Black Letter Law Flashcards
(118 cards)
1
Q
A good faith trespasser annexes to a landowner’s property an item that improves the land’s value.
Which of the following is the trespasser most likely to recover from the landowner?
A
The value added to the land.
2
Q
Voluntary waste occurs when a life tenant ____.
A
consumes or exploits natural resources on the property (timber, minerals, oil)
3
Q
Ameliorative waste consists of acts that ____.
A
economically benefit the property
4
Q
A deed will not transfer an interest in land unless it has been delivered by the grantor and accepted by the grantee. Delivery is presumed if the deed is:
A
(i) handed to the grantee
(ii) acknowledged by the grantor before a notary and recorded
5
Q
A grantee’s return of a deed is ____ reconveyance to the grantor.
A
not a
6
Q
Title passes to the grantee upon effective delivery, and returning the deed to the grantor has no effect. To effect a reconveyance, the grantee must ____.
A
execute and deliver a new deed
7
Q
____ is the right of a mortgagor to recover the land by paying the foreclosure sale price after the foreclosure sale has occurred.
A
statutory redemption
8
Q
____ is the right of a mortgagor to recover the land by paying the amount overdue, plus interest, at any time before the foreclosure sale.
A
equitable redemption
9
Q
If the government condemns all of the leased land, the tenant’s liability for rent:
A
is extinguished, and the tenant may be entitled to compensation for the taking, absent a lease provision to the contrary
10
Q
The common law rule with respect to destruction of the leased premises without the landlord’s or tenant’s fault is?
A
The lease remains effective and the tenant must continue paying rent.
11
Q
Under the doctrine of equitable conversion, equity regards the buyer of land as ____.
A
owning the real property as soon as the contract is signed
12
Q
A due-on-sale clause permits the mortgagee to demand full payment of a mortgage debt if ____.
A
the mortgagor transfers her interest without the lender’s consent
13
Q
Due-on-sale clause is designed to:
A
(i) protect the lender from the mortgagor’s sale to a poor credit risk or to a person likely to commit waste
(ii) allow the lender to raise the interest rate or charge an assumption fee when the property is sold
14
Q
An acceleration clause in a mortgage permits the lender to ____.
A
declare the full balance of the mortgage due in the event of the mortgagor’s default
15
Q
A forfeiture clause, found in an ____ contract, provides that on the mortgagor’s default, the vendor may ____.
A
installment land; cancel the contract, retain all money paid, and retake possession of the land
16
Q
In residential leases, a tenant who holds over after termination of a year-to-year periodic tenancy may be held to a new periodic tenancy from ____.
A
month to month
17
Q
A ____ purchase money mortgage usually has priority over a ____ purchase money mortgage.
A
vendor’s; third-party lender’s
18
Q
A title insurance policy ensures that ____.
A
good record title exists as of the policy’s date and defends record title in the event of litigation
19
Q
A title insurance policy protects only the person who ____ and does not run with the land to ____.
A
owns the policy; subsequent purchasers
20
Q
List all of the remedies a landlord has under modern law when a tenant defaults on her rent obligation:
A
(a) sue the tenant for rent
(b) evict the tenant
(c) deduct the unpaid rent from the tenant’s security deposit
21
Q
The standard for the implied covenant of marketable title are:
A
(a) title free from questions that might present an unreasonable risk of litigation
(b) title reasonably free from doubt
(c) title that a reasonably prudent buyer would be willing to accept
22
Q
A seller may avoid liability for some property defects by including in the land sale contract:
A
A clause identifying the specific defects and disclaiming liability for them.
23
Q
____ the contract will not make the closing date stated in a real estate contract binding.
A
both parties signing
24
Q
Which of the following always is required in order to transfer legal title to real property?
A
a living grantee
25
A grantor who conveys a lesser estate than the grantor owns retains ____.
a reversion
26
May a vendor who has accepted late payments for six months on an installment land contract declare a forfeiture if payment is late the seventh month?
No, because the vendor has waived strict performance of the contract.
27
If the proceeds from a foreclosure sale are insufficient to satisfy the debt of a mortgage junior to the one being foreclosed, the ____.
junior mortgagee may sue the mortgagor for the deficiency
28
Is a tenant obligated to repair ordinary wear and tear?
Yes, if the lease contains a covenant to repair that fails to exclude ordinary wear and tear.
29
What is the result of the sudden, perceptible change of a watercourse that serves as a boundary to real property?
No change to the riparian landowners’ property rights.
This process is known as avulsion, and it does not shift the boundary line with the watercourse even if this results in a riparian landowner finding himself landlocked.
30
For purposes of determining title by adverse possession, when is tacking permitted?
To combine the periods of occupancy of an adverse possessor and her transferee.
31
A claimant may establish title through adverse possession by showing:
(i) an actual entry giving exclusive possession that is
(ii) open and notorious
(iii) adverse (hostile) and
(iv) continuous throughout the statutory period.
However, continuous possession need not be accomplished by the same person. If there is privity between successive adverse holders, their periods of adverse possession may be tacked together to make up the full statutory period.
32
Which of the following generally occurs when a mortgagee transfers a promissory note without a written assignment of the mortgage?
The mortgage follows the note.
33
Under ____ statute, a subsequent transferee with notice of a prior conveyance can prevail over the prior grantee.
a race
34
For which type of security interest in land does the debtor transfer title to land to a lender in exchange for a lease with an option to repurchase?
sale-leaseback
35
Vertical privity refers to the relationship between:
An original party to a real covenant and his successor in interest.
36
The burden of the covenant will run with the land if:
1. the covenanting parties intended that successors in interest be bound by the covenant
2. the successor in interest has notice of the covenant
3. there is horizontal privity between the original covenanting parties
4. there is vertical privity between the covenantor and his successor in interest
5. the covenant touches and concerns the land
37
Horizontal privity refers to the relationship between ____.
the original parties to a real covenant
38
Horizontal privity requires that the original covenanting parties ____.
shared some interest in the land independent of the covenant at the time they entered into the covenant (as grantor and grantee)
39
A tenant leases premises that are destroyed without the fault of either the landlord or the tenant.
Under the majority view, which is true in the absence of a contrary lease provision?
The lease may be terminated at the tenant’s option, and the tenant may cease paying rent.
40
Absent a contrary lease provision, if under applicable law the lease remains effective after destruction of the leased premises without the fault of either the landlord or the tenant, the tenant ____ cease paying rent.
may not
41
Which of the following is most likely to result in the seller being liable to the buyer for defects in improvements to real property?
The seller’s disclaimer that the property is sold “as is."
42
If a mortgagee purports to transfer the mortgage without the note, which of the following is not a possible result?
Payment of the mortgage debt would become due in full.
43
Which of the following acts will not sever a joint tenancy?
Testamentary disposition by one joint tenant.
A will devising a joint tenant’s interest to another is inoperative as to joint tenancy property because when the testator dies (when the will becomes effective), his rights in the joint tenancy property are extinguished, and the will has no effect on them.
44
A claimant occupying only a portion of land may gain title to the whole tract by adverse possession if there is a reasonable proportion between the portion occupied and the whole tract and the claimant has ____ the whole tract.
color of title to
45
Which of the following would charge a purchaser of realty with inquiry notice?
The fact that her grantor’s deed is unrecorded.
Inquiry notice means that a subsequent grantee is held to have knowledge of any facts that a reasonable inquiry would have revealed, even if he made no inquiry. When a grantor’s deed is unrecorded, the grantee is expected - at her peril - to demand a viewing of her grantor’s title documents at the time of the purchase and insist that they be recorded.
46
If the benefited party seeking to enforce an equitable servitude is violating a similar restriction on his own land, which of the following defenses should the burdened party assert?
unclean hands
47
Which of the following acts will terminate a profit but not an easement?
misuse of the interest
48
If L leases property to T, and L subsequently assigns L’s interest to L2, is L2 liable to T on all covenants that are contained in the original lease?
Yes, if the covenants run with the land.
49
In general, a life tenant commits permissive waste when he:
Fails to make required repairs to the land or pay required carrying charges (interest on encumbrances, ordinary taxes).
50
Which of the following is true of a mortgage on property subject to a real estate contract?
The seller may satisfy the mortgage at the closing with proceeds of the sale.
51
Which of the following is the largest estate in property permitted by law?
fee simple absolute
It has an indefinite and potentially infinite duration. The holder can sell it, divide it, or devise it, and it passes to his or her heirs.
52
A conveyance from “O to A” creates a ____ in A if O owned a ____.
fee simple absolute; fee simple absolute
53
A ____ is an estate of potentially infinite duration, but it automatically terminates on the happening of a stated event and reverts to the grantor.
fee simple determinable
54
A conveyance from “O to A for so long as/while/during/until [event]” creates a ____ in A.
fee simple determinable
55
A ____ is an estate that cannot last longer than the life or lives of one or more persons.
life estate
56
A conveyance from “O to A for life” creates a ____ in A.
life estate
57
Life tenants are obligated to make which payments on a mortgage on the land?
only the interest
58
____, if any, are the responsibility of the holder of the future interest (typically a remainder or reversion) that follows the life estate.
principal payments
59
The landowner's ____ an occupier entered into possession will not prevent the statute of limitations from beginning to run for adverse possession.
filing suit for ejectment after
60
If O conveys property “to A, but if the premises cease to be used for recreational purposes, then to B,” what interests do the parties have in a jurisdiction that follows the common law Rule Against Perpetuities?
A has a fee simple absolute, and B and O have no interest.
61
If a plaintiff seeks an injunction for breach of a promise relating to the use of land, they must show that the promise qualifies as:
An equitable servitude or a real covenant.
62
In commercial leases, a tenant who holds over after termination of a year-to-year periodic tenancy may be held to ____.
a new year-to-year periodic tenancy
63
The Statute of Frauds requires that a memorandum of a land sale contract be signed by:
The party to be charged.
64
Which of the following acts will not sever a tenancy by the entirety?
Execution by a creditor of one spouse.
65
Against whom may a grantee invoke the doctrine of estoppel by deed?
The original grantor only.
66
A leasehold is a ____.
nonfreehold estate in land
Nonfreehold estates in land (leaseholds) give possession of land for a limited time. The tenant has a present possessory interest in the leased premises, and the landlord has a future interest (reversion).
67
What is the effect of an easement holder’s using the easement beyond its legal scope?
The servient landowner may enjoin the use.
68
A deed must identify the parties (grantor and grantee) by ____.
name or other description (“my eldest son”)
69
If a deed is delivered with the identity of the grantee left blank, courts will presume that ____.
the person taking delivery of the deed has the authority to fill in the grantee’s name
70
For purposes of determining title by adverse possession, when does the statute of limitations begin to run against someone who holds a future interest that was created before the adverse possession commenced?
When the interest becomes possessory.
71
May a trespasser remove her annexed chattel from the landowner’s property?
No, regardless of whether the chattel was installed in good faith.
72
If the government condemns only part of leased land, the tenant’s liability for rent:
Is not extinguished, but the tenant may be entitled to compensation for the taking.
73
Absent an agreement to the contrary, if the buyer of land does not tender the purchase price until after the closing date, ____.
whether the buyer is in breach depends on whether the seller has tendered a conveyance of title
74
A grantor hands a deed to a grantee and says, “I want you to hold on to this deed so you can have my land when I die.”
Will a court likely rule that delivery occurred?
No, because the grantor’s statement is admissible to show that the deed was not delivered.
75
As between two mortgages, what is the effect on the junior mortgage when the mortgagor accepts an advance of funds from the senior mortgagee?
The junior mortgage is given priority over the advance if the advance was optional.
76
If a deed never was delivered, but the listed grantee discovers the deed and records it, the deed is:
void
77
In most states, a buyer who has paid only part of the purchase price under an installment land contract is ____.
protected by recording acts only to the extent of payments made
78
____ generally will not be admitted to show oral conditions on the delivery of a deed given to a grantee.
parol evidence
79
Under the doctrine of equitable conversion, if the seller under a real estate contract dies before the closing, ____.
the successors to the seller’s real property must give up legal title at closing
80
Does a restrictive covenant that limits development on the land render title unmarketable?
No, if the buyer waives title defects in the land sale contract.
81
When a landowner owns a chattel that she affixes to the realty, what determines whether the chattel is a fixture?
The objective intention of the annexor.
82
A fixture is a chattel that has been so affixed to the realty that it has ____.
ceased being personal property and has become part of the realty
83
A court will never reform a deed that ____.
has been relied on by a bona fide purchaser
84
Reformation is an equitable action in which the court ____.
rewrites a deed to make it conform to the parties’ intention
85
Reformation will be granted if the deed does not express what the parties agreed to for any of the following reasons:
1. it reflects the parties’ mutual mistake
2. it contains a drafting error
3. it reflects one party’s unilateral mistake—but only if that mistake was induced by the other party’s misrepresentation or inequitable conduct
86
If a real estate contract states that time is of the essence, a party who fails to tender performance on the closing date:
is in total breach and loses her right to enforce the contract
87
A deed must identify the land to be conveyed. When a mistake or inconsistency in the description leaves in doubt the exact location of the property, and the court otherwise lacks clear evidence of the parties’ intent, the following rules of construction apply:
1. natural monuments (“from Moss Lake to the oak tree”) prevail over all other methods of description, including artificial monuments, courses and distances, and quantity measurements
2. artificial monuments (stakes, buildings) prevail over all but natural monuments
3. course measurements ( “North 25 degrees to Main Street”) prevail over distance measurements (“East 45 feet to Grace Street”)
4. all of the foregoing prevail over general descriptions such as name or quantity (“10 acres of land known as Blackacre”)
88
Periods of adverse possession between two successive claimants may be tacked together to make up the full statutory period if ____.
the first adverse claimant purports to transfer the land to the next
89
In mortgage transactions, ____ may transfer their interests to third parties.
both mortgagors and mortgagees
90
What is the result if a landowner timely brings an ejectment action against a would-be adverse possessor, but the judgment is rendered after the statutory period expires?
The judgment relates back to when the complaint was filed.
91
Which of the following deeds is most likely to be set aside as against a bona fide purchaser?
A forged deed.
92
Deeds executed by a ____ or executed under ____ are voidable.
minor grantor; duress
93
Voidable deeds will be set aside only if ____.
the property has not passed to a bona fide purchaser
94
When may the grant of a perpetual easement be enforced as a license?
When it fails to satisfy the Statute of Frauds.
95
A ____ restraint provides that if the grantee attempts to transfer the property, it is surrendered to another person.
forfeiture
96
A ____ restraint provides that any attempted transfer of the property is ineffective.
disabling
97
If a seller refuses to convey land pursuant to an oral land sale contract, a court likely will ____.
award the buyer specific performance if the buyer has paid the purchase price and has taken possession of the land
98
While land sale contracts must be memorialized in writing and signed by the party to be charged to be enforceable under the Statute of Frauds, a court may enforce an oral contract in equity under the doctrine of part performance if the buyer has performed two of the following acts:
1. taken possession of the land
2. made substantial improvements to the land
3. paid all or part of the purchase price
99
How can a landowner prevent an occupier of land from taking title by adverse possession?
obtaining a judgment in an ejectment action
100
Filing a lawsuit for trespass will not ____; the suit must be pursued to judgment.
stop the period from running
101
Someone whose interest in land benefits her in her possession of another tract of land holds ____.
an easement appurtenant
102
The holder of an easement has the right to use another’s land, but has no right to possess that land.
the servient tenement
103
If the holder is not benefitted in her possession of her own parcel, the easement is deemed ____.
in gross
104
If O conveys property “to A for her support until she remarries,” what interest does A have?
fee simple determinable
105
A fee simple determinable is an estate that ____ on the happening of a stated event and ____.
automatically terminates; reverts to the grantor
106
Under ____, a mortgagee may not take possession of the mortgaged property without consent upon the mortgagor’s default.
the lien theory
107
Under ____, followed in a minority of the states, legal title is in the mortgagee until the mortgage has been satisfied or foreclosed.
Thus, the mortgagee is entitled to possession upon ____, which means the mortgagee can take possession as soon as the mortgagor defaults.
the title theory; demand at any time
108
A purchase money mortgage (“PMM”), whether recorded or not, generally will have priority over ____.
a prior claim against the same mortgagor arising before the mortgagor acquired title
109
May the vendor of an installment land contract containing a forfeiture clause reinstate strict performance once she has waived it?
Yes, by giving the purchaser notice and a reasonable time to catch up on payments.
110
The priority of the proceeds from a foreclosure sale is as follows:
1. expenses of the sale, attorneys’ fees, and court costs
2. principal and accrued interest on the loan that was foreclosed
3. any junior interests (mortgages junior to the loan that was foreclosed) in the order of their priority
4. mortgagor
111
What is the usual measure of damages for breach of a real estate contract?
The difference between the contract price and the market value of the land on the date of breach.
112
A cross-easement for support is an ____.
easement implied for adjoining landowners who share a common wall or driveway
113
A complete transfer of a tenant’s entire remaining lease term is an ____ of the lease. The assignee and the landlord are in privity of estate, with each liable to the other on all lease covenants that run with the land (the covenant to pay rent).
assignment
114
Under a ____ statute, a subsequent purchaser who pays valuable consideration and takes without notice of the prior conveyance prevails over a prior grantee who failed to record.
notice
115
If a grantor transfers a deed in exchange for cash, and the grantee promises to return the land when the cash is repaid, a court will likely treat the transaction as:
an equitable mortgage
116
When a grantee assumes a mortgage, he becomes ____ to pay the mortgage debt, and he is also liable for any deficiency judgment that may follow.
Alternatively, the original mortgagor remains ____.
personally and primarily liable; secondarily liable as a surety
117
When a developer subdivides land into several parcels and some of the deeds contain negative covenants, but some do not, negative covenants or equitable servitudes, binding all of the parcels in the subdivision, may be implied under the doctrine of ____.
reciprocal negative servitudes
118
To enforce a reciprocal negative servitude, the court will need to find:
(i) common scheme for development
(ii) notice of the covenants
