Real Property

Front 1

Rule Against Perpetuities

Back 1

No interest is good unless it must vest, if at all, not later than 21 years after some life in being at the creation of the interest.

Front 2

General Warranty Deed

Back 2

No title defects have occurred during her ownership of property. No defects in chain of title from which she derived title.

Contains all six covenants.

Front 3

Special Warranty Deed

Back 3

No title defects have occurred during his ownership of the property. However, seller does not warrant that there are no defect in the chain of title from which he derived title.

Front 4

Quitclaim Deed

Back 4

Seller does not make any warranties. "As is."

Front 5

Covenant of Quiet Enjoyment

Back 5

Grantor guarantees that she will assist in defending title against lawful claims and will compensate grantee for losses sustained by an assertion of superior title.

Front 6

Term of Years

Back 6

Definite beginning and end.

Front 7

Periodic Tenancy

Back 7

Set beginning date and continues from period to period without set termination date, until proper notice is given.

IL: year-to-year= 60 days within last 4 months, month-to-month= 30 days, week-to-week= 7 days.

Front 8

At-Will Tenancy

Back 8

No fixed duration and last only as long as the landlord and tenant desire.

Front 9

Tenant at Sufferance/Holdover Tenant

Back 9

Tenant remains in possession of leased premises after the end of the lease term.

IL: willful or deliberately wrongful holdover is exposed to double rent penalty recoverable by person kept out of possession.

Front 10

Constructive Eviction

Back 10

Landlord's act substantially and permanently interferes with the tenant's use and enjoyment.

Tenant must move out.

Front 11

Implied Warranty of Habitability

Back 11

Landlord will deliver and maintain premises that are safe, clean, and fit for human habitation.

Only applies to residential leases.

Front 12

Assignment

Back 12

Tenant transfers all of her right, title, and interest in the lease premises to a third party.

Assignee is in privity of estate with landlord.

Front 13

Sublease

Back 13

Tenant transfers less than all of her right, title, and interest in the lease premises.

No privity of estate with landlord.

IL: Where lease prohibits sublease without landlord's consent, such consent cannot be unreasonably withheld.

Front 14

Fixture

Back 14

A chattel that becomes so connected to real property that a disinterested observer would consider the chattel to be party of the realty.

Front 15

Trade Fixture

Back 15

Chattel that is annexed to the land by a tenant to advance her business or trade during her tenancy.

Removable before tenancy expires.

Front 16

Mortgage Deed

Back 16

Must include:

Identity of parties,

description of property, and

intent to create a security interest.

Front 17

Title Theory

Back 17

The mortgagee receives legal title to the mortgaged real property and has a right to take possession of and to collect rents and profits from the property.

Front 18

Lien Theory

Back 18

The mortgagee receives a lien, and the mortgagor retains legal and equitable title and possession to the mortgaged real property.

IL is lien theory.

Front 19

Foreclosure

Back 19

IL: exclusively by judicial sale.

Junior interests are destroyed, unless not made a defendant in the judicial proceeding culminating the foreclosure sale & does not get notice of sale.

Front 20

Purchase Money Mortgage

Back 20

Mortgage given to a vendor of the real estate or to a third-party lender to the extent that the proceeds of the loan are used to acquire title to the real estate.

(Or construct improvements on the real estate if the mortgage is given as part of the same transaction in which title is acquired.)

Front 21

Installment Land Contract

Back 21

The buyer takes possession under a contract of sale and makes payment to the seller.

Front 22

Recording Statute: Race

Back 22

The person who records first prevails.

Front 23

Recording Statute: Notice

Back 23

An unrecorded conveyance or other instrument is invalid as against a subsequent bona fide purchaser for value and without notice.

Last BFP wins.

Front 24

Recording Statute: Race-Notice

Back 24

An unrecorded conveyance or other instrument is invalid against a subsequent bona fide purchaser for value, without notice, who records first.

IL is race-notice.

Last BFP to record wins.

LOOK for the word "first" in the statute.

Front 25

Adverse Possession

Back 25

Proof of possession that is:

1) open, visible, notorious;
2) actual;
3) exclusive;
4) hostile and under a claim of title or right; and
5) continuous for statutory period (IL= 20 years).

Title is not marketable until a judicial decree is obtained.

Front 26

Profit a Prendre

Back 26

The right to take something from the land of another.

Example: gravel, trees.

Front 27

Easement Implied by Prior Use

Back 27

Requires:

1) severance of title to land held in common ownership;

2) an existing, apparent, and continuous use when severance occurs (quasi-easement); and

3) the parties intended use to continue after division of land since use is reasonable necessity for the enjoyment of the dominant part at time of severance.

Front 28

Easement Implied by Necessity

Back 28

Requires:

1) severance of title to land held in common ownership; and

2) strict necessity for easement at the time of severance.

Front 29

Termination of Easement

Back 29

Dominant and servient estates come into common ownership,

abandonment,

governmental body acquires the servient estate through and exercise of eminent domain.

Front 30

Covenant that Run with the Land

Back 30

A promise that attaches to land, the covenantor promises to do or refrain from doing something on his land.

1) writing, 2) intent, 3) privity, 4) touch and concern, and 5) notice.

Front 31

Equitable Servitude: Common Scheme

Back 31

1) a larger percentage of lots expressly burdened;

2) oral representations to buyers;

3) statements in written advertisement, sales brochures, or map given to buyers; and

4) record plat maps or declarations.

Front 32

Statutory Redemption

Back 32

The mortgagor's right to pay off the debt during a statutory period following the foreclose sale. (From 90 days to 6 months.)

Equitable redemption occurs the day of foreclosure sale.

Front 33

Deed Absolute

Back 33

A deed absolute intended as security is construed as a mortgage, not as an outright conveyance, and does NOT cut off the mortgagor's right of redemption.

Same thing as equitable mortgage.

Front 34

Ameliorative Waste

Back 34

Enjoined if:

Value of security interest is dangerously impaired (drops down close to zero)

Allowed if: market value not impaired, and

1) it is permitted by remainderman; or
2) a substantial and permanent change in the neighborhood has deprived the property of a reasonable current value.

Front 35

Lateral and Subjacent Support

Back 35

A landowner may be strictly liable if his excavation causes adjacent land to subside.

If the adjacent land is improved, strict liability applies only if the land would have collapsed in its natural state.

Front 36

Deficiency Judgment

Back 36

A deficiency judgment is allowed where the proceeds from the foreclosure sale are insufficient to pay off the mortgage debt.

Front 37

Bona Fide Purchaser

Back 37

1) Pays value (purchaser, mortgagee, judgment creditor)

2) Takes in good faith

3) Takes without notice

Front 38

Duties of Dominant Tenant

Back 38

To dominant tenant has the right to inspect, maintain, and improve the easement and is not liable for damages caused through reasonable repair and maintenance.

Scope of the easement is in the language of the deed, if dominant tenant exceeds scope that is excessive use and can be enjoined.

Front 39

Easements

Back 39

Where the dominant tenement is conveyed, each grantee takes not only the land, but all appurtenances thereto

Easement appurtenant are generally "apportionable"

Front 40

Marshalling

Back 40

An equitable principle used to rank and prioritize the rights of competing parties to determine the order in which the mortgaged property will be sold.

Front 41

Direct Order of Alienation

Back 41

Where mortgaged land is subdivided and the grantees assume, the mortgage should proceed first against the grantees to satisfy the debt, and if the proceeds are insufficient, then proceed last against the mortgagor whose land has the greatest equity.

Front 42

Bailment

Back 42

Transfer of possession of personal property by a bailor to a bailee without the transfer of title.

Usually made for a particular purpose and after this purpose is performed, the property must be delivered back to the bailor in its identical form.

Bailor can maintain a cause of action against bailee for damages to the property or breach of contract. Or conversion, if relevant.

Example: valet parking