Set 1 Flashcards

1
Q

FS determinable

A

Limited by specific durational language (e.g., “so long as,” “while,” “during,” “until”); Grantor (or his successor in interest) retains possibility of reverter

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2
Q

FS subject to condition subsequent

A

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

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3
Q

FS subject to executory interest/limitation

A

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

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4
Q

Life estate

A

present possessory estate fully transferable during measuring life; if measured by the grantee’s life, not devisable/descendible

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5
Q

Affirmative Waste

A

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

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6
Q

Permissive Waste

A

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)

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7
Q

Ameliorative Waste

A

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.

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8
Q

Vested subject to open (class gift)

A

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.

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9
Q

Contingent Remainder

A

created in an unascertainable grantee or subject to express condition precedent to grantee’s taking

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10
Q

Executory Interest

A

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
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11
Q

RAP

A

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)

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12
Q

Rule of Conveniance

A

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

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13
Q

Tenancy in common

A

Two or more grantees with unity of possession; each co-tenant holds undivided interest with unrestricted rights to possess whole; no right of survivorship

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14
Q

Joint tenancy

A

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.

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15
Q

Co-Tenant - Rent

A

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)

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16
Q

Co-Tenant - Expenses

A

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.

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17
Q

Co-Tenant - Contribution

A

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)

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18
Q

Co-Tenant - Fair Dealing

A

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)

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19
Q

FHA

A

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).

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20
Q

Tenancy for Years

A

any fixed period of time; automatically terminates at end of term (no notice needed; if term longer than one year, SOF applies

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21
Q

Periodic tenancy

A

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.

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22
Q

Tenancy at will

A

does not have specific term; continues as long as L and T want

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23
Q

Tenancy at sufferance (holdover tenancy)

A

T wrongfully remains in possession after expiration of lease; T bound by lease terms before expiration.

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24
Q

Duties of Tenant

A

pay rent and avoid waste

Repair—non-residential leases, T may be contractually liable for all damage to property.

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25
Landlord remedies for Tenant breach - Failure to pay rent
Failure to pay rent—(majority) L can sue for damages and evict and terminate lease (could not evict or terminate lease at CL)
26
Landlord remedies for Tenant breach - Future Rent
Future rent: no anticipatory repudiation in most states; where AR applies, damages limited to difference between future rent under lease and either (i) reasonable rental value or (ii) actual rent collected from re-letting
27
Landlord remedies for Tenant breach - Late Rent
Late rent—L entitled to damages; whether L can sue to remove depends on if breach material or L waived right to evict by accepting late rent
28
Landlord remedies for Tenant Breach - Abandonment
Abandonment—treated as offer to surrender rights under the lease. L accepts surrender—lease terminates and T liability for future rent ends L rejects surrender—T remains liable for rent, but under majority rule, L has duty to mitigate damages
29
Duties of Landlord
deliver possession, repair, warranty of habitability (residential), Covenant of quiet enjoyment (commercial and residential)
30
Constructive Eviction - Covenant of Quiet Enjoyment
substantial interference caused by L’s actions or failure to act, T must give notice of problem, L fails to respond, and T must vacate premises within reasonable time after L fails to fix problem
31
Actual Eviction
L excludes T from premises = lease is terminated and T’s obligation to pay rent ends
32
Partial Eviction
T excused from paying rent, but must pay reasonable rental value if partial eviction by third party with superior claim; T not excused from paying rent for partial eviction by adverse possessor/trespasser
33
Tort Liability - Tenant
duty of care to invitees/licensees/foreseeable trespassers and may be liable for dangerous conditions/activities
34
Tort Liability - Landlord
CL—liable for injuries in common/public areas, non-common areas under L’s control, or hidden defect/faulty repair by L or L’s agent Modern Trend —general duty of reasonable care; liability for defects prior to T’s occupancy, failure to make required repairs, and criminal activities of third parties who injure Ts
35
Assignment
complete transfer of T’s remaining lease term; landlord can collect rent from tenant and subsequent tenant
36
Sublease
any transfer for less than the entire duration of lease; landlord can collect rent from tenant
37
Landlord Assignment
Generally, L may assign lease rights to a third party, but remains liable to T for lease covenants.
38
Limitations for Assignment
T can assign/sublet if lease prohibits, but L can terminate for breach and recover damages. L can only withhold permission to grant assignment or sublease on reasonable grounds in relationship to the property being leased and not on a whim or personal prejudice
39
Land Sale Contract - Formalities
must be in writing, signed by the party to be charged, and contain all of the essential terms (parties, property description, terms of price/payment).
40
Land Sale Contract - Marketable Title
Title free from defects or unreasonable risk of litigation. A buyer may waive the right to have marketable title.
41
Land Sale Contract - Duty to Disclose
seller must disclose all known material physical defects not readily observable
42
Land Sale Contract - Merger
obligations merge into deed upon delivery, unless obligations independent of conveyance
43
Land Sale Contract - Remedy for Breach
difference between K price and market value
44
Land Sale Contract - Equitable Conversion
Seller's interest converted by contract into interest in proceeds of sale, not in RP; once contract is signed, buyer is owner of land, subject to paying purchase price at closing. But in interim between contract and closing, buyer bears risk of loss if land is destroyed. There is an exception when the loss is attributable to the intentional or negligent acts of the seller. If the seller dies = bare legal title passes to takers of real property, but they must give up title to buyer when the contract closes; when purchase price is paid, money passes as personal property to those taking seller’s personal property. If the buyer dies = the taker of his real property can demand a conveyance of land at closing.
45
Adverse Possession
Continuous - through statutory period (20 years at CL); seasonal use okay if consistent with type of property. Open and Notorious—use must be such that it would put reasonable true owner on notice. Actual—actual entry; but if only actually possess portion of property, constructive AP gives title to whole Hostile—possession without owner’s permission; majority rule ignores the adverse possessor’s state of mind; minority rule inquires into adverse possessor’s state of mind (good faith based on mistake; bad faith (knows land is not hers)). Exclusive—possession cannot be shared with true owner
46
Delivery Deed
At time of transfer, grantor must intend to make present transfer of property interest to grantee; execution and recording—creates rebuttable presumption the deed is presently operative. Parol evidence is admissible to show grantor lacks such intent. However, when the grantor transfers deed to grantee subject to a condition not appearing in deed (e.g., an oral condition), parol evidence is not admissible and condition not enforceable.
47
Deed Requirements
Identified parties Grantor’s signature Words of transfer Reasonably definite property description (extrinsic evidence admissible)
48
Recording Act - Notice
BFP (purchaser for value without notice) of prior interest prevails over prior grantee who failed to record
49
Recording Act - Race
First to record prevails
50
Recording Act - Race Notice
Subsequent BFP protected only if he takes without notice and is first to record
51
Types of Notice
Constructive—properly recorded and appears in chain of title. Inquiry—if reasonable investigation would disclose prior claims. Actual—a grantee with actual, personal knowledge of prior interest
52
Mortgage
an interest in RP that serves as security for an obligation ``` Lien theory (majority)—debtor/mortgagor has title and right to possession until foreclosure, creditor/mortgagee has lien and right to land default occurs. ``` If promissory note is transferred without the mortgage = mortgage is treated as having been transferred under principle mortgage follows the note.
53
Mortgagor’s liability
If transferee assumes mortgage, then borrower is secondarily liable. Borrower may be relieved of liability if lender impairs borrower’s right of recourse against transferee by: (i) modifying loan terms, (ii) releasing transferee of liability; or if lender releases or impairs the RP subject to the mortgage
54
Transferee Liability
If transferee assumes mortgage, transferee is personally liable for mortgage obligation If transferee takes RP “subject to” mortgage, then transferee is not personally liable upon default (but RP may be sold at a foreclosure sale)
55
Pre-foreclosure rights and duties
Lien theory state—mortgagee cannot take possession before foreclosure title theory state—mortgagee theoretically entitled to possession at any time (but typically cannot take possession until default by mortgage terms). Mortgagor has duty not to commit waste Equity of redemption—after default but before foreclosure sale, mortgagor may regain title by paying amount of loan obligation currently owed, plus interest;
56
Foreclosure
mortgagee takes RP when mortgagor defaults (i.e., no payment) Priority: if two+ mortgages, foreclosure terminates junior interest and has no effect on senior; purchase-money mortgage (PMM) exception—mortgage used to purchase RP generally has priority over others.
57
Easement Scope
An easement’s scope is determined by the terms or conditions that created it. In interpreting the easement’s scope, courts will consider the reasonable intent of the parties.
58
Express Easement
affirmatively created by parties in writing that satisfies SoF
59
Easement appurtenant
An easement appurtenant is a nonpossessory right to use someone else’s land (the servient estate) in a way that directly benefits the holder’s own possession of the land (the dominant estate). An easement appurtenant cannot be used for the benefit of property other than the dominant estate.
60
Easement by Necessity
created when the dominant property is useless without an easement’s benefit across the neighboring servient property.
61
Easement by Implication
created if: (1) prior to the division of a single tract, (2) an apparent and continuous use exists on the servient parcel, (3) that is reasonably necessary to the dominant parcel’s use and enjoyment, and (4) parties intended the easement to continue upon the sale of the dominant parcel. Exceptions. subdivision plot (lots in a subdivision are sold with reference to a map plan) or (2) profit a prendre (holder passes over land’s surface as reasonably necessary to extract materials).
62
Easement by Prescription
created like adverse possession (continuous, actual, open, and hostile for the specific period), except there is no exclusivity requirement.
63
Negative Easement
entitles the holder to prevent the servient landowner from engaging in permissible actions relating to light, air, support, or stream of water from an artificial flow. A negative easement can only be created by express grant (writing signed by grantor).
64
Termination of Easement
Condemned! Why? Bad Mine Condemned, written release, bona fide purchaser of servient estate without notice of easement, abandonment, destruction of express purpose, merger of dominant and servient estate, interference with easement covering period for adverse possession, necessity ends, or estoppel (when owner materially changes position in reasonable reliance on easement holder’s promise to no longer enforce the easement.) expanded use is not an independent ground for termination of an easement.
65
Easement - Duty to Maintain
easement owner has right and duty to maintain easement; may seek contribution from co-owners of easement after notice and opportunity to participate in repair decisions
66
License
Privilege to enter another’s land; freely revocable unless estoppel; invalid oral easements create license
67
Covenant Running with Land
Writing—must comply with SoF to be enforced as real covenant Intent—rights/duties to run with land through explicit language or implied from totality of circumstances Touch/concern—benefit or burden must affect promisee/promisor as owners of land (negative covenants—run with the land if they restrict the owner’s use or enjoyment of the land; affirmative covenants—run with the land if they require the owner to do something related to the use and enjoyment of the land) Notice (burden only)—must be constructive or actual Horizontal privity—(burden only) when estate and covenant in same instrument Vertical privity—(covenant based on mutual/successive interest in land burdened/benefited by covenant)
68
Equitable Servitude
Writing, Intent, Touch and Concern (no privity, notice (actual, record, or inquiry)
69
Implied reciprocal servitude
Intent to create servitude on all plots (common scheme); no writing required Negative servitude (promise to refrain from doing something) Notice (actual, record, or inquiry) by party against whom enforcement is sought
70
Defenses to enforcement of covenants and equitable servitudes
changed circumstances; laches; unclean hands; acquiescence; estoppel
71
Fixture
chattel attached to RP such that it is treated as part of the RP when determining its ownership; trade fixtures exception allows tenants who are tradesmen to remove items that would be fixtures, unless removal would cause substantial damage.
72
Fixture - Test
various factors are examined to ascertain the seller’s objective intent.
73
Fixture - Tenant
Absent an agreement to the contrary, a tenant may remove a fixture that the tenant has attached to the leased property if (i) the leased property can be and is restored to its former condition after the removal, and (ii) the removal and restoration is made within a reasonable time
74
Cumulative Zoning
A cumulative zoning ordinance creates a hierarchy of uses of land; land that is zoned for a particular use may be used for the stated purpose or any higher use.
75
Noncumulative Zoning
Under a noncumulative zoning ordinance, land may be used only for the purpose for which it is zoned.
76
Zoning Regulation - Test
rationally related to a legitimate gov. purpos
77
Post-ordinance non-conforming property
owner may request special exception permit or administrative variance Party seeking variance must show unique unnecessary hardship, that hardship not self-induced, and that variance would not result in substantial harm
78
Zoning Requirements
Comprehensive plan generally required and development must adhere to plan
79
Lateral Support - Undeveloped (no improvements)
landowner who excavates on his land is | strictly liable for damage to undeveloped adjoining land
80
Lateral Support - Improvements
landowner who excavates on his land is strictly liable only if adjoining land would have collapsed in its undeveloped state
81
Lateral Support - Improvements contribute to collapse
landowner who excavates on his land is | only liable if he is negligent
82
Subjacent support
owner of the mineral rights is strictly liable for any failure to support the land and any buildings on the land at time the rights were conveyed
83
Air rights
landowner has limited right to reasonable use and enjoyment of airspace above his land
84
Riparian rights (water)
water belongs to those who own land bordering the watercourse; owners may make any reasonable use of the water; water rights cannot be transferred separate and apart from the adjoining land
85
Prior appropriation (water)
water rights are determined by priority of beneficial use; subsequent users must not infringe upon the rights of prior users; water rights may be transferred separately from the adjoining land
86
Doctrine of Attornment
Under the doctrine of attornment, the tenant is bound to honor any covenant in his lease that has been assigned by the landlord to a third party, if the covenant touches and concerns the land.
87
Condemnation
Condemnation is the taking of land for public use or because it is unfit for use. If condemnation is partial = tenant must continue to pay rent. The tenant is entitled to compensation for the portion that was taken. If condemnation complete = tenant does not have t opay
88
After Acquired Title Doctrine
When a person who attempts to transfer real property that he does not own subsequently becomes owner of that property, title to property automatically vests in the transferee.
89
Doctrine of Exoneration
CL = devisee of real property is entitled to have any outstanding balance of a mortgage or other encumbrance on the property to be paid from the remaining assets of the testator's estate (most jurisdictions have abolished this doctrine and property passes subject to any encumbrance.
90
Estoppel by Deed
a grantor who conveys a real property interest by warranty deed before actually owning it is estopped from later denying the effectiveness of his deed.
91
Landlord remedy for illegal behavior
terminate the lease and recover damages or seek injunctive relief.
92
Doctrine of Marshalling Assets
holder of a senior security interest must first proceed against property on which there are not any junior security interests, and then against the property on which the junior interest was more recently created, before proceeding against property on which the junior interest was more remotely created.
93
Restraint on Alienation
may be enforceable by an injunction if it is reasonable.
94
Subrogation
A person who pays off a loan that is secured by a mortgage to protect her own interests, acquires the rights of the original mortgagee-lender and may therefore enforce the mortgage.
95
Title Insurance
An owner's policy only protects the owner of the policy and does not run with the land for subsequent conveyances.