Real Property - AMP Flashcards
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 _____.
any possibility
remote
vest
21
some life in being
creation of the interest
The Rule Against Perpetuities 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.
The Rule Against Perpetuities provides that . . .
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.
_____ are not subject to the Rule Against Perpetuities.
Future interests in the grantor (i.e., reversions, possibilities of reverter, and rights of entry)
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?
An executory interest
A possibility of reverter is the _____ retained by _____ who conveys a _____. Future interests in the grantor are not subject to _____.
future interest
a grantor
fee simple determinable (a defeasible fee)
the Rule Against Perpetuities
At common law, the unities of _____ are required to create a _____.
time, title, interest, and possession
joint tenancy
The unity of time requires that the interest of _____ joint tenant vest _____.
each
at the same time
The unity of title requires that _____ joint tenants acquire _____ by _____.
all
title
the same instrument
The unity of interest requires that the _____ of each joint tenant be _____.
interest
of the same type and duration
The unity of possession requires that each joint tenant have the right to possession of _____.
the whole
If these four unities are not present, a joint tenancy _____. Instead, a _____ results.
cannot be created at common law
tenancy in common: is a concurrent estate with no right of survivorship.
A tenancy in common is a _____ estate with no _____.
concurrent
right of survivorship
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.
a joint tenancy
four unities (plus a fifth—marriage)
the surviving spouse has the right of survivorship
Marriage
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 __________.”
Children
A contingent remainder is a remainder that . . .
is (i) subject to a condition precedent, or (ii) created in favor of unborn or unascertained persons.
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 __________.
Rule of Destructibility of Contingent Remainders
At common law, a contingent remainder had to vest _____ termination of the preceding estate or it was destroyed.
prior to or upon
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 _____.
all of the existing interests in land, present and future
fee simple absolute
that person
would occur anyway
be destroyed
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 .
freehold estate (e.g., a life estate)
remainder
the freehold estate
the remainder
Under the common law Doctrine of Worthier Title, a remainder limited to the grantor’s heirs is _____, and the grantor retains _____.
invalid
a reversion in the property
In general, a life tenant commits voluntary waste when he _____, unless _____.
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).
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 _____.
permissive waste
A life tenant commits permissive waste when he . . .
fails to make required repairs to the land or pay required carrying charges (e.g., interest on encumbrances, ordinary taxes), he commits _____.
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 _____.
ameliorative waste
long-term tenant
neighborhood changes make the previous use infeasible
A __________ restraint provides that any attempted transfer of the property is ineffective.
Disabling
A disabling restraint provides that _____. Disabling restraints on any legal interest are_____.
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
A _____ provides that if the grantee attempts to transfer the property, it is surrendered to another person.
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.
A forfeiture restraint provides that _____. _____ on legal interests generally are valid.
if the grantee attempts to transfer the property, it is surrendered to another person
Partial (i.e., limited in time and purpose) forfeiture restraints
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
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
A promissory restraint provides that _____. Partial promissory restraints on legal interests generally are _____.
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
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
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 _____.
Tenants in common
joint tenants with right of survivorship
A tenancy at will is a _____ that is terminable at the will of _____.
leasehold estate in land
either the landlord or the tenant
In most states, the reservation of an annual rent, payable monthly, in a lease with no set termination date creates a __________.
Year-to-year periodic tenancy
A periodic tenancy is a tenancy that _____. It may be created by implication if _____.
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
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 _____.
continues only until the landlord or the tenant gives notice and time to quit
has no set termination date
periodic tenancy
A tenancy for years is a tenancy that _____. A _____ with no stated duration is not a tenancy for years.
continues for a fixed period of time and then ends automatically on its termination date
lease
Personal property that is not affixed to land may be classified as a fixture if _____.
the item is uniquely adapted to the realty
A fixture is _____. Under the doctrine of constructive annexation, an article of personal property also may be considered a fixture if _____.
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)
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).
chattel
personal property
part of the realty
constructive annexation
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:
subjectively
objective
- The nature of the chattel (i.e., how essential it is to the normal use of the realty);
- The manner in which the chattel is attached to the realty (the more substantially attached, the more likely it was intended to be permanent);
- The amount of damage that would be caused by the chattel’s removal; and
- The adaptation of the chattel to the use of the realty (e.g., custom window treatments, wall-to-wall carpet).
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:
- The _____ of the chattel (i.e., _____);
- The manner in which the chattel is _____ to the realty (the more _____, the more likely it was intended to be permanent);
- The amount of _____ that would be caused by the chattel’s removal; and
- The _____ of the chattel to the _____ of the realty (e.g., _____).
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
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.
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.
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
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.
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.
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.
__________ waste results when a tenant intentionally or negligently damages the leased premises.
Voluntary
_____ 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 _____).
Permissive
ordinary wear and tear
the tenant covenanted to repair ordinary wear and tear
Ameliorative waste results when _____. Modern courts will permit _____ that have _____ if:
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
- The change increases the value of the premises;
- The change is performed by a long-term tenant (e.g., 25 years) or a life tenant; and
- The change reflects a change in the nature and character of the neighborhood.
T/F. A covenant against assignment prevents the tenant from subleasing her interest.
False.
If a landlord consents to one transfer that violates a covenant against assignment or sublease, he waives his right to avoid future transfers.
False.
If a landlord consents to one transfer that violates a covenant against assignment or sublease, he waives his right to avoid future transfers.
True.
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 _____.
Rule in Dumpor’s Case
take place at the time of granting consent
Under the implied warranty of habitability, the landlord assures that _____. The standard usually applied is _____.
assures that the premises are suitable for human residence
the local housing code
Under the covenant of quiet enjoyment, the landlord assures that she nor _____ will _____. The covenant of quiet enjoyment may be breached by _____, _____ , or _____.
someone with paramount title
interfere with the tenant’s quiet enjoyment and possession of the premises
total actual eviction
partial actual eviction
constructive eviction
The covenant against encumbrances is a covenant contained in _____, assuring that _____.
a general warranty deed
there are neither visible encumbrances (e.g., easements) nor invisible encumbrances (e.g., mortgages) against the title or interest conveyed.
The implied covenant of marketability is a covenant implied in _____(unless _____), obliging the _____ to provide _____ at _____.
every land sale contract
modified by express language in the contract
seller
marketable title (i.e., title reasonably free from doubt)
closing
A leasehold is a _____ in land.
nonfreehold estate
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 _____.
possession
duration is regarded as longer than that of the nonfreehold (or leasehold) estates
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.
possessory interests
easements, profits, and covenants
