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201 Cards in this Set

  • Front
  • Back
Acquisition by Discovery:
Cases
Johnson v. M'Intosh
Rule:
Discovery grants exclusive title
Society has the right to prescribe the rules by which property can be acquired
Acquisition By Discovery:

Based in what rule?
First In Time:
Being there first justifies ownership
Acquisition By Conquest
taking of territories through force
illegal by international law
Acquisition By Capture
General Rule
First in time
Acquisition bu Capture
Cases
Pierson v. Post
(fox hunt- capture rule)
Ghen v. Rich
(whale- construct. poss)
Keeble v. Hickeringill
(no malicious prevention)
Popov
(Greys Rule- must control)
Pierson v. Post
Fox Hunting
RULE
Whoever is the first to capture resources is entitled to them

Title to a wild animal is acquired when a hunter apprehends the beast through actual possession, pursuit alone vests no property or right in the huntsman
Rationale Soli-
• An owner of land has constructive (pretending a state of affairs that actually exists when actually it does not) possession of wild animals on that land until the animals are taken off.
Ferae Naturae
wild animal
Ghen v. Rich
(lance-bombing)
• If the fisherman does all possible to make the whale his own, then it is sufficient to establish constructive property rights within the whale.
• Title to a wild animal is acquired when a hunter apprehends the beast in according to Trade Usage
• Hunting has been modified here to fit efficiency
Keeble v. Hickeringill
• A person may not maliciously prevent another from capturing wild animals in the pursuit of his trade
Popov Case
(baseball case)
• Grays Rule:
Actor must retain control of the ball after incidental contact with people or things to establish possession
Rule of Capture:
Oil & Gas
• HAMMONDS RULE:
• The resources were minerals ferae naturae.
• They belong to the owner of the land as long as they are under the land.
• As soon as they escape to another’s land and are captured there, you lose your title to them and the capturer gets the title to what he captured.
Acquisition by Creation
Rule
• The purpose of recognizing property by creation is to reward labor.
•However, problems arise in defining “creation”
•EX: ones labor mixed with goods or labor of another
B. LOCKE’S LABOR THEORY:
• When a man changes land through his labor, that land is his
C. ACQUISITION BY ACCESSION:
•When one person adds to the property of another by labor alone, or by labor and the addition of new material
•LABOR ADDED:
• When labor is added, the final product is usually awarded to the owner unless its value has sufficiently increased so as to make it unfair to award it to the original owner. Usually the improver must have acted in good faith.

•LABOR AND MATERIAL ADDED:
•The final product is generally awarded to the owner of the principal material.
Acquisition by Accession:
Cases
Haslem v. Lockwood
Manure Case
• If a party finds property comparatively worthless…and greatly increases its value by his labor and expense, he is entitled to its value
Intellectual Property:
Rule
• RULE: FIRST IN TIME
• This includes copyrights, patents, trademarks, and property in a persona.
• The common law allows some limited copying and imitation, with some exceptions to avoid monopolies and to encourage competition
Intellectual Property:
Cases
International News
(Stealing News)
Cheney Brothers
(fabric copyright)
Diamond v. Chakrabarty
(can't patent a living thing)
Smith v. Chanel
(can't patent scent)
Falwell v. Flint
(can't patent yourself)
MGM v. Grokster
Inducement Rule
International News
stealing news
• Where a company has expended resources in creating news and information, the creator can exclude others from copying it until its commercial value until its commercial value as news has passed away
Trademark:
• Protects words and symbols indicating the source of the product it tells the consumer that they can expect the same quality every time you buy it.
Copyright:
• Protects the expression of an original idea in a tangible medium.
• does not extend to an idea, only the physical expression of that idea.
• Can be infringed showing:
• -An admission
• Proof of access to the work
• Substantial similarity.
Cheney Brothers
(fabric copyright)
•No common law copyright
•If you don’t copyright it you can’t bring a claim of infringement
Diamond v. Chakrabarty
• Can’t patent a living thing because it would be dangerous to let people exploit nature
•2 Key terms in the patent statute
i. Manufacture
ii. Composition of Matter
Smith v. Chanel
• Cant patent a scent
Falwell v. Flint
•Intellectual property rights are not free- they limit future creators and the public at large
MGM v. Grokster
• Inducement Rule:
• One who distributes a device with the objective of promoting its use to infringe copyright, as shown by clear expression or other affirmative steps taken to foster infringement, is liable for the resulting acts of infringement by third parties
RIGHTS IN BODY PRODUCTS
•The main question is not whether body products are property but whether they should be saleable.

Moore v. Regents
Moore v. Regents
•A doctor has a duty to disclose the extent of his research and economic interest in a patient’s body parts. Human body parts are not property such that they may be converted.
•Property:
•Must show dominion, control, disposition
•Bundle of Rights:
•Right to use, possess, transfer,exclude or sell
•The Right to Exclude:
Every person’s right to the exclusive enjoyment of his own property for any purpose which does not invade the rights of another person
Jacque v. Steinberg
• Punitive damages may be imposed for intentional trespass to property
State v. Shack
•Property rights may not be exercised so as to danger the well being of other
ACQUISITION BY FIND:
Rule
A. GENERAL RULE:
• A possessor prevails against all but the true owner, and a prior possessor prevails against a subsequent possessor.
ACQUISITION BY FIND
POSSESSION:
• A finder must acquire physical control and have intent to assume dominion over the object. Constructive possession also entitles a person to the benefit of the first in time rule.
ACQUISITION BY FIND
Cases
Armory v. DelaMirie
(chimney sweep finds jewel, appraiser takes it)
Trover:
A common law action for money damages resulting from Defendants conversion to his own use of chattel owned or possessed by the plaintiff
DAMAGES:
Value of Chattel at time of conversion
Bailment:
Rightful possession of goods by a person (bailee) who is not the owner
• Haslem v. Lockwood
(Manure case)
If a party finds property comparatively worthless…and greatly increases its value by his labor and expense, he is entitled to its value
Real Property:
Real property is that sort of property for which a “real action” as distinct from a “personal action” could be brought
Real Action: get the “thing” back (specific performance)
Personal Action: Only get the value of the goods
FINDER V. OWNER OF PREMISES

OBJECT FOUND IN PRIVATE HOME
(i) RULE:
Objects found in someone’s home or other very private place are usually awarded to the owner of the premises.
CASE
Hannah v. Peel
(soldier finds gem in window)
An owner owns everything attached to, or under, the land but not necessarily object lying on the surface of the land, even though the objects are not possessed by someone else.
FINDER V. OWNER OF PREMISES

OBJECT FOUND IN PUBLIC PLACE
(i) Determined by deciding whether the object was
1.MISLAID
a.Intentionally placed somewhere and then forgotten
i.RULE: GOES TO THE OWNER OF THE PREMISES WHO HAS A DUTY TO USE REASONABLE CARE TO SAFE KEEP THE PROPERTY UNTIL OWNER RETURNS FOR IT
CASE
McAvoy v. Medina
(barbershop wallet on table)
A finder acquires no rights in mislaid property
2. LOST
a.Accidentally dropped by the owner
i.RULE: FINDER OF LOST PROPERTY MUST TRY TO FIND THE OWNER AND HAS RIGHTS TO IT IF THE OWNER IS NEVER

CASE
Bridges v. Hawksworth ( money on floor)
OBJECT FOUND IN PUBLIC PLACE

MISLAID
Intentionally placed somewhere and then forgotten
i.RULE:
GOES TO THE OWNER OF THE PREMISES WHO HAS A DUTY TO USE REASONABLE CARE TO SAFE KEEP THE PROPERTY UNTIL OWNER RETURNS FOR IT
McAvoy v. Medina
(barbershop wallet on table)

A finder acquires no rights in mislaid property
McAvoy v. Medina
(barbershop wallet on table)

A finder acquires no rights in mislaid property
Hannah v. Peel
(soldier finds gem in window)

An owner owns everything attached to, or under, the land but not necessarily object lying on the surface of the land, even though the objects are not possessed by someone else.
OBJECT FOUND IN PUBLIC PLACE
LOST
a. Accidentally dropped by the owner
i. RULE: FINDER OF LOST PROPERTY MUST TRY TO FIND THE OWNER AND HAS RIGHTS TO IT IF THE OWNER IS NEVER

Bridges v. Hawksworth
( money on floor)
Bridges v. Hawksworth
( money on floor)

FINDER OF LOST PROPERTY MUST TRY TO FIND THE OWNER AND HAS RIGHTS TO IT IF THE OWNER IS NEVER
ABANDONED PROPERTY
Property intentionally and voluntarily relinquished with no intent to reclaim
ACQUISITION BY ADVERSE POSSESSION

ELEMENTS
ECHOA

Exclusive
Continuous
Hostile
Open
Actual
ACQUISITION BY ADVERSE POSSESSION

Cases
Waling v. Pryzbalo
VanValkynburgh v. Lutz
Manillo v. Gorski
Amko v. Wellborn
Howard v. Kunto
ACQUISITION BY ADVERSE POSSESSION

POSSESSORS RIGHTS BEFORE ACQUIRING TITLE
Possessor has rights to property over all but the rightful owner, even before actually establishing valid title through adverse possession
ACQUISITION BY ADVERSE POSSESSION

ADVERSE AND UNDER A CLAIM OF RIGHT
• OBJECTIVE TEST
• SUBJECTIVE TEST
• CLAIM OF TITLE
• COLOR OF TITLE
CT DOCTRINE
MAINE DOCTRINE
COLOR OF TITLE
• A claim founded on a written instrument (deed or will) or a judgment or decree that is for some reason defective or invalid
i. ( as when the granator does not own the land conveyed by deed or is incompetent to convey, or the deed improperly executed)

Howard v. Kunto
CT DOCTRINE
• RULE: possession need not be knowingly/ intentionally hostile but it must be notorious and open to give the true owner actual or constructive notice
• Manillo v. Gorski (accidentally made porch 15 in. on neighbors land)
MAINE DOCTRINE
• RULE: Possession cannot be based on mistake, there has to be hostile intent
• Must show that the adverse possessor wouldn’t have erected the fence etc. if they had known they were not on their own property
iii. AGREED BOUNDARIES
• IF THERE IS UNCERTAINTY BETWEEN NEIGHBORS AS TO THE TRUE BOUNDARY LINE, AN ORAL AGREEMENT TO SETTLE THE MATTER IS ENFORCEABLE IF THE NEIGHBORS SUBSEQUENTLY ACCEPT THE LINE FOR A LONG PERIOD OF TIME.
iv. ACQUIESENCE
• LONG ACQUIESCENCE- PERHAPS FOR A PERIOD SHORTER THAN THE SOL- IS EVIDENCE OF AN AGREEMENT BETWEEN THE PARTIES FIXING THE BOUDARY LINE
v. ESTOPPLE
• When 1 neighbor makes representations about, or engages in conduct that implies, the location of a common boundary and the other one then changes their position in reliance on the representation or conduct.
• THE FIRST NEIGHBOR IS THEN ESTOPPED FROM DENYING THE VALIDITY OF HIS STATEMENTS OR ACTS.
(i) Estoppel has been applied when one neighbor remains silent in the face of expenditures by another that suggests the latters notion of the boundary's location.
Innocent Improvers

Modern Law
• The modern law is to ease the plight of innocent improvers by forcing a conveyance at market value of land from the owner to the improver

Amko v. Wellborn
Amko v. Wellborn
2 prong test
1. Plaintiff has to show it would suffer irreparable harm if removal were denied.
2. If irreparable harm, still a balancing test, compares hardship to plaintiff if no removal to hardship to defendant if removal is granted.
CONTINUOUS UNINTERRUPTED POSSESSION

SEASONAL USE
• RULE: Continuous seasonal occupancy by successive owners established adverse possession

Howard v. Kunto
(summer homes messed up deeds)
TACKING
• Tying your predecessors occupancy to your own through privity
• The deed links the possession of successive occupants and furnishes the privity of the estate.
PRIVITY
i. the connection or relationship between two parties each having a legally recognized interest in the subject matter; ie: mutuality of interest

ii. Privity applys to color of title, there has to be a reasonable connection, which can be established by the transferors of the color of title to establish privity.
Adverse Possession

GOVERNMENT LAND
• You cannot adversely possess government land
Adverse Possession

Diabilities
• Adverse possession statutes are really limitation statutes, saying you have X years to establish your claim and the owners have that time to come back.

• If the record owner is disabled there are exceptions
i. Minor
ii. Unsound mind
iii. Imprisioned

• They can bring action after the SOL runs, after the disibility is removed.

• Disabilities cannot be tacked.

Focus on when the adverse possession begins and the state of the record holder at that time. You give the extension then
Adverse Possession

Minerals
Adverse possession of surface prior to division of mineral rights = adverse possession of surface and mineral rights

POST severance of mineral rights= only adverse possession of surface, must start to extract minerals to begin adverse possession of severed mineral rights
ADVERSE POSSESSION

CHATTELS
• A person can adversely possess chattel, the elements are the same as to land with a shorter SOL
When deciding whether possession is open and notorious:
•NY RULE
•DUE DILIGENCE RULE:
ADVERSE POSSESSION CHATTELS

NY RULE
i. SOL does not begin to toll until the owner knows who has the goods
ii. The owner makes a demand for return which is rejected.
ADVERSE POSSESSION CHATTELS

DUE DILIGENCE RULE:
i. SOL does not begin to toll as long as the owner is using due diligence in looking for them.
ii. SOL begins to toll when the owner first knows or reasonably should know through the exercise of due diligence where the stolen goods are/
• Okeefe v. Snyder
Okeefe v. Snyder
ADVERSE POSSESSION CHATTELS

DUE DILIGENCE RULE:i.

SOL does not begin to toll as long as the owner is using due diligence in looking for them.
ii. SOL begins to toll when the owner first knows or reasonably should know through the exercise of due diligence where the stolen goods are/
Voidable title:
1. Title which remains valid until the true owner asserts ownership.
2. A person with a voidable title has power to transfer a good title to a good faith purchaser for value in certain circumstances
ACQUISITION BY GIFT

Elements
A. Requirements for Gifts
•Manifested intention to make unconditional and irrevocable
•Delivery
•Acceptance
ACQUISITION BY GIFT
Delivery
• If it’s a small chattel you must physically hand it over
• If too big to physically hand over, a constructive delivery or symbolic is required-
i. Constructive
• handing over a key or object that will open up access to the subject matter of the gift.
ii. Symbolic Delivery:
• Handing over a written instrument declaring a gift of the subject matter
• Generally not allowed

Cases
Newman v. Bost
life insurance inside furniture not a symbolic delivery- only meant to have furniture
ACQUISITION BY GIFT
Constructive Delivery
• handing over a key or object that will open up access to the subject matter of the gift.
ACQUISITION BY GIFT

Symbolic Delivery
• Handing over a written instrument declaring a gift of the subject matter
• Generally not allowed

Newman v. Bost
life insurance inside furniture not a symbolic delivery- only meant to have furniture
Newman v. Bost
life insurance inside furniture not a symbolic delivery- only meant to have furniture
Livery of Seisen
• Acting out a ritual to signify that title or "seisen" was being transferred.
• Generally old landowner would go on land with transferee and give a clod of dirt or stalks of wheat grown on the land
• Ended in 1677 when deeds became compulsory
Causa Mortis
• Strict statute of wills that sets requirements
• 2 disinterested witnesses
• Executed and signed in the presence of the witnesses
• Witnesses execute an affidavit saying they observed the testatrix writing the will
SYSTEM OF ESTATES

Hierarchy
1. Fee Simple Absolute
2. Fee simple divisible
3. Fee tail
4. Life estate
5. Leasehold
Fee Simple Absolute
• largest estate known to common law only way to lose it is default on mortage, default on taxes, or eminent domain

As close to absolute property right as law recognizes
Fee simple divisible
•Gift of real estate with strings attached and Violition of condition of grant retracts the gift

•Giving land to john smith but if alcoholic beverages are ever sold then it will go to mary brown
Fee tail
• Vanished in all but 4 states MA ME DE RI
• Property can only go to your heirs of your body
• Expires only when all of the decendants of the original owners were dead
• When that happens land reverts to the grantors heirs
• Your own issue excluding collaterals
• Idea is to keep it in the family
Life estate
• Only own it until you dies
A. Common Law:
• Life estate presumed unless the intent to pass a fee simple was clearly expressed in the instrument

B. Modern Rule:
• Reversed common law rule and said it is assumed to be a fee simple unless there is intent to pass a "lesser estate" shall appear by express terms
•CASES
White v.Brown
Objections against restrictions on alienation


i. Value on life estate use life expectancy table then divide the remainder to beneficiaries
Leasehold
• Tenant with no claim of title but property right to remain in possession
Objections against restrictions on alienation
1. Property becomes of limited use
2. Perputates the concentration of land and thus wealth b/c people cant sell land and use that money
3.Discourages improvement on land or mortgage
4.Hardship on creditors
Waste:
• RULE: courts do have jurisdiction to order the sale of land for the prevention of waste if the facts so merit, the court can only order a sale if it is in the best interest of all the parties.
• Applies when the interest of the life tenant and the remaindermen conflict
• A should not be able to use the property in a manner that interferes with the expectations of B
• AFFIRMATIVE WASTE:
•Arising from voluntary acts
i. Life tenant tempted to exploit property value to the max but this leads to the property being worth less in the future when the remaindermen get it
•PERMISSIVE WASTE:
•Arising from failure to act
i. Prohibits life tenant from neglecting repairs
Baker v. Weedon
WASTE RULE: courts do have jurisdiction to order the sale of land for the prevention of waste if the facts so merit, the court can only order a sale if it is in the best interest of all the parties.
QUITCLAIM:
• Legally giving up any right in the property
LIFE ESTATES OF CHATEL
• You can have a life estate in chattel but you may have to
• Post a bond for its value
• You are treated as a trustee with a fiduciary duty to the remaindermen for the chattel
. TRUST
• More flexible and desirable property arrangement than an estate
• Trustee owns legal title- power to control it but holds it in trust for benefit of trustees in fiduciary duty
• Trustees have equitable title
• Trustee can also be beneficiary
DEFEASIBLE ESTATES
1. Fee simple determinable

2. Fee simple subsequent to a condition

B. COMMON LAW:
• You cannot transfer reverter or right of entry, during life
• Some states say that an Attempt to transfer intervivos destroys the right of entry

C. MODERN LAW:
• You can transfer them because they are things
Fee simple determinable
• Fee simple so limited that it will end automatically
i. Followed by a possibility of reverter

CASES
Marenholz v. County Board (limitation for school use is a limitation)
Fee simple subsequent to a condition
Does not automatically end, but may be cut short or terminated at the transferors election
Habendum Clause
• Portion of the contract which describes the restriction
• Eminent domain
• The proceeds from an eminent domain proceeding are to be divided between present and future interests
• CONDEMNOR AS PRESENT INTEREST
• Palm Springs v. Living Desert Reserve
Defeasible Life Estates upon Marriage
 Provision will be VOID if its purpose is to coerce abstention from marriage
• "to A for life, but if A marries, then to B"
 Will be UPHELD if its purpose is to provide support until marriage, without any desire to hinder marriage
• "to A for life so long as A remains unmarried"
FUTURE INTERESTS
A. Interests retained by the transferor, known as:
• Reversion
• Possibility of Reverter
• Right of Entry (also known as power of termination)

B. Interests created in a transferee, known as:
• Vested Remainder
• Contingent Remainder
• Executory Interest


Although a future interest doesn't entitled its owner to present possession, it is a presently existing interest that may become possessory in the future
Interests retained by the transferor
• Reversion
• Possibility of Reverter
• Right of Entry
Interests created in a transferee
• Vested Remainder
• Contingent Remainder
• Executory Interest
O conveys blackacre to A for life.
• O has a reversion in fee simple that is certain to become posessory
• At A's death blackacre reverts back to O or O's sucecssors in interest
REVERSION INTEREST
• The interest left in an owner when he carves out of his estate a lesser estate and does not provide who is to take the property when the lesser estate expires.
• Because reversions result from the hierarchy of estates they are thought of as a remnant of an estate which has not entirely passed away from the transferror.

• At common law a reversion is transferrable during life and descendible and divisible at death. It remains so today
conveys Blackacre to A for life, then to B and her heirs if B survives A"
• O has reversion interest in fee simple that is not certain to become possessory
• If B dies before A, Blackacre reverts back to O at A's death
• If B survives A, O's reversion is divested on A's death and will never become possessory
1. O owns fee simple. In which cases is there a reversion?

a."to A for life, then to B and her heirs"

b.to A for life then to b and the heirs of her body

c.To A for life, then to B and her heirs if b attains the age of 21 before A dies
a."to A for life, then to B and her heirs"
iNo reversion- B has a vested remainder in fee simple

b.to A for life then to b and the heirs of her body
i. No B has a vested remainder in fee tail

c.To A for life, then to B and her heirs if b attains the age of 21 before A dies
i. O has a reversion interest until B turns 21, where B's contingent remainder is vested remainder in fee simple
O conveys Blackacre "to A for life, then to B for life" O dies with a will devising all of O's property to C. Then A dies and B dies. Who owns blackacre?
a. C owns Blackacre through reversion in Fee simple
POSSIBILITY OF REVERTER
• FOLLOWS A FEE SIMPLE DETERMINABLE
 Must have words denoting DURATION
• “until”
• “during”
• “so long as”
WHAT INTEREST FOLLOWS A FEE SIMPLE DETERMINABLE
POSSIBILITY OF REVERTER
O conveys Blackacre “ to A and his heirs so long as liquor is not sold on the premises”
A has a determinable fee;
O has a possibility of reverter
RIGHT OF ENTRY
• Follows a Fee Simple Subject to a Condition
 Words that establish a condition
• “but if”
• “provided, however”
• “on condition”
When an owner transfers an estate subject to condition subsequent and retains the power to cut short or terminate the estate.
What Interest Follows a Fee Simple Subject to a Condition
RIGHT OF ENTRY
• O conveys Blackacre “ to RR Co., but if it fails to maintain an overpass, O has the right to reenter”
RR CO has Fee simple subject to a condition precedent

O has right of re-entry
FUTURE INTEREST IN TRANSFEREES
There are 3 types of future interest in transferees:
A. Vested Remainder
B. Contingent Remainder
C. Executory Interest

Once created, a remainder or executory interest can be transferred back to the grantor, but the name originally given the interest does not change
Vested Remainder
a future interest in a transferee that is certain to become posessory upon the expiration of the prior estate created at the same time.

• Given to an ascertained person, and
• Not subject to a condition precedent
• other than the natural termination of the preceding estates
• Vested because all you have to do is wait


The law has a preference for vested remainder and, where an instrument is ambiguous, the court construes it in favor of a vested remainder.
" to A for life, then to B and her heirs"
• B has a vested remainder in fee simple.
• Contingent remainder
Permits the transferor to let future events determine who takes the property upon the death of the life tenant•

Future interest that waits until the termination of the preceding possessory estate, at which time the remainder moves into possession if it is then vested.
• Executory Interest
1. developed to do what the remainder cannot- divest or cut short the preceding interest.
2. A future interest in a transferee that can take effect only by divesting another interest.
3. Created in 1536 so reletively recent compared to other interests
REMAINDERS

ELEMENTS
1. Must have preceding estate
•Must be created by express grant in the same instrument in which the preceding possessory estate was created

2. Must follow a fee tail, life estate, or term of years•
A REMAINDER CANNOT FOLLOW A FEE SIMPLE (if it follows a fee simple it’s an executory interest)

3. Must be capable of becoming possessory on natural termination of preceding estate
Indefeasibly vested:
Remainder is certain of becoming possessory in the future an cannot be divested.
• O conveys "to A for life, then to B and her heirs"
• B has an vested remainder in fee simple absolute
Vested subject to open/ Vested subject to partial divestment
A remainder that is vested in a class of people that could grow
What difference does it make whether a remainder is vested or contingent?
A vested remainder accelerates into possession immediately at the end of the preceding estate, a contingent remainder cannot so long as it remains contingent
Intervivos transfer of contingent remainders
common law
modern law
 COMMON LAW:
• At early common law a contingent remainder was not assignable during the remainderman's life and was thus unreachable for creditors
• At common law contingent remainders were destroyed if they did not vest upon termination of the preceding life estate, whereas vested remainders were not.


MODERN LAW:
• In most states they are transferable now
• Constructed remainders are subject to the rule against perpetuities whereas vested remainders are not.
Contingent Remainders
It is given to an unascertained person
OR
It is made contingent upon some event occurring other than the natural termination of the preceding estate

In either situation the remainder is not now ready to become possessory upon the expiration of the preceding estate
"To A for life, then to the heirs of B"
1. B is still alive.
2. Cannot ascertain who B's heirs are until after B dies.
3. B's heirs have a contingent remainder in fee simple
1. "to A for life, then to B and her heirs if B survives A"
1. B can get possession only if B survives A
2. B has contingent remainder, if B doesn't survive reverts to O
1. "To A for life, then to B and her heirs if B survives A, and if B does not survive A to C and her heirs"
1. Alternate contingent remainders
1. To A for life and in the event of A's death to B and her heirs
• Vested remainder
2. To A for life, then to B for life, then to C and her heirs"
• A has life estate
• B indefeasibly Vested remainder in LE
• C indef. Vested Remainder in fee simple
3. O convys to A and B for their joint lives, then to the survivor in fee simple
• Contingent remainder- don’t know who will survive
4. To A for life, then to A's children who shall reach 21
• A's oldest child, B, is 17. While A is still alive B turns 21.
• All children have a contingent remainder, it vests in B when B turns 21, subject to open for the other kids when they turn 21 but the kids still have contingent remainder
• If A dies before B reaches 21 at common law the remainder was destroyed at A's death. Under modern law the remainder is not destroyed and A's children can take after A's death when they reach 21
• Executory Interest
Creates a interest in a transferee that can divest a vested remainder before it becomes possessory.
• O conveys "to A for life, then to B and her heirs, but if B does not survive A to C and his heirs"
1. B does not have a contingent remainder, B has a vested remainder in fee simple subject to divestment
2. C has a shifting executory interest which can become possessory only by divesting B's remainder.
• O conveys Blackacre "To A for life, then to B if B gives A a proper funeral"

Does B have a reminder or an executory interest?
1. ANSWER: Executory interest
2. The funeral will not take place right at the time of death so reversion to O then after the proper funeral, B has an executory interest that divests O's possessory interest
If the conditional element is incorporated into the description of, or into the gift to, the remainderman, then the remainder is.......
contingent
If, after words giving a vested interest, a clause is added divesting it, the remainder is .....
vested.
"to A for life, then to B and her heirs, but if B does not survive A to C and his heirs"
• To A for life- life estate
• Then to B and her heirs- vested remainder
• but if B does not survive A to C and his heirs- B not surviving A is a conditional precedent on C's interest and a condition subsequent (or divesting condition) to B's interest
 If the first future interest created is a contingent remainder in fee simple,
• the second future interest in a transferee will be...........?
a contingent remainder.
If the first future interest created is a vested remainder in fee simple,
• The second future interest in a transferee will be......?.
a divesting executory interest
Fee Simple Subject to an Executory Limitation
A fee simple that, upon the happening of a stated event, is automatically divested by an executory interest in a transferee.

• Can be created either in possession or in remainder.

• Executory interests are treated as contingent interests, because they are subject to a condition precedent and do not vest until they become possessory
O conveys "to A and his heirs, but if A dies without issue surviving him, to B and her heirs."
• A has a possessory fee simple subject to an executory limitation (or subject to divestment by B's executory interest).

B's future interest can become possessory only by divesting A.
O conveys "to A for life, then to B and her heirs, but if B dies under the age of 21, to C and her heirs."
• B is age 15. B has a vested remainder in fee simple subject to an executory limitation (or subject to divestment by C's executory interest if B dies under age 21.)
O conveys "to A for life, then to B and her heirs, but if B does not survive A to C and his heirs."
• B has a vested remainder in fee simple subject to divestment.
• C has a shifting executory interest which can become possessory only by divesting B's remainder.
Defeasible Fees
Executory interests, which can only be created in a transferee, might be created to follow defeasible fees rather than a possibility of reverter or a right of entry, which can only be created in the transferor.

If a transferor wants to create a future interest in a transferee after a defeasible fee, it will necessarily be an executory interest.
O conveys "to Hartford School Board, its successors and assigns, but if the premises are not used for school purposes during the next 20 years, to B and her heirs."
• The school board has a fee simple subject to an executory interest that will automatically divest the Boards Fee simple if the condition happens.
• The executory interest differs from a right of entry in O, which is optional not automatic in divesting
O conveys "to Town Library Board so long as the premises are used for library purposes, then to Children's Hospital."
•The Library Board has a determinable fee simple

•Children's Hospital has an executory interest.

•The interest is not a divesting interest and should logically be classified as a remainder.

• It stands ready to succeed on the natural expiration of the preceding estate; it does not divest the determinable fee, which expires automatically.

•But the future interest cannot be a remainder because of the rule that a remainder cannot follow a vested fee simple.

•Though it doesn’t fit into the definition of an executory interest as a divesting interest, courts had to choose which rule it would violate and they chose to give the future interest the label of executory interest.
THE TRUST
•Trusts allow settlors to arrange their assets in ways that maximize flexibility in property management as well as transfer wealth to future generations

•The core is the separation of "legal" and "equitable" title

•Although the trustee is the legal owner, it is subject to orders from the equity courts which enforce the trustee's duties to the beneficiaries who hold the equitable interests.
THE TRUST

TRUSTEES RIGHTS AN DUTIES
• The trustee holds legal title to the trust property and manages that property for the benefit of the beneficiaries.

•The trustee has the power to sell trust assets and reinvest the proceeds in the other assets.

•A fiduciary duty to the beneficiaries
THE TRUST

BENEFICIARIES RIGHTS AN DUTIES
•The net income of the trust is paid to the beneficiaries and upon its termination, the trusts assets are handed over to them.

•have the right of beneficial enjoyment of the property.

•Hold equitable interest that corresponds to the legal possessory estates and future interests
Destructibility of Contingent Remainders
A remainder in land is destroyed if it does not vest at or before the termination of the preceeding freehold estate
O conveys Blackacre" to A for life, then to B and her heirs if B reaches 21."
If at A's death B is under the age of 21, B's remainder is destroyed. O now has the right of possession.
What Happens When There Is A Merger of A Life Estate with A Reversion Interest?
If the life estate and the next vested estate in fee simple come into the hands of one person, the lesser estate is merged into the larger.
O conveys Whiteacre "to A for life, then to B and her heirs if B survives A."
A conveys his life estate to O; the life estate merges into the reversion, destroying B's contingent remainder.
Rule Against Perpetuities
No interest is good unless it must vest, if at all, no later than 21 years after some life in being at the creation of the interest.

RAP applies only to interests that are not vested at the time of conveyance that creates them...
Contingent remainders
Executory Interests
Class Gifts

A Life In Being Can NEVER Be the Transferor
T devises property " to my grandchildren who reach 21"
Validating lives are T's children, have to the end of the last surviving children, at that point all of T's grandchildren will be born. Don't need the 21 years here.
Class Gifts
All or nothing rule
The interest of no member is vested until the interest of all the members are vested

A gift that is vested subject to open is not vested under RAP.

1.when all the class members will be ascertained
(within the lives in being plus 21 years?)

2.When all conditions precedent, if any, will be met for all members of the class
(within lives in being plus 21 years?)
. UNBORN WIDOW
conveyance "to A's Widow" is invalid because A could get married to someone who was not a life in being at the time of conveyance and title would not vest in the widow within 21 years
FERTILE OCTAGENARIAN
giving gift to children of A violates rap due to the fact a man could have children 21 years after conveyance
1. O conveys blackacre to "the school board so long as it is used for a school
i.School Board has a fee simple determinable;
ii.O has a possibility of reverter exempt from the RAP
1. O conveys blackacre "to the School board, but if it ceases to use Black acrefor school purposes, O has a right to re-enter"
i. The School board has a fee simple subject to condition subsequent
ii. O has a right of reentry
8. What-Might-Happen Test
• If there is any possibility that a contingent interest will vest too remotely, the contingent interest is void.
• Look at the interest at the time of creation and determine if it will vest or fail. If there is any possibility it will NOT VEST within 21 years plus life in being, then it fails.
Reforms to RAP
Wait and See Test
Statutory Age Of Fertility
Statutory Presumption- gift to spouse is gift to life in being
USRAP- 90 Years to Vest
Allow immediate reformation
Reforms to RAP

Fertile Octegenarian
anyone above 65 and below 13 incapable of reproduction
NY- anyone above 55
Reforms to RAP

Unborn Widow
Presumes that gift to surviving spouse of living person is gift to life in being
Wait-and-See Test
• Rather than invalidating an interest at the time of its creation on the basis of the what-might-happen test, we wait and see whether a contingent interest actually vests within some permissible vesting period.


• STEP ONE
•If the unvested future interest is valid under common law Rule, you are all set.

• STEP TWO
•If the interest is invalid under the common law Rule, then the interest can still be valid if it actually vests or terminates within the permissible vesting period.

Criticized because it doesn’t provide a means to demarcate the permissible vesting period.
The Uniform Statutory Rule
Against Perpetuities (USRAP)
90 years vesting period
i. Adopted by 24 states and DC

Youngest issue would be 6 years, life expectancy would be 69, plus 21 years equals the 90 year flat rate
Perpetual Trust
• Some states have totally gotten rid of RAP so there can be trusts forever as long as trustee has right to sell assets
• Estate Tax
oDoes not apply to widows
oLarge estate tax due to heirs upon transfer
o3.5 million exemption
LEASEHOLDS
1. Tenancy At Will
2. Periodic Tenancy
3. Term of Years
Tenancy At Will
No fixed length that endures so long as both landlord and tenant desire.

If the lease provides that it can be terminated by Can be terminated by either party
Periodic Tenancy
Lease automatically renewed unless notice is given
Term of Years
Lasts for some fixed period of time
How did the modern laws change the common laws for Leaseholds
1. Covenants in leases "mutually dependant"
a. If so then a material breach by one party would excuse further performance by the other party
2. If the leased premises are destroyed, does the tenant still have to pay rent?
3. If the tenant wrongfully abandons the leased premises, must the land lord take steps to mitigate the damages (ie: by looking for a new tenant)?
4. Is warranty of quality- that the premises are habitible or fit for their purpose- to be imposed on leases?
Garner v. Gerrish
• ** RULE**
The intent of the parties as expressed in the contract should rule and terms that were not expressed should not be implied by law unless that was determined to be the intent of the parties

K that basically created a tenancy at will for life with the right to termination only in the tenant is valid
What is the effect of the right to terminate a Tenancy At Will when K states "so long as the leasee shall please"...
Under Common law?
Under Modern Law?
COMMON LAW:
when a tenancy at will is created "so long as the leasee shall please" is imputed to also be at the will of the lessor.

MODERN LAW:
Express terms demonstrate the intent of the parties rule, a tenancy at will with the unilateral right to terminate in the tenant is valid and DOES NOT imply that the landlord has the right to terminate if its not expressly given.
Crechale & Polles v. Smith
**RULE**
 A Landlord that chooses to treat holdover as trespasser and then takes monthly checks without pursuing an action in eviction, has in effect elected to waive the eviction and treat the holdover as a month to month lease
What happens when a teant holds over..

Under Common Law?
Under Modern Law?
•COMMON LAW:
Holdover of a Term of Years lease gives the landlord the option of treating the holdover as a trespasser and move for eviction, or as a tenant and held to a K for another year

• MODERN LAW:
Different jurisdictions treat holdover differently;
1.Gives rise to a periodic tenancy

2. Results in a term

Term computed either by way rent is computed (month to month, etc.)
•The amount of the original term
*** MAXIMUM length is 1 YEAR in either case***
Fair Housing is under what Amendment?
14th
Fair Housing
Protects racist resident landlords renting out their house as long as they don't advertise they are discriminating on race
(1) nothing should apply to any house sold or rented to an owner who is a non-resident
Provided that the individual owner doesn’t have more than 3 such houses
Exception applies only once every 2 years
Maximum houses you can own and still discriminate is 3

**baisically imposing strict limits on real estate ads that show a preference on rent**
HANNAH V. DUSCH
Landlord has a duty to confer possession of the premises, not actual possession.
What rights does the leasee have against a holdover tenant on their property? Against the landlord?

Under CL?
Under ML?
COMMON LAW:
Landlord has a duty to confer possession of the premises, not actual possession.

MODERN LAW:
2 Rules

1. ENGLISH RULE
--Implied covenant requiring the lessor to put the lessee in possession

--You can bring suit against the landlord for possession against holdover tenant

REASON: Holdovers are best known by the landlord, and a leasee would not knowingly K for a lawsuit


2. AMERICAN RULE
--Recognizes the leasee's legal right to possession, but implies no duty on the landlord to put the leasee in actual possession

--You have to bring suit against the holdover tenant for possession

REASON: not fair to hold landlord liable for actions of another when he didn't K for it, and he could have
ENGLISH RULE
implied covenant requiring the lessor to put the lessee in possession

--You can bring suit against the landlord for possession against holdover tenant

REASON: Holdovers are best known by the landlord, and a leasee would not knowingly K for a lawsuit
AMERICAN RULE:
Recognizes the leasee's legal right to possession, but implies no duty on the landlord to put the leasee in actual possession

You have to bring suit against the holdover tenant for possession

REASON: not fair to hold landlord liable for actions of another when he didn't K for it, and he could have
ERNST V CONDITT
FACTS
Rogers lease property from Ernst for go karts
Rogers then sublease to Conditt
Rogers K with Conditt that he is going to practice all conditions of the lease with Ernst,
Conditt stops paying Ernst

RULE:
• Intent of the parties control whether it’s a sublease or assignment and the use of words such as "sublease" or "sublet" in the K is not enough to establish a sublet.
DIFFERENCE BETWEEN SUBLEASE AND ASSIGNMENT

Under CL?
Ubder ML?
COMMON LAW:

SUBLEASE:
•If a tenant transfers LESS THAN the entire remaining term of the leasehold, retaining a reversion interest

•Sublessee not in privity of estate with landlord and not liable for breach

•Original tenant only liable

ASSIGNMENT:
•If a tenant transfers the ENTIRE remaining term of the leasehold

•retaining a right of re-entry if covenant breached is not considered a reversion interest so its not a Sublease

•Assignor is in privity of estate with the landlord and can be liable for breach

•Assignor and original tenant can be held liable

MODERN LAW:
***ERNST v. CONDITT FOLLOWS THE MINORITY VIEW****

MAJORITY:
•Retaining a right of entry, even for a transfer of the entire term, makes it a sublease

MINORITY:
Intent of the parties control whether it’s a sublease or assignment and the use of words such as "sublease" or "sublet" in the K is not enough to establish a sublet.
COMMON LAW DEFINITION OF SUBLEASE
SUBLEASE:

•If a tenant transfers LESS THAN the entire remaining term of the leasehold, retaining a reversion interest

•Sublessee not in privity of estate with landlord and not liable for breach

•Original tenant only liable
COMMON LAW RULE ON ASSIGNMENT
ASSIGNMENT:

•If a tenant transfers the ENTIRE remaining term of the leasehold

•retaining a right of re-entry if covenant breached is not considered a reversion interest so its not a Sublease

•Assignor is in privity of estate with the landlord and can be liable for breach

•Assignor and original tenant can be held liable
Modern Law Rule on Whether a Transfer is a Sublease v. Assignment
MAJORITY:
•Retaining a right of entry, even for a transfer of the entire term, makes it a sublease

MINORITY:
•Intent of the parties control whether it’s a sublease or assignment and the use of words such as "sublease" or "sublet" in the K is not enough to establish a sublet.
KENDALL V. ERNEST PESTANA, INC.
oAny businessman/co. can protect their right to arbitrarily uphold their right to withhold a lease as long as its express in the K

RULE ON TRANSFERABILITY OF LEASHOLDS:
Follows Minority View

•Unless there is a covenant to the contrary, a leasehold is freely transferable by the tenant.
RULE ON TRANSFERABILITY OF LEASHOLDS:
•Unless there is a covenant to the contrary, a leasehold is freely transferable by the tenant.
RULE ON COVENANTS AGAINST TRANSFERS OF LEASEHOLDS:

Modern Law
MAJORITY:
•Lessor can arbitrarily withhold consent to a transfer of a leasehold

MINORITY:
•A Lessor can refuse consent to a transfer of leasehold ONLY WHEN REASONABLE

•Reasonableness based on a RPPUSSC

•CANNOT REFUSE in order to try and get tenant to terminate

•EXAMPLE:
Pestana wanted to get higher rent from new tenants
BERG V. WILEY
SELF-HELPo Brother Berg has to get permission to make changes, operate in a lawful and prudent manner, Wiley could re-enter if Berg violated the K terms
oBerg sublets to sister berg who makes changes to the kitchen, without Wiley's consent

oFails health inspection, Wiley tells them to clean it up

oWiley changes the locks (Self-Help)

Berg Wins- Wiley should have used judicial process, his entry was not peaceful
SELF-HELP
Common Law
Modern Law
COMMON LAW:
Self-Help allowable then when:
• landlord has right to possession, and/or
•Removes the tenant peaceably

•MODERN LAW:
Landlord must always resort to the judicial process to enforce his statutory remedy against a tenant wrongfully in possession.
SOMMER V. KRIDEL
Landlords duty to Mitigate Damages

Guy an fiance rent apt. for 2 yr term after marriage

they break up he sends notice he won't be taking possession

Landlord keeps apt open for the 2 years doesn't re-rent it even to other interested parties

Court says economic waste when you don't make reasonable attempts to mitigate
Landlord's duty to mitigate damages

COMMON LAW
MODERN LAW
• COMMON LAW:
Landlord has no duty to mitigate damages

• MODERN LAW:
Landlord has a duty to make a reasonable effort to mitigate damages
quiet enjoyment

modern v. common law
COMMON LAW AND MODERN LAW ARE THE SAME:
A Tenant has the right of quiet enjoyment of the premises without interference by landlord.

If there is no covenant of quiet enjoyment in the lease, it is always implied by law.
Reste Realty Corp. v. Cooper
o Flooding of basement office every time it rained was constructive evictment because it frustrated her right to use and quiet enjoyment
RULE OF CONSTRUCTIVE EVICTION:
COMMON LAW:
When landlord rpevents the tenant from getting the enjoyment bargained for, tenant can only sue for damages.

MODERN LAW:
When the landlord substantially interferes with the tenants use and enjoyment of the leae premises the tenant may terminate &vacate and then be excused from further rent liability.

•Substantial Interference when:

•RPPUSSC

•Purposes which the premises were leased

•Forseeablility of the interference

•Potential duration of the interference

•Nature and degree of harm caused

•Availability of means to abate the interference

EXCEPTIONS
• Tenants KNOWLEDGE:
• Landlord must have NOTICE:
• T must give up POSSESSION
Implied Warranty of Habitability:
Hilder v. St. Peter

• COMMON LAW:
No duty to deliver habitable premises- as is

• MODERN LAW:
A landlord has a duty to deliver habitable premises and of maintaining them in a habitable shape.

Landlord must first be notified of defect and given reasonable time to cure it

Knowledge of defect DOES NOT WAIVE right to claim breach of warranty

Warranty CANNOT BE WAIVED IN K

EXCEPTIONS:
•Single Family Rentals
•Long Term rentals
•Casual subleases
•GENERALLY NEVER FOR COMMERICAL LEASES
Hilder v. St. Peter
o Tenant leases slum apartment
o Unclean, broken window, no locks, sewage in basement, ceiling caving in from water damage
o She doesn't have to leave to claim breach of warranty of habitability
HOW TO DETERMINE WHAT IS INHABITABLE:
Housing Code:
• Must be major violations or multiple minor one
• A few minor violations aren't enough to be considered inhabitable
• Also look to whether it is fit for habitation
• A substantial violation of housing code constitutes prima facie evidence of a breach

Fit For Human Habitation:
• Defect has a significant impact on the health or safety of the tenant
Implied Warranty of Habitability:

Tenants REMEDIES
Terminate & Vacate Lease

Continue and Recover Damage

Continue Lease and Use Rent To Repair

Continue Lease and Withhold Rent

Exceptional Remedies:
• Damages for Discomfort and Annoyance
• Punitive Damages:
Implied Warranty of Habitability:
Tenants REMEDIES

Terminate & Vacate Lease
•Relocation costs

•Difference between rent and actual worth of lease
Implied Warranty of Habitability:
Tenants REMEDIES

Continue and Recover Damage
• Usually a rent reduction is applied
• Pay for Premise As-Is
•Value of rent - fair market value with defects
BAD b/c if you are renting it for the amount its actually worth with damages you still won't get anything and landlord doesn't have instigation to rehabilitate.

• Loss of bargain
•Give the tenant what he bargained for
•Difference between the worth of habitable non defective premise - value of premises AS IS
Implied Warranty of Habitability:
Tenants REMEDIES

Continue Lease & Use Rent To Repair
•Must first give landlord notice of defect and allow reasonable time to repair

•After landlord fails to repair you must then give notice you intend to use rent to repair

•Repairs must be reasonable

•Some state enforce this by statute
Implied Warranty of Habitability:
Tenants REMEDIES

Continue Lease and Withhold Rent
•Notice to landlord and failure to cure within a reasonable time

•Defect existed during the time for which the rent was withheld

•Once the landlord corrects the defect, the tenant has to start paying rent again
Retalitory Eviction
Common Law:
Terminate at will leaseholds at any time

Modern Law:
To protect against retalitory actions, creates a rebuttable presumption of a realitory purpose by a landlord who attempts to terminate, increase rent, or decrease services within a time period ( generally 90-180 days) of a good fait complaint or other action by a tenant based on the condition of the premises.