Death of a Party (equitable conversion) Flashcards Preview

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Flashcards in Death of a Party (equitable conversion) Deck (15):
1

Shay v. Penrose, decedent died intestate w/legal title to land, but had executed a real estate contract........so....

equitable conversion applies & her properties being subject to the contracts are treated as personality.

2

real estate becomes personalty

treat real estate which is subject to a contract of sale as PERSONALTY of the vendor and to treat the identified proceeds being used to ACQUIRE real estate as realty.

3

what else terminates at execution of the contract

vendor=a spouse's dower or curtesy rights
vendee=spouse's rights created

4

Vendor held real est. in COTENANCY BY ENTIRETY

man rule- will TERMINATE---cuz tenancy can't be a personalty

5

can joint tenancies be used to hold personalty

yes

6

can tenancies in common be used to hold personalty

yes

7

Do option contracts trigger equitable conversion?

NO--
-there must be a BINDING contract of sale

8

contract MUSTS for equitable conversion:

-BINDING
-satisfy the SOF
-evaluate at time of death

9

can you evaluate consequences of Equitable Conversion after death?

NO, not before or after death.
(TIME to evaluate is at the moment of death)***

10

Clapp V. Tower

-land that is subject to a contract of sale is NOT reality, its personalty
-this can change the state where probate is done.

11

WHERE is realty probated?

in the state where the land is Located

12

where is personalty probated?

state where the decedent DIED

13

what will a tenancy by entirety become after contract & equitable conversion?

Tenancy in Common (now right against creditor is NOT preserved) **mess
so.... make SURE CONTRACT indicates sellers intent w/in contract to JOINT TENANCY w/Rt of survivorship

14

analysis?

-was there a binding RE contract ON DAY he died?
-status of property on DATE of DEATH

15

always ask client.....

do you own proper anywhere other than HERE, & if so, make sure wills valid THERE (ex 2 witness/3 witness state)