MCQ Answers Flashcards
(21 cards)
Equitable Right of Redemption
Equitable ROR exists up until the foreclosure sale in all jurisdictions.
Statutory Right of Redemption
Statutory ROR exists after the foreclosure for 6–12 months. Established by statute, so it exists in some but not all states.
Waiver of Right of Redemption
The mortgagor CANNOT waive ROR when the mortgage is created in the original purchase document.
This rule is not limited to primary residences.
Adverse Possession — Hostility
Hostility = use infringes on the rights of the owner / is inconsistent with the rights of the owner.
Mindset of the possessor is not relevant.
Easement — Non-Use
Non-use alone cannot terminate an easement–it must be combined with an act demonstrating the easement holder’s intent to abandon the right.
Laches
If a party has not asserted a right for an undue time, the equitable doctrine of laches can be applied when an adverse party has suffered from the delay in assertion of rights. Laches estops the holder of the right from asserting it.
Leasehold Interest
Unless a lease expressly prohibits assignment, leases are freely assignable.
Leasehold interests does not terminate upon the death of an assignee and may pass by devise.
License
License = when a LO grants someone right to come onto their property for a specific purpose.
Licenses are freely revocable, not transferable, and do not need any consideration.
Doctrine of Equitable Conversion
Under the doctrine of equitable conversion, a buyer of real property becomes the equitable owner of title to the property when the buyer signs a contract to buy land in the future. In such case, the seller retains legal title of the property until conveyance, but this land interest is considered personal property (a right to the payment of money, rather than a right to the property), and the risk of loss is transferred to the buyer.
Damage to Unimproved Land
A landowner who engages in activities that cause the subsidence of unimproved land on an adjacent parcel is strictly liable for resulting damage.
LOs have an absolute duty to provide lateral and subjacent support.
Damages to Improved Land
A landowner who engages in activities that cause the subsidence of improved land on an adjacent parcel is liable for resulting damage if they were negligent.
Marketable Title
MT = no encumberances or outside claims on the land, such as mortgages, leans, or easements.
Defects in the property itself, zoning restrictions that pre-date the sale of the property, de minimus encroachments on the property do NOT rise to the level of encumberances on the property.
Statute of Limitations
The statute of limitations on suits based on present covenants starts to run when title passes.
The statute of limitations does not begin to run on future covenants until the grantee’s rights have been disturbed or the grantee becomes aware of the encroachment.
Easements — Restoring Land
The servient estate is entitled to reasonable compensation for any damage done by the easement holder in making repairs.
However, he is not entitled to have the land restored to its previous special condition if such restoration costs more.
In effect, a servient landowner improves land covered by an easement at his or her own risk.
Licenses
A license is a privilege to go onto another’s land.
May be created orally or in writing.
Licenses are generally freely revocable, unless the license is coupled with an interest.
Licenses are not transferable unless the licensor so intends.
Waste — Landlord/Tenant
Ameliorative Waste — Under modern law, a tenant can only improve the premises if expressly authorized or there is a change in circumstances that warrants the improvements to be made. Otherwise, the tenant has the duty to avoid ameliorative waste.
Voluntary Waste — A tenant is liable for voluntary waste if he intentionally or negligently damages the property.
Permissive Waste — A tenant must take steps to guard against damage to the property or he will be liable for permissive waste.
Indirect Waste — There is no duty to avoid indirect waste.
Title Theory
Under title theory, the mortgagor retain possession until default, and the mortgagee has rights to rents and profits produced by the mortgaged property.
Lien Theory
Under lien theory, the mortgagee receives lien on property, and the mortgagor retains rights to possesses property and has right to rents and profits from the mortgaged property.
Intermediate Theory
Under the intermediate theory, the lien theory is deemed to apply until default and then the title theory kicks in. The effect is that prior to default, the mortgagor retains right to possession, rents and profits, upon default, the mortgagee is entitled to possession, rents and profits.
Sale of Property Contract
A sale of property contract requires a signed written agreement and must include a description of the property and the parties, the price, and any conditions of price or payment as applicable. It does not need to include a provision describing the buyer’s intent to use the land.
Description of Land
There is no precise standard for assessing the sufficiency of a description of land that must be contained in a deed or a contract for the sale of land. Many different systems are used and are acceptable.
Extrinsic evidence is generally admissible to clear up ambiguities. The test is essentially whether a court can effectively identify the land so as to enforce the contract or effectuate the conveyance.
