Property Flashcards

Question

MORTGAGES - Rights of Mortgagor and Mortgagee?

Answer 1

**_Rights_** * **Mortgagor** has title and right to possession; * **Mortgagee** has a lien (look to land if default).

Answer 2

**_Legal and Equitable Mortgages_** * _Legal Mortgage_: in writing (SOF) using property interest in land as collateral for loan. * _Equitable Mortgage:_ physical handover of deed to creditor to secure loan (parol evidence freely admissible in dispute; BUT if creditor sells to BFP, debtor can only sue for damages; BFP owns land.

Answer 3

**_Mortgage_** *Conveyance of an interest in land as collateral for repayment of a loan.* **_Rights:_** * **Mortgagor** has title and right to possession; * **Mortgagee** has a lien (look to land if default). **_Legal and Equitable Mortgages_** * _Legal Mortgage_: in writing (SOF) using property interest in land as collateral for loan. * _Equitable Mortgage:_ physical handover of deed to creditor to secure loan (parol evidence freely admissible in dispute; BUT if creditor sells to BFP, debtor can only sue for damages; BFP owns land.

Answer 4

_Definition of Bona Fide Purchaser:_ * Purchases Land for **Value** * Not donees (unless Shelter Rule)/heirs/devisees * W/o Notice of Another’s Claim to Land * **A-I-R**: * **_A_**ctual; * **_I_**nquiry (whatever exam would reveal); * **_R_**ecord (properly recorded)

Answer 5

**_Race Notice & Notice Jurisdictions_** _Race Notice (RNJ) vs. Notice Jurisdictions (NJ)_ * **RNJ**: whichever party records first wins (**NYBE)** * **NJ:** last BFP wins regardless of who records first

Answer 6

**_BFPs and Race Notice & Notice Jurisdictions_** _Scenario:_ Grantor illegally conveys same parcel of property first to A and then to B _Definition of Bona Fide Purchaser:_ * Purchases Land for **Value** * Not donees (unless Shelter Rule)/heirs/devisees * W/o Notice of Another’s Claim to Land * **A-I-R**: **_A_**ctual; **_I_**nquiry (whatever exam would reveal); **_R_**ecord (properly recorded) _Race Notice (RNJ) vs. Notice Jurisdictions (NJ)_ * **RNJ**: whichever party records first wins (**NYBE)** * **NJ:** last BFP wins regardless of who records first

Answer 7

**_Identifying a Notice Statute & Race Notice_** Statute _Notice (NJ):_ “A conveyance of an interest in land shall NOT be valid against any subsequent purchaser for value without notice thereof, unless the conveyance is recorded.” * If the 1st conveyance is not recorded it is NEVER valid against subsequent BFP ($, no notice). _Race Notice (RNJ):_ “Any conveyance of an interest in land shall NOT be valid against any subsequent purchaser for value without notice thereof, **whose conveyance is 1st recorded.”** * Whose conveyance is first recorded” means that whoever records their interest first wins.

Answer 8

**_3 Types of Deeds & Covenants Therein_** **Quitclaim Deed:** absolutely no covenants (worst type) **General Warranty Deed:** 6 covenants & warranties against ALL defects in title (1st 3: present: breached at delivery; SOL runs from delivery; 2nd 3: future: only breached if grantee is disturbed in possession & SOL runs from disturbance) * ***Seisin:*** grantor owns property * ***Right to Convey*:** no restraints on power to convey * ***Against Encumbrances****:* no servitudes/mortgages * ***Quiet Enjoyment:*** no fut. disturbance by 3rd party title claim * ***Warranty****:* grantor will defend grantee against future 3rd party claims to title (if Quiet Enjoyment is breached). * ***Further Assurances:*** grantor will perform future acts reasonably necessary to protect grantor’s claim to title **Statutory Special Warranty Deed (Bargain and Sale Deed - NYBE):** 2 promises grantor makes only on own behalf: (1) hasn’t conveyed to another; (2) free from grantor’s encumbrances

Answer 9

* *_Transfer of Title From Buyer to Seller: L-E-A-D_** * **_L_**awfully **_E_**xecuted and **_D_**elivered* _Lawful Execution of a Deed_ * Writing/signed by grantor (unambiguous description of land (just enough for ID of property), BUT NO consideration) _Delivery of Deed *(Legal Construct)*_ * Test of Present Intent, NOT Physical Delivery “I want to give you Blackacre now.” = delivery. * Delivery by escrow permissible. * Express rejection defeats delivery. *No parol evidence: oral conditions on deed accompanying delivery are voidable*

Answer 10

**_Content and Requirements of the Land Contract_** 1) S provides _marketable title_: * **Good Record Title**: No Previous Adverse Possession --\> otherwise unmarketable * **Uncumbered Fee Simple**: No servitudes or mortgages, unless B waives them * Nothing subject to Zoning Violations 2) S promises not to make any _false statements of fact_: * Maj: **failure to disclose latent defects** * property sold "*as is”* or “*with all faults*” means nothing under NYBE and MBE **Not Includ**ed: No implied warranties of fitness or habitability. * **Exception**: workmanlike construction of new home by builder-vendor

Answer 11

**_Content and Requirements of the Land Contract_** _One Exception to SOF:_ **Doctrine of Part Performance** Oral Agreement + 1 of following = Specific Performance * B Takes Physical Possession * B Pays All or Part of Purchase Price * B Makes Substantial Improvements to Land

Answer 12

**_Content and Requirements of the Land Contract_** _SOF:_ Land contract must be in writing, signed by party against whom enforcement is sought. Contract: * **Describes** the Land * States **Consideration** for the Land _One Exception to SOF:_ **Doctrine of Part Performance** Oral Agreement + 1 of following = Specific Performance * B Takes Physical Possession * B Pays All or Part of Purchase Price * B Makes Substantial Improvements to Land If size of parcel \< parcel in land contract, Π can sue for * specific performance AND * Pro rata --\> in contract price.

Answer 13

**_Destruction of Land Under Contract But Not Conveyed_** ***MBE:*** once contract is signed, risk of loss is with buyer * _Equitable Conversion:_ equity regards as done that which ought to be done **NYBE:** risk of loss w/seller until buyer takes possession or title **_2 Implied Promises in Land Contract_** _Marketable Title at Closing:_ 3 Circumstances. of *"**Unmarketable Title"*** * ***Adverse Possession**:* even tiny portion rests on AP * ***Encumbrances:*** servitudes/mortgages if not waived * *Zoning Violations* _ No False Statements of Material Fact_ * _Material Lies/Material Omission of Latent Defects:_ waiver does NOT excuse fraud/omission * **_NYBE_** ****_P_**roperty Condition Disclosure Act:** S must provide statutory form for residential sale 1-4 units before contract (NOT condo, co-op, new construction) * _No implied warranties_: fit/habtbl (except new home)

Answer 14

**_2 Steps of A Conveyance of Real Estate_** ## Footnote _Step 1_**:** Land contract which endures UNTIL... _Step 2_: Closing where deed becomes the operative document

Answer 15

**_Adverse Possession_** **_C_ ontinuous for Statutory Period (CL: 25 but NYBE is 10) _O_ pen and Notorious** (type of use owner would make, including rental to 3rd party) **_A_ ctual _H_ ostile** * Subjective intent or knowledge that a party is on the land of another is irrelevant * _**Tacking**:_ adverse possessor can tack his time on to the time of a predecessor as long as 2nd possessor didn’t take from 1st through adverse possession. * **_Disability:_** if a true owner is disabled (age, insanity, imprisonment) at **Inception** of possession, statutory period will not run until disability cured. * _**Special Purpose Use**:_ if the use is a special purpose use and not an occupation → easement.

Answer 16

**_Equitable Servitude (Express) W-I-T-N-E-S_** Promise concerning land that equity will enforce against successors (injunctive relief) **_W_ riting:** (express) **_I_** **ntent:** intended for promise to run **_T_** **ouch** and **Concern** **_N_** **otice**: to assignee of burdened land **_E_ quitable _S_ ervitude:** *No privity is required for an equitable servitude.*

Answer 17

**Implied Equitable Servitude: General/Common Scheme Doctrine** _2 Elements (_If P seeks injunction): * Subdivider had **general development scheme** embodied in deed restriction. * Purchaser of lot had **NOTICE** of restriction * **_A_ ctual Notice**: of deed restriction in prior deeds * **_I_ nquiry Notice:** by sight development obviously conforms to restriction * **_R_ ecord Notice:** imputed to buyer who doesn’t check publicly recorded documents **(NOT in NY -NYBE)** **_Defense:_** pervasive changed conditions to entire area/subdivision.

Answer 18

**_Horizontal Privity_** Nexus **between original** covenanting parties, requiring parties to be in succession of estate: * Original promising parties were grantor/grantee * Original promising parties were landlord/tenant * Original promising parties were mortgagor/mortgagee *High Standard: if NOT met; burden does NOT run w/land so covenant does NOT run (W-I-T-H-N)* **_Vertical Privity_** Nexus between original party to the covenant and **subsequent parties** to whom land is transferred: * Simply requires **non-hostile nexus:** land was sold or inherited (**anything BUT adverse possession)**

Answer 19

**_Does a Covenant Run with the Land?_** *First analyze* (1)*BURDEN then **(2)** **BENEFIT* _Burden_: W-I-T-H-N (Horizontal Privity) * *_W_ riting:** original promise * *_I_ ntent:** original parties intended covenant to run * *_T_ ouch/Concern Land:** (homeowners assn. fees and covenant not-to-compete DO run) * *_H_ orizontal and Vertical Privity** * *_N_ otice:** party against whom covenant is offered had notice when he took (record/constructive) _Benefit:_ W-I-T-V (Vertical Privity ONLY) **_W_ riting: _I_ ntent: _T_ ouch/Concern Land: _V_ ertical Privity ONLY** **Note: Notice** requirement **ONLY protects *purchasers for value***. A _purchaser who does not give value_ may be **bound** by convenant at law.

Answer 20

**_License:_** a mere privilege, freely revocable, to enter land (weakest of the servitudes family) * Tickets (e.g. movie) * Neighbors Taking at the Fence: when oral “easement” **violates SOF,** becomes license (License is failed easement: i) Grant ii) w/o writing ii) for 1 yr+) _Estoppel:_ **ONLY when licensee** has **invest**ed substantial **$/labor** in *reasonable reliance* **_Profit:_** name for an easement that entitles holder to take soil or substance of soil * Minerals, timber, oil

Answer 21

**_Covenants_** Contractual limitation/promise regarding land ("runs w/ land"), but _does NOT grant property interest_ (like an easement). **_Types:_** * *Restrictive Covenant:** promise to refrain from doing something related to land (not build commercial bldg) * *Affirmative Covenant:** promise to do something related to land (maintain a fence) **_Distinguishing Covenants and Equitable Servitudes:_** * Π seeks monetary damages: Covenant * Π seeks injuction/equitable relief: Equitable Servitude

Answer 22

**_Easement by Implication_** **_Arises when:_** 1. Previous Use **Apparent** 2. Parties **expected** it would **continue** b/c 3. it is **reasonably** necessary to **use** and **enjoyment**

Answer 23

**_Termination of Easements E-N-D C-R-A-M-P_** ## Footnote **_E_ stoppel:** servient T detrimentally reasonably relies on dominant T’s assurance of easement termination **_N_ ecessity:** unless created by express grant, easement created by necessity ends when necessity ends **_D_ estruction of Servient Land:** w/no fault of dominant T **_C_ ondemnation of Servient Land** by Eminent Domain **_R_ elease**: written release from dominant T **_A_ bandonment By Dominant T’s *Physical Action*:** make use of the easement permanent physical impossibility **_M_ erger of 2 Parcels of Land in 1 Owner:** and future separation does NOT revive easement **_P_ rescription:** interference w/ easement according to adverse possession (C-O-A-H).

Answer 24

**_Creation of Affirmative Easement: P-I-N-G_** ## Footnote **_P_ rescription:** adverse possession (C-O-A-H): (Continuous use for statutory period **(NYS: 10 yrs - NYBE)**; Open/notorious; Actual use; Hostile (no permission) I **mplication:** from existing use: (1) use is apparent; (2) parties expect survival b/c reasonably necessary to dominant tenement’s survival (look at cost/difficulty of alternatives) **_N_ ecessity:** if grantor conveys landlocked tenement easement will be implied **_G_ rant:** deed of easement for +1 year (SOF): in writing & in compliance w/deed requirements

Answer 25

**_Caveat Lessee and 5 Exceptions_** ## Footnote T beware, but 5 exceptions: **C-L-A-P-S** * * _C_ ommon Areas:** * * _L_ atent Defects:** duty to warn ONLY * * _A_ ssumption of Repairs:** if undertaken must be done w/reasonable care * * _P_ ublic Use Rule:** public space; b/c of nature of defect (latent) & length of lease, T won’t repair (e.g. convention center) (exception applies even if T promises to repair) * * _S_ hort Term Use** of Furnished Dwelling:

Answer 26

**_Introduction to Easements_** _**Nonpossessory** Interest_ entitling holder (dominant tenement) to some use of land possesed by another (servient tenement) * **Affirmative:** go onto land and do something * **Negative:** bar servient landowner from doing something * **L-A-S-S:** *Light; Air; Support* (underground); Streamwater from artificial flow (irrigation); MUST be written/signed **Easement Appurtenant:** directly benefits property of dominant tenement (must be _2 pieces_ of property) * **Transfer:** passes automatically w/ benefited land EVEN w/o mention; **Except** if purchaser of servient land is BFP w/o notice * **Cannot be conveyed seperately** from dominant tenant unless **convey**ed **to** owner of **SvTn to extinguish** easement. **Easement In Gross:** personal pecuniary benefit to holder, NOT land; (put up a billboard; swim in another’s pond). * _Transfer:_ NOT transferable **UNLESS** commercial purpose ***Scope**: limited to _terms of creation_; no unilateral expansion. Assumed to be PERPETUALS* * Cannot reserve easement for another perosn. * Must be in writing and sign by holder b/c of SOF unles under 1-yr

Answer 27

**T1 assigns lease to T2:** **_Privity of Estate_** T2 & LL: YES → liable for covenants in lease that run with land (pay rent; repair; pay taxes) T1 & LL: NO **_Privity of Contract_** T2 & LL: NO → NOT liable for ALL promises in original lease T1 & LL: YES → secondary liable to each other if person w/direct liability unavailable for damages. **_Example_**: LL leases to T1 who assigns to T2 who assigns to T3 who flagrantly damages property. * • LL **can** sue T3 (direct wrongdoer): privity of estate * • LL **can** sue T1 (original T): privity of contract * LL **cannot** sue T2: no privity of estate or contract (absent contrary explicit agreement) *Sublessee is NOT in privity of Contract or Estate w/LL,ONLY T1 and SL and T1 & LL are liable to each other.*

Answer 28

* *_Assignment:_** T may freely transfer interest in whole. * * NYBE:** default rule is **_no assignment_** **_Sublease:_** T may freely transfer interest in part. ** NYBE:** default rule T in building w/4 or more units has right to sublease subject to LL consent  Which CANNOT be unreasonably withheld *LL may expressly prohibit both in lease; but once LL consents to 1 interest transfer by particular T, LL CANNOT object to further transfers.*

Answer 29

**_Duty to 3rd Parties_**  T must keep premises in reasonably good repair  T responsible for injuries to 3rd party EVEN if LL has expressly promised to make repairs (T may seek indemnification) **_Tenant’s Duty to Repair_**  T must maintain; make ordinary repairs  T may NOT commit waste: voluntary (overt harmful); permissive (neglect); ameliorative (↑ value). _ Fixtures:_ if T removes a fixture commits voluntary waste * o **Once moveable chattel,** by virtue of annexation to real property, objectively shows intent to improve (heating systems, custom storm windows, furnace, certain lights) * **o Fixture?** * (1) express agreement? * (2) removal cause **substantial harm?** Yes: objective evidence of perm. _ Express Covenant & Natural Disaster:_ absent express agreement, no-fault destruction allows T to terminate lease **_Tenant’s Duty to Pay Rent_** _ T Breaches/In Possession:_ (1) LL can evict through courts & sue for rent; (2) continue relationship & sue for rent; BUT NO self-help (lockout = treble damages - **NYBE**). _T Breaches/Leaves:_ (S-I-R) LL can (1) treat as T surrender; (2) ignore and charge T rent (minority) -**NYBE**; (3) re-lease/mitigate; T pays deficiency

Answer 30

**_4 Leasehold Estates_** ## Footnote _ Tenancy for Years_ (fixed term w/termination date) _ Periodic Tenancy_ (fixed period, e.g. month-to-month) _ Tenancy at Will_ (express but then can be terminated by either party at will) _ Tenancy at Sufferance_ (created so LL can collect rent for wrongful holdover).

Answer 31

**_Tenancy at Sufferance_** ## Footnote  Created so LL can recover rent from T who wrongfully holds over past expiration. ** NYBE:** LL’s acceptance of rent subsequent to expiration of term creates implied periodic tenancy.

Answer 32

**_Periodic Tenancy (PT)_**  Continues for **successive intervals** until LL or T gives proper notice of termination.  **Express Creation:** “month-to-month” ** Implied Creation:** 3 Ways to create Implied PT *  _Nothing express_, but rent pd at set intervals *  _Oral lease_ for +366 days (viol. SOF); interval is based on intervals when rent is tendered. *  If LL _elects to holdover residential lessee_ who stayed on past conclusion of the original lease, PT based on interval of payment. Commercial lease of greater than 1 yr becomes a 1 yr periodic. ** Termination:** notice at least duration = to period (1 yr reduced to 6 mnths); must end at the end of natural lease period (e.g. ends on 1st, termination on 1st)

Answer 33

**_Tenancy for Years_** ## Footnote  aka Estate for Years or Term of Years  Lease for any fixed period of time; if you know the termination date it is a tenancy for years.  **NO Notice Requirement for Termination:** b/c agreement states at outset when lease expires  +1 yr (366 days) must be in writing (SOF)

Answer 34

**_Tenancy in Common (TIC)_**  Each co-tenant (CT) owns individual part w/ right to enjoy whole (violation is wrongful ouster).  **Devisable, descendible, and alienable:** b/c there is NO right of survivorship. ** Rent:** No rent from CT in exclusive possession (w/o ouster), but if CT rents all/part of TIC to 3rd party, must pay other CTs proportionate share of rental income. _ Adverse possession_: unless ouster, NO adverse possession b/c NO hostility. * o **Exception(****NYBE)**: implied ouster if NYS adverse possession statute satisfied (20 yrs continuous possession). _ Responsibilities:_ each CT responsible for: * o Proportionate share carrying costs (tax/mortgage) * o Proportionate share of costs of necessary repairs (if notified by repairer) _ Limitations:_ * o CT cannot improve land (end of TIC, CT can pay/get pd for more or less in value due to “improvements” * o CANNOT waste; other CTs can bring action during life of CT _Severance: (_1) voluntary; (2) in-kind; (3) forced sale

Answer 35

**_Severance of Joint Tenancy (S-P-A-M)_** **_S _ ale:** if 1 JT sells her interest (even secretly), severs JT (buyer gets tenancy in common), * • BUT JT intact between remaining JTs IF +2 JTs. * • Equitable conversion: simply entering into contract to sell severs JT. **_P_ artition:** 3 ways to partition and sever JT * • Voluntary Agreement: peaceful severance * • Partition in Kind: judicial action for physical division if in best interests of all parties * • Forced Sale: judicial action if sale in best interests of all; proceeds divided proportionally **_A _ nd** **_M_ ortgage** * • *Title Theory*: mortgage/lien severs (minority rule) * *• Lien Theory:* mortgage/lien does NOT sever (**NYS-NYBE**)

Answer 36

**_CREATION OF JT: 4 UNITIES (T S-I-P)_** * *• _T_ ime:** created at the same time * *• _S_ ame Title:** by the same instrument * *• _I_ dentical** equal interests * *• _P_ ossess:** identical rights to possess whole **_PLUS_** • Grantor must make clear & explicit statement of the right of survivorship (at C/L “. . . and their heirs forever” was sufficient). *_Straw:_ b/c of 4 unities, if grantor wants to create JT w/self and 3rd party, has to create straw (convey to straw, straw conveys back to grantor and 3rd party so 4 unities are present).* (**NYBE:** NY eliminated need for straw: convey directly to **self/3rd party**)

Answer 37

**_Distinguishing Characteristics of a JT_** ## Footnote ** Right of Survivorship:** when one JT dies, her share passes to other JT(s). ** Transfers:** Right is alienable but NEVER devisable/descendible (b/c survivorship).

Answer 38

**_MBE RAP Reforms_** **2 Reforms to C/L RAP (both rejected by NY-NYBE):** * _Wait & See:_ wait until end of measuring life to adjudicate future interest (no more parade of horribles). * _USRAP:_ provides alternative 90 year vesting period.

Answer 39

**_Concurrent Ownership_** ## Footnote _ Joint Tenancy (JT)_: 2 or more owners with the right of survivorship _ Tenancy By the Entirety (TE):_ marital interest between H&W w/right of survivorship _ Tenancy in Common:_ 2 or more owners w/NO right of survivorship

Answer 40

A gift from one charity to another charity CANNOT violate the RAP. *  “Red Cross, as long as used for Red Cross purposes, and if NOT to YMCA. * o Shifting executory interest: Ordinarily void b/c time for vesting is indefinite. * o BUT, OK, b/c of charity exception.

Answer 41

* **Gift to _open class_** ***conditioned*** on members living beyond 21 violates the C/L Rap. * **E.g**. “A for life then A’s kids who reach 30.” * Since A is alive (Fertile Oct. Rule) class is open; regardless of age of A’s kids, they could die, and A could have another kid, and then die. * **Shifting Executory Interests** that have no time limit w/i which it must vest violates C/L RAP * _E.g_. “A, so long as land is used for farming, and if not, to B.” * Land could stop being used for farming hundreds of years later (+21 yrs from A’s death) * When clause is stricken: “A, so long as land is used for farming.” NOW, FSD w/ POR (no RAP: grantor). * **BUT,** if after clause is stricken, no longer makes sense, then entire condition is stricken. * _E.g_. “A, but if land ceased to be used for farming, to B.” When “to B” stricken: nonsense, so A has FS.

Answer 42

**_Rule Against Perpetuities (RAP)_** ## Footnote *Certain future interests (including right of first refusal) are void if any possibility, no matter how remote, that the given interests may vest more than 21 years after the death of a measuring life.* _Step 1:_ Identify future interest: RAP only applies to (1) contingent remainders, (2) executory interests & (3) vested remainders subject to open. _Step 2:_ Identify c_onditions precedent_ to vesting of suspect future interest. _Step 3:_ find the relevant measuring life (life relevant to the condition which determines vesting. _Step 4:_ Ask → will we know, _w/absolute certaint_y, w/i 21 yrs of measuring life if future interest holders can take?

Answer 43

**Shifting Executory Interest**  E.g. “A but if A uses land for non-residential purposes w/i 20 yrs, to B.”  Follows a defeasible fee and cuts short someone other than the grantor  B has a shifting executory interest; A has FS subject to B’s Shifting E.I. **Springing Executory Interest**  E.g. “To A if he marries.”  Cuts short against the grantor.  A has springing executory interest; grantor has FS subject to A’s Springing E.I. **NYBE:** Remainders Subject to Condition Subsequent

Answer 44

**Indefeasibly Vested Remainder**  E.g. “A for life, remainder to B.”  Certain to acquire w/no strings (known/exists, devisable & descendible) **Vested Remainder Subject to Complete Defeasance**  E.g. “A for life, remainder to B but if B dies \<25, to C.”  Condition subsequent could terminate possession.  A → LE; B → VRSCD; C → shifting executory interest; grantor → reversion (B dies \< 25, no C) **Vested Remainder Subject to Open** *  E.g. “A for life, then B’s kids” (A is alive; B alive w/2 kids) *  Remainder vested in group (at least 1 now qualified to take), but additional members could still qualify. * • If B has more children/is pregnant while A is alive. *  Class is open until any member can demand possession (Rule of Convenience). * • Closes: B dies (no more kids) OR A dies b/c R of C.

Answer 45

**_Contingent Remainders and Limiting Doctrines_** *(All 3 abolished in NY; Worthier Title: transfers after ‘67; destructibility/Shelly’s Case abolished generall*y) **Rule of Destructibility**  _E.g._ “To A for life, then if B is 21 to B.” _ C/L:_ if still contingent when preceding estate ends, contingent remainder destroyed, reversion to grantor. _ Today:_ grantor/heirs hold subject to grantee’s (B’s) springing executory interest **Rule in Shelly’s Case (Law: Intent Irrelevant) (Grantee’s Heirs)**  _E.g._ “A for life, then on A’s death, to A’s heirs.”  _C/L:_ pres (A) and future (heirs) interests merge: A → FS absolute  _Today:_ A has L.E.; unknown heirs have contingent remainder; grantor has reversion if A dies w/o heirs. **Doctrine of Worthier Title (Default: Subject to Intent) (Grantor’s Heirs)**  _E.g._ “A for life, then grantor’s heirs.” _ W/Rule_: cntgnt. remainder void; A has L.E.; grantor has reversion * • Free land for transfers: A & grantor together can sell land **NYBE:** A has L.E., O heirs: cntgnt. remainder (unacertained: Sinead)

Answer 46

**Remainder: Sociable, Patient, & Polite** _Definition:_ future interest in grantee: becomes possessory upon expiration of prior estate. _Sociable:_ always travels w/preceding estate of known/fixed duration. _Patient/Polite:_ Cannot cut short prior grantee; wait until preceding estate expires. * ** NEVER** follows defeasible fee

Answer 47

**_Contingent Remainders_** Remainders are contingent because: • Created in *Unascertained Person* • E.g. “A for life, then B’s heirs” (Sinead Rule: we don’t know B’s heirs until B dies.) * Subject to a _Condition Precedent_ * E.g. “A for life, then if B graduates from law school to B.” *Once person identified and takes or condition is satisfied: taker has indefeasibly vested remainder. If unsatisfied, grantor has reversion (leftovers).*

Answer 48

**_Summary of Future Interests_** **Retained By the Grantor** * _ Possibility of Reverter:_ FSD * _ Right of Entry/Termination:_ FS Subject to Condition * _ Reversion:_ leftovers after grantor transfers less than started with (A for life; left after A’s life: reversion) **Retained By Transferee** *  _Vested Remainder_ ((1) indefeasibly; (2) subject to complete defeasance; (3) subject to open)). * _ Contingent Remainder_ (unascertained person or condition precdent) * _ Executory Interest (_(1) shifting; (2) springing)

Answer 49

**Privileges and Limitations on L.T.’s Use of Property** * *Privilege:** L.T. entitled to ordinary uses/profits of land. * *Limitation:** Can’t commit waste: voluntary or permissive (unless there is substantial/permanent neighborhood change). * ** Vol./Affirm.:** Can’t consume/exploit natural resources on the land, UNLESS **P-U-R-G-E** * ** **_P_**rior **_U_**se** (if land previously so used) * ** **_R_**easonable Repairs** (and maintenance) * ** **_G_**rant** * ** **_E_**xploitation** (only use, e.g. quarry) _ Permissive/Neglect:_ *  maintain land in reasonably good repair *  pay all ordinary taxes to extent of profits from land; if none, then to fair rental value (if LT occupies) _ Ameliorative:_ can’t ↑ value w/o consent from all future interest holders _Future Interests:_ reversion to grantor; remainder to **3rd party**

Answer 50

**_Rules of Construction for Defeasible Fees_** 1. B/c court disfavor land limitations, clear durational language must be used  Hope, desire, intention NOT enough 2. Absolute restraints on alienation (“until she attempts to sell”) are VOID. *  MUST have durational language.

Answer 51

**_Life Estates_** _Life Estate:_ measured by grantee’s life *  Not devisable/descendible: death ends life estate _L.E. Per Autre Vie:_ measured by life of 3rd party (“to A for B’s life”) *  Devisable/descendible if measuring life continues. * *Alienable:** but can _ONLY_ transfer what you have. * *Future Interest:** Reversion at end of measuring life(B lives for 50 year --\> that is the term of estate)

Answer 52

``` _**Fee Simple Subject to Condition Subsequent On Condition(NYBE)**_ ``` * Similar to FSD, except grantor MUST reserve the right to re-enter and re-take **(****NYBE: ****reacquire)** in order to terminate (which is the future interest). * It is **NOT automatic.**

Answer 53

**_Fee Simple Subject to Executory Limitation_** ## Footnote Same as FSD, except instead of reverting to grantor, property reverts to 3rd Party. Future Interest: Shifting Executory Interest

Answer 54

**_3 DEFEASIBLE FEES_** * _Fee Simple Determinable_ (FSD) *OR* * _Fee on Limitation_ **(NYBE)** * _ Fee Subject to Condition Subsequent_ *OR* * _Fee on Condition_**(NYBE)** * _Fee Simple Subject to Executory Limitation_

Answer 55

``` _**Fee Simple Determinable On Limitation (NYBE)**_ ``` ## Footnote As soon as the condition is violated, the property automatically is forfeited and reverts back to grantor: “so long as,” “until,” “during.” Though devisable, descendible, and alienable, can ONLY be done WITH limitation. Only Future Interest: Possibility of Reverter F-S-D-P-O-R

Answer 56

* Easement is **In Gross** if it confers upon its holder **only some personal or pecuniary advantage** that is *not related* to his _use or enjoyment_of his land * **e.g. ** right to place a billboard on another's land, the right to fish or swim in another's pond, the utility company's right to lay power lines on another's land --\> servient land is burdened but there is dominant land * **Note:** Not transferrable UNLESS for **commercial** use

Answer 57

* An Easement is **_Appurtenant_** when it benefits its holder in his physical use or enjoyment of his propert * **Two parcels** must be involved. * **A dominant tenement** gets the _benefit._ * **A servient tenement** bears the _burden. _ * **Note:** Transfer automatically w/ dominant tenement

Property Flashcards

(83 cards)