Real Property Barbri Flashcards
What is a concurrent estate?
An estate in land can be held concurrently by several persons. All have the right to enjoyment and possession of the land.
Three forms of concurrent ownership?
- joint tenancy
- tenancy by the entirety
- tenancy in common
What is a joint tenancy?
When two or more own with the right of survivorship
A joint tenant’s interest is…?
- Alienable inter vivos (can transfer interest during one’s lifetime)
- Neither devisable nor descendible (b/c of survivorship)
Can a joint tenant attempt to dipose of the property via will?
No, this would be void because of the survivorship characteristic.
How to create a joint tenancy:
The common law requires 4 unities (T-TIP)
* T-at the same time
* T-by the same title (same deed, will, or other document of title)
* I-with identicial,** equal **interests
* P-with rights to possess the wholl
The grantor must clearly express the right of survivorship. If not, a conveyance to two or more people is presumed to be a tenancy in common.
How is a tenancy in common divided?
Equal shares are presumed but not required (compare this to a joint tenancy where equal shares are required).
How is a joint tenancy severed?
Sale and Partition
* A joint tenant may sell or transfer her interest during her lifetime.
* A volunary conveyance by a joint tenant of their interest destroys the joint tenancy. The transferee takes as a tenant in common.
May a joint tenant transfer his interest secretly?
Yes, even without the other’s knowledge or consent.
One joint tenant’s sale severs the joint tenancy as to the seller’s interest. Why?
Because it disrupts the four unities.
If we start with more than two joint tenants in the first place, and one tranfers, what happens?
The joint tenancy remains intact as between the other, non-transferring joint tenants.
What are the three types of partition?
- voluntary agreement
- judicial action - partition in kind
- judicial action - forced sale
What is a voluntary agreement?
A type of partition - an allowable and peaceful way to end the relationship
What is a partition in kind?
a judicial action - an action for a physical division of the property, if in the best interest of all parties
What is a forced sale partition?
a judicial action - an action when, in the best interests of all parties, the land is sold and the sale proceeds are divided up proportionately
What transactions will not result in severance of a joint tenancy?
- mortgages
* in most states: a mortgage is a lien on title and does not sever a joint tenancy- severance occurs only if the mortgage is foreclosed and the property is sold
* in title theory states: the execution of a mortgage does sever a joint tenancy
- severance occurs only if the mortgage is foreclosed and the property is sold
- one joint tenant murdering another lol
* UPC and modern statutes: when a beneficiary unlawfully and intentionally kills a joint tenant, any joint property becomes a tenancy in common
What effect does a testmentary disposition have in a joint tenancy?
A will cannot work a severance because the testator’s interest vanishes at death
What is a tenancy by the entirety?
- A tenancy by the entirety is a marital estate akin to a joint tenancy.
- It can be created only between married partners who take as “one person” with a right of survivorship
How is a tenancy by the entirety created?
- If a state recongizes it, it arises presumptively, in any conveyance to married partners unless the language of the grant clearly indicates otherwise.
- VERY protected form of co-ownership! Can’t touch this!
Rule with creditors for tenancy by the entirety
Creditors of only one spouse cannot touch this tenancy for satisfaction of the debt
Rule for unilateral conveyance on tenancy by the entirety
One spouse, acting alone, cannot defeat the right of survivorship by unilaterally conveying to a 3P
Rule for encumbrance on tenancy by the entirety
- An individual spouse cannot encumber tenancy by the entirety property
- A deed or mortgage executed by only one spouse is ineffective
Severance of tenancy by the entirety
- Only death, divorce, mutual agreement, or execution by a joint creditor of BOTH the spouses can sever a tenancy by the entirety
- On divorce, the tenancy by the entirety becomes a tenancy in common
What is a tenancy in common?
- a tenancy in common is a concurrent estate with no right of survivorship
- multiple grantees are presumed to take as tenants in common, not as joint tenants
Two features of a tenancy in common
- each co-tenant owns an individual part and each has a right to possess the whole
- each interest is devisable, descendible, and alienable
Rights and Duties of Co-Tenants: possession
Each co-tenant has the right to possess all portions of the property but has no right to exclusive possession of any part
What is ouster?
When one co-tenant wrongfully excludes another co-tenant from possession of the whole or any part. This is an actionable wrong.
Rents and Profits: Co-Tenant in Exclusive Possession
In most states: co-tenant in exclusive possession has the right to retain profits for their use of the property. They don’t need to share profits with other co-tenants absent ouster or an agreement to the contrary.
Co-tenants in exclusive possesson must also share net profits gained by exploitations of the land (mining).
Co-Tenants: Rents and Profits: from third parties
A co-tenant who leases all or part of the premises to a 3p must account to their co-tenants + provie them their fair share of the rental income.
Rights and Duties of Co-Tenants: Adverse Possession
Unless they have ousted the other co-tenant, the co-tenant in exclusive possession for the statutory adverse possession period cannot acquire title to the whole to the exclusion of the other tenant.
Rights and Duties of Co-Tenants: Carrying Costs
Each co-tenant is responsible for his or her fair share of carrying costs such as taxes and mortgage interest payments.
Rights and Duties of Co-Tenants: Repairs
A repairing co-tenant enjoys a right to proportional contribution for reasonably necessary repairs provided that she has given notice to the others of the need to repair.
Rights and Duties of Co-Tenants: Improvements
During the life of the co-tenancy, there is no right to contribution for improvements
Rights and Duties of Co-Tenants: Waste
- A co-tenant must not commit waste.
- During the life of the co-tenancy, a co-tenant is permitted to bring an action for waste against another co-tenant.
Types of Waste
- Voluntary - willful destruction
- Permissive - neglect
- Ameliorative - unilateral change that increases value
Rights and Duties of Co-Tenants: Partition
- A joint tenant or tenant in common has a right to bring an action for partition (voluntary agreement, partition in kind, forced sale)
- Courts prefer partition in kind, but will permit a partition by sale when a fair and equitable physical division of the property cannot be made
- Although this right generally may be exercised at any time, restraints on partition by co-tenants are valid if limited to a reasonable time
Rights and Duties of Co-Tenants: Effect of One Concurrent Owner’s Encumbering the Property
- A joint tenant or tenant in common may encumber her interest (mortgage, judgment lien), but may not encumber the interests of other co-tenants
- ex: mortgage interest, mortgagee can only foreclose on that co-tenant’s interest
- If a joint tenancy is involved, a mortgage (in a lien theory state) or a lien does not sever the joint tenancy, but a foreclosure sale will.
- In a joint tenancy, the mortgagee or lienor runs the risk that the obligated co-tenant will die before foreclosure, extinguishing mortgagee’s or lienor’s interest
Rights and Duties of Co-Tenants: Duty of Fair Dealing
- A confidential relationship exists among co-tenants
- One co-tenant’s acquisition of an outstanding title or lien that may affect the estate is deemed to be on behalf of other co-tenants (why it’s hard for one co-tenant to adversely possess against another)
What is a leasehold?
A leasehold is an estate in land. The tenant has a present possessory interest in the leased premises and the landlord has a future interest (reversion)
What are the types of leasehold estates?
- tenancy for years
- periodic tenancy
- tenancy at will
- tenancy at sufferance
What is a tenancy for years?
- This is the estate for years or a term of years and is for a fixed, determined period of time. (could be a week or 50 years)
- if you see a termination date from the state, you have a tenancy for years
How to terminate a tenancy for years:
A tenancy for years ends automatically at its termination date - no notice needed
Two ways tenancy for years is terminated
- Termination upon Breach of Lease Covenant
* In most leases, the landlord reserves a right of entry. This allows them to terminate the lease if the tenant breaches any of the lease’s covenants.
* Failure to pay rent: in many jx’s, a landlord may, by statute, terminate the lease upon the tenant’s failure to pay the promised rent, even without a reserved right of entry - Termination upon Landlord’s Acceptance of Tenant’s Surrender
* A tenancy for years may also terminate if the tenant surrenders the tenancy and the landlord accepts.
* Need the same formalities for surrender that are required for the creation of the leasehold (like being in writing for > than year leasehold)
Form of a tenancy for years?
- Tenancies for years are usually created by written leases.
- If term > 1 year, must be in writing b/c statute of frauds
What is a periodic tenancy?
A periodic tenacy is a lease which continues for successive intervals (month to month) until either the landlord or the tenant gives proper notice of termination
Defining characteristic of a periodic tenancy?
It is continuous until properly terminated.
How is a periodic tenancy created?
- Expressly
- Implication/Operation of Law
* Land is leased with no mention of duration, but provision is made for the payment of rent at set intervals
* An oral term of years in violation of the SoF creates an implied periodic tenancy measured by the way rent is tendered
* In a residential lease, if a landlord elects to hold over a tenant who has wrongfully stayed past the conclusion of the OG lease, an implied periodic tenancy arises measured by the way rent is now tendered
How is a periodic tenancy terminated?
Usually, written notice must be given because a periodic tenancy is automatically renewed until proper notice of termination is given
How much notice is required for termination of a periodic tenancy?
CL: notice must be at least equal to the length of the period itself, unless otherwise agreed. Usually, notice also must be timed to terminate the lease at the end of a period.
week to week: 1 week
month to month: 1 month
year to year or greater: 1 month under restatement
Party can lengthen or shorten these common-law prescribed notice provisions
What is a tenancy at will?
A tenancy at will is a tenancy of no fixed period of duration.
It is terminable at the will of either the landlord of the tenant.
“To T for as long as L or T desires”
How is a tenancy at will created?
A tenancy at will must be created by an express agreement that the lease can be terminated at any time.
Unless the parties agree to a tenancy at will, the payment of regular rent will cause a court to treat the tenancy a an implied periodic tenancy.
If the lease gives only the landlord the right to terminate, a similar right will be implied in favor of the tenant.
If the lease only gives the tenant the right to terminate, a similar right will NOT be implied in favor of the landlord.