Real Property Flash Cards
What kind of Possessory Estate?
To A
Fee Simple Absolute
What kind of Possessory Estate?
To A and his heirs
Fee Simple Absolute
What kind of Possessory Estate?
To A and the heirs of his body
Fee Tail
What kind of Possessory Estate?
To A for so long as; during; while; until
Fee Simple Determinable with possibility of reverter
What kind of Possessory Estate?
To A provided; however; however if; but if; on condition that; in the event of that
Fee Simple Subject to a Condition Subsequent
- right of entry
OR
- power of termination
REMEMBER: does not automatically terminate the estate
- O may re-enter and terminate/ retake
What kind of Possessory Estate?
To A provided; however; however if; but if; on condition that; in the event of that
Fee simple subject to executory interest
- shifting/springing executory interest
- power of termination
- automatically terminates
What kind of Possessory Estate?
To A for life
Life estate
- reversion/remainder
- contingent or vested
What kind of Possessory Estate?
To A for life of B
Life estate
- reversion/remainder
- contingent or vested
What type of present possessory estates does RAP apply to?
- fee simple subject to executory interest
- life estate remainder
When can a life estate be defeasible?
if the life estate holder breaches their duties
MUST:
- not adversely affect the future interest (waste)
- repair and maintain
- pay all ordinary taxes
- pay the full cost of special assessments if the life of the public improvement is less than the duration of the tenants’ estate.
RAP method of attack
ID whether or not the interest is subject to RAP
ID the life or lives in being, express or implied
determine whether the interest will for certain either vest or fail to vest within 21 years of the life or lives in being.
What interests are subject to RAP
- options to purchase land
- powers of appointment
- rights of first refusal
- interests not fully vested at creation
- remainders subject to open
- contingent remainders
- executory interestes
What interests are NOT subject to RAP?
- present possessory estates
- charitable trusts
- resulting trusts
- fully vested interests at creation
- reversionary interests and completely vested remainders
Concurrent estates
when 2 or more persons share an interest.
Each is called a co-tenant
types of joint estates
tenancy in common
joint tenancy
right of survivorship
tenancy by the entirety
Tenancy in common
each co-tenant owns an undivided interest in the whole with no right of survivorship.
presumed form of co-ownership
possession: unity of possession- each has the right to possess the whole
transfer: may transfer inter vivid
divisibility: can devise interest and interest cn descend by intestacy
Joint Tenancy
each co-tenant owns an undivided interest in the whole and has a right of survivorship.
four unities
4 unities to create joint tenancy
time: at the same time
title: must take by the same instrument
interest: must take equal shares of the same type
possession: each tenant has the right to possess the whole
Right of survivorship
at the death of one joint tenant, the interest of the survivor absorbs the interests of the deceased.
only the alive tenant has an interest that is devisable
how is the right of survivorship severed?
if one tenant conveys their interest voluntarily or involuntarily (creditor forces sale)
Result= tenancy in common
tenancy by the entirety
reserved for married couples
gives each spouse an undivided interest in the whole and a right of survivorship
what are the rights of co-tenants
seek partition- voluntary or involuntarily
may seek contribution from other tenants for paid mortgage or tax
may seek contribution for land improvements if increase rent or profits.
- recoverable in partition suit
Lease
gives the tenant exclusive possession of the premises for a period of time
how can a lease be created?
expressly or implied by conduct of the parties
implied lease
when a holdover tenant pays rent and the landlord accepts the rent
types of leases
terms of years
periodic
at will
tenancy at sufferance/holdover tenancy
Terms of years lease
definite beginning and end
no notice needed for termination
periodic lease
set beginning and continues from period to period without a set termination date until notice is given.
notice must be at the end of the period.
required notice is measured by the rent payment clause (one full period) but no longer than 6 months.
at will lease
no fixed duration
terminates if: either party dies; the tenant commits waste; the tenant attempts to assign his interest; the landlord transfers her interest OR landlord transfers the premises to a 3rd party fo a term of years
tenancy at sufferance/holdover tenancy
tenant remains in possession of the property after the end of the leased terms
the landlord can recover possession and receive the reasonable rental value for the holdover period
What are the duties of the tenant?
pay rent
not commit waste
repair
other duties as contracted
what are the duties of the landlord?
deliver legal right to possession of premises
water and heat
duties in lease document
quiet enjoyment
implied warranty and habitability
When does the tenant abandon the premises?
if they vacate without intending to return and fail to pay rent
what can a landlord do if the tenant abandons the premises?
retake the property, ignore the abandonment and hold the tenant liable for the rent and reenter and relet the property
duty to mitigate its damages
what can a tenant do if the landlord breaches the lease?
may vacate and terminate the lease if have been evicted
withholding rent
repairing the property and deducting from rent
what is an assignment?
when the tenant transfers to a 3rd party all of their rights in the property
assignee is then in privity of estate with the landlord
- if assignee doesnt pay rent then the landlord can go after the assignee
what is a sublease?
when the tenant transfers less than all of their rights to a 3rd person
sublet does not come into privity of estate
if rent is not paid then the landlord goes after the tenant
easement
interest to use the land of another
can be: affirmative, negative, appurtenant, in gross
affirmative easement
gives the holder the right to do something on the land of another
negative easement
the right to prevent a landowner from doing something on the land
common law: light, water, air, lateral and subjacent support
True or False: A writing is always required for a negative easement?
TRUE!
easement appurtenant
requires a dominant and servant tenement
easement in gross
personal in nature
resulting in a servant but not a dominant estate
how can you create an easement?
writing
implication
prescription
estoppel
How can you create an affirmative easement?
implication either by prior use
by necessity
prescription (similar to adverse possession)
How can you create an Easement by estoppel?
requires proof of an act or representation by the owner of the burdened estate in respect to the easement
justifiable reliance on that act by the owner and damages suffered by owner of the benefited estate
and damages suffered by the owner of the benefited estate
can easements be transferred?
yes
How can an easement be terminated?
end of time period
when the holder of the dominant. estate releases their interest to the holder of the servient estate
abandonment
estoppel
prescription
government body acquires the servient estate by eminent domain of power
license
a privilege to do something on someone else’s property
writing and consideration is not required
not transferable unless the licensor intends for it to be
When does a license expire?
expire at the death of the licensor or the conveyance of the servient estate
Can a license be revoked?
revocable at the will of the licensor
UNLESS
coupled with an interest in personal property that is on the and of another and has a privilege that is incidental to the personal property
covenant
promise that attaches to land
covenant that runs with the land
promise that attaches to the land
examples of covenants running with the land are:
paying renting
condominiums common charges
maintenance fees
how are covenants established?
writing \+ Intent \+ horizontal privity and vertical privity \+ touch and concern \+ notice
horizontal privity
conveyance of land between the covenantee and covenanter
occurs by the same deed that includes the covenant
vertical privity
relationship between the OG party to a running covenant and the successor in interest to the Og party.
the successor steps into the shower of the OG party
covenant touches and concerns the land when:
direct influence on the occupation, use or enjoyment of the property
What must be on a real estate contract?
Statute of Frauds Applies!
Requires writing signed by the party to be charged
include:
- description of the property
- description of the parties
- price
- any condition of price or payment agreed upon
What do all real property contracts convey?
Marketable title to the purchaser at the time for performance
What is a marketable title?
title that is reasonably free from doubt in both fact and law
Title is NOT marketable if…
contains:
- defects in the chain of title
- encumbrances
- encroachment of improvements (onto someone else land or yours)
- zoning or other restrictions
Remedies for failure to convey marketable title:
- recision
- damages
- specific performance
implied warranty of quality
seller has a duty to disclose all material defects known to the seller that are not recognizable or known by the buyer
what are seller’s remedies for a buyer’s breach to purchase?
- expectation damages
- foreseeable damages
- reasonable reliance damages
- retaining the down payment
- liquidated damages
- if willful? punitive
Mortgage theory:
Title Theory:
Bank takes title to the land and has right to take possession.
Title is subject to condition subsequent that divests title if buyer repays by the due date of the mortgage
minority rule
Mortgage theory:
Lien Theory
Bank receives a lien and the Buyer keeps title and possession until foreclosure happens.
Majority Rule
Mortgage theory:
Intermediate Theory
Buyer keeps title until default. After default title and possession go to the Bank
what are the ways a mortgagor or life tenant can create waste?
fails to pay taxes or government assessments
makes physical changes to property that reduces its value
fails to maintatin and repair property in a reasonable time
fails to comply with materially with mortggage convenants:
- physical care
- maintenance
- construction
- demolition
- insurance against casualty of the property
- improvement
retains rents
What must a mortgagor do if they still have a mortgage on the property?
unless the mortgagor is paying off the loan with the proceeds of the sale, they must get consent from the bank.
Assuming an existing mortgage
the mortgage is transferred from the mortgagor (homeowner) to the grantee (buyer)
the mortgage is assumed via an agreement and must pay off the grantor’s (homeowner) debt to the mortgagee (bank)
KEY: the contract must be modified and state that the grantee (buyer) is in contract with the mortgagee (bank)
IF NOT then the original homeowner is still on the hook!!
Taking property “subject to” an existing mortgage
grantee (buyer) does not sign an assumption agreement and does not assume the existing mortgage, but takes the property “subject to the mortgage”
KEY: the buyer is not on the hook for the mortgage but the homeowner is.
the bank can:
- foreclose on the property
- sue the homeowner
how do you determine priority when there are multiple mortgages?
by chronological order of recording
What does it mean when a bank “redeems up”?
they can redeem up by paying off and acquiring any mortgaged of higher priority
ex: bank 2 could “redeem” from bank 1 and mortgagor then owes both mortgages to bank 2.
what does it mean when a bank “foreclose down”?
wipes out mortgages and other interests in lower priority.
A foreclosure sale wipes out all later mortgages- those coming later in time than the mortgage being foreclosed– but this does not wipe out prior mortgages
what are the different types of titles?
adverse possession
transfer by deed
transfer by operation of law and by will
recording acts
Adverse possession- TIME FACTOR
the possessor must possess he premises for the requisite time period.
- if not in possession for the entire time can tack on time of another person NOT the homeowner (if in privity of estate)
adverse possession
OCEAN open and notorious continuous exclusive actual non-permissive (hostile)
Adverse possession
privity of estate
when there has been a voluntary transfer of possession from the first adverse possessor to the second by deed.
what are the 3 types of deed?
general warranty
special warranty
quitclaim
general warranty
the grantor warrants that no title defects exist in the chain of title
special warranty deed
the grantor warrants that no title defects occurred during his ownership of the property but does not warrant against title defects that occurred prior to his ownership
quitclaim deed
the grantor provides no warrants- the grantee takes whatever interest the grantor had
True or false:
general or special warranty deed contains a series of covenants, divided into present and future covenants
TRUE
present covenants (if at all) are broken at the time of conveyance of the land and the buyer has a limited time frame to make a claim. - do not run with the land
future covenants (if at all) are broken after the time of conveyance and run with the land to any subsequent purchasers
TRUE OR FALSE:
present and future covenants both run with the land?
FALSE
ONLY future covenants run with the land
what are types of present covenants?
covenant of:
seisin
right to convey
against encumbrances
covenant seisin
grantor owns and possesses the estate granted
existence of an encumbrance does not breach the covenant
covenant of right to convey
grantor has the right to convey the property.
covenant against emcumbrances
grantor promises that there are no encumbrances.
no 3rd person has a right that diminishes the value or limits the use of the land granted.
this includes: taxes mortgage and judgment liens leases water rights easements restrictions on use
what are the types of future covenants?
covenant of:
quiet enjoyment
warranty
further assurances
covenant of quiet enjoyment
grantor covenants that the grantee will not be disturbed by a superior claim
covenant of warranty
grantor covenants that the will assist in defending title against valid claims and will compensate the grantee for losses sustained by the assertion of superior title
covenant of further assurances
grantor promises to take whatever steps may be required to perfect title defects.
coveyance of real property by deed
donative intent
- MUST intend to transfer immediately
delivery
- usually physical act of handing over
- words declaring intent and release of control = okay!
acceptance
does handing the deed to an agent = delivery?
NO!
Does not = delivery until the agent delivers the deed to h3 grantee or grantee’s agent
when delivery is accomplished through the agent, delivery relates back to the date the grantor handed the deed to the agent
Rules of construction
when there are conflicting descriptions of the property contained in the deed, the following order of superiority relies first on natural deed descriptions: - natural monuments - artificial monuments - courses and angles- distances -name and quantity
true or false
recording a deed is not requires to validate the transfer of title
TRUE
recording becomes important when 2 or more parties claim that the owner has conveyed or mortgaged the property to them and their relative priority is at issue
what are types of undocumented interests in land
adverse possession
- tile based on AP is not recordable and is not made invalid by a BFP
prescriptive easements
implied easements
boundary adjustments by acquiescence
oral agreemtn
what are the names of the recording statues?
race
race-notice
notice
race notice
first to record is the first to prevail
notice
unrecorded conveyance is invalid against a subsequent BFP for value AND without notice
must prove:
- the claimant took subsequent in time to another person claiming ownership
- the claimant was a bona fide purchaser for value
- the claimant took the property without actual, constructive or inquiry notice
constructive notice
if the other party’s deed is recorded in the proper chain of title in the record books
inquiry notice
if the appearance of the property is such that the claimant should have asked more questions about the property’s title