with right of survivorship

Question 35

A tenancy at will is a _____ that is terminable at the will of _____.

Answer 35

leasehold estate in land

either the landlord or the tenant

Question 36

In most states, the reservation of an annual rent, payable monthly, in a lease with no set termination date creates a __________.

Answer 36

Year-to-year periodic tenancy

Question 37

A periodic tenancy is a tenancy that _____. It may be created by implication if _____.

Answer 37

continues from period to period until terminated by proper notice by either the landlord or the tenant

a lease with no set termination date provides for the payment of periodic rent

Question 38

A tenancy at will is a tenancy that _____. Although a tenancy at will can arise when a lease _____, a provision requiring annual rent payments will convert it to a _____.

Answer 38

continues only until the landlord or the tenant gives notice and time to quit

has no set termination date

periodic tenancy

Question 39

A tenancy for years is a tenancy that _____. A _____ with no stated duration is not a tenancy for years.

Answer 39

continues for a fixed period of time and then ends automatically on its termination date

lease

Question 40

Personal property that is not affixed to land may be classified as a fixture if _____.

Answer 40

the item is uniquely adapted to the realty

Question 41

A fixture is _____. Under the doctrine of constructive annexation, an article of personal property also may be considered a fixture if _____.

Answer 41

a chattel that has been so affixed to the realty that it has ceased being personal property and has become part of the realty.

it is so uniquely adapted to the land that it makes no sense to separate it (e.g., keys to doors, carpet cut to fit an unusually shaped room)

Question 42

A fixture is a _____ that has been so affixed to the realty that it has ceased being _____ and has become _____. Under the doctrine of _____, an article of personal property also may be considered a fixture if it is so uniquely adapted to the land that it makes no sense to separate it (e.g., keys to doors, carpet cut to fit an unusually shaped room).

Answer 42

chattel

personal property

part of the realty

constructive annexation

Question 43

Whether an item is classified as a fixture is NOT determined by whether the annexor _____ intends that the item pass with the realty. When a landowner owns a chattel that is annexed to the realty, whether the item is a fixture generally depends on the annexor’s _____ intention, which is determined by considering:

Answer 43

subjectively

objective

1. The nature of the chattel (i.e., how essential it is to the normal use of the realty);
2. The manner in which the chattel is attached to the realty (the more substantially attached, the more likely it was intended to be permanent);
3. The amount of damage that would be caused by the chattel’s removal; and
4. The adaptation of the chattel to the use of the realty (e.g., custom window treatments, wall-to-wall carpet).

Question 44

When a landowner owns a chattel that is annexed to the realty, whether the item is a fixture generally depends on _____, which is determined by considering:

1. The _____ of the chattel (i.e., _____);
2. The manner in which the chattel is _____ to the realty (the more _____, the more likely it was intended to be permanent);
3. The amount of _____ that would be caused by the chattel’s removal; and
4. The _____ of the chattel to the _____ of the realty (e.g., _____).

Answer 44

the annexor’s objective intention

nature (i.e. how essential it is to the normal use of the realty_

attached

substantially attached

damage

adaptation

use

custom window treatments, wall-to-wall carpet

Question 45

T/F. It is necessary that the annexor expressly provide that the item is to pass with the realty for an item to be classified as a fixture.

Answer 45

false.

Thus, it is not necessary that the annexor expressly provide that the item is to pass with the realty for an item to be classified as a fixture.

Question 46

If L leases a residence to T for five years, ending on December 31, at $400 per month, and T remains in possession of the premises on January 1 of the sixth year, L may hold T to a __________.

Answer 46

month-to-month tenancy at $400 per month
Explanation
If L leases a residence to T for five years, ending on December 31, at $400 per month, and T remains in possession of the premises on January 1 of the sixth year, L may hold T to a month-to-month tenancy at $400 per month. If a tenant continues in possession after the termination of a lawful tenancy, the landlord may evict the tenant or bind the tenant to a new periodic tenancy. The terms and conditions of the expired tenancy (e.g., rent, covenants, etc.) apply to the new tenancy. Although a commercial tenant holding over after termination of a lease for one year or more generally may be held to a year-to-year tenancy, most courts would rule a residential hold-over tenant a month-to-month tenant, irrespective of the term of the original lease. If the landlord notifies the tenant before termination of the tenancy that occupancy after termination will be at an increased rent, the tenant will be held to the new rent if he does not surrender. Here, T’s five-year tenancy for years automatically expired on December 31. Thus, on January 1 he was a hold-over tenant and L could bind him to a new periodic tenancy. As a residential tenant, the period would be month to month rather than year to year. Because there is no evidence that L informed T of the rent increase prior to December 31, T will be liable only for $400 per month.

L may not hold T to a month-to-month tenancy and now demand $500 per month because L did not notify T of the rent increase prior to the expiration of his five-year tenancy.

L may not hold T to a year-to-year tenancy at $400 per month because T is a residential rather than a commercial tenant.

L may not hold T to a year-to-year tenancy and now demand $500 per month because T is a residential rather than a commercial tenant, and because L did not notify T of the rent increase prior to the expiration of his five-year tenancy.

Question 47

A tenant leases premises that are destroyed without the fault of either the landlord or the tenant.
Under the majority view, which is true in the absence of a contrary lease provision?

The common law rule differs from the majority view in that _____. Note that the ____ common law rule has been modified by_____ in most states.

T/F. Absent a contrary lease provision, if under applicable law the lease remains effective after destruction of the leased premises without the fault of either the landlord or the tenant, the tenant may cease paying rent.

Answer 47

The lease may be terminated at the tenant’s option, and the tenant may cease paying rent

if the leased premises are destroyed without the fault of either the landlord or the tenant, the lease remains effective and the tenant must continue paying rent

harsh

statute

False. May NOT cease paying rent.

Question 48

__________ waste results when a tenant intentionally or negligently damages the leased premises.

Answer 48

Voluntary

Question 49

_____ waste results when a tenant fails to make ordinary repairs to keep the leased premises in the same condition as at the commencement of the lease term, excluding _____ (unless _____).

Answer 49

Permissive

ordinary wear and tear

the tenant covenanted to repair ordinary wear and tear

Question 50

Ameliorative waste results when _____. Modern courts will permit _____ that have _____ if:

Answer 50

a tenant makes substantial alterations to the leased premises that increase the value of the property

a change in the character of premises

significantly decreased in value over time

1. The change increases the value of the premises;
2. The change is performed by a long-term tenant (e.g., 25 years) or a life tenant; and
3. The change reflects a change in the nature and character of the neighborhood.

Question 51

T/F. A covenant against assignment prevents the tenant from subleasing her interest.

Answer 51

False.

Question 52

If a landlord consents to one transfer that violates a covenant against assignment or sublease, he waives his right to avoid future transfers.

Answer 52

False.

Question 53

If a landlord consents to one transfer that violates a covenant against assignment or sublease, he waives his right to avoid future transfers.

Answer 53

True.

Question 54

Under the _____ if a landlord consents to one transfer that violates a covenant against assignment or sublease, he waives his right to avoid future transfers. The landlord may reserve the right to avoid future transfers, but such reservation must _____.

Answer 54

Rule in Dumpor’s Case

take place at the time of granting consent

Question 55

Under the implied warranty of habitability, the landlord assures that _____. The standard usually applied is _____.

Answer 55

assures that the premises are suitable for human residence

the local housing code

Question 56

Under the covenant of quiet enjoyment, the landlord assures that she nor _____ will _____. The covenant of quiet enjoyment may be breached by _____, _____ , or _____.

Answer 56

someone with paramount title

interfere with the tenant’s quiet enjoyment and possession of the premises

total actual eviction
partial actual eviction
constructive eviction

Question 57

The covenant against encumbrances is a covenant contained in _____, assuring that _____.

Answer 57

a general warranty deed

there are neither visible encumbrances (e.g., easements) nor invisible encumbrances (e.g., mortgages) against the title or interest conveyed.

Question 58

The implied covenant of marketability is a covenant implied in _____(unless _____), obliging the _____ to provide _____ at _____.

Answer 58

every land sale contract

modified by express language in the contract

seller

marketable title (i.e., title reasonably free from doubt)

closing

Question 59

A leasehold is a _____ in land.

Answer 59

nonfreehold estate

Question 60

A leasehold is not a freehold estate in land. Freehold estates in land (e.g., fee estates and life estates), like leaseholds, give _____, but their _____.

Answer 60

possession

duration is regarded as longer than that of the nonfreehold (or leasehold) estates

Question 61

A leasehold IS an estate in land. Possessory interests in land are estates in land. Both the tenant and the landlord have _____ in leased premises. In contrast, nonpossessory interests in land (e.g., _____) are not estates in land.

Answer 61

possessory interests

easements, profits, and covenants