Final Exam Review Flashcards
(166 cards)
1
Q
What is Feudalism?
A
All land was owned by the monarch and granted to lords, who passed it to vassals in return for loyalty and service.
2
Q
Define Allodium.
A
Ownership of land free from feudal duties.
3
Q
What is Fee Simple Absolute?
A
Most complete ownership including the entire bundle of rights: possess, use, transfer, lease, mortgage, and devise.
4
Q
What is a Defeasible Fee?
A
Ownership can be lost if a condition is violated.
5
Q
What are the magic words for Fee Simple Determinable (FSD)?
A
so long as, until, while
6
Q
What happens to property in a Fee Simple Determinable (FSD)?
A
Ends automatically if a condition occurs, and reversion goes back to the grantor automatically.
7
Q
What are the magic words for Fee Simple Subject to Condition Subsequent (FSSCS)?
A
but if, subject to, upon condition that
8
Q
What distinguishes FSSCS from FSD?
A
FSSCS does not terminate automatically; grantor must take action (right of re-entry).
9
Q
What is a Life Estate?
A
Ownership for the duration of a person’s life.
10
Q
What rights does a Life Tenant have?
A
Possess property and collect rents.
11
Q
What duties does a Life Tenant have?
A
Pay interest on mortgage, maintain the property (no waste), pay proportionate share of taxes and assessments.
12
Q
What is the Open Mine Doctrine?
A
Life tenant may continue extracting minerals if such use began before life estate started.
13
Q
What are Dower and Curtesy?
A
Historical rights to spousal inheritance.
14
Q
What is a Reversion?
A
Grantor gets property back after life estate ends.
15
Q
What is a Remainder?
A
Property passes to a third party after life estate ends.
16
Q
What is Joint Tenancy (JT)?
A
Co-ownership with right of survivorship and requires four unities.
17
Q
List the four unities required for Joint Tenancy.
A
- Possession
- Interest
- Time
- Title
18
Q
What is Tenancy in Common (TIC)?
A
Default form of co-ownership with no survivorship; interests can be unequal.
19
Q
What is the purpose of Partition?
A
Legal process to terminate co-ownership.
20
Q
What is Tenancy by the Entirety?
A
Co-ownership for married couples only with survivorship rights.
21
Q
What is Community Property?
A
Property acquired during marriage is co-owned, even if in one spouse’s name.
22
Q
What are the characteristics of Limited Partnerships (LPs)?
A
- General Partner (GP): liable
- Limited Partners (LPs): passive, limited liability
23
Q
What is Promissory Estoppel?
A
Used when a contract is unenforceable but justice demands enforcement due to detrimental reliance.
24
Q
What is the Mailbox Rule?
A
Acceptance is effective when sent.
25
What is a Deed?
The legal document by which title to real property is transferred.
26
List the essential elements of a Deed.
* Grantor & grantee
* Consideration
* Legal description
* Words of conveyance
27
What is a General Warranty Deed?
Most protection; includes all 5 covenants.
28
What is a Quitclaim Deed?
No guarantees—just releases whatever interest grantor has.
29
What is the purpose of the Statute of Frauds?
Requires certain contracts to be in writing to be enforceable.
30
What is Part Performance in contract law?
Even without a written agreement, actions like taking possession can make the contract enforceable.
31
What is the Parol Evidence Rule?
Excludes outside evidence that contradicts the written contract.
32
What does 'Marketable Title' mean?
Free of reasonable doubts or legal issues.
33
What is a 1031 Exchange?
Allows deferral of capital gains taxes on investment properties.
34
What must occur within 45 days in a 1031 Exchange?
Identify new property.
35
What is a Fiduciary Duty?
Trustee must act in beneficiary’s best interest.
36
What is the Mother Hubbard Clause?
Broad catch-all description; must still identify property to the exclusion of others.
37
What is the ethical dilemma in family ownership scenarios?
Legal vs. moral obligations.
38
What does 'Substantial Performance' mean?
Minor deviations still fulfill contract.
39
What is a Legal Description?
Precisely defines property boundaries.
40
What is the Mother Hubbard Clause?
A broad catch-all description that must still identify property to the exclusion of others.
## Footnote
This clause is often used in legal documents to encompass all property interests without specifically naming each item.
41
What are the main components of Metes and Bounds descriptions?
Point of Beginning, Courses (direction), Distances.
## Footnote
Metes and Bounds is primarily used in the Eastern U.S. to define property boundaries.
42
What is the hierarchy of calls in Metes and Bounds?
Natural monuments, Artificial monuments, Courses, Distances, Area/acreage.
## Footnote
This hierarchy determines which elements take precedence in case of conflicts.
43
What is the Rectangular Survey System (RSS)?
A system used in the Western U.S. based on townships and sections.
## Footnote
It divides land systematically and creates boundaries.
44
What common trigger leads to boundary disputes?
One party gets a survey and discovers encroachments (e.g., fences, sheds).
## Footnote
Boundary disputes often arise from overlapping property descriptions or unclear easements.
45
In Marek v. Lawrence, what principle did the Idaho Supreme Court uphold?
If a deed is unambiguous, intent must be determined from plain language alone.
## Footnote
The court ruled that extrinsic evidence is unnecessary unless ambiguity exists.
46
What are the required elements of Adverse Possession?
Open, Continuous, Actual, Notorious, Hostile.
## Footnote
These elements must be proven for a claim of adverse possession.
47
What is the statutory period for Adverse Possession in Minnesota?
15 years.
## Footnote
Statutory periods vary by state for adverse possession claims.
48
What is Eminent Domain?
The government's right to take private property for public use with just compensation.
## Footnote
This is protected under the 5th Amendment.
49
What is the difference between intestate and testate succession?
Intestate succession occurs without a will; testate succession occurs with a will.
## Footnote
Intestate succession is governed by statutes, while testate succession follows the terms of the will.
50
What is required for a will to be valid?
Sound mind, in writing, signed, witnessed (not by beneficiaries).
## Footnote
Even a mark can count as a signature.
51
What is the role of an Executor?
Named in the will to carry out its terms.
## Footnote
An Executor manages the estate according to the deceased's wishes.
52
What does a Living Trust avoid?
Probate.
## Footnote
Living trusts can also protect assets and provide flexibility in asset management.
53
What is the purpose of recording statutes?
To provide constructive notice of claims, preventing fraud and protecting buyers/lenders.
## Footnote
Recording statutes aim to maintain clear public title records.
54
What are the three types of recording statutes?
Race, Notice, Race-Notice.
## Footnote
Each type has different rules regarding the priority of recorded claims.
55
What is required for a document to be recorded?
Acknowledgment, recording fee or transfer tax.
## Footnote
Acknowledgment involves notarization or affirmation by a qualified party.
56
What can title insurance protect against?
Hidden or unrecorded defects.
## Footnote
Title insurance provides legal defense and indemnity coverage.
57
What is the Attorney Review Period in NJ real estate contracts?
A 3-day period allowing parties to seek changes or cancel the deal.
## Footnote
This clause is required in contracts prepared by brokers.
58
What must a buyer do regarding hazard insurance?
Secure hazard insurance as a lender requirement.
## Footnote
The lender must be listed as the loss payee on the insurance policy.
59
What is a Deed in Lieu?
A borrower gives title to the lender, and the debt is forgiven.
## Footnote
This is an alternative to foreclosure.
60
What does the term 'Adverse Possession' mean?
The process by which a person may claim ownership of land under certain conditions.
## Footnote
This typically involves continuous and open use of the property.
61
What is the key feature of Title Theory in mortgages?
Lender holds title until the debt is paid.
## Footnote
This contrasts with Lien Theory, where the lender holds a lien and must foreclose to gain title.
62
What is a Fixed-Rate Mortgage?
A mortgage with a constant interest rate for the duration of the loan.
## Footnote
These mortgages typically last 30–40 years.
63
What is the significance of the 1866 Civil Rights Act?
It prohibited racial discrimination in property transactions.
## Footnote
This act laid the groundwork for future fair housing laws.
64
What did the Fair Housing Act of 1968 initially cover?
Race, color, religion, national origin.
## Footnote
Subsequent amendments expanded its protections to include gender and disability.
65
What does the Rights Act (§1982) prohibit?
Prohibited racial discrimination in property transactions
66
What legal precedent was set by Plessy v. Ferguson (1896)?
Upheld 'separate but equal'; approved segregation
67
What was the outcome of Brown v. Board of Education (1954)?
Overturned Plessy; declared segregation unconstitutional
68
What did the 1964 Civil Rights Act outlaw?
Discrimination based on race, color, religion, national origin in public accommodations
69
What additional protections were added by the Fair Housing Act of 1968?
Initially covered race, color, religion, national origin
70
What amendments were made to the Fair Housing Act in 1974 and 1988?
1974: Added gender; 1988: Added disability and familial status
71
What transactions are covered under the Fair Housing Act (FHA)?
* Sale
* Rental
* Financing
* Advertising
72
What are the exemptions under the Fair Housing Act?
* Single-family homes sold/rented without a broker
* Owner-occupied buildings (≤4 units)
* Religious or private club housing for members only
73
What acts are prohibited under the Fair Housing Act?
* Refusing to rent/sell
* Discriminatory terms or conditions
* Blockbusting
* Redlining
* Steering
* Discriminatory advertising
* Threats or intimidation
74
What was the legal framework established in Asbury v. Brougham?
McDonnell Douglas v. Green 3-part test
75
What are the criteria of the McDonnell Douglas v. Green test?
* Plaintiff is a minority and qualified
* Denied opportunity
* Housing remained available
76
What is reasonable modification under Fair Housing & Disability?
Tenant may modify property (e.g., ramps, grab bars) with prior approval
77
What is reasonable accommodation in Fair Housing & Disability?
* Waive no-pet policy for service animals
* Allow schedule changes
* Cover modest costs
78
What protections does familial status provide?
Protects households with children under 18, except for housing for elderly
79
What is the time limit for filing an administrative complaint under FHA?
File within 1 year
80
What remedies are available in federal court litigation for FHA violations?
* Actual damages
* Punitive damages
* Injunctions
81
What is blockbusting?
Persuading sales based on fear of racial change
82
What is redlining?
Lenders denying loans based on location
83
What is steering in real estate?
Realtors guiding buyers based on race, family, etc.
84
What is the definition of disability under FHA?
Includes physical, mental impairments, recovery from addiction
85
What is zoning in land development?
Divides land into districts (residential, commercial, industrial)
86
What types of zoning exist?
* Use zoning
* Bulk zoning
87
What case upheld zoning as constitutional under police powers?
Village of Euclid v. Ambler (1926)
88
What is nonconforming use in zoning?
Existing use that doesn’t match current zoning
89
What is required for a variance?
* Unnecessary hardship
* Not harming neighbors
* Not self-created
* In public interest
90
What is a special use permit?
Case-by-case approvals for compatible but unlisted uses
91
What is cluster development?
Smaller lots, more open space; total density unchanged
92
What does agricultural zoning require?
Owners commit to farming for set years (e.g., 8)
93
What is the critical area designation in environmental controls?
Designated by policy (e.g., wildlife, water sources)
94
What is historic preservation in land development?
Preserves buildings/areas with historical value
95
What are Transfer Development Rights (TDRs)?
Owners in protected zones transfer development rights to receiving zones
96
What is fee simple absolute in property ownership?
The most complete form of land ownership
97
What are defeasible estates?
* Fee Simple Determinable (FSD)
* Fee Simple Subject to Condition Subsequent (FSSCS)
98
What is a life estate?
Grants property use for the lifetime of an individual
99
What happens to a life estate after the individual's death?
Reverts back to the grantor or passes to another party
100
What is the open mine doctrine?
Allows continued resource extraction if it began before the life estate was created
101
What are the primary types of co-ownership in real estate?
* Joint Tenancy (JT)
* Tenancy in Common (TIC)
* Tenancy by the Entirety (TBE)
* Tenancy in Partnership
102
What is the right of survivorship in joint tenancy?
When one co-owner dies, their interest passes automatically to the surviving joint tenant(s)
103
What is a partition action?
Disagreements between co-owners resulting in division of property
104
What is a mortgage contingency?
Clarifies contract termination if financing fails
105
What is earnest money in real estate transactions?
Deposits protecting sellers against buyer default
106
What are the essential elements of a valid contract?
* Offer
* Acceptance
* Consideration
* Capacity
* Lawful purpose
107
What is consideration in contract law?
The exchange of value that makes the contract binding
108
What happens when a contract is breached?
The non-breaching party can seek monetary damages or equitable relief
109
What is the Statute of Frauds?
Mandates that real estate contracts must be in writing to be enforceable
110
What is the purpose of contingency clauses in real estate contracts?
To provide conditions under which the contract can be terminated or modified
111
What is the importance of marketable and insurable title in real estate contracts?
Seller must deliver a title that can be insured by a title company
112
What is the purpose of earnest money in real estate transactions?
Earnest money protects sellers against buyer default and is often treated as liquidated damages in residential deals.
113
What are the essential elements required for a valid deed?
* Names of the grantor and grantee
* Words of conveyance
* Consideration
* Legal description of the property
* Proper execution
114
What is an involuntary lien?
A legal claim attached to property to secure a debt, imposed by law.
115
True or False: A mechanic's lien protects those who supply labor or materials to improve property.
True
116
What is the difference between a general warranty deed and a quitclaim deed?
A general warranty deed provides the strongest protection with covenants, whereas a quitclaim deed offers no warranties regarding the title.
117
What is the purpose of a 'time of the essence' clause in a contract?
To ensure strict adherence to deadlines, especially when contingent on financing or other milestones.
118
What does a 1031 Exchange allow investors to do?
Defer capital gains by trading one investment property for another, subject to strict timelines.
119
Fill in the blank: A lien that arises from a court judgment is called a _______.
judgment lien
120
What are restrictive covenants?
Private land use restrictions that run with the land and dictate how a property may be used.
121
What legal description systems are commonly used in real estate?
* Metes and bounds system
* Rectangular Survey System (RSS)
122
What is adverse possession?
A legal doctrine allowing someone to claim ownership of land after occupying it for a statutory period under certain conditions.
123
True or False: Eminent domain allows the government to take private property without compensation.
False
124
In intestate succession, who typically inherits the estate?
The state’s statute of descent and distribution determines heirs, commonly a spouse and children.
125
What is the purpose of recording real estate documents?
To provide constructive notice to the public and ensure clear and marketable title.
126
What are the three types of recording statutes?
* Race
* Notice
* Race-notice
127
What is the role of a mortgage in real estate?
To secure a note or bond, which represents the borrower's promise to repay the debt.
128
What must borrowers maintain to avoid defaulting on a mortgage?
Hazard insurance and property taxes.
129
Fill in the blank: A deed of trust places title with a _______ who can sell the property on default.
trustee
130
What is the significance of a 'Mother Hubbard' clause in a deed?
It attempts to convey all of the grantor’s property in an area but must still identify specific property.
131
What happens if a property owner fails to pay property taxes?
It can lead to force-placed insurance or tax liens, which usually take priority over mortgages.
132
What is the purpose of an abstract of title?
To provide assurance of title by summarizing the chain of ownership and any liens or encumbrances.
133
True or False: A valid will must be written, signed, and properly witnessed.
True
134
What is the difference between intestate and testate succession?
Intestate refers to passing without a will, while testate involves passing with a will.
135
What is the role of an executor in estate administration?
The executor is named in a will and manages the estate's distribution according to the will's provisions.
136
What does 'equitable subrogation' refer to in mortgage priority disputes?
It allows a mortgage to retain priority even if recorded after a judgment lien, provided no prejudice to the junior lienholder.
137
What is a Fee Simple Determinable (FSD)?
A fee that automatically ends when a condition is violated
138
What is a Fee Simple Subject to Condition Subsequent (FSSCS)?
A fee that requires the grantor to take action to reclaim the land upon a condition being violated
139
What rights do holders of life estates have?
Rights of possession and collecting rent, along with duties like paying property taxes
140
What are future interests in property?
Interests like reversionary interests or rights of re-entry created when a property is expected to revert to the grantor
141
What is Joint Tenancy (JT)?
A form of co-ownership that includes the right of survivorship among other requirements
142
What are the four unities required for Joint Tenancy?
* Possession
* Interest
* Time
* Title
143
What is Tenancy in Common (TIC)?
A form of co-ownership allowing owners to pass their shares to heirs rather than the surviving co-owner
144
What is Tenancy by the Entirety (TBE)?
A co-ownership form limited to married couples that includes survivorship and cannot be severed unilaterally
145
What is required for a valid contract?
Offer, acceptance, consideration, and capacity
146
What happens if an offer is revoked?
It is invalid after revocation or if there is unreasonable delay, death of the offeror, or destruction of the subject matter
147
What constitutes a breach of contract?
Failure to perform any term of a contract without a legitimate legal excuse
148
What are common provisions in real estate contracts?
* Inspection
* Mortgage contingency
* Possession
* Evidence of title
149
What is the purpose of earnest money deposits in real estate?
To serve as liquidated damages in case of breach
150
What elements must deeds contain?
* Words of conveyance
* Consideration
* Competent grantor
* Clear legal description
151
What type of deed offers the most protection?
General Warranty Deed
152
What is the metes and bounds system?
A legal description method using compass directions, distances, and monuments
153
What is adverse possession?
A claim of ownership after occupying land openly, continuously, and notoriously for the statutory period
154
What is intestate succession?
Distribution of property determined by state statute when a person dies without a will
155
What do recording statutes determine?
Who prevails when multiple claims exist on a property
156
What is the purpose of title insurance?
To protect against defects not revealed in public records
157
What is the Fair Housing Act (FHA)?
A law prohibiting discrimination in housing based on race, religion, national origin, sex, disability, and familial status
158
What illegal practices are prohibited under the Fair Housing Act?
* Blockbusting
* Redlining
* Steering
159
What does inclusionary zoning promote?
Affordable housing through requirements for new developments
160
What are zoning laws?
Regulations that divide land into use and bulk categories
161
What is a variance in zoning?
A permission for minor deviations from zoning codes granted upon proof of unnecessary hardship
162
What does the public trust doctrine reinforce?
Public access to beachfronts and sustainable use of natural resources
163
Fill in the blank: A _______ allows a property to be used for specific purposes not otherwise permitted under zoning regulations.
Special-use permit
164
True or False: The FHA applies equally to all housing providers, including private clubs and small owner-occupied buildings.
False
165
What is the role of HUD in enforcing the Fair Housing Act?
To handle administrative complaints and enforce penalties
166
What are the two types of development rights transfer methods?
* Transfer of Development Rights (TDRs)
* Overlay zoning
