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23 Cards in this Set
- Front
- Back
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What are the rights and duties of a life tenant?
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Tenant is to maintain the estate; if they do more, they have committed waste. Voluntary waste is any affirmative action beyond the right of maintenance that harms the premises. Permissive waste results from a tenant’s failure to maintain – they must repair, pay taxes, and interest on any mortgage. Ameliorative waste alters the property, but enhances its value.
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When can the life tenant commit waste?
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If changed conditions have made the property relatively worthless in its present condition, life estate can tear down without liability to the future interests.
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What is the rule of convenience?
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A class closes when any member of the class is entitled to a distribution.
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What is an easement?
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An easement is a non-possessory interest in land involving a right of use. An easement appurtenant directly benefits the use and enjoyment of a specific piece of land. An easement in gross exists where there is no dominant estate. Easements appurtenant are transferred with the land. Easements in gross cannot be transferred unless the language of the easement allows.
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What is the effect of the cy pres doctrine in Texas?
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In Texas a court can shorten the time when vesting could occur to keep the gift over from vesting outside the time period allowed by the rule against perpetuities. The court can only do so to further the wishes of the grantor.
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What are the rights of tenants in common (co-tenants) in Texas?
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They have the right to possession – each can possess the whole. They have the right to partition. There is a duty to account for profit if one co-tenant ousters another, has an agreement to share, leases to a third party, or depletes natural resources. They have the right to contribution for repairs, mortgage, and governmental obligations. They have a claim for recoupment for any improvements at the time of sale or partition.
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What is required for a covenant to run with the land?
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There are 4 requirements: There must be intent that it run with the land, notice to the person against whom enforcement is sought, it must touch and concern the land; and there must be privity.
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What is the doctrine of constructive adverse possession?
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If someone goes onto the land under color of title, but does not possess the whole, they will acquire the title to the whole even though they didn’t possess the whole. It must be reasonable in relation to the amount possessed, and the land must be contiguous.
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What things affect the adverse possession period and how?
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Leasing of the property to another counts as possession for AP purposes. Tacking is allowed so long as there are no gaps. If the owner is under a disability when the period begins, the AP doesn’t start until owner is free of disability. If the disability arises after the AP period begins, it is ignored.
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Who has the risk of loss in a land sale contract?
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The party in possession of the land.
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What is the effect of death of one party before closing?
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If the seller dies, buyer closes with the seller’s estate and the interest is personal property. If the buyer dies, the seller closes with buyer’s estate and the interest is real property.
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What is a marketable title?
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A title free of encumbrances [easements, restrictive covenants, mortgages, options, etc…] that are not mentioned in the contract. Violation of a zoning ordinance is an encumbrance. Violation of housing or building codes is not an encumbrance.
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When can a deed be recorded in Texas?
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When it is signed and notarized or signed by two witnesses.
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What kind of recording act does Texas have?
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Texas has a notice recording act. Subsequent grantees who take without notice have valid title. Recording is irrelevant, except that it might give notice. There is also a duty to inspect that will give notice.
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What is the accommodation doctrine?
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A mineral owner must accommodate preeexisting surface uses if there is a reasonable alternative method of developing the oil and gas that is less destructive to the surface use. The alternative must be available on the tract.
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What do NPRI’s own?
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A cost free fractional share of all production from the land.
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What are a cotenant’s right with respect to the minerals?
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Every cotenant has the right to drill or lease, but they have to the cotenants for their share of profits from production. An unleased cotenant can chose to ratify the lease or retain a profit share interest in the well.
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What share of a trust does the income beneficiary receive of oil and gas?
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If it was created before July 1, 2004 – life tenant gets delay rentals + 72.5% of royalties and bonus + interest on the 27.5% remainder. After July 1, 2004 life tenant will get an equitable share of everything (85% presumed equitable)
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What typical savings clauses appear in an oil and gas lease?
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Typically a completion clause, force majeure clause, and shut in gas royalty clause.
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What is the formula for production in paying quantities?
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Revenues – royalties – operating cost = positive #. Usually viewed on a yearly basis. Would a reasonably prudent operator interested in making a profit rather than speculation continue to operate the well at a loss?
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What is the temporary cessation doctrine?
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It applies when there is a sudden stoppage, due to a mechanical breakdown or the like. If there is an express clause in the lease it will control. Must have production resumed within a reasonable amount of time.
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What is the effect of failure to pay money owed to the lessor?
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Failure to pay delay rentals, terminates the lease. Failure to pay royalties does not terminate the lease, but the lessor has a claim.
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What implied covenants exist in an oil/gas lease?
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Implied covenant to protect against drainage. Covenant for reasonable development. Express clauses negate implied covenants. In any case, to win the lessor must show that a reasonably prudent lessee would drill – that is that it would be profitable to drill.
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