Property

Question 1

Each cotenant’s right to natural resources on the land limited to

Answer 1

cotenants ownership interest.

Question 2

A Fee simple determinable is a defeasible fee created with durational language. It is presumed that estate will

Answer 2

revert back to grantor if terminating condition occurs

Question 3

A life tenant obligation pay taxes only to extent of financial benefit

o Occupy land -> measured by _________
o Don’t occupy land -> measured by_________

Answer 3

fair rental value, income from the land

Question 4

Power of appointment gives a life tenant the right to designate recipients of a beneficial property interest

If life tenant does not exercise this power,

Answer 4

property will got to designated remainderman (The individual who will inherit the property once the life estate is terminated)

Question 5

In lien theory jurisdiction (majority rule), granting a mortgage does

Answer 5

not sever joint tenancy

Question 6

in title theory jurisdiction

Answer 6

granting mortgage does sever joint tenancy

Question 7

Profits are created and analyzed like ________ so a profit can be implied from an existing prior use

Answer 7

easements

Question 8

Easement by prescription

Answer 8

-> person must use another’s land:

• Apparent to owner
• Continuous -uninterrupted for statutory period
• Actual - use of the land
• Nonpermissive –without owner’s permission

Question 9

Easement appurtenant

Answer 9

Benefits one parcel of land / allow easement holder to use another parcel of land in limited way

Easement attached to land -> subsequent owners of dominant and servient estates are bound by easement

Question 10

Ways to terminate easements

Answer 10

(DAMPER)
* Destruction
* Abandonment
* Merger
* Presciption
(servient owner prevents use of easement)

• Estoppel (dominant owner estopped from asserting easement)
• Relaease (express release in writing SOFs)

Question 11

Negative easement

Answer 11

• Landowners can restrict another’s lawful use of their own land** (restrictive covenant)
• created by written agreement

Question 12

Performance

Answer 12

• strictly due at time of closing when contract has time of the essence clause / circumstances suggest that parties intended it to be

Question 13

Is an oral agreement for land enforceable?

Answer 13

No, SOF -> must be in writing, signed by party against whom enforcement is sought and contain all essential terms

Question 14

Is a writing needed to cancel a contract?

Answer 14

No, only need a writing when creating or modifying a contract

Question 15

A buyer receive marketable title if buyer’s interest has priority over =

Answer 15

competing interests in same property

Question 16

Buyer with recorded equitable interest has priority over a subsequent judgement lien -when it is

Answer 16

• recorded before judgement

Question 17

Under merger doctrine, a contract for sale of land merges with deed once deed _______________________

If any problems with title come up, buyer must  \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Answer 17

delivered to and accepted by buyer

rely on covenants of title/provisions contained in deed

Question 18

Equitable conversion allows buyer’s equitable title to be transferred upon death

Liquidated damages are recoverable only if

Answer 18

reasonably compensate party (liquidated amount less than 15% of purchase price)

Question 19

When mortgagor transfers mortgaged property to someone who assumes mortgage,

Answer 19

transferee primarily liable for mortgage and mortgagor becomes secondarily liable as surety

Question 20

If mortgagor pays mortgage debt after transferee defaults, mortgagor can

Answer 20

seek reimbursement

Question 21

Negotiable promissory note can be

Answer 21

transferred by endorsing and delivering note to another

Question 22

A nonnegotiable promissory note

Answer 22

requires a separate document of assignment be executed to transfer ownership

Question 23

A purchase-money mortgage (PMM) has

Answer 23

super priority over all other liens because they secure purchase price of mortgaged property

Question 24

PMM trump the

Answer 24

first in time first in right rule that sets priority based on the date a lien is recorded

Question 25

A mortgage is evidenced by a

Answer 25

deed and promissory notes

Question 26

Equitable mortgage

Answer 26

created when an absolute deed made with intent that it secure a debt

Question 27

Doctrine of merger

Answer 27

* when same person acquires a lender’s interest and borrower’s interest in the same property * the mortgage merges into fee estate and is destroyed

Question 28

Two types of title insurance policies

Answer 28

Owner’s policy and lender's policy

Question 29

owner' s policy

Answer 29

Remains in effect as long as property is owned by the insured or conveyed by warranty deed

Question 30

lender's policy

Answer 30

Ends once mortgage is discharged

Question 31

Deed is delivered though a valid death escrow when

Answer 31

* Deed is given to an escrow agent with instructions to transfer it to grantee upon grantor’s death and * Grantor give up right to take back the deed (placing deed beyond their control)

Question 32

Judgement creditors are not purchasers for value since attachment of a judgement lien to a debtor’s property

Answer 32

is security for an existing debt not payment of valuable consideration

Question 33

A judgment creditor can only enforce an interest in property that is

Answer 33

owned by the debtor

Question 34

A deed transfers ownership of real property once

Answer 34

its delivered (when grantor has **intent** to **presently convey** ownership) and accepted (presumed when transfer beneficial to grantee)

Question 35

An undelivered/unaccepted deed is

Answer 35

void and conveys no property interest to the grantee