Mbe Property Ii

Front 1

Assignment

Back 1

An assignment arises where a lesee transfers the entire leasehold balance to an assignee - the assignee is then in privity of estate w/ the lessor and is primarily liable for payment of rent -
In addition, the lessee-assignor remains in privity of contract w/ the lessor and is secondarily liable for payments of rent, similar to that of a surety

Front 2

Extinguishment or termination of an easement

Back 2

An easement may be extinguished in the following ways:
1) merger
2) written release
3) abandonment
4) estoppel
5) prescription
6) necessity
7) condemnation
8) destruction of the servient tenement

Front 3

Termination of an easement by abandonment

Back 3

There must be:
1) an intent to abandon
2) some physical act accompanying it

Front 4

Life Estate

Back 4

One in which the duration is measured by the life or lives of one or more human beings and is not otherwise terminable at a fixed or computable perior of time - if an estate may last for a lifetime, it is a life estate even thought it may be cut short before it runs its natural course

Front 5

Life tenant

Back 5

A life tenant has the right to mortgage, to create liens, easements, leases, or convey the property - not of these rights exten beyond the period of the life estate

Front 6

Estate pur autre vie

Back 6

Since a life tenant possesses the quality of alienability, the life tenant can convey his estate
At common law, if the grantee died b/f the life tenant, the property was regarded as w/o an owner until the life died (in which case there would be a reversion to the original grantor).
The prevailing view today is that such estates pur autre vie are deviable and inheritable

Front 7

Rule Against Perpetuitites and Options

Back 7

Cases that apply the rule generally hold that an option is similar to a springing executory interest, and hence is void unless it may be exerted no later than 21 years after some life in being at creation
**since no humna life is usually involved in measuring an option's duration, in most cases an option that can be exercised more than 21 years after the date of its creation will be delcared void.

Front 8

Inverse Order of Alienation Rule

Back 8

Applies when a mortgaged tract of land is "sold off" or conveyed in parcels and various grantees pay full value to the mortgagor w/o getting a release from the mortgagee
Upon default, if the mortgagee forecloses, the "inverse order rule" will require the mortgagee to proceed first agianst the lands still owned by the mortgagor, and then proceed against other parcels in inverse order in which they were sold until the mortgage is fully satisfied
**the rationale is that the buyer of the first parcel sold acquired the most equity, and likewise down the line until the land still held by the mortgagor has the least.
**B/t the mortgagor and the grantees, the mortgagor should pay the debt, and his land should be sold first for that purpose

Front 9

"The Mortgage Follows the Note"

Back 9

Both mortgages and notes are transferable, yet the note (evidencing the debt) is the principal relationship and the mortgage is only ancillary thereto for the purposes of security.

Front 10

Holder in Due Course

Back 10

Takes the note w/o notive of any defect in the title of the party negotiating the note, in good faith, and paid value

Front 11

Notice Recording Statute

Back 11

The subseqent bona fide purchaser will prevail.