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194 Cards in this Set

  • Front
  • Back
Property
bundle of rights defining social relations with respect to a thing
First in Time, First in Right
Principle of discovery – first to discover keeps it “finders keepers” - Right to have until one with a superior right shows up
Bundle of Rights
More than one kind of power over something in which you have property -- Right to transfer (sell or gift), exclude, use, modify, destroy, and possess
Limitations of Rights
i) Stability of title
ii) alienability
iii) Productive use
iv) Interest in providing habitable housing
v) Zoning laws, usage laws, covenants
vi) Attachment
vii) Necessity and emergency
Acquisition by Capture
If you catch it, you keep it – “first in time rule” applies -- dovetails with rights regards trespass (trespasser has no rights against O but everyone else)
Externalities
A burden or benefit of an activity that a person engaged in activity is not forced to consider (i.e. smoke factory) -- cost that everyone else has to pay for your use of your property (ex: outside expenses)
Internalizing externalities
if you pay for the harm – you internalize the externalities
Lockean Labor Theory
Property in ourselves and labor – fruits on one’s own labor is yours
Accession
Mixing your labor with the land or chattel converts into your property
Utilitarian Theory
Property ownership maximizes social welfare – “social peace theory” meaure public good in terms of cost-benefit analysis (ex: ownership causes problems with use of land)
Tragedy of the Commons
Idea that everyone has an equal right to the property – race to over-consume the land and less resources for everyone – exhaust the land resulting in no incentive to conserve
Demsetz’s Argument
Property rights arise where the gains of internalization of externialities outweigh the cost. (i.e. take on the effect instead of distributing to everyone)
Coase Theorem
Absent transaction costs parties will bargain to efficient outcomes regardless of the initial allocation of property rights as long as they are clear (if property rights are clear and there are no transaction costs, then parties can bargain regardless of who is first assigned a property right); limitation is that it does not work in real life because there are always transaction costs and free-riders
Acqusition of Creation
If you create something, it is yours to exploit
confusion
the comingling of separately owned fungible goods so that they cannot be distinguished
Property in One’s own Person
Every man has a property right in himself – Moore says you cannot sell yourself as proprety (with exceptions)
Right to Include/Right to Exclude
Right to exclude persons from your land in certain circumstances; property rights are not absolute; Necessity may overcome exclusion -- Steenberg
Exceptions to right to exclude
o Civil Rights forbidding discrimination
o Emergency situations
o Eminent domain
o Public and private necessity
o Easement for meter readers and the like
o Rent control
o Anti-eviction statutes
o Adverse possession
o Public accommodation laws – dining/other establishments
Law of Finders
Finder has rights above all others except the true owner
Treasure trove
Something of high value intentionally concealed in the distant past by an unknown owner for safekeeping in a secret location
Trover
allows an owner of chattel to recover damages
Replevin
permit an owner of a chttel to recover its possession
Bailment
Lawful possession of goods who is not the owner (jail example)
Bailee
Person holding property in trust for another party
Lost
accidentally and involuntarily parts with chattel and does not know where to find it
Mislaid
intentionally puts chattel in a certain place but forgets to retreive it
Abandoned
owner voluntarily and intentionally relinquishes title and possession
Adverse Possession
Statute of limitations for recovery of land; running of the SOL vests a new title -- Elements:
1) Actual entry giving exclusive possession
2) Possession that is open and notorious
3) Possession adverse and under a claim of right (hostile)
4) Continuous for statutory period (does not mean same person)
Color of Title
Claim based on a written instrument (not required in most American jurisdictions)
Claim of Title
Good faith, belief, and ownership
Quiet Title
Settle questions of title (Cause of action)
Other ways to resolve boundary disputes
Doctrine of agreed boundaries
o Doctrine of acquiescence
o Estoppel
o These doctrines intertwine – law is tricky
Tacking
Adding periods of time and possession to meet statute of limitations (General rule is that “privity” is required
 Succession of trespassers is not enough
 Some reasonable connection between successive occupants is enough)
privity
A close, direct, or successive relationship; having a mutual interest or right.
Relate back -- Adverse possession
Starts when at the time of first possession not when owner notices (Statute of limitations runs from this time)
Gift
Transfer of property that is intentional and voluntary
Elements:
1) Intention
2) Delivery – constructive vs. symbolic
3) Acceptance
Traditional Rule – if you can hand it over, you must
Constructive Delivery
Something that provides access to the gift (key to chastity belt)
Symbolic delivery
symbolizes the gift – title
Gift Causa Mortis
Made in anticipation of imminent death and where it plainly appears that it was the intention of the donor to make the gift and where the things intended to be given are not present or where present, are incapable of manual delivery from their size or weight
Inter Vivos
During life
Alienability
The character of property that makes it capable of sale or transfer
Estate
Interest in land that is measured by a period of time -- classification of estate includes: 1) freehold or non-freehold; 2) absolute or defeasible; and 3) legal or equitable
Life Estate
For life of person or tenant; may be transferable and always a future interest following
Law of Waste
Do not use property in a manner that interferes with each other’s rights -- 2 types affirmative (voluntary acts of current estate owner significantly reduce value of property) and permissive (failure of an estate owner to exercise reasonable care to protect the estate)
Fee Tail
Keep the land in the family; been mostly abolished -- primogeniture
Intestate
Person dies w/out will
Heirs
Persons who survive the decedent; no one is an heir of a living person (heir apparent)
Issue
Descendents; children and children’s children – direct bloodline (includes adoptive children in modern times)
Collaterals
All related by blood to the decedent (i.e. bros, sis, nephews, nieces, cousins, aunts, uncles, etc.)
Escheat
If a person died intestate without any heirs, the person’s real property reverts to the state
Seisin
An old feudal term for having both possession and title of real property. The word is found in some old deeds, meaning ownership in fee simple (full title to real property).
Free-hold estate
Fee simple, fee tail, and life estate. A freeholder has seisin
Lease-holder estate
Non freehold possessory estate – tenants do not have seisin
Fee Simple (regular)
Endure forever, ownership of property
Fee Simple Absolute
Cannot be divest or end if any event happens in the future; may run forever; same thing as fee simple (does not have a future interest unlike all others)
Defeasible estates
an estate that may come to its end before its maximum duration has run by reason of a happening of a future event, a fee simple determinable or a fee simple subject to condition subsequent; may last forever or may come to an end upon the happening of an event in the future
Fee Simple Determinable (Defeasible estate)
May last forever but may come to an end by reason of a happening of a specified event in the future; ends automatically; possibility of reverter -- durational language
Fee Simple subject to condition subsequent (Defeasible estate)
A fee simple that does not automatically terminate but may be divested or cut short at the transferor's election when a stated condition happens --Conditional language
Future Interest
Conferring rights to the enjoyment of property at a future time
Reversion - transferor
The interest left to the owner after carving out a vested lesser estate without providing for the fate of the property after the lesser estate expires
Possibility of Reverter – transferor
Future interest remaining in the transferor or his heirs when a fee simple determinable is created
Right of re-entry – transferor
When an owner transfers an estate subject to condition subsequent and retains the power to cut short or terminate the estate, the transferor has a right of reentry
Remainder – transferee
Future interest that waits politely until the termination of the prior estate
Vested
Having become a completed, consummated right for present or future enjoyment not contingent, unconditional; it is absolute. Unfortunately the word vested is used in 2 senses, first an interest may be vested in possession when there is a right to present enjoyment (example: when I own and occupy Blackacre). But an interest may be vested even when it does not carry a right to immediate possession, if it does confer a fixed right of taking possesion in the future. "A future interest is vested if it meets two requirements: first, that there be no condition precedent to the interest's becoming a present estate other than the natural expiration of those estates that are prior to it in possession; and second, that it be theoretically possible to identify who would get the right to possession if the interest should become a present estate at any time."
Vested remainder – transferee
Given to an ascertained person not subject to a condition precedent except the natural termination of the prior estate
Indefeasibly vested
The remainder is certain of becoming possessory in the future and cannot be divested
Vested subject to divestment
certain to become possessory unless some specified even occurs
Vested subject to open
A remainder created in a class of persons is vested if one member of the class is ascertained and there is no condition precedent, the remainder is vested subject to open or vested subject to partial divestment if later born children are entitled to share in the gift.
Contingent remainder – transferee
Unascertained person or it is made contingent upon some event occurring other than natural termination of the preceding estate. If condition is in the granting clause, it is a contingent remainder
Consequences from being vested versus contingent
"o Remainders cannot become possessory while contingent
Executory Interest
Future interest in a transferee that must in order to become possessory divest or cut short some interest in another transferee (shifting) or divest the transferor in the future (springing) in order to become a possessory estate
Rule for classifying future interests after a life estate
 If the first future interest created is a contingent remainder in fee simple, the 2d future interest in a transferee will also be a contingent remainder.
 If the first future interest created is a vested remainder in fee simple, the 2d future interest in a transferee will be a divesting executory interest
Statute of Uses
Converted use to a legal interest
Fee Simple Subject to an Executory Limitation
The estate created through the Statute of Uses
Doctrine of Worthier Title
Provides that where there is an inter vivos conveyance of land by a granter to a person with a limitation over the grantors own heirs either by way of remainder r executory interest no future interest in the heirs is created, rather the reversion is retained by the grantor (rule that favors alienability)
Trust
Allows people to arrange assets to maximize flexibility in property management as well as transferring wealth to future generations. Trustee retains legal title and has strict fiduciary duty to act on behalf of beneficiaries
Uniform Simultaneous Death Act
Treat property of each person as if they were the survivor
Rule Against Perpetuities
A power of executory interests threaten alienability of land – No interest is good unless it must vest not later than 21 years after some life in being at the creation of the interest -- ONLY APPLIES TO CONTINGENT INTERESTS; CONTINGENT REMAINDERS; CLASS-GIFTS; AND OPTION CONTRACTS
Validating Life
can be a validating life as long as in being at or before the interest in question was created -- life somehow casually connected with the vesting or termination of the interest
Class Gifts
All or nothing rule – to be vested class must be closed and all conditions present for every member
Option Contract
o Option that may or may not vest
o O sells Blackacre to A for $1000. The K provides, O or her assigns may repurchase Blackacre for $15K
o Problem?
o At common law, option is subject to Rule Against Perpetuities
USRAP
o If conveyance obeys the rule – leave it be
o If it does not, any interest that does not vest in 90 years is void
Concurrent interest
When multiple person have the right to posssess, use and enjoy an ittem of property -- 5 types (3 use now): 1) tenancy in common; 2) joint tenancy; 3) tenancy by the entirety -- don't use 4) coparency and 5) tenancy in partnership
Coparency
Primogenuture – similar to tenancy in common
Tenancy in Partnership
Superseded by the Uniform Partnership Act
Tenancy in Common
separate but undivided interests in the property; the interests of each is discernible and may be conveyed by deed or will
Joint Tenants
Each tenant is seised of property but regarded as single owner with the right of survivorship
Survivorship
When one joint tenant dies, their interest extinguishes
Four Unities Essential to Joint Tenancy
Time, Title, Interests, Possession -- if the four unities do not exist, a joint tenancy is not created, a tenancy in common is created. If they are later severed, it turns into a tenancy in common.
Tenancy by the Entirety
Like joint tenancy, but married people
strawman
fictitious third person used in some transactions as a temporary transferee to allow the principle parties to accomplish something that is otherwise impermissable
Partition by Sale
Joint tenants sell property
Partition In Kind
Joint tenants split property
Mortgage
A legal document by which the owner (i.e., the buyer) transfers to the lender an interest in real estate to secure the repayment of a debt
Mortgage Lien Theory
Mortgage is just a lien – debt secured by property so does not change who owns the property so therefore does not sever joint tenancy
Mortgage Title Theory
Mortgagee gets the title – so destroyed title (unity)
Reciprocity of harms
 A cannot use land to harm B’s interest
 But if A’s inability to use the land works a detriment, then B’s interest harms A
 Example – A and B are cotenants – land has a pond that can be used for fishing or irrigation but not both; A likes to farm and B likes to fish – who is harming whom? No way for a court to say that one is committing a nuisance against the other
Ways to sever Joint Tenancy
1) conveyance; 2) mortgage (title theory only); 3) leases (courts divided); 4) marriage; and 5) divorce
Ouster
the unlawful dispossession of a party lawfully entitled to possession of real property -- Majority rule says no ouster unless occupying co-tenant refuses to allow other tenant use and enjoyment of land. Minority rule on rent that rent liability if occupancy continues after a demand to vacate or pay rent -- when not done under a claim of absolute ownership, it can support an action for back rent. When done under a claim of such ownership, it can give rise to a claim of adverse possession if the other elements required are present
Term of years
Estate that lasts for some fixed period of time or for a period computable by a formula that results in fixing calendar dates for beginning and end
Periodic Tenancy
Lease for a period of some fixed duration that continues for succeeding periods until either the landlord or tenant gives notice of termination
Tenancy at will
Tenancy of no fixed period that endures so long as both landlord and tenant desire
Holdover
Arises when a tenant remains in possession (holds over) after termination of the tenancy o Not a tenant because not there with permission
o Not a trespasser since original possession not wrongful
- 2 options for LL
o Evict
Lease
leases transfer a possessory interest in land and so it is a conveyance that creates property rights. But it is also the case that leases usually contain a number of promises so that makes it a K too (creating K rights)
Delivery of possession
English rule – in the absence of stipulations to the contrary, there is in every lease an implied covenant on the party of the landlord that the premises shall be open to entry by the tenant at the time fixed by the lease for the beginning of his term. - American rule – the LL is not bound to put the tenant into actual possession but is bound only to put him in legal possession so that no obstacle in the form of superior right of possession will be interposed to prevent the tenant from obtaining actual possession of the demised premises
Quiet enjoyment
Possession of land with the assurance that the possession will not be disturbed by a superior title -- Covenant of quiet enjoyment
Constructive eviction
Any act or omission of the LL or agent which renders premises substantially unsuitable for the purpose for which they were leased or seriously interferes with the beneficial enjoyment of the premises is a breach of the covenant of quiet enjoyment and constitutes a constructive eviction of the T
Implied warranty of habitability
LL leasing urban residential must maintain their premises in a condition that satisfies applicable housing codes and makes the premises safe and habitable -- nonwaivable by T and also termed covenant of habitability
Statute of Frauds
Serves evidentiary function and prevents fraud. Requirements: 1) signed by the party to be bound; 2) Describes the property; 3) State the price (or clear method of fixing price)
Exceptions to the Statute of Frauds
Part performance or Estoppel
Marketable Title
Title that is “not subject to such reasonable doubt as would create a just apprehension of its validity in the mind of a reasonable, prudent and intelligent person, one which such persons, guided by competent legal advice, would be willing to take and for which they would be willing to pay fair value.”
Caveat emptor
Buyer beware
Merger doctrine
when buyer accepts a deed, the buyer is deemed to be satisfied that all of the contractual obligations have been met
Implied Warranty of Quality
skillful construction -- free from defects, built in a sound and workmanlike manner
Privity
Legal relationship between parties, each having a legally recognized interest in the same property
Deed
Written instrument by which land is conveyed
General Warranty deed
Warrants title against all defects in title
Special Warranty deed
Warrants only against the grantor's own acts but not the acts of others
Quitclaim deed
Contains no warranties (caveat emptor)
Delivery of deeds
Placing of the deed in the grantee's hand or within the grantee's control
Installment sales contract
Idea that you can purchase a home and then pay the seller over the years like a mortgage -- after payments seller gives you the deed
Tract index
Index by the plot of land or location
Grantor/grantee index
Index by grantor/grantee of land
Grantee/grantor index
inverse of grantor/grantee
Idem Sonans
If an incorrectly spelled name is used that sounds substantially similar to the correct name, identify of the person is presumed
Race Statute
Statute that allows the first in time recording to the person who wins the race to record prevails – whether subsequent purchaser has actual knowledge of the prior purchaser’s claim is irrelevant whoever records first wins
Notice Statute
If a person had notice of a prior unrecorded instrument, the purchaser could not prevail over the prior grantee, for such would work a fraud on the prior grantee
Race-Notice Statute
"subsequent purchaser is protected against prior unrecorded instruments only if the subsequent purchaser Is without notice of the prior instrument and Records before the prior instrument is recorded
Constructive notice
Notice found through deed search
Chain of title
Recorded sequence of transactions by which title has passed to the present claimant
Wild deed
Recorded deed that is not in the chain of title, usually because the prior deed was not recorded
Latent defect
A defect that is not discoverable by reasonable inspection and for which a seller/lessor is generally liable if the flaw causes harm (hidden defect)
Patent defect
A defect that is apparent to a normally observant person especially a buyer on reasonable inspection (apparent defect)
Actual Notice
Notice given directly to or received by a party
Record Notice
Constructive notice
Inquiry notice
Notice attributable to a person which would lead a ordinarily prudent to investigate the matter further
Marketable Title Act
Limiting title searches to a reasonable period, typically last 30-40 years
Title Insurance
Insurance that protects the purchaser against defects in public records and flaws in title search
Nuisance
Interference (condition, activity or situation) with one's use or enjoyment of property
Servitude
Charge or burden on an estate for another's benefit
Easement
a right of some benefit or beneficial use out of, in, or over the land of another
Servitude versus Easements
A servitude relates to the servient estate or the burdened land, whereas an Easement refers to the dominant estate (not all servitudes are easements because they are not all attached to other land)
Affirmative Easement
Right to go onto someone's land and do some act
Negative Easement
Right to prevent owner of the servient land from doing something
Easement appurtenant
Easement created to benefit another tract of land, the use of the easement being incident to the ownership of that other tract (right belongs to owner of the dominant estate)
Easement in gross
Right to some person without regard to ownership of land (no dominant estate)
License
Permission revokable to commit some act that would otherwise be unlawful
Implied easement
Easement created by the operation of the law
Easement by necessity
Implied because of public policy or intent of the parties
Easement by prescription
Rights can be acquired by the passage of time
Quasi-easement
Implied by existing use at the time the tract is divided (something the parties would expect to contine)
Public Trust Doctrine
Principle that navigatable waters are preserved for the public use and the state is responsible for protecting the public's right to the use
Expressio unius est exclusion alterius
The express mention of one thing excludes all others
seviant estate
Burdened land by the right
dominant estate
Land benefeited by the right
Termination of easement
1) defeasible grant or easement otherwise expires under terms of the original grant; 2) Unity of title (merger); 3) By dominant owner -- release, abandonment, alteration of dominant estate that makes easement purpose impossible or end of neceesity; 4) By servient owner -- prescription; 5) Condemnation; 6) foreclosure by superior lien
Condemn
To take privately owned land for public use in exchange for just compensation by virtue of the power of Eminent Domain
Unity of title
Dominant and servient estates come into hands of one owner
Covenant
Formal agreement or promise
Real covenant
Covenant running with the land (covenant that because relates to the land, binds successor grantees indefinitely)
Equitable servitude
Private restriction on the use of land binding on the successors in interest that is enforceable in equity
Running of burden
Burden runs with the land. Restrictions: Intent; Privity of estate between promisor and promisee; Privity of estate between promisor and assignee; Covenant touches and concerns both burdened and benefited land
Running of benefit
Benefit runs with the land. Restrictions: Intent; Privity of estate between promisee and assignee (but may be lessor estate); Benefit touches and concerns benefited land
Runs with the land
Each subsequent owner of promisor's land is burdened by the covenant and each subsequent owner of promissee's land may enforce the covenant
Touch and concern
it enhances the enjoyment of one parcel of real property by burdening the enjoyment of another; Burden and benefit have to affect the use of land (or its value)
Implied negative servitudes
Must be evidence that developer had a reasonably uniform scheme at time of sales (cannot arise later). But some courts allow to be implied by restrictions in substantial number of deeds prior to the deed to the defendant
negative covenants
Promises to refrain from physical acts on burdened property touch and concern
affirmative covenants
Covanant that obligates a party to do some act
Termination of covenants
See termination of easements -- 1) defeasible grant or easement otherwise expires under terms of the original grant; 2) Unity of title (merger); 3) By dominant owner -- release, abandonment, alteration of dominant estate that makes easement purpose impossible or end of neceesity; 4) By servient owner -- prescription; 5) Condemnation; 6) foreclosure by superior lien
Common Interest Communities
"gated communities"
Zoning
Land use control
Cumulative zoning scheme
Successive gradiations of what is allowed
Comprehensive Plan
Locality zoning scheme -- must be authorized by statute -- statement of the local government's objective and standards for development
Nonconforming use
Use that is not within zoning
Amortization periods
Reasonable time for use to continue when rezoned -- must compensate owner
Variance
Authorized deviation from an ordinance that will not be contrary to public interest if enforcement of ordinance results in undue hardship (area or use variances)
Special Exception
Allowance in a zoning ordinance for special uses that are considered essential and are not fundamentally incompatible with the original zoning regulations
Spot Zoning
Zoning changes which establish a use classification inconsistent with surrounding uses and create island of nonconforming use within larger zoned district and which reduce value of uses specified in the zoning ordinance of either the rezoned plot or abutting property
Zoning amendment
Rezoning -- legislative act. Must be upheld unless the opponent proves that the classification is unsupported by rational basis related to promoting public health, safety, morals or general welfare or that the classification amounts to a Taking without Compensation
Aesthetic regulation
A regulation that zones a matter of taste
Eminent Domain
Power to force transfer of property from owners to the government
Regulatory Taking
When government regulation of private property "goes too far" and deprives the landowner of the value of his land through enactment of a statute, promulgation of a regulation, refusal to issue a permit, or declaration of land as a wetland, as endangered species habitat or as unsuitable for mining, such a taking also may be compensable
Inverse condemnation
Regulatory taking
Physical Occupation
Posession, control or use of real property. Always taking no matter how small
Nuisance control regulations
Regulation to control nuisance -- never a taking
Diminution in value
Value is lowered because of the regulation or variance
Reciprocity of Advantage
Burdened parties are simultaneously benefited by the regulation (implicit compensation)
Balancing Test Factors
Extent of diminution of value; Whether the regulation disrupts the reasonable investment-backed expectations; Character of gov’t action; Whether regulation is of a noxious use of property; Whether there is an average reciprocity of advantage; Whether the regulation destroys a recognized property right
Transferable Development Rights
Transfer what the statute was supposed to supply but taken off by statute (example selling off the rights to height restriction)
Conceptual Severance
Denominator problem -- dividing interests in the property
Three Categorical Rules of Takings
1.  Permanent physical occupation is a taking; 2.  Nuisance is not taking; 3. Denial of economical use is a taking
Remedies for physical occupation or regulatory takings
Just compensation
Just compensation
Market or fair value for a taking (not subjective value -- losses not included)