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208 Cards in this Set

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Elements of Adverse Possession?
COAH

Continuous - Uninterrupted possession for the statutory period

Open and Notorious -- Possession that the usual owner would make under the circumstances

Actual Entry

Hostile -- Possessor does not have consent to be on the land
When can 2 AP'ers use tacking?
When in privity (non-hostile nexus -- anything but ouster)
How does disability affect AP?
Statute will not run against true owner w/ disability at the INCEPTION of the AP.
What must be a in land contract?
In writing
Signed by party to be bound
Describe the land
State consideration
What if land cited in land K > than actually exists?
Purchaser's remedy is specific performance -- pro rate reduction in the purchase price.
Exception to the Statute of Frauds in a Land K?
Part Performance
Need 2 out of 3 to satisfy & no writing needed
1. Possession of the land, and
2. Remitting all or part of the purchase price, or
3. Substantial improvements to the premises
Equitable Conversion?
Once the K is signed, the buyer owns the land (subject to paying the purchase price at closing)
Property destroyed between land K and closing -- who bears the risk of loss?
Buyer
2 Implied Promises in every land K?
Marketable title at closing
Not to make any false statements of material fact
Marketable Title def'n?
Title that is free from reasonable doubt.
When is title unmarketable?
1. AP (even a portion of the land)
2. Encumbrances (outstanding mortgages, servitudes) unless Buyer waives
3. Zoning violations
Zoning Ordinances effect on marketable title?
No effect -- only violations.
Seller's promise not to many any false statements of material fact means...
Seller is liable for lies and omissions (failure to disclose material latent defects in the property)
Implied Warranties in the Land K?
No implied warranty of fitness or habitability -- CAVEAT EMPTOR.

Exception: There is an implied warranty of fitness and workmanlike construction that applies to the sale of new homes by a builder-vendor
Effect of seller's disclaimer of liability in Land K?
No effect re: fraud or omissions.
What document controls from closing on?
Deed
To pass title, need?
LEAD
Lawful Execution and Delivery
Lawful Execution?
Deed in writing
Signed by Grantor
Description of Land - "unambiguous and of good lead"
Consideration not needed
Delivery
Physical or Manual transfer of the deed to the grantee
Does not require actual physical transfer to the grantee -- PRESENT INTENT (does the Grantor have the intent to be immediately bound?)
Effect of Grantee's rejection of the delivery?
Defeats delivery
Delivery by escrow?
OK -- grantor delivers deed to escrow agent w/ instructions to deliver the deed once certain conditions have been met.
What if seller puts deed in escrow and then dies/becomes incompetent?
If conditions are met, then title will still pass.
Absolute Deed w/ oral conditions?
Oral conditions void.
Quitclaim Deed?
No covenants
BUT seller does implicitly promise to be able to provide marketable title at the time of closing.
General Warranty Deed
Warrants against all defects in title, incl. those attributable to the grantor's predecessors.
What are the Present Covenants?
Seisen -- grantor owns
Right to Convey -- grantor has authority
Encumbrances -- no servitudes/liens on land
When can the present covenants be breached?
At the time of delivery.
What are the Future Covenants?
Quiet Enjoyment -- grantee will not be disturbed by a title claim
Warranty -- grantor will defend grantee in event of lawful claim of title asserted by 3d party
Further Assurances -- grantor will do any future acts that are reasonably necessary to perfect title if title is flawed.
When are the future covenants breached?
When Grantee is disturbed in his possession
Statutory Special Warranty Deed
2 Promises Grantor makes on behalf of HIMSELF:
1. Grantor has not conveyed the estate to anyone other than Grantee
2. Grantor promises that the estate is free from encumbrances made by the Grantor
Who is a BFP?
Purchaser for Value
Purchased w/o notice of prior purchaser.
Define value?
Substantial pecuniary consideration
To whom do the recording statutes NOT apply?
Donees
Heirs
Devisees
(watch for Shelter Rule)
Types of Recording Statutes
Race
Notice
Race-Notice
What does a race statute mean?
First to record wins
What does a race notice statute mean?
Buyer who is a BFP and records first takes
What does notice statute mean?
Last BFP w/o notice takes.
Types of notice?
Actual -- knowledge
Inquiry -- whatever an examination of the land would reveal
Record -- prior properly recorded deeds in the chain of title
What is the Shelter Rule?
A grantee who takes from a BFP "steps into the shoes" of the BFP and can prevail against any person the BFP Grantor would have prevailed against.
What is a wild deed?
Recorded deed not connected to the chain of title
Can a wild deed give record notice?
No, a wild deed is incapable of giving record notice of its existence.
What is Estoppel by Deed?
If the grantor purports to convey an estate in property that she does not then own, her subsequent acquisition of the estate will automatically inure the benefit to the grantee.
What is a mortgage?
Conveyance of a security interest in land, intended by the parties to be collateral for the repayment of a monetary obligation.
What are the 2 elements of a mortgage?
Debt
Voluntary transfer of a security interest in the debtor's land
What is a legal mortgage?
Mortgage in writing
AKA -- Note, security interest in land, mortgage deed, deed of trust, sale and leaseback
What is an equitable mortgage?
An absolute deed given for security purposes. Parol evidence is admissible to show parties' intent.
Prior to foreclosure, what are the mortgagor's rights?
Mortgagor has title and right to possession.
Prior to the foreclosure, what are the mortgagee's rights?
Lien on the property
Are interests in a mortgage transferable?
Yes, mortgages automatically follow a properly transferred note.
How can mortgagee transfer his interest?
By either
1. Endorsing note and delivering to transferee, or
2. Executing a separate document of assignment
What if mortgagor sells mortgaged land?
Lien remains on the land, so long as the mortgage instrument has been properly recorded.
What is a holder in due course?
Mortgagee transfers interest via note that is endorsed and delivered.
What are the elements of a Holder in Due Course?
ON = Original Note
1. ON must be negotiable (payable to named mortgagee)
2. ON must be endorsed (signed by named mortgagee)
3. ON must be delivered to the transferee (NO PHOTOCOPIES)
4. Transferee must take the Note in good faith w/o notice of illegality, AND
5. Transferee must pay value for the note (more than nominal)
What are the benefits of being a Holder in Due Course?
Note is free of personal defenses
What are the personal defenses?
Lack of consideration
Fraud in the inducement
Unconscionability
Waiver
Estoppel
What defenses still apply to the Holder in Due Course?
MAD FIFI4:
Material Alteration
Duress
Fraud in the Factum (lie about instrument)
Incapacity
Illegality
Infancy
Insolvency
What if mortgagor transfers the lien?
Mortgagor may sell encumbered property, but as long as mortgage has been properly recorded, buyer takes subject to the outstanding mortgage.
Do the recording statutes apply to mortgages?
Yes
If mortgaged land is transferred, and new buyer assumed the mortgage, who is liable for the mortgage?
Both new buyer (primary) and old buyer (secondary)
If mortgaged land is transferred, and new buyer took subject to the mortgage, who is liable for the mortgage?
New buyer assumes no liability for the mortgage, old buyer is still liable. But if old buyer fails to make payments, mortgagee can foreclose on the property.
How must a mortgagee foreclose?
Judicial Sale
What if the foreclosure sale price is less than the outstanding mortgage(s) on the property?
Mortgagee can bring a personal action against the Mortgagor for deficiency jmt
What if the foreclosure sale price is in excess of the mortgage?
Surplus goes to the mortgagor.
What is the effect of a foreclosure by a Sr. mortgagee?
Terminates the JR. interests.
What is the effect of a foreclosure by a Jr. mortgagee?
Terminates other JR. interests; Sr. interests remain w/ the property.

Jr. lienholders are paid in descending order w/ proceeds, assuming their are funds left after the foreclosing mortgagee takes.
Who are necessary parties to a foreclosure action?
Jr. interests, debtor
What if a Jr. interest is not a party to a foreclosure action?
Jr. interest will remain w/ the land.
What mortgages will the foreclosure buyer be liable for?
None, but the sr. interests remain w/ the property. If the mortgagor defaults, then sr. interest have a right to foreclose on the land.
Priorities of Creditors?
1. Purchase Money Mortgage
2. Other Mortgages by order of record
Creditors must record, otherwise NO PRIORITY.
Creditor priority is first in time, first in right.
What is a Purchase Money Mortgage?
Mortgage given to secure the loan that's allowing mortgagor to acquire the encumbered land in the first place.
Can mortgages be subordinated?
Yes, by agreement.
What is equitable redemption?
Prior to date of foreclosure sale, debtor can try to redeem the land. Extinguishes once foreclosure is complete.

Must pay missed payments + interests + costs.

If there is an acceleration clause, must pay in full + interest + costs.
What is statutory redemption?
Debtor has the right to redeem for a fixed period after the foreclosure sale has occurred.
Effect: nullifies foreclosure sale.
Debtor has right to possess during the statutory period.
Does a landowner have the right to lateral support?
Yes, Strict liability for land in its natural state.

But if land is improved w/ buildings and an adjacent LO's excavation causes improved land to cave in, excavator liable only if NEGLIGENT.

No strict liability unless P can show that because of D's actions, P's improved land would have collapsed even w/o buildings on it.
What is the Riparian Doctrine?
Water owned by Riparians (owners of land bordering water), and they share the reasonable use of the water.

Natural use > Artificial use

Liability for riparian's use that unreasonably interferes w/ another's
When can a downstream owner win under the Riparian Doctrine?
Only if there is substantial interference and downstream owner has the same use as the upstream owner.
What is the Prior Application Doctrine?
Water belongs initially to the state, but individuals acquire right to divert the water and use, regardless of riparian status.
Rights determined by priority of beneficial use.
Productive beneficial use ok (e.g., agriculture)
Groundwater / Percolating Water Rights?
Water beneath surface of earth

Surface owners can make reasonable use of it.
What is surface water?
Water from rain, springs, melting snow, that has not yet reached a natural watercourse or basin.
What is the common enemy rule?
LO may change drainage or make any other changes or improvements on his land to combat the flow of surface water, but LO cannot divert in a way that does unnecessary damage to another's land.
4 Remedies a Possessor may pursue to exclude others?
Actions for ...
1. Trespass (physical invasion by a tangible object)
2. Private Nuisance (intangible invasions - odors)
3. Continuing Trespass
4. Ejectment or unlawful detainer (action to remove a trespasser or tenant)
Can a hypersensitive P bring a private nuisance action?
No
Def'n of Eminent Domain
Gov't 5th Am. power to take private property for public use in exchange for just compensation.
What are the 2 kinds of takings?
Explicit (direct act of condemnation)
Implicit/Regulatory -- Gov't regulation that has the same effect as a taking
What happens when the gov't regulates so as to deny the owner of the property economic use?
Depends.

If denies ALL economic use, then this a taking

If denies NEARLY ALL economic use, then balancing test:
1. Social goals of the reg.
2. Dimunition in value of property
3. Owner's reasonable expectations for use of the property
What is an exaction?
Local gov't demand for amenities at expense of property owner in exchange for granting permission to build.
What is an unconstitutional exaction?
Exaction that is NOT reasonably related (essential nexus) both in the nature and scope to the impact of the proposed development (rough proportionality).
Remedy for an implicit or regulatory taking?
Compensate the owner or
Terminate the regulation and pay the owner for damages that occurred while it was in effect.
Def'n of Zoning
Pursuant to police powers, Gov't may enact statutes to reasonably control land use.
Def'n Variance
Asking for the zoning statute to not apply to you.
What must proponent show to get a variance?
Undue hardship w/o it, and
Variance will not decrease neighboring property values.

Granted or denied by administrative board.
Language to create a FSA?
"To A and his heirs"
"To A"
Duration of a FSA?
Potentially infinite
Transferability of FSA?
Devisable
Descendible
Alienable
Future interest in an FSA?
None
Language to create a Fee Tail
"To A and the heirs of his body"
Duration of a Fee Tail?
Lasts only as long as there are lineal blood descendants
Transferability of a Fee Tail?
Passes automatically to lineal descendants
Future Interest in a Fee Tail?
Reversion (if held by Grantor); Remainder (if held by 3dP)
FSD language
"so long as"
"until"
"while"
Duration of FSD?
Potentially infinite
Transferability of defeasible fees?
Alienable, devisable, descendible, subject to condition
Future interest in FSD?
Possibility of Reverter (held by Grantor) AUTOMATIC
Language to create a FSSCS?
"To A, but if X event happens, grantor reserves the right to reenter and retake"
Duration of FSSCS?
Potentially infinite, so long as event does not occur, and grantor doesn't exercise rights.
Future Interest in FSSCS?
Right of Entry/Power of Termination (held by Grantor) - At G's option
Language to create a FSSEI?
"To A, but if X event occurs, then to B"
Duration of FSSEI?
Potentially infinite so long as the stated event does not occur.
Future interest in FSSEI?
Executory Interest held by 3dP - AUTOMATIC
Language to create a Life Estate?
To A for life
To A for the life of B
Duration of Life Estate?
Measured by the life of transferee or the life of another (pur autre vie)
Transferability of Life Estate?
Alienable, devisable, descendible if pur autr view and measuring life is still alive.
Future interest in Life Estate?
Reversion (if held by Grantor); Remainder (if held by 3dP)
Life Estate T Rights?
All ordinary uses and profits from the land.
Must NOT commit waste.
3 types of waste?
Voluntary/Affirmative
Permissive
Ameliorative
What is voluntary waste?
Overt conduct that causes a decrease in value
Life T and Natural Resources MAY NOT...
Consume or exploit natural resources on the property, UNLESS one of 4 exceptions apply.
Exceptions to the Life T's use of Natural Resources?
PURGE

Prior Use (incl. Open Mines)
Reasonable repairs
Grant
Exploitation (only suitable for)
What is the open mines doctrine?
If mining done on the land before grant of LE, then Life T may continue to mine but is limited to mines already open.
Permissive Waste def'n
Land allowed to fall into disrepair b/c of neglect.
Life T's Duties?
Maintain the premises in reasonably good repair

Pay ordinary taxes to the extent of income/profits from land (or if no income, then to extent of land's FMV)
What is ameliorative waste?
Enhances property's value. Cannot do UNLESS all future interest holders are known and consent to changes.
What is a vested remainder?
Remainder created in an

Ascertainable person, AND
not subject to any condition precedent.
Rule of Destructibility?
Contingent remainder destroyed if still contingent at time the preceding estate ends.
Modern Rule re: Rule of Destructibility?
Abolished. Changes interest to a springing executory interest.
Rule in Shelley's Case?
Collapses "to A for life, then to A's heirs" to "to A" in FSA, but only if A is still alive.
Modern approach re: Rule in Shelley's Case?
Abolished -- Life Estate in A, contingent remainder in A's heirbs, reversion to O if A has no heirs.
Doctrine of Worthier Title?
"To A for life, remainder to O's heirs" --> changes to "To A for life" and O has a reversion. Grantor Intent can override this rule.

Still applies today.
Indefeasibly Vested Remainder?
Holder is certain to acquire estate in the future, w/ no conditions attached.
Vested Remainder Subject to complete defeasance?
Remainderman NOT subject to a CP, but estate can be cut short by a condition subsequent.
Vested Remainder Subject to Open?
Remainder is vested in a group of takers, at least 1 of whom is qualified to take. However, each class member's share is subject to partial future diminution.
Open v. Closed Class
Open = Possible for others to enter
Closed = Max membership set
Common Law Rule of Convenience?
Class closes whenever any member can demand possession.
Executory Interest Def'n
Future interest created in a 3dP which is NOT a remainder and which takes effect by cutting short some interest in either another person ("Shifting") or in the grantor/heris ("Springing")
Shifting Executory Interest
Always follows a defeasible fee and cuts short someone other than G
Springing Executory Interest
Always follows a defeasible fee and cuts short G
RAP Strategy
1. Future Interest Created?
2. CPs?
3. Measuring Life?
4. Will we know w/i 21 years of ML's death whether the future interest holders can or cannot take?
RAP applies only to...
Contingent Remainders
Executory Interests
Vested Remainders subject to open
RAP does NOT apply to...
Future interests in Grantor
Indefeasibly vested remainders, or
Vested remainders subject to complete defeasance.
Fertile Octogenarian?
Anyone regardless of age is capable of having children.
2 Bright Line Rules re: RAP?
1. A gift to an open class that is conditioned on the members surviving beyond 21 years violates RAP (entire class is void)
2. Many shifting executory interests violate RAP -- An executory interest w/ no time limit as to when it must vest violates RAP.
Charity to Charity RAP exception?
Shifting executory interest from 1 charity to another does not violate RAP
RAP Reforms?
Wait and See
USRAP -- CL RAP or 90 years
Cy Pres - Reform to fit RAP
Def'n JT?
2+ owners w/ Right of Survivorship
Creation of a JT requires?
PITT

Possession (equal rights to prop)
Interests (= interests)
Title (same instrument)
Time (same time)

Must be CLEARLY creating a JT

Use a straw man if necessary.
Severance of a JT?
SPAM
Sale (can be done secretly)
Partition
and
Mortgage (title theory)
Sale's effect on JT?
Severs JT as to seller's interest. Buyer becomes a TIC w/ other JT(s). If more than 2 other JTs, they remain in JT.
Severance at SALE (K) not at closing.
3 Types of Partition
Voluntary Agreement
Partition in Kind (equitable physical division of land)
Forced Sale -- In best interests to sell land if not partionable.
Lien Theory vs. Title Theory
Lien -- Mortgage creates a lien
Title -- Mortgage puts title w/ the mortgagee (severs JT)
Tenancy by the Entirety Def'n
Marital Interest + ROS
Only between H & W
Arises presumptively when property is conveyed to H&W
Rights of Tenants by the Entirety?
Creditors of 1 spouse cannot touch.

Unilateral conveyances barred.
Tenancy in Common Def'n
2+ people own property w/ No ROS
Own individual portion w/ right to possess the whole
Default conveyance.
Rights and Duties of Co-TICs
Possess the whole
Rent from TIC in exclusive possession
Rent from 3d parties (pro rata share)
Adverse Possession - only w/ ouster
Carrying Costs - each TIC must pay taxes, mortgage, etc. pro rata
Repairs
Improvements -- No right to contribution (improver receives credit for value increase or deduction for decrease)
No waste
Right to Partition
Tenancy for Years Def'n
Lease for fixed, determined period of time
Termination date known from start - automatic termination
Periodic Tenancy Def'n
Lease which continues for successive intervals until L or T gives proper Notice of Termination
Creation of a Periodic Tenancy?
Express
Implied (lease w/ no mention of duration, but rent paid at set intervals)
Default after holdover T pays rent
Termination of a Periodic Tenancy?
Notice req'd
CL -- Length of period itself unless otherwise agreed.
Exception -- 1 yr period, 6 months

Must conclude at end of a natural lease period.
Tenancy at Will Def'n
No fixed duration (so long as L and T desire)

If regular rent paid, then implied periodic tenancy.
Termination of a Tenancy at Will
Any time, but reasonable demand to vacate is typically req'd
Tenancy at Sufferance Def'n
T wrongfully stayed on after lease expired

Lasts until L evicts or elects to hold T to a new term.
T's Liability to 3d Parties
Keep premises in reasonably good repair. T liable for injuries to 3d parties that T invites on the property, even if L expressly promises to make repairs (indemnity)
T's Duty to Repair when the Lease is Silent?
T must maintain premises and make ordinary repairs. No waste
Removal of a fixture is classified as...
Voluntary Waste
What is a fixture?
Once movable chattle that, by virtue of its annexation to the realty, objectively shows intent to permanently improve the realty.
How to tell if a T installation = fixture?
1. Express Agreement controls;
2. In absence of an agreement, T may remove chattel T installed, so long as removal does not cause substantial harm to premises.
Express Covenant to Maintain Property in Good Condition -- at CL and Now?
CL -- T responsible for any loss (incl. acts of God)

Maj. -- T may terminate lease if premises destroyed by force of nature, absent T's fault.
If T breaches duty to pay rent and remains in possession, then L may...
Seek eviction or
Sue for back rent damages
If T breaches duty to pay rent but vacated the premises, then L may...
SIR

Surrender -- Abandonment = Surrender (if unexpired term > 1 yr, then must be in writing)

Ignore -- Hold T responsible for unpaid rent (minority)

Re-rent -- Re-rent and hold T liable for any deficiency + costs (good faith effort)
T's Duties?
Pay Rent
Repair
L's Duties?
Deliver Possession
Quiet Enjoyment
Habitability
Must L deliver possession?
Yes, must deliver physical possession (English rule).

American Rule -- Legal possession only.
Implied Covenant of Quiet Enjoyment?
Applies to both Residential and Commercial Leases

Right to quiet use and enjoyment of the premises.
Breach of covenant of quiet enjoyment?
Actual wrongful eviction
Constructive Eviction
What are the 3 elements of constructive eviction?
SING
Substantial Interference - chronic
Notice - T must tell L
Goodbye - T must vacate
Is L liable for acts of other tenants?
Generally no, except
1. Nuisance
2. common areas
Implied Warranty of Habitability?
Residential leases only

Premises fit for basic human habitation

Non-waivable
If there is a breach of Warranty of Habitability, what are T's options?
M R3

Move out and terminate
Repair and deduct
Reduce rent (escrow)
Remain in possession and sue for $$
Can L retaliatorily evict T?
No
Are leaseholds assignable or subleasable?
Yes.
Assignment def'n
Transfer of leasehold in whole (entire remaining term)
Sublease def'n
Transfer of part of remaining leasehold term
L and T are in what privities?
Estate and L
T1 assigns to T2. What are the privities between L, T1 and T2?
L and T1 = privity of K

T2 and L are in privity of estate (only privity of K if T2 assumed all the promises of the original lease)
If T1 subleases to T2, what are the privities between L, T1, and T2?
L and T1 in privity of estate and K

No privities between L and T2.
L's tort liability under CL?
Caveat Lessee -- no duty to make premises safe.
Exceptions to Caveat Lessee?
CLAPS
Common Areas
Latent Defects -- L must warn of any hidden defects which L had actual or constructive knowledge -- WARN only.
Assumption of Repairs -- reasonable care for assumed repairs
Public Use
Short term lease of furnished dwelling
Creation of an Affirmative Easement?
PING

Prescription
Implication
Necessity
Grant
Prescription Def'n?
Satisfies COAH
Implication Def'n?
Implied from prior use -- at time land was severed, previous use was apparent and parties expected it to continue, as it's reasonably necessary for the Dominant's use and enjoyment of the land.
Necessity Def'n?
Only way out (landlocked)
Grant Def'n?
Writing signed by Grantor
Easement Def'n
Grant of a non-possessory property interest that entitles the holder (Dominant) to some form of use or enjoyment of another's land (Servient)
Affirmative Easement Def'n
Grants holder the right to do something on the servient parcel.
Negative Easement Def'n and Classifications
Holder can prevent servient owner from doing something
LASS

Light
Air
Support
Streamwater
MAYBE: Scenic View
Easement Appurtenant Def'n
Benefits holder in his physical or enjoyment of his property. Takes 2!
Transferability of Easement Appurtenant
Benefit passes automatically w/ Dominant

Burden passes automatically, unless BFP
Easement in Gross Def'n
Benefits holder in some personal or pecuniary advantage (only servient parcel)
Transferability of Easement in Gross
Not transferable, unless it's a commercial easement in gross.
Scope of an Easement -- Can it be unilaterally expanded?
No
How to terminate an easement?
END CRAMP

Estoppel
Necessity ends
Destruction of the servient parcel

Condemnation
Release
Abandonment
Merger
Prescription
License Def'n
Privilege to enter another's land for some delineated purpose.

Freely revocable.
Covenant Def'n
Promise to do something or not do something

NOT a property interest

Can be affirmative and negative
Covenant vs. Equitable Servitude -- How to distinguish?
ES = Injunction
Covenant = Damages
Does the covenant run w/ the land?

Does the Burden Run?
WITHN
Writing
Intent
Touch and Concern
Horizontal and Vertical Privity
Notice
Does the covenant run w/ the land?

Does the Benefit Run?
WITV
Writing
Intent
Touch and Concern
Vertical Privity
Equitable Servitude Creation
WITN-ES

Writing
Intent
Touch and Concern
Notice
ES=Equitable Servitude
Common Scheme Doctrine
When sales began, developer had a general scheme or residential development that included D's land, and
D had notice of the deed (AIR)
Defenses to ESs?
Changed Circumstances -- Changes so pervasive that the entire area has changed (must affect ALL the parcels)