MEE Essentials: Property

Question 1

K to deed order

Answer 1

K of sale is signed BEFORE deed is delivered

Question 2

Equitable conversion

Answer 2

Under doctrine of equitable conversion, as soon as K is signed (even BEFORE closing), risk of LOSS remains on BUYER EVEN IF seller remains in POSSESSION/CONTROL of land

Question 3

Validity of a deed

Answer 3

TO be valid, deed must

IDENTIFY buyer + seller

DESCRIBE land

contain words indicating PRESENT INTENT TO CONVEY

SIGNED by GRANTOR

Question 4

Deed delivery defined

Answer 4

Deed must be DELIVERED to be valid, as defined by INTENT to PRESENTLY PASS TITLE

Question 5

Two types of deed

Answer 5

1) quitclaim
2) warranty

Question 6

Quitclaim deed

Answer 6

Grantor gives NO covenants (promises nothing) and grantee gets WHATEVER grantor has, SUBJECT TO defect/undisclosed easement/other problem

with NO recourse

Question 7

Warranty deed six covenants

Answer 7

3 present covenants + 3 future covenants

pReSeNt

RIGHT to convey
SEISIN
NO encumbrances (no liens/easements not stated in deed)

FEW (future)
FURTHER assurances
Quiet ENJOYMENT
WARRANTY

Question 8

Under CL, can grantees sue for future/present/both covenants?

Answer 8

ONLY future, but some jdx do not follow common law

Question 9

Merger of K/deed

Answer 9

on CLOSING DATE, K for sale merges into DEED, and THEN buyer can ONLY sue on DEED

Question 10

Breach of implied warranty of fitness and habitability

Answer 10

Builder of new homes impliedly WARRANTS that home is HABITABLE and FIT for its intended purposes

Any defects discovered in REASONABLE time and due to builder’s NEGLIGENCE or failure to do work in WORKMANLIKE manner

Question 11

Common law rule of conveyance

Answer 11

Under common law, grantor can only convey rights he had at TIME OF CONVEYANCE. Thus, CL follows FIRST-IN-TIME FIRST-IN-RIGHT principle, subject to state recording acts

Question 12

Notice recording statutes

Answer 12

Protect SUBSEQUENT BFPs for VALUE who take WITHOUT NOTICE of earlier transaction

Question 13

Race-notice statutes

Answer 13

Protect SUBSEQUENT BFPs for VALUE who take WITHOUT NOTICE AND are FIRST to RECORD

Question 14

Pure race statutes

Answer 14

Protect SUBSEQUENT PURCHASERS (not BFPs) who are first to record

Question 15

3 types of notice

Answer 15

AIR

ACTUAL
INQUIRY (investigation of land or instrument would lead person to inquire)
RECORD (recorded in CHAIN of title)

Question 16

Wild deeds

Answer 16

Deeds outside chain of title that are recorded too early/late, which do NOT give notice

Question 17

Mortgagor transfer of title

Answer 17

A mortgagor may transfer title to property, but generally is still personally liable on the note

Question 18

Mortgage: ‘subject to’

Answer 18

A new transferee who takes land SUBJECT TO mortgage is generally NOT personally liable

Question 19

Mortgage: ‘assumes’

Answer 19

A new transferee who ASSUMES mortgage IS personally liable ALONG WITH original mortgagor

Question 20

If a transferee pays mortgage payments, has he impliedly assumed mortage?

Answer 20

MEE: YES

MBE: NO

Question 21

Novation in mortgage

Answer 21

Novation occurs when initial mortgagor, new transferee, AND mortgagee ALL AGREE that mortgagor is no longer liable + transferee assumes ALL duties

Question 22

Lease: term for years

Answer 22

Lease that specifies START and END DATE

Question 23

Periodic tenancy

Answer 23

Periodic tenancy has NO fixed end date and repeats until one party gives notice to the other, by EXPRESS OR IMPLIED agreement (or operation of law e.g. invalid year-long lease bc of SOF violation)

Valid notice required to terminate periodic tenancy

Question 24

Assignment lease default rule

Answer 24

If lease does not prohibit assignment or sublease, tenant can assign or sublease her interest in the lease

Question 25

Constructive eviction

Answer 25

Occurs when tenant can prove landlord BREACHED DUTY to tenant (commercial or residential) which caused loss of SUBSTANTIAL use and enjoyment of premises and tenant VACATED after giving ADEQUATE NOTICE

Question 26

Implied warranty of habitability

Answer 26

Breached ONLY in residential lease if premises are UNINHABITABLE Tenant can VACATE, SUE, or OFFSET damages

Question 27

Duties of a tenant

Answer 27

Must pay rent If he does NOT pay rent and has ABANDONED property, landlord can sue for damages OR treat as SURRENDER, which EXCUSES future rent obligations

Question 28

Duty to mitigate

Answer 28

Under CL: Landlord has NO duty to mitigate Many states: landlords DO have duty to make reasonable effort to mitigate

Question 29

Fair Housing Act

Answer 29

disallows discrimination in housing sales/rentals on basis of race/color/religion/sex/family status/national origin Does NOT apply to owner-occupied dwellings with 4 units or less BUT those owners CANNOT place discriminatory advertisements (owner AND publisher in violation of FHA for discriminatory ads)

Question 30

Creation of easement

Answer 30

Easements can be created expressly, impliedly (prior use/benefit/apparent/continuous OR necessity), or by prescription

Question 31

Termination of easements

Answer 31

Easements may be terminated by express terms, written release, merger of dominant and servient lands, prescription, estoppel, condemnation, or abandonment

Question 32

Abandonment standard for easements

Answer 32

Mere nonuse not sufficient, must be ACT of abandonment

Question 33

Creation of joint tenancy

Answer 33

Joint tenancy requires four unities (PITT) Possession Interest Time Title Many states REQUIRE use of language "joint tenancy" + adding SURVIVOR language to create joint tenancy

Question 34

Severance of joint tenancy rule statement

Answer 34

A joint tenancy can be severed one of four ways (G-SAM) Giving away during life Signing K for sale Actual judicial lien sale Mortgage in TITLE THEORY state

Question 35

Adverse possession requirements

Answer 35

ANOCHES Adverse Notorious Open Continuous Hostile Exclusive Statutory period met

Question 36

What land can a party gain title to under adverse possession?

Answer 36

ONLY the area that a person ACTUAL possesses (unless there is color of title, unitary tract, or reasonable amount possessed = WHOLE TRACT)

Question 37

Tacking

Answer 37

In some circumstances, an adverse possessor may TACK ON time that prior adverse possessor had possessed to reach statutory period

Question 38

Failure to record interest by adverse possession

Answer 38

Adverse possessor will prevail over subsequent BFP who complies with recording act because there is no DOCUMENT that interest holder could record

Question 39

Surrender

Answer 39

When a tenant ABANDONS lease and landlord ACCEPTS abandonment Can be shown when landlord RETAKES premises, remodels building, re-rents to new party for more $ or higher term

Question 40

If commercial lease imposes duty to repair on landlord, can landlord still argue that tenant had duty to repair?

Answer 40

NO, by default tenant has duty to repair in commercial lease, but if lease provides otherwise, LANDLORD has duty