RP Flashcards
Partial Condemnation
Landlord-tenant relationship continues, as does the tenant’s obligation to pay the entire rent for the remaining period of the lease.
Tenant is entitled to share in the condemnation award to the extent that the condemnation affected the tenant’s rights under the lease.
Doctrine of Waste - Life Tenants and Mortgage Payments
Life tenant is obligated to pay interest on any encumbrances on the land, but he does
not have to pay anything on the principal of the debt;
reversioners or remaindermen must pay the
principal in order to protect their interests.
Fee Simple Absolute
- To A; To A and his heirs
- Absolute ownership of potentially infinite duration
Fee Tail
- To A and heirs of his body
- Lasts only as long as there are lineal blood descendants of grantee
- Passes automatically to grantee’s lineal descendants
- Future interest: Reversion (if held by grantor); Remainder (if held by 3rd party)
Defeasible Fee - Fee Simple Determinable
- Language providing that upon the happening of a stated event, the land is to revert to the grantor
- Potentially infinite, so long as event does not occur
- Alienable, devisable, descendible, subject to condition
- Possibility of Reverter (held by grantor)
Defeasible Fee - Fee Simple Subject to Condition Subsequent
- To A, but if X event happens, grantor reserves the right to reenter and retake
- Potentially infinite, so long as the condition is not breached and, thereafter, until the holder of the right of entry timely exercises the power of termination
- Alienable, devisable, descendible, subject to condition
- Right of Entry/Power of Termination (held by grantor)
Defeasible Fee - Fee Simple Subject to an Executory Limitation
- To A, but if X event occurs, then to B
- Potentially infinite, so long as stated contingency does not occur
- Alienable, devisable, descendible, subject to condition
- Executory Interest (held by third party)
Life Estate
- To A for life; To A for life of B
- Measured by life of transferee or by some other life (pur autre vie)
- Alienable, devisable, and descendible if pur autre vie and measuring life is still alive
- Reversion (if held by grantor); Remainder (if held by third party)
Right of First Refusal
If this is given to X and his heirs and assigns, there is a RAP problem and it will fail
Assignment
- Tenant transfers possession of premises for remaining balance on lease
- Tenant is still on hook for rent - privity of contract
- Assignee is on hook, too - privity of estate
- If there is a subsequent assignee, first assignee loses privity of estate and is no longer liable
Equitable Conversion -
- Buyer is equitable owner of property during escrow period and must buy and seller must sell, even if owner dies
- Buyer bears risk of loss if property is damaged or destroyed during escrow period (buyer should buy insurance as soon as they enter contract)
General Warranty Deed
• Present Covenants - cannot make these claims after closing!
- Seizen
- Right to convey
- Encumbrances
• Future Covenants - run w/ land:
- Quiet enjoyment - grantor will indemnify grantee from claims of title from other parties
- General warranty - pretty much same as quiet enjoyment
- Further assurances - grantor will take necessary measures to perfect grantee’s title
Purchase Money Mortgage
Usually, senior to all other liens BUT it must be RECORDED for this to be true (will be junior if not recorded)
Purchasing Property that has a Mortgage
- If buyer buys mortgaged piece of property “subject to” mortgage, buyer is not personally liable for the debt (but the property can still be foreclosed)
- If buyer assumes the mortgage, then buyer is personally liable and can be sued on the underlying debt
Redemption
Owner can repurchase land for a period AFTER the foreclosure sale
