Set 1 Flashcards
FS determinable
Limited by specific durational language (e.g., “so long as,” “while,” “during,” “until”); Grantor (or his successor in interest) retains possibility of reverter
FS subject to condition subsequent
limited by specific conditional language (e.g., “upon condition that,” “provided that,” “but if,” or “if it happens that”); grantor must specifically retain right to reenter
FS subject to executory interest/limitation
limited by specific durational or conditional language; automatically terminates upon happening of stated event, and title passes to a
third party; future interest: executory interest held by the third party
Life estate
present possessory estate fully transferable during measuring life; if measured by the grantee’s life, not devisable/descendible
Affirmative Waste
Occurs when overt conduct causes a decrease in property value
Holder of a vested future interest—may bring suit against LT for damages
Holder of any future interest—may bring suit against LT for injunction
Permissive Waste
Occurs when LT permits the premises to deteriorate through neglect, failure
to preserve, or a failure to reasonably protect the property
LT must make reasonable repairs (up to amount of income produced by property or, if LT is in actual possession, the fair rental value)
Ameliorative Waste
Occurs when a change in use of the property increases its value
LT may alter structures on property when a substantial and permanent change in the
neighborhood is necessary to continue reasonable use of property if value not diminished.
Vested subject to open (class gift)
If at least one class member is qualified to take possession at conveyance (but less than all of them), each class member’s share is subject to partial diminution.
Contingent Remainder
created in an unascertainable grantee or subject to express condition precedent to grantee’s taking
Executory Interest
Future interest in a third party (not a remainder) that cuts prior estate short upon occurrence of specified condition.
Springing = cuts short a prior estate Shifting = divests the grantor’s interest or fills a gap in possession
RAP
Specific future interests are valid only if they vest or fail by end of a life in being plus 21 years; applies to contingent remainders, options, rights of first refusal, executory interests, and subject to open remainders (CORES)
Rule of Conveniance
can operate to prevent application of RAP to a class transfer
Exceptions: transfers of specific dollar amount to each class member; transfers to subclass that vests at a specific time
Tenancy in common
Two or more grantees with unity of possession; each co-tenant holds undivided interest with unrestricted rights to possess whole; no right of survivorship
Joint tenancy
title, time, interest, possession (T-TIP)
severance = converts a JT into a TC; mortgage severs JT under title theory, but not under lien theory
sale = don’t need consent; severs JT as to seller, but JT of non-transferors remains
intact.
Co-Tenant - Rent
Each co-T has right to possess entire property and is generally not required to pay rent when other co-Ts do not use the property
Co-T is liable to other co-Ts for third-party rents (after deducting operating expenses and necessary repairs)
Co-Tenant - Expenses
Co-T can only compel other co-Ts to share expenses for repairs if (i) the repairs are
necessary, and (ii) the co-T seeks accounting or partition.
Co-Tenant - Contribution
Co-T can collect contribution from other co-Ts for operating expenses, but if in sole possession, only if they exceed the rental value of the property.
Co-T has no right to reimbursement for improvements (except contribution/partition)
Co-Tenant - Fair Dealing
Co-T owes duty of fair dealing to other co-Ts, but generally does not owe fiduciary duties
Exception: co-T buys the property at a tax or foreclosure sale (other co-Ts can buy back their interests within reasonable time)
FHA
Owner-occupied buildings with no more than four units (including the owner’s unit) and single-family homes sold or rented without a broker are generally not subject to FHA (but are subject to advertising rules).
Tenancy for Years
any fixed period of time; automatically terminates at end of term (no notice needed; if term longer than one year, SOF applies
Periodic tenancy
Repetitive, ongoing estate by set periods of time with no predetermined termination date; automatically renews at end of each period unless valid termination notice
Termination notice—must be given before last period begins; late notice effective for next period; generally effective as of last day of period; oral notice sufficient under common law, but most states now require some writing.
Tenancy at will
does not have specific term; continues as long as L and T want
Tenancy at sufferance (holdover tenancy)
T wrongfully remains in possession after expiration of lease; T bound by lease terms before expiration.
Duties of Tenant
pay rent and avoid waste
Repair—non-residential leases, T may be contractually liable for all damage to property.