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97 Cards in this Set
- Front
- Back
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The statute of limitations begins to run on a possibility of reverter:
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as soon as the limitation occurs.
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*X To create a right of entry:
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the grantor must reserve this right in words in the conveyance. Giving directions on what the grantee needs to do is not enough.
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*X When the named event occurs in a conveyance subject to condition subsequent, to retake the property, the grantor must:
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exercise the right of reentry and affirmatively take the property. This is done either by entering or bringing an action to recover the estate. Merely demanding surrender of possession is not enough.
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Under modern law, the right of reentry is:
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descendible, and divisible.
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A right of entry is transferable to third parties and is not subject to:
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the rule against perpetuities.
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If the condition is not written in the conveyance, transfers of land create only:
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a contractual obligation.
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*X The grantee does not have title until the condition is satisfied. Therefore grantee cannot evict:
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a tenant that was there before the conveyance. The owner still has title until the condition and thus effective conveyance occurs.
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Future interests are:
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transferable, devisable, and descendible.
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*X Covenant:
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is a contractual obligation that is created in connection with the transfer of real property. A covenant runs with the land and is enforceable against successor interests.
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*√ When land is conveyed as a life estate, the owner of the life estate can transfer the property as another life estate. The second tenant’s estate will extend for:
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the life of the original life tenant.
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*√ Pur autre Vie:
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The life estate is measured in terms of someone else’s life.
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*√When land is conveyed as a life estate, the owner of the life estate can transfer the property as a lease. However, the lease ends upon the death of the tenant of the life estate because he has no more right than the owner of the life estate. The property passes immediately to:
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the remainder free of any encumbrances. The tenant has no rights against the remainder.
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*X Transfer of Land as a Life estate with restriction on the remaindermen, is still a valid conveyance. However, a restraint against future interest is void where:
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the restraint continues to be in effect after the interest becomes possessory.
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A restraint upon alienation of an inheritable future interest is void to the same extent as if it were void in present possessory interest. In other words, if the remaindermens possessory interest will result in fee simple, restraints on alienation are:
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void from their inception- even before they come into possession. So, the owner cannot convey an interest to the remaindermen where after having come into possession they are not allowed to sell their interest for X amount of time.
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*√ Doctrine of Estoppel by deed:
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The after-acquired property doctrine: states that if you convey more land than you have and later get the part you’re missing, the done gets the whole thing, so after acquired property gets conveyed.
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Life Tenant Duties:
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To the extent of profits derived, maintain property, pay interest, taxes, and special assessments.
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The Rule Against Perpetuities applies to the following six types of future interests:
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1. Options to purchase connected with a fee 2. Executor interests 3. Contingent Remainders 4. Powers of appointment 5. Class Gifts 6. Rights of first refusal. In order to be valid, these interests must vest, if at all, within 21 years after some life in being. Not Partitions.
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*X Rights of First Refusal: An option cannot extend for longer than
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25 years because it must vest within 21 years.
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Executory Interest: are:
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transferable, descendible, and divisible.
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Contingent Remainders: Exist when:
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takers are unascertained or the interest is subject to a condition precedent. They are transferable, descendible, and divisible.
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*X Rule in Shelly’s Case: Future interests-
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If life estate is given with the remainder as “heirs”, it merges into a fee simple.
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*X Doctrine of Worthier Title:
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The grantor presumes not to create a remainder in his heirs, but rather a reversion in himself.
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*X Rule in Dumpor’s Case:
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If the landlord grants consent to one transfer, he waives his right to avoid future transfers. Also, if he accepts rent from the assignee, he waives his right to avoid the transfer.
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Shelter Rule
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One who takes from a bona fide purchaser will prevail against anyone that bona fide purchaser would have prevailed against.
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*X Right of Lateral Support:
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The right of a landowner to have his land supported by a neighboring land, if it is in its natural condition. If there is damage to artificial structures, the American Rule states recovery is limited to the damage of the land in its natural condition in strict liability. If there is negligence on the part of the wrongdoer, then the wrongdoer is liable for the damages that proximately result.
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*√ Emblements:
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Growing crops are generally classified as personal property and will pass with sale or mortgage.
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*X Transfers are subject to the SOF. Specific performance in the transfer of land will not be decreed. However, where there has been substantial part performance,:
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equity will decree specific performance on an oral land contract. Examples are paying the sale price AND taking possession, paying mortgage interest and taxes. Paying the sale price alone is not enough.
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*√ Conveyance:
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Is not valid unless: the description of the land is enough to identify the land.
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*√ Delivery of the deed: depends on:
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the intent of the grantor and if there is a physical deed. Title passes at the time of execution.
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*√ Consideration for the deed: The amount:
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does not matter as long as there was intent, some consideration, and delivery.
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*√ Forged: Deeds: are:
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void.
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* √ Uniform vender and Purchasers risk act: Modern View:
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the buyer does not assume risk of loss until he either acquires title or possession.
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*√ Doctrine of Equitable conversion: Minority view:
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Risk of loss passes to buyer at time he signed the contract. The doctrine also shifts the benefits to the purchaser. If property appreciates during the executory period (waiting on the closing), vendee is entitled to the appreciation value.
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*X Doctrine of Equitable Conversion:
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If the house burns down during the executory period: the buyer still has to pay full price even if the seller collected insurance.
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*X Seller’s Obligation: Marketable Title: To provide good and marketable title to the buyer at the time:
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set for closing. Existing land use restrictions do not render the title unmarketable. Zoning restrictions enacted during the executory period render the title unmarketable.
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If zoning restrictions are enacted during the executory period, if the buyer refuses to close:
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the court would rule for the buyer because the vender would be unjustly enriched.
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*X Seller’s Obligation: Marketable Title: If before closing, one of the parties discovers a defect in the title, the seller has until the time of closing to cure. The seller is entitled to rely upon:
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(earmark) the proceeds of a sale to retire an outstanding encumbrance.
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Eminent Domain/ Condemnation: when a local, state, or federal government seizes private property and compensates the owner. The power of the government to do this is called eminent domain, which essentially means the government takes private property for public use. The abrogation of the right to enforce a restrictive covenant is:
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not a compensable taking.
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*X The power of eminent domain may be delegated directly or indirectly to:
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a private person or enterprise subject to the requirements that the taking be for a public use and just compensation be given.
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If the taking by eminent domain occurs during the executory period of a sale contract, the vendee is:
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entitled to a share of the condemnation award.
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Inverse condemnation:
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the government takes private property but fails to pay the compensation required by the 5th Amendment of Constitution. In some states the term also includes damaging of property as well as taking it. In order to be compensated, the owner must then sue the government. In such cases the owner is the plaintiff and that is why the action is called inverse – the order of parties is reversed
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*√ Adverse Possession: The period of adverse possession can be tacked when:
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there is privity between the two. Possession must be adverse and without permission from owner.
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*X Title to government owned land cannot be gained through adverse possession, the only way to get the land would be to argue:
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the government does not own it- there is a title defect.
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*√ The motives of the adverse possessor are:
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irrelevant; whether he intends a wrong or occupies believing it is his own he acquires title. Intention to possess is enough.
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*√ Ouster: Each co-tenant is entitled to the use and possession of the property. Wrongful exclusion must be:
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accompanied by acts to constitute ouster.
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*√ Encroachment: Judicial recognition is extended to boundary line agreements even if:
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not executed within the statute of frauds. Informed, express or implied agreement to location, and possession makes a covenant.
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*√ Pure Notice recording Statute: an unrecorded conveyance is invalid against:
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a subsequent purchaser for value without notice. Last purchaser for $ wind. He prevails whether he recorded or not.
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Race Notice Jurisdiction
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The bona fide purchaser to record first wins.
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*X In notice recording statutes, heirs are: not protected because:
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they did not pay money.
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*X In a notice statute, Buyer#1 does not record, buyer 2 does not record, buyer 1 records, buyer 2 records. Who owns the land?
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Buyer 2
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Eminent Domain/ Condemnation: when a local, state, or federal government seizes private property and compensates the owner. The power of the government to do this is called eminent domain, which essentially means the government takes private property for public use. The abrogation of the right to enforce a restrictive covenant is:
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not a compensable taking. If the taking occurs during the executory period of a sale contract, the vendee is entitled to a share of the condemnation award.
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*X Discovery of adverse possession by an heir: after the statutory period has run,:
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there is nothing the heir can do. If heir has a disability, still nothing he can do.
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*X Title resulting from Adverse Possession: the title will be free from encumbrance and ensure quiet and peaceful enjoyment. The title is not MARKETABLE until:
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there has been a judicial determination with a recorded decree.
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*X Assignment: An assignee of the estate is in privity with the landlord, if:
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the original tenant transferred all his interest. Liability for rent and observing the other covenants that run with the leasehold can be based on privity of estate and contract. Landlord can collect rent from assignee until he assigns the leasehold to someone else. If assignee is in possession the first of the month, he is liable for the entire month.
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If the lease agreement has a separate clause that state tenant will pay rent, and tenant assigns leas, and lesee defaults on rent:
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tenant owes rent because there is a separate contractual obligation written in the lease.
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*X*X Sublease: Where the original tenant:
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does not transfer all his interest to the subtenant, he keeps a balance of the leasehold. The subtenant is not in privity of estate or contract with the landlord.
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*√ Legally a sublease:
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has no effect.
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*X An assignee falls into privity with the landlord and he is liable for all covenants that:
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run with the land. Paying taxes on the lease agreement runs with the land.
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*X Month to Month Tenancy: Tenant: Notice must be given for:
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a whole month from the end of the month that was already paid.
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*X Failure to deliver Possession: A landlord impliedly warrants the tenant will have legal right to possession at the beginning of the term. Under American Law, the landlord:
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does not have to actually deliver possession. Under English law, Landlord has to deliver actual possession.
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*X Trade Fixtures: Chattel annexed to the land by tenant for pecuniary gain during his tenancy. If the chattel is built into the property,:
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it becomes annexed and is not removable.
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*√ At common law, the tenants remained liable to pay rent even if:
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the property was destroyed. If a jurisdiction does not make them pay is because it does not follow the rule.
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*X At coomon law, the landlord does not impliedly warrant that the premises are suitable for ny particular use, an he is not liable for any dangerous conditions exsisting on the premises. However, there are 2 exeptions:
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1. Landlord may be liable in tort for 3rd
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Termination of Leases: *X Constructive Eviction: Doctrine of Independent Covenants:
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A breach of a collateral promise, such as a repair or maintenance, does not amount to a constructive eviction. This action would be brought as a separate suit under contract.
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*X If a tenant buys the property he is leasing:
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as record title owner he would no longer remain obligated under the lease.
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Mortgage transferred “subject to”: The grantee (purchaser):
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is not personally liable for the debt the mortgage secures.
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*√*√ Mortgage transferred “assuming”: The Purchaser is:
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personally liable for the debt the mortgage secures. A conveyance between a mortgagor and a third party which assumes the mortgage results in the motgagee becoming a 3rd party beneficiary under the conveyance.
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*X Purchase Money Mortgage: Takes precedence over:
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a recording statute and other mortgages that have been executed prior to or contemporarily with PMMs. PMM does not have to be recorded. PMMs take precedence over after acquired property interests also.
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*√ Deed instrument makes no reference to the mortgage:
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the grantee does not assume the mortgage.
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*√ Exoneration: When a mortgagee is:
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relieved by another person being bound to pay the debt. The one who has been exonerated has a right to compel the mortgagor to enforce his claim against the person primarily liable.
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*X Action to Foreclose: Junior encumbrancers must be made:
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parties to a foreclosure action to have their claims eliminated. A foreclosure does not bar a junior mortgagor’s equity of redemption (action to redeem).
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*√ Deed Absolute:
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intended for security will be construed as a mortgage.
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Once a mortgage always a mortgage:
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the mortgagee cannot circumscribe the mortgager’s right of redemption.
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Redemption in Equity
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Universally recognized principle that a debtor can redeem prioerty any time prior to foreclosure by paying off missed payments, interest and costs.
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* √Joint Tenancy: If one joint tenant mortgages his part,:
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it terminates the joint tenancy, resulting in tenancy in common. A tenancy in common has no joint interest, and that share will not be encumbered by a mortgage. Whoever inherits the property, inherits the mortgage.
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*√ In a tenancy in common, rights of survivorship are:
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None each part goes to the heirs.
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*√ In a Joint tenancy there is a right of survivorship which:
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does not go to heirs.
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*X In a joint Tenancy, if one tenant brings an action for partition, it is under a court of equity. Reasonable restraints upon the rights of partition are valid. Reasonableness depends on:
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the length of time and reason for the restraint. Forever is unreasonable. Individual property owners cannot override the jurisdiction of the equity court.
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*√ License to Land:
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Always revocable. Having tickets means you bought a license to be there.
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*√ Implied Reciprocal servitude: run with the land. When a developer sells lots with a restriction, the courts will:
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enforce the restriction on subsequently sold lots on the theory that the developer impliedly intended for all lots to be sold subject to the restriction. The person seeking to enforce must show that there was a common plan or scheme.
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*X Profit: The right of one person to go on the land of another and:
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take from it some part or the product of it. A profit is regarded as real property if it is for an indefinite time like a fee simple, or if it is for the life of a human being. Holders of a profit are entitled in their share of a condemnation award such as the current value of the income he would have received.
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*√ An Easement by Prescription: arises from:
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adverse use of the tenement for a period of time prescribed by statute. The use must be 1. Adverse 2. Open and notorious 3. Continuous 4. For the time of prescription. Easements by prescription pass on to those who are in privity.
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*√ Easement by Implication: Usually when owner:
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sells a parcel of land and it is clear that one was intended. The easement must be reasonably or strictly necessary to the use and enjoyment of the quasi-dominant estate. Street access would prevent an easement by implication.
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*X Doctrine of Prior appropriation:
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First in Time, first in Right- no matter what it’s being used for.
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Riperian Water Rights: Domestic use has preference:
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over commercial or agricultural use.
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*√ Surface Waters: Common Enemy rule: the owner of a lower tract has a right to:
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protect himself from the flow of surface water by making any improvements that are necessary.
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*X Airspace: Any use of the space above one’s land:
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that is unreasonable, improper or interferes with the reasonable use and enjoyment of the surface can constitute a trespass.
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Easement Appurtenant:
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is one that benefits the dominant estate and "runs with the land", i.e., an easement appurtenant generally transfers automatically when the dominant estate is transferred. However, if the owner buys another lot, so that the easement lies between them, the easement is extinguished by merger.
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*√ Easement Rights: The holder of an easement has the right to:
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do as much work as required to the enjoyment of the land, which includes the right to repair, improve, and maintain
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*√ Merger-
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when both lands owned by same guy
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*√ Abandonment- Non use plus some overt act
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Non use plus some overt act
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How does a cotenant have to share profit with the other cotenants?
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Rent must be shared but not the fruit of the land, such as vegetables sold.
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Subadjacent support
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Support from underneath the surface of the land. The landowner has absolute right to support for unimproved land AND any structures on the land.
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An after acquired property clause in a mortgage:
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is enforceable and takes priority over a subsequent property interest.
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How mush notice is required before leaving a hotel you pay weekly?
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None. Hotels give a license because possession remains in the hotel.
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What use may a life tenant make of the land?
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He can continue whatever use was being made before. He cannot exploit a land of its resources for the first time, and if he does, he may be enjoined and have to account for the proceeds of any sale.
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Ameliorative waste:
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a change in the physical characteristics of the occupied premeses by an unauthorized act of the tenant that increases the value of the property.The tenant has the right to use the land.
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