Property

Question 1

Fee simple absolute

Answer 1

largest possible estate; infinite duration (“To A”)

Question 2

Defeasible Fee

Answer 2

(1) Fee simple determinable; (2) Fee simple subject to a condition subsequent; (3) Fee simple subject to an executory interest

Question 3

Fee simple determinable

Answer 3

limited by specific durational language. Property automatically reverts back to grantor upon happening of event.

Accompanying future interest = possibility of reverter

Question 4

fee simple subject to a condition subsequent

Answer 4

limited by conditional language. Grantor has power to terminate grantee’s estate. Doesn’t terminate automatically.

Accompanying future interest = right of reentry

Question 5

fee simple subject to an executory interest

Answer 5

Fee Simple Subject to an Executory Interest: automatically transfers to a third party upon happening of event.

Accompanying future interest = executory interest

Question 6

Life estate

Answer 6

lasts for duration of grantee’s life. Fully transferable during measuring life. LT has ownership rights and must make reasonable repairs. Cannot commit waste.

Question 7

life tenant rights

Answer 7

right to possess
right to collect rent/lease/mortgage/sell

Question 8

doctrine of waste

Answer 8

Permissive - failure to take reasonable steps to preserve land, protect property, make reasonable repairs

Voluntary - acts the decrease value of property. intentional or negligent damage

Ameliorative - changes that benefit and increase the value of the property

Question 9

remainder

Answer 9

future interest created in 3P that arises immediately upon terminating of preceding estate “To A for life, then B.” B has a remainder

Question 10

vested remainder

Answer 10

remainder that becomes possessory upon natural expiration of preceding estate. Created in ascertainable person + Not subject to condition precedent

Question 11

vested remainder subject to total divestment

Answer 11

interest has already vested and is subject to termination upon happening of a condition

Question 12

vested remainder subject to open/partial divestment

Answer 12

remainder vested in class of people, at least one is alive + capable of taking possession. “To A for life, remainder to B and heirs”

(Class gifts)

Question 13

contingent remainder

Answer 13

arises if (a) there’s condition precedent to future interest becoming possessory and (b) future interest vests in an unknown or unborn person

Question 14

executory interest

Answer 14

created in a 3P that cuts prior estate short upon happening of specified condition

Question 15

shifting executory interest

Answer 15

arises when title shifts from grantee to a third party

Always follows a defeasible fee or VR subject to total divestment.

Question 16

springing executory interest

Answer 16

arises when title springs from grantor to third party

“To A if and when he gets married”

Question 17

Rule against Perpetuities

Answer 17

no property interest is valid unless it must vest, if at all, no later than 21 years after the dead of a life in being at the time the interest was created.

Affected Future Interest = contingent remainder, vested remainders subject to open, executory interests

Question 18

tenancy in common

Answer 18

each tenant holds an undivided interest with unrestricted rights to possess whole property. No right of survivorship.

Question 19

joint tenancy

Answer 19

two or more persons hold an undivided interest in property with right of survivorship.

4 Unities (PITT): Possession, Interest, Time, Title

Question 20

severance of joint tenancy

Answer 20

A JT may be severed when one tenant conveys her interest in the property. The severance of a JT converts it to a tenancy in common (“TIC”)

Question 21

tenancy by the entirety

Answer 21

only between married parties at time of grant. Severed by death, divorce or mutual agreement. Right of survivorship. Can’t convey w/o consent of other spouse

Question 22

tenancy for years

Answer 22

has a start and end date. Terminates automatically. created by express agreement. no notice required to terminate

Question 23

periodic tenancy

Answer 23

repetitive for a set period of time with no predetermined end date. Created by express or implied agreement. Notice required to terminate

Question 24

tenancy at will

Answer 24

no stated duration. lasts as long as parties desire. may be terminated by either party but must give reasonable time to vacate

Question 25

tenancy at sufferance

Answer 25

Holdover Tenant. Tenant occupies space after expiration. Tenancy lasts until T vacates, or L evicts T or L elects to hold T to a periodic tenancy

Question 26

mortgages and joint tenancies

Answer 26

Lien Theory (Maj) – JT can take mortgage on her interest w/o severing JT bc no title passes to mortgagee Title Theory (Min) – JT is severed if any JT takes a mortgage on her interest bc title passes to mortgagee

Question 27

Tenant Duties

Answer 27

duty to pay rent duty to repair avoid waste

Question 28

LL remedies for T's breach

Answer 28

T retains possession: File for notice of eviction OR continue lease and sue for rent due T abandons premises: Surrender (treats as abandonment and release T from lease); Ignore (Min) hold T liable for unpaid rent; Re-let (Maj) lease premises to new Ts and hold breaching Ts liable for any losses

Question 29

LL Duties

Answer 29

duty to deliver repair implied warranty of habitability implied warranty of quiet enjoyment

Question 30

Duty to Deliver Possession

Answer 30

Majority/English Rule: LL must deliver actual possession to T Minority: LL must deliver legal possession

Question 31

Implied Warranty of Habitability (Residential)

Answer 31

Premises must be fit for basic human habitation. If breached, T’s remedies: After giving notice to L, T can (1) vacate and terminate lease (2) make reasonable repairs and deduct costs from future rent (3) reduce or withhold rent OR (4) remain in possession and seek money damages

Question 32

Implied warranty of quiet enjoyment (commercial and residential)

Answer 32

T has right to quiet use and enjoyment of premises w/o interference of L

Question 33

Actual Eviction

Answer 33

T physically excluded from entire premises. T may stop paying rent

Question 34

Partial eviction

Answer 34

T may abate to reasonable rental value of partial portion

Question 35

Constructive Eviction

Answer 35

There must be an actual breach as a result of substantial interference of L. T must give notice of problem + vacate within reasonable time if L fails to make repairs. T may stop paying rent and terminate lease

Question 36

Retaliatory Eviction

Answer 36

L can’t evict T for complaining about violations or refusing to pay rent when L breaches warranty of habitability

Question 37

LL Liabilities

Answer 37

Common areas – duty of reasonable care Latent defects – duty to disclose hidden defects reasonable known Assumption of risk – L is liable for harm caused by negligent repairs Public use – L liable for known defects if L is aware property is used for public use and T is unlikely to make repairs

Question 38

T's liabilties

Answer 38

Duty of care to invitees, licensee, foreseeable trespassers

Question 39

assignments

Answer 39

T transfers entire leasehold. L can go after T and T1

Question 40

sublease

Answer 40

T transfers part of leasehold. L can go after T, T can go after T1

Question 41

easements

Answer 41

nonpossessory interest in land that confers a right to use another's land

Question 42

servient estate

Answer 42

burdened land

Question 43

dominant estate

Answer 43

benefited landed

Question 44

easement appurtenant

Answer 44

entitles dominant estate owner to use servient estate owners land. Attaches to dominant estate and passes automatically even if not mentioned in conveyance

Question 45

easement in gross

Answer 45

entitles an individual or entitle to use servient estate. Attaches only to servient estate. Similar to a license but irrevocable and can be transferred

Question 46

express easement

Answer 46

arises when affirmatively created by parties in a writing that satisfies the requirements for a deed. writing must include identity parties, words of transfer, description of the property and the grantor’s signature.

Question 47

Easement by necessity

Answer 47

division of portion of land + absolute necessity of access created by division. Property is virtually useless w/o easement. Expires automatically when necessity ends

Question 48

implied easement

Answer 48

implied by prior use

Question 49

easement by prescription

Answer 49

Adverse possession: (1) actual (2) open and notorious (3) hostile (4) continuous. no exclusivity requirement

Question 50

easement by estoppel

Answer 50

good faith reliance on permission to use easement created to prevent unjust enrichment

Question 51

negative easement

Answer 51

prevents owner from using land in specific way. Must be expressly created in writing signed by grantor

Question 52

affirmative easement

Answer 52

tied to land and gives the holder of the dominant estate the right to make affirmative use of the servient estate holder's property

Question 53

termination of easements

Answer 53

Released: Signed writing Merger: easement merges into title Estoppel: reasonable reliance easement is no longer enforced Necessity ends Condemnation: govt taking Abandonment Prescription

Question 54

duty to repair easement

Answer 54

easement holder has duty to make repairs if he’s sole user. If both servient owner and easement holder use easement, the repair costs are apportioned

Question 55

license

Answer 55

right to use land and enter land of another. revocable at licensors will unless coupled with interest

Question 56

profits

Answer 56

nonpossessory interest in land. holder of profit has right to take resources from land of another. can be expressly created or by prescription. may be extinguished through misuse or overuse of resources

Question 57

convenants v. equitable servitudes

Answer 57

Difference is Remedy. Covenant is for money damages; Equitable servitude is for injunctions

Question 58

real covenants

Answer 58

Written promise or contractual limitation to do or not do something on land Termination: (a) written release, (b) merger of estates, (c) condemnation of burdened property

Question 59

for burden to run

Answer 59

Writing, Intent to Bind, Horizontal and Vertical Privity, Touch and Concern, Notice Horizontal - between original parties; Vertical – Between original party + successors

Question 60

for benefit to run

Answer 60

writing, intent, vertical privity, touch and concern

Question 61

equitable servitude

Answer 61

In writing, intent for covenant to run with successors, touch and concern land, notice of covenant Defenses to enforcement: Pervasive changes in neighborhood, estoppel, acquiescence, unclean hands, laches

Question 62

implied reciprocal servitude

Answer 62

can be applied from common scheme if 3 elements are met: (1) intent to create common scheme (2) restrictive covenant (3) notice: inquiry, actual or record

Question 63

adverse possession

Answer 63

trespasser may acquire title to property. (1) actual (2) exclusive (3) open and notorious (4) hostile (5) continuous for statutory period

Question 64

land-sale contracts

Answer 64

SOF must be met: In writing, signed by party charged, and contain all essential terms of K. Exceptions: Partial performance Land Sale K outside SOFs is enforceable if any of the two following apply: (1) pay all or some of purchase price, (2) take possession and/or (3) make substantial improvements

Question 65

equitable conversion

Answer 65

when land-sale K is formed Equitable title passes to buyer Legal title remains with seller until close Risk of loss follows equitable title

Question 66

uniform vendor and purchasers risk act

Answer 66

Seller retains risk of loss until transfer of legal title or buyer takes possession

Question 67

marketable title

Answer 67

title free from defect or unreasonable risk of litigation. seller generally not required to deliver marketable title until closing

Question 68

time is of the essence

Answer 68

not enforced unless specifically part of the K

Question 69

duty to disclose defects

Answer 69

seller must disclose all known material physical defects not readily observable

Question 70

deeds

Answer 70

legal instrument that transfers ownership/legal title from seller to buyer (Donative intent, delivery and acceptance)

Question 71

deed requirements

Answer 71

Writing - must comply with SOF Delivery - express intent Acceptance - presumed Property description - reasonably definite description Identified parties Signed by Grantor Merger- at closing, deed and contract merge into one

Question 72

recording acts - Notice

Answer 72

subsequent BFP wins "without notice" "in good faith"

Question 73

recording acts - race

Answer 73

first to record wins regardless of knowledge of prior interest

Question 74

recording acts - race-notice

Answer 74

subsequent BFP protected if (1) takes w/o notice and (2) first to record

Question 75

types of notice

Answer 75

tested at time of conveyance actual: grantee with personal knowledge of prior interest inquiry: if reasonable investigator would disclose prior claims record: property recorded and appears in chain of title

Question 76

General Warranty Deeds

Answer 76

Seller Warrants no title defects were created by him or all prior holders. Contains 6 covenants: Present: Seisin - grantor owns land described Right to convey - grantor has right to transfer title Against encumbrances - no undeclared encumbrances on the land Future: Quiet enjoyment - no interference from 3P claims Warranty - grantor will defends against 3P claims Further assurances

Question 77

Special Warranty Deed

Answer 77

Same 6 covenants but only warrants against defects arising during time grantor has title

Question 78

Quitclaim Deed

Answer 78

makes no warranties about the land

Question 79

BFP

Answer 79

someone who purchases property for value w/o notice of prior conveyance or encumbrance

Question 80

Lien priority of mortgages

Answer 80

purchase money mortgage --> first recorded liens --> all other recorded liens --> unrecorded liens

Question 81

Mortgage

Answer 81

security interest in land that serves as collateral for repayment of loan Lien Theory: mortgagor has title + right to possession absent foreclosure Title Theory: mortgagee has title to property during loan period

Question 82

acceleration clause

Answer 82

terms in loan agreement that require mortgagor to pay off full loan immediately if certain conditions are met

Question 83

foreclosure

Answer 83

method by which security is applied to satisfy a debt. Property is sold to satisfy debt in whole or in part

Question 84

purchase money mortgage

Answer 84

mortgage given in exchange for funds used to buy property. takes priority over mortgages. must be recorded

Question 85

redemption

Answer 85

Equitable: Anytime prior to foreclosure sale, can redeem property by paying amount due Statutory: For certain period, can buy property back after foreclosure sale

Question 86

deficiency judgement

Answer 86

if debts exceed sale proceeds, mortgagee can file suit against mortgagor for debt balance

Question 87

taking subject to a mortgage

Answer 87

buyer doesn't agree to pay and is not liable for debt. seller remains liable for debt

Question 88

assumption of mortgage

Answer 88

buyer agrees to pay and becomes personally liable for mortgage. seller becomes secondarily liable as surety

Question 89

lateral support rights

Answer 89

ownership of land includes rights to have land supported in its natural state by adjoining land Undeveloped: Landowner who excavates on land is strictly liable for damages to undeveloped adjoining land Improvements: landowner who excavates on his land is strictly liable only if adjoining land would have collapsed in undeveloped state Improvements contribute to collapse: Landowner who excavates on land is liable only if he's negligent

Question 90

subjacent support rights

Answer 90

underground structure must support surface structure existing when subjacent estate was created Strict liability - subjacent owner is strictly liable for support surface land + pre-existing surface structure Negligence - subjacent owner is negligent for failure to support subsequently constructed buildings

Question 91

riparian doctrine

Answer 91

water belongs to those who own land bordering water course Reasonable use theory (maj): riparian owners share rights to reasonable use + are liable to other owners if use is unreasonable interfering with other owner’s use Natural Flow theory (min): riparian owner may be enjoined for any use resulting in substantial or material reduction in others water quality, quantity or velocity

Question 92

zoning ordinances

Answer 92

zoning ordinances are valid so long as they’re reasonably related to public welfare, not too restrictive and not discriminatory as to race or particular parcel

Question 93

variance

Answer 93

landowners can get govt permission to depart from literal restrictions of ordinace. To qualify for variance, landowner must show (1) undue hardship and (2) variance won’t be contrary to public welfare

Question 94

use variance

Answer 94

permit that allows operation of structure for purpose not permitted by ordinance. Applicant must show (1) undue hardship w/o variance (2) variance won’t harm community and (3) no fault in seeking request/not a bad actor

Question 95

area variance

Answer 95

allows building to exist in dimension slightly different than what variance permits

Question 96

non-conforming use

Answer 96

pre-existing use of land that now doesn’t conform to ordinance at the time of enacting

Question 97

takings clause

Answer 97

if govt reduces property value or takes property belonging to another, the govt must pay damages and provide just compensation to the owners

Question 98

fixtures

Answer 98

chattel attached to real property Structures and items incorporated into structure become part of realty but can be removed if - S preserved right to remove in K or - Leased property can be restored to former condition w/o damages in reasonable time

Question 99

fair housing and discrimination act (FHA)

Answer 99

prohibits discrimination in the sale, rental and financing of homes Protected Classes: applies to discrimination based on color, race, religion, national origin, sex, disability, and familial status

Question 100

FHA exception

Answer 100

owner occupied building with no more than 4 units and single family homes sold or rented w/o broker are not subject to FHA

Question 101

Restraints on Alienation

Answer 101

Disabling – total prohibition on transfer of property interest by its own, always void Forfeiture – property is forfeited if interest owner attempts to transfer his interest Promissory – promise by party to transfer property interest

Question 102

void contract

Answer 102

Void (invalid upon creation): Forgery, illegality, fraud in factum, duress by physical compulsion

Question 103

voidable contract

Answer 103

Voidable (valid unless set aside): lack of capacity, mistake, misrepresentation, duress by threat, undue influence, fraud in inducement

Question 104

real estate contracts

Answer 104

a real estate broker is entitled to commission if (1) a ready, willing and able buyer is produced or (2) seller enters into sale contract with a buyer during listing period

Question 105

transfer of promissory note & mortgage

Answer 105

mortgagee is generally free to transfer promissory note and/or mortgage securing that note unless: Mortgage or note expressly states otherwise Transfer is forbidden by statute/public policy OR Transfer will increase duties, burdens or risks on mortgagor

Question 106

Rents & Taxes

Answer 106

Cotenant generally not required to pay rent to the other cotenants and has no right to be reimbursed for repairs. cotenant can seek contribution for certain operating expenses (e.g., taxes), contribution is limited to the amount that exceeds the property's rental value when sought by a cotenant in sole possession.

Question 107

lapse

Answer 107

a devise of property will fail if beneficiary dies before testator and no alternate beneficiary is named—unless the testator indicates a clear intent that the devise is to survive the beneficiary's death.

Question 108

right to third party rents

Answer 108

A co-tenant must account to other co-tenants for rent received from third parties. Each tenant is entitled to an amount of the rent proportionate to his ownership interest.

Question 109

contribution for operating expenses

Answer 109

A co-tenant can collect contribution from the other co-tenants for paying more than his portion of operating expenses, which includes property taxes.