Real Property

Question 1

Co-tenant Right to Rents and Profits

Answer 1

Rule: co-tenants in possession have the right to retain profits from their own use of the property, but must share with other tenants in rents collected from third parties.

Question 2

Co-Tenant Rights to Share in Repair Costs

Answer 2

Rule: Co-tenants must share costs for necessary repairs, but a tenant is not entitled to reimbursement for improvements.

Question 3

Joint Tenancy Requirements

Answer 3

For conveyance of a joint tenancy to be valid, it must be shown that:

1. transferees took same title,
2. transferees took title at the same time,
3. transferees took same interest
4. transferees have the right to possess the whole.

** note: the right to survivorship must be stated.

Question 4

Requirements of Valid Conveyance by Deed

Answer 4

For a conveyance by deed to be valid, there must be:

1. Valid Execution: a writing that identifies the parties, is signed by the parties, adequately describes the land.
2. Valid Delivery: the transferor must demonstrate a present intent to transfer the interest (physical delivery is not required).

Question 5

Adverse Possession

Definition & Effect

Answer 5

Definition: allows one who has wrongfully possessed a property.

Effect of Adverse Possession: establishing the elements of AP does not itself convey marketable title; the adverse possessor may protect title by judicial action to quiet title.

Question 6

Elements of Adverse Possession

Answer 6

Actual possession
Continuous Possession
Open Possession
Hostile
Exclusive

Question 7

Part Performance Exceptions to the Statute of Frauds

Answer 7

A contract for the sale of land may be taken outside of the SoF and enforced if: [PIP]

1. Purchaser takes possession of the land,
2. Purchaser makes substantial improvements to the land, or
3. Purchaser provided part or all of the purchase price.

Question 8

Doctrine of Equitable Conversion

Answer 8

Rule: once a land sale contract is signed, the buyer is deemed the equitable owner of the property; the risk of loss between signing and closing falls on the buyer.

Question 9

Legal Damages for Breach of Land Sale Contract

Answer 9

Rule: Damages are usually calculated as the difference between the market price and the contract price.

Question 10

Merger Doctrine

Sale of Land

Answer 10

Rule: once a deed is validly executed and delivered to a buyer/transferee, the terms of the land sale contract merge into the terms of the deed and the terms of the deed govern the transaction or issues arising from the transaction.

Question 11

Estoppel by Deed

Chain of Title Issue

Answer 11

Rule: if one purports to convey an interest in property that he does not own but subsequently retains an interest in, he cannot deny the validity of the prior conveyance and the estate will automatically transfer to the grantee.

Exception: Estoppel by deed does not apply if the first conveyance was by quitclaim deed.

Question 12

Severance of Joint Tenancy

Answer 12

Rule: severance of a joint tenancy may be accomplished with the unilateral action of one tenant, including by inter vivos conveyance.
* Creation of TiC: severance of a joint tenancy that has two tenants results in a TiC between the non-conveying tenant and the transferee.

Question 13

Severance of Joint Tenancy (with 3+ joint tenants)

Answer 13

Rule: the new owner will take his portion as a TiC to the remaining tenants, but the remaining joint tenants will remain in joint tenancy.

Question 14

Ouster

Issues in Co-Tenancy

Answer 14

Rule: If a co-tenant refuses occupancy to a co-tenant and claims an exclusive right to possession, this constitutes an ouster.

• Liability of Ouster : the ouster must account to his ousted co-tenant for the fair market rental value of the premises.
• Rights of Ousted: the ousted tenant may bring action to regain possession.

Question 15

Co-Tenant Duty to Pay Mortgage & Taxes

Answer 15

Rule: co-tenants are responsible for their proportional share of taxes and mortgage payments.

Question 16

Partition of Tenancy

Answer 16

This occurs either by voluntary agreement or court order wherby the property is divided or ordered sold (and the proceeds are distributed amond the tenants.

• Partition is NOT available to tenancy by entirety.

Question 17

*

Liquidated Damages Clause in Land Contracts

Answer 17

Rule: a seller is entitled to damages under the liquidated damages clause if the buyer breaches BUT the damages must be reasonable (usually no more than 3% of the purchase price) and not puntative.

Question 18

Constructive Eviction

Definition & Elements

Answer 18

Definition: constructive eviction occurs when the landlord’s breach of duty renders the premises unsuitable for occupancy.

Requirements [SING]
* Substantial interference
* Notice
* Tenant vacates

Question 19

Methods of Terminating an Easement

Answer 19

ENDCRAMP – there are eight ways to terminate an easement:

Estoppel – servient owner materially changes positions in reliance.

Necessity – expire as soon as the necessity ends UNLESS the easement was reduced to an express grant.

Destruction – destruction of the servient land expires as soon as the necessity ends, unless the easement was reduced to an express grant.

Condemnation – Condemnation of the servient estate by governmental eminent domain power will terminate the easement.

Release – release of easement (in writing) by holder to servient holder.

Abandonment – physical action demonstrating intent to never use the easement again.

Merger – title to the easement and title to the servient land become vested in the same person (because a person doesn’t need an easement over their own land).

Prescription – A servient owner may extinguish the easement by interfering with it in accordance with the elements of adverse possession.

• COAH (continuous interference, open/notorious, actual, hostile to the easement holder)

Question 20

Covenant

Definition

Answer 20

A written promise to do or not do something related to land.