Property Mbe Foundation

Front 1

Future Interest

Back 1

1. FSA - Biggest and best
2. FSD - SUWD, possibility of reverter
3. FSSCS - BOP, ROE/POT (must be exercised by grantor)
4. FSSEL - BOP, EI (spring/grantor - shifting/3rd party grantee)
5. LE - any language that denotes such, contingent or vested remainder (3rd party grantee) reversion (grantor).

Rule Against Perpetuities Apply to:

1. Shifting EI, AND
3. Contingent Remainder

Front 2

Rule Against Perpetuities

Back 2

1. Contingent Remainders
2. Executory Interest
3. Class Gifts
4. Powers of Appointment
5. Options to Purchase (Fee)
6. Rights of First Refusal

Front 3

Concurrent Estates Types

Back 3

Joint Tenants & Tenants in Common

Front 4

Joint Tenant with ROS

Back 4

4 unities

1. Time
2. Title
3. Possession
4. Interest

Must contain ROS language upon death vanishing theory and interest absorbed by remaining JT.

Severance - JT becomes TC

Transferred by:

1. Conveyance (deed/will)
2. Mortgage (title theory)
3. Lease
4. Partition Action - must be final, a pending suit will not sever
5. Execution sale by judgment creditor

Front 5

Tenants in Common

Back 5

One unity - Possession

No survivorship, co-tenants may devise their interest.

Front 6

Restraint on Alienation (transferability)

Back 6

Invalid as it relates to any type of Fee.

Front 7

Rights of First Refusal

Back 7

Must be exercised within 21 years after the date of creation.

Front 8

Reasonable Use Restrictions

Back 8

Valid as to partition of property, so long as it is reasonable (not too long or crazy).

Front 9

Estoppel by Deed/Doctrine of After Acquired Property

Back 9

O = Owns Blackacre

Time 1 A--warranty deed--B

Time 2 O-----------------------A

Arrow from A to B on left hand side

A who has no interest in prop. conveys prop to B. Later, O transfers prop. to A legally. At this time, Prop. rights vest in B.

Must be a warranty deed and party must purport to convey his or her share.

Front 10

License

Back 10

A revocable personal privilege to enter the servient tenement of licensor without liability for trespass. (basketball ticket, concert).

Minority - allow win if consideration was paid.

Front 11

Profit

Back 11

Right of one person to come onto land of another and take some part thereof.

If for the life of a person, compensation is the current value of net income he would have received had there been no condonation.

Front 12

Easements

Back 12

A non-possesory interest in the use of the land of another.

Two Types

1. Easement In Gross
a. No dominant tenemant, AND
b. Do not fun with the land.

2. Easement Appurtenant
a. 2 parcels - Benefited (dominant) and Burdened (serviant)

Front 13

Dominant v. Serviant Tenement

Back 13

Dominant is land that is benefited from easement.

Servient is land that is burdened by easement.

Front 14

Termination of Easements

Back 14

1. Merger - unity of ownership
2. Written release
3. End of necessity
4. Abandonment (non use does not terminate, must have:

a. Intent, AND
b. Physical act

Front 15

Creation of Easement

Back 15

1. Expressly in writing
2. Reservation in Grantor
3. Estoppel
4. Implication (necessity)
5. Prescription - similar to adverse possession, adverse use.

Prescriptive easement is alienable as long as parties are in privity of K.

Front 16

Duties of the Dominant Tenant

Back 16

Has the right to inspect, maintain, and improve the easement, and there is no liability for damages caused through reasonable repair and maintenance.

Front 17

Implied Reciprocal Cross Easement

Back 17

Common walkways amongst properties. Each owner is a quasi dominant and quasi servient owner. Thus,

Front 18

Easement by Implication/Necessity

Back 18

1. No writing
2. Common grantor - owns both parcels
3. Quasi easement - land adapted for such use
4. Necessity

a. Reasonable required where the grantee receives the dominant tenement.

b. Absolute (strict) required where the grantor retains the dominant tenement - greater proof required because he sold the land and should have granted himself an easement in writing.

Front 19

Covenant (private land use restrictions)

Back 19

1. Horizontal Privity - an interest must pass between parties

2. Vertical Privity - relationship among successors in interest to original parties.

NN: Running of benefit to apply covenant and burden to uphold

3. Touch and Concern - restriction must effect the land itself (takes place on the land, benefit, or burdens the land. (not a covenant not to compete)

4. Intent - for covenant to run with the land

5. Writing

Most Covenants are negative (not to do something) as opposed to affirmative (to do something). Courts are less willing to enforce a covenant because has to keep a tab to ensure covenant is complied with. But it will be enforced.

Front 20

Equitable Servitude (private land use restriction)

Back 20

1. Notice - any kind of notice, actual or constructive must be given to the whole world that the land is restricted.

2. Intent - that land be restricted

3. Touch and Concern - effects the land itself

4. Writing

Recordation is notice

Front 21

Covenant v. Equitable Servitude

Back 21

Look at the Remedy

If Damages at Law - Covenant

If Injunction or Specific Performance - Equitable Servitude

Covenant - 2 people (generally)

Equitable Servitude - Common development scheme.

Front 22

Constructive Eviction

Back 22

Duty to pay rent is discharged if:

1. Premises is uninhabitable (heat, water, ingress, egress, disrepair)

2. Tenant must move out

Front 23

English Rule

Back 23

LL has a duty to deliver possession at the leas inception.

American - no duty to deliver legal possession, he impliedly warrants that tenant would have a right to legal possession. (thus T2 has a cause of action against holdover T1).

Front 24

Fixture

Back 24

Chattel which has become real property - not removable (air conditioning unit).

Front 25

Trade Fixture

Back 25

Chattel annexed to land by tenant for pecuniary gain:

It is removable before the lease expires, UNLESS an accession occurs (beam, balcony, lot).

Accession - chattel loses its independent identity and is a structural piece.

Front 26

Subjacent and Lateral Support

Back 26

Landowner is strictly liable if his excavation causes unimproved (natural state) adjacent land to subside.

subjacent - underneath

lateral - side support

Ex: A is blasting and the vibrations caused B's home to fall. If the land would have fell in its natural state A is strictly liable for damage. If B's home fell because of its weight, A is not liable for damage.

Front 27

Growing Crops (Ennoblement)

Back 27

1. Classified as personal property and will pass to the grantee upon sale of land.

2. Statute of Frauds does not apply

Suppose: Farmer owns farm and takes out MRTG on farm in Aug he defaults, in Sep bank forecloses, in Oct bank harvested, in Nov the house is sold. Who has rights to crops?

Rule: Farmer has rights to items harvested prior to foreclosure.

Front 28

3 Ways where Prop. can be Taken

Back 28

1. Eminent Domain - just compensation must be paid.

2. Inverse Condonation - just compensation must be paid.

3. Police Power (health and safety) - just payment NOT needed.

Front 29

Assignment

Back 29

Transfer of entire leasehold balance.

Subsequent assingnee is primarily liable for all covenants that run with the land such as pay rent.

Origninal tenant is secondarily liable in privity of K.

Subsequent assingnee is not liable for his predecessor debt.

Front 30

Sub-Lease

Back 30

Transfer of less than the leasehold balance.

LL has no cause of action against the sublesee must be in PE and PK.

Lessee has a right to possession not ownership, he can't give trees and shit on the land away.

Front 31

Prohibitions Against Assignments and Subleases

Back 31

Are strictly construed. If it says it, you can't do the shit.

Front 32

Duty to Pay Rent

Back 32

At C/L an independent covenant, which is not excused by a breach of an express provision within the lease.

Front 33

Termination of Month to Month Periodic Lease

Back 33

One month notice requirement.

Front 34

Water Rights

Back 34

Prior Appropriation - first in time, first in right (goal is maximum beneficial use) can use all the water. Minority

Riparian Rights - domestic use is superior to agricultural use. (Majority).

Front 35

Adverse Possession

adverse possessor has burden of prof

Back 35

AHOEC

1. Actual - physical possession

2. Hostile - without consent intent to possess.

3. Open and Notorious

4. Exclusive - not shared

5. Continuous

Must satisfy the statutory time period.

Front 36

Ouster

Back 36

Wrongful exclusion from possession of property.

Can be no adverse possession amongst co-tenants absent ouster.

Front 37

Boundary Line Agreement

Back 37

Valid if:

1. Parties unaware of true boundary line.

2. Parties agree to the location

3. Possession that conforms to the agreement

Front 38

Rules of Construction

Back 38

Monuments prevail over sources and distances.

Monument - any object on the ground (natural or artificial). Monument prevails over direction

Deed must identify an enclosed area.

Front 39

Warranty of Deed

Back 39

Contains warranty of title and protects against encroachment.

Front 40

Statute of Frauds Interest in Land Elements

Back 40

1. ID parties
2. ID subject matter
3. Consideration
4. Signature of Seller

Exception: Part Performance

1. Possession, AND
2. Payments or Improvements

Front 41

Deeds

Back 41

Valid Deliver

1. Proper execution, AND

2. Intent

A forged deed is invalid and transfers nothing.

Front 42

Equitable Conversion C/L (MAJ)

Back 42

Gain or risk of loss for casualty (unforeseen not caused by parties) is placed on the buyer during the executory period.

Executory Period - Time between the date of the K and the closing.

The buyer is the equitable owner of the land, whereas the seller, who holds legal title, is the equitable owner of the right to the full purchase price.

Front 43

Uniform Vendor & Purchase's Risk Act (Minority view of Equitable Conversion)

Back 43

Risk of Loss is on buyer only if he has legal title or possession of the property.

Front 44

Marketable Title (viewed at closing

Defects can be cured up to the date of closing

Back 44

Every K for the sale of land contains an implied warranty of marketable title.

Encumbrances

1. Mortgage
2. Lien
3. Easement
4. Equitable Servitude
5. Lease
6. Zoning violation
7. Future Interest

Front 45

Bona Fide Purchaser (BFP)

Back 45

1. Pays value - purchaser, mortgagee, judgment creditor
2. Takes in good faith, AND
3. Takes without notice (Key MBE element)

Front 46

Recording Statute

Back 46

Race (N.C. minority) - 1st to record wins

Notice - last BFP wins

Race/Notice - 1st BFP to record wins

If you see the word first in the statute, it is a race statute. If you don't see the word first, its a notice statute.

Front 47

Effectiveness of Will v. Deed

Back 47

Will - speaks at death

Deed - effective upon delivery

Front 48

Recording Statutes Do Not Apply

Back 48

Heirs, Donees, Void Deed, Undelivered or Forged Deeds, Adverse Possessors, and don't apply to boundary line agreements.

Front 49

Mortgage

Back 49

an interest in land created in writing providing security for the performance of a duty or the payment of an obligation.

Two Causes of Action:

1. In Personam - on the debt

2. In Rem on the security

Front 50

Foreclosure

Back 50

the method by which the security is applied to satisfy the debt.

Front 51

Deficiency Judgment

Back 51

Allowed where proceeds of FC sale are insufficient to satisfy the debt.

Front 52

Rights of a Grantee

Assume v. Subject To

Back 52

Assumes - is personally liable for the mortgage.

Subject To - not personally liable for the mortgage.

NN: If deed is quiet, it assumes that grantee is taking subject to mortgage.

Front 53

Purchase Money Mortgage

Back 53

Takes priority over other mortgages regardless of recording statutes. The purchase money mortgage itself must be recorded.

Front 54

Exoneration

Back 54

The right of a surety to compel the mortgagee to proceed first against the person or property primarily liable.

Mortgagor is secondarily liable once he transfers prop to a person who assumes his mortgage.

Front 55

Foreclosure/Redemption

Back 55

1. Foreclosure by a senior encumbrances terminates all junior interest which have been joined.

2. Where a senior foreclosures, all junior interest are then treated as mortgagors and have a right to redeem.

3. Lien Theory (Maj) - Foreclosures don not extinguish the Mortgagor's Equity of Redemption.