Property Flashcards
(35 cards)
Is a grantor’s deed that is unrecorded sufficient for inquiry notice?
Yes. When a grantor’s deed is unrecorded, the grantee is expected—at her peril—to demand a viewing of her grantor’s title documents at the time of the purchase and insist that they be recorded.
Inquiry notice means that a subsequent grantee is held to have knowledge of any facts that a reasonable inquiry would have revealed, even if he made no inquiry.
Is a life estate transferable?
Yes, this is a Life Estate per autre vi. And must pay property taxes for the life of the transferor of the LE.
What is the changed conditions exception to the rule that a life tenant cannot commit waste?
Generally, a life tenant cannot tear down improvements simply because the life tenant wants to make a more profitable use of the land. But an exception exists when changed conditions have made the destruction of the improvement reasonably necessary.
Under what circumstances would a court partition the property of TIC?
Any tenant in common has a right to judicial partition of property, either in kind or by sale and division of the proceeds when co-tenants
are squabbling and cannot come to any agreement.
The remedy of partition terminates the
co-tenancy and divides the common property. Where TIC cannot agree on the use of the land, a court will probably partition the property.
When does a conveyance terminate a joint tenancy?
When one party conveys unilaterally. Whereas if joint tenants convey together, then the JT is NOT severed.
When is a landlord liable to a tenant for a latent defect on the property?
Generally, landlords are not liable for latent defects unless the LL knew or had reason to know of the defect. An exception exists where the lease is short and the house is furnished; a LL will be liable to a tenant under such circumstances.
When may a landlord impose a higher rent on a holdover tenant in a new lease? (EG - month to month)
While the rent (as well as other terms) of the new tenancy will generally be the same as the old tenancy, there is an exception when the landlord has told the tenant of a future higher rent and that notification came before the expiration of the old lease. In that event, the landlord can impose the higher rent in the new periodic tenancy.
When does merger extinguish an easement?
The duration of the servient estate must be equal to or longer than the duration of the dominant estate (and therefore the easement).
Is nonuse sufficient to cause abandonment of an easement?
No. There must be an act or manifestation of intent to permanently abandon the easement.
When can a residential deed restriction be voided under the doctrine of changed neighborhood conditions?
Restrictive covenants on all lots in a subdivision can be voided if changed conditions have made the ENTIRE property unusable for the specified use, and this means that the entire subdivision must have changed so significantly that enforcement of the restriction would be inequitable.
When does risk of loss pass under the equitable conversion doctrine?
When a transfer of land is preceded by a contract for sale, the risk of loss to the property during that time interval is imposed on the buyer in most jurisdictions.
EG - a loss due to fire or other casualty (assuming it was not due to the fault of either party), the buyer must still pay the contract price at the closing date unless the contract provides otherwise.
What are trade fixtures? Are they removable? Why or why not?
Equipment installed for the purpose of trade by a tenant–or trade fixtures–are generally removable (even if it is not an integral part of the premises) and the tenant pays for any damages caused by the removal.
Absent an agreement to the contrary, these annexations are removable because it was not the intention of the tenant to make them a permanent part of the premises.
In a notice jx, can a non BFP buyer take from a BFP?
Yes. Under the Shelter Rule, a person who takes from a BFP will prevail against any interest that the transferor-BFP would have prevailed against.
You step into the shoes of the BFP and assume their status.
What does it mean to transfer title “subject to” a morgtage, rather than “assuming” a mortgage?
In the majority of jurisdictions, when
a mortgagor transfers title to another, and the transferee takes “subject to” the mortgage, that means that the transferee will not be liable to the mortgagee on the promise underlying the mortgage. So the third party transferee cannot be sued on the debt.
In contrast, assuming a mortgage does make that third party liable to the mortgagee, and they may be sued on the remaining debt.
Will a court enforce specific performance of a land sale K that includes adversely possessed land?
No, bc the title is not marketable due to the threat of litigation regarding specific performance of the sale K.
To fix, they must first quiet title. A buyer does not have to buy a lawsuit.
A deed delivered to a grantee who is dead at the time of delivery is void, voidable, or valid?
Void.
A deed is not effective to transfer an interest in real property unless it has been delivered. The grantee must actually exist at the time of delivery; otherwise, the deed is not valid (i.e., void). A void deed will be set aside by a court even if title purportedly has passed to a bona fide purchaser.
Does a LL’s promise in a lease to maintain the property terminate when the property is sold? Why or why not?
A landlord’s promise in a lease to maintain the property does not terminate because the property is sold. Although no longer in privity of estate, the original landlord and tenant remain in privity of contract, and the original landlord remains liable on the covenant unless there is a novation substituting a new party for an original party to the contract. (A novation requires the assent of all parties, and completely releases the original party.)
What is adequate consideration to entitle a BFP to protection of a recording statute?
To be a bona fide purchaser for value, and thus entitled to the protection of a recording statute, the purchaser must prove that real—not merely nominal—consideration was paid. In other words, one must prove that he is a purchaser rather than a donee. The consideration need not be adequate or the market value, but it must be of substantial pecuniary value.
EG - $1 for a deed to land is likely inadequate to be a BFP.
What is the doctrine of estoppel by deed? Can it apply when a conveyance is done by quitclaim deed? Why or why not?
Under the doctrine of estoppel by deed, if a grantor, who does not have good title at the time she gives a warranty deed to her grantee, should later acquire good title to the property, that title springs through the grantor and vests in the grantee by operation of law. Under this majority position, the warranties contained in the warranty deed estop her from denying ownership when she first executed the deed to the grantee.
However, the doctrine of estoppel by deed does not apply in the majority of states where the conveyance is done by a quitclaim deed because a quitclaim deed contains no warranties of title.
Which party has priority when, in a race-notice jx, neither party records their interest in the land?
The common law rule that priority is given to the grantee who was first in time applies unless operation of the jurisdiction’s recording statute changes the result.
EG - In a race-notice jx, and neither party has recorded, the prior interest in land will prevail.
What result when neither the buyer nor the seller perform at the closing at the sale of land?
Absent an agreement to the contrary, the closing date will be extended indefinitely until one party tenders performance.
The buyer’s obligation to pay the purchase price and the seller’s obligation to convey title are concurrent conditions, meaning NEITHER party is in breach of the contract until the other party tenders performance, even if the closing date has passed. However, the parties are NOT excused from performing absent repudiation or impossibility. Rather, once one party performs, the other must concurrently perform to avoid being in breach.
What is needed to enforce a reciprocal negative servitude?
To enforce a reciprocal negative servitude, the court will need to find:
(i) a common scheme for development, and
(ii) notice of the covenants.
When will a restriction on the majority of the lots of a subdivision be binding on those even without the restriction?
When the restriction is a negative reciprocal servitude.
If the seller under a real estate contract dies before closing, what result?
Under the doctrine of equitable conversion, if the seller under a real estate contract dies before the closing, the successors to the seller’s real property must give up legal title at closing.
