Property 2015 Flashcards
(140 cards)
1
Q
RAP and Class Gifts Special Rule
A
If the gift to ay member of the class is void under RAP, then the gift is void as to all members of the class
2
Q
Rule of Convenience
A
The rule of convenience closes the class when any member of the class becomes entitled to immediate possession of the property.
3
Q
Four Types of Estates that govern Landlord-Tenant relationship
A
Tenancy for years(term of years); Periodic Tenancy; Tenancy at will; Tenancy at Sufferance
4
Q
Tenancy for Years(term of years)
A
Measured by a fixed and ascertainable time
5
Q
Term of Years (creation)
A
Creation: an agreement by landlord and the tenant with the intent to create agreement, if more than a year must be in writing because of SOF
6
Q
Term of Years (termination)
A
Termination occurs automatically upon the expiration of the term
7
Q
Periodic Tenancy
A
An estate that is repetitive and ongoing for a set period of time, and it renews automatically at the end of each period until one party gives notice of termination
8
Q
Periodic Tenancy (creation)
A
Parties must intend to create a periodic tenancy it can be express or implied
9
Q
Periodic Tenancy (termination)
A
Proper notice means that terminating must give notice before the start of the last term
10
Q
Tenancy at Will
A
A tenancy at will is an estate that does not have a specific term and continues until terminated by either the landlord or tenant.
11
Q
Tenancy at Will (creation)
A
Can be created by express agreement or implication
12
Q
Tenancy at Will (termination)
A
Can be terminated by either party without notice
13
Q
Tenancy at Sufferance
A
A tenancy at sufferance (holdover tenancy) is the period of time after the expiration of a lease during which the tenant remains on the premises.
During a tenancy at sufferance, the tenant is bound by the terms of the lease that existed before expiration, including payment of rent.
14
Q
Tenancy at Sufferance (creation)
A
Created by actions of the tenant alone
15
Q
Tenancy at Sufferance (termination)
A
A tenancy at sufferance can be terminated if the tenant vacates the premises, the landlord evicts the tenant, or the landlord binds the tenant to a new periodic tenancy.
16
Q
Tenant Duties
A
Pay rent and Avoid waste
17
Q
Duty to Pay Rent suspended
A
Premises are destroyed; Landlord completely or partially evicts the tenant; Landlord materially breaches the lease
18
Q
Implied Covenant of Quiet Enjoyment
A
Tenant can withhold rent when the landlord takes actions that make the premises wholly or substantially unsuitable for their intended purposes, and the tenant is constructively evicted
19
Q
Constructive Eviction
A
- Premises were unusable for their intended purpose; 2. the tenant notifies landlord of the problem; 3. the landlord does not correct the problem; 4. the tenant vacates the premises after a reasonable amount of time has passed
20
Q
Implied Warranty of Habitability
A
the landlord has obligation to maintain the property such that it is suitable for residential use. We are concerned with conditions that threaten tenant health and safety
21
Q
Implied Warranty of Habitability (if premises are not habitable)
A
Tenant may: refuse to pay rent; remedy the defect and offset the costs against the rent or defend against eviction
22
Q
Implied Warranty of Habitability (if tenant withholds rent)
A
tenant must notify the landlord of the problem; give the landlord a reasonable opportunity to correct the problem
23
Q
Landlord Duty to Mitigate
A
Majority rule: the landlord must make reasonable efforts to re rent the property if tenant abandons; Minority Rule the landlord does not have to mitigate damages
24
Q
Landlord Duty to Deliver Possession
A
Majority Rule: the landlord must deliver the actual possession of the leasehold premises, this means physical possession of the property; Minority rule the landlord is only required to deliver legal possession
25
Tenant Tort Liability
Tenant owes a duty of care to invitees, licensees, and foreseeable trespassers
26
Landlord Tort Liability
Responsible in negligence for latent or hidden defects about which the tenant has not been warned; Responsible for faulty repairs completed by the landlord negligently; Responsible for negligence that causes injuries in common areas of the property
27
Assignment Rent Responsibility
In an assignment the landlord can collect rent from the tenant (privity of contract) or the subsequent tenant (privity of estate)
28
Sublease Rent Responsibility
In a sublease the landlord can collect rent from the tenant (privity of contract and estate)
29
Landlord Permission to Transfer
Majority Rule: a landlord may deny permission to a transfer only for a commercially reasonable reason
Minority Rule: a landlord may deny permission at her discretion which means for any reason at all
30
Adverse Possession
The doctrine of adverse possession allows a person in unlawful possession to acquire good title to a piece of property, until the person acquires good title the person is a trespasser
31
Adverse Possession (elements)
Actual possession, Hostile: possession must be adverse to the owner's interest, use must be Open & Notorious, Exclusive: adverse possessor cannot share possession with the true owner, Continuous: use must be continuous
32
Doctrine of Merger
Covenants under the contract are merged into the deed and therefore can't be enforced unless the covenant is also in the deed
33
Exceptions to the Statute of Frauds
Part Performance and Detrimental Reliance
34
Part Performance
Under the doctrine of part performance, either party may seek specific performance when the acts of performance constitute persuasive evidence of the existence of a contract.
35
Detrimental Reliance
An estoppel doctrine that applies where a party has reasonably relied on the contract and would suffer hardship if the contract is not enforced
36
Marketable Title
Title that is free from an unreasonable risk of litigation
37
Implied Warranty of Fitness or Suitability
Applies to defects in new construction
38
Seller's Remedies for Buyer's Breach
Damages(measure is the difference between the K price and market price;
Recission(seller can sell the property to someone else);
Specific Performance
39
Buyer's Remedies for Seller's Breach
Damages(measure is the difference between K price and market value on date of breach;
Recission(returns payments to the buyer and cancels the K;
Specific performance
40
Equitable Conversion (majority rule)
Majority Rule: Buyer holds equitable title during the period between the execution of the K and the closing and delivery of the deed--buyer is responsible for any damages to the the property during that period
41
Equitable Conversion (minority rule)
Place the risk of loss on the Seller until the closing and delivery of the deed
42
Mortgage
Security device used to secure repayment of a debt
43
Purchase money mortgage
Person takes out a loan for the purpose of purchasing property
44
Future advance mortgage
A line of credit used for home equity, construction, business, and commercial loans (often referred to as a second mortgage)
45
Lien States (majority--joint tenancy)
Treats a mortgage as a lien that does not sever a joint tenancy
46
Title States (minority--joint tenancy)
A mortgage does sever a joint tenancy and converts it into a tenancy in common
47
Deed of Trust
Operates like a mortgage but uses a trustee to hold title for the benefit of the lender
48
Installment land contract
Seller finances the purchase and seller retains title until the buyer makes final payment on an installment plan
49
Absolute Deed
Mortgagor transfers the deed to the property instead of conveying a security interest in exchange for the loan
50
Conditional Sale and Repurchase
Owner sells property to the lender who leases the property back to the owner in exchange for a loan. Lender gives the owner the option to repurchase, after the loan is paid off
51
Due on Sale Clause
Gives lender option to demand immediate full payment upon transfer
52
Acceleration Clause
Allows the lender to speed up the payment when the property is transferred
53
Due on Encumbrance Clause
Acceleration when mortgagor obtains a second mortgage or otherwise encumbers property
54
Assumption of Mortgage
Transferree assumes mortgage and original borrower is secondarily liable
55
Taking Subject to Mortgage
Transferee is not personally liable upon default
56
Lien Theory State (mortgage foreclosure)
Mortgagee/Lender cannot take possession prior to foreclosure because lender has a lien until foreclosure is complete
57
Title Theory State (mortgage foreclosure)
Lender technically has the right as the holder of title to possess the property at any time
58
Intermediate title theory state
Minority of jurisdictions modify the title theory the mortgagor retains title until default at which point the lender can take possession
59
Equity of Redemption
A common law right held by the mortgagor to reclaim title and prevent foreclosure upon the full payment of the debt (must exercise before foreclosure of sale)
60
Foreclosure
A foreclosure is a forced sale of an asset to pay off a debt
61
Judicial Sale
Sale under the supervision of a court
62
Power of Sale (Private Sale)
Sale is held by the lender
63
Priorities (foreclosure)
General rule: interests acquired before the interest that is being foreclosed (senior interest) survive the foreclosure; interests acquired after the interest is being foreclosed (junior interest) are extinguished by the foreclosure; surviving debts are satisfied chronologically
64
Exceptions to chronological order (foreclosure)
Purchase money mortgage; Recording acts exception; Subordination agreement between mortgages; mortgage modification; future advances mortgage
65
Purchase money mortgage exception (foreclosure)
Has priority over all other mortgages even those earlier in time
66
Recording act exception
A senior mortgage may sometimes not get recorded, a junior mortgage that satisfies the requirements of the state recording act may take priority over the unrecorded senior mortgage if it satisfies the elements of the state's recording act
67
Subordination agreement between mortgages
A senior mortgagee can agree to subordinate its interest to a junior interest
68
Mortgage modifications
a senior mortgage who enters into an agreement with the mortgagor/landowner to modify the mortgage by making it more burdensome subordinates its interest but only as to the modification, the original mortgage will otherwise remain superior
69
Future advances mortgages
Line of credit: a mortgage given by a borrower in exchange for the right to receive money from the lender in the future
70
Effect of Foreclosure
Foreclosure sale eliminates the mortgagors interest in the property--statutory redemption is a statute that enables the homeowner to effectively nullify the foreclosure
71
Contents of a Deed
A valid deed must identify the parties, it must be signed by the grantor, it must include words of transfer with a present intent to transfer, and must include a sufficient description of the property
72
Notice Types (deed)
Actual, Constructive and Inquiry
73
Actual Notice (deed)
when the subsequent grantee has real personal knowledge of a prior interest
74
Constructive Notice (deed)
When prior interest is recorded
75
Inquiry Notice
When a reasonable investigation would have disclosed the existence of prior claims
76
Race Statute
First to record wins even if subsequent purchaser had notice of a prior unrecorded conveyance (first recorded or first to record)
77
Notice Statute
Subsequent purchaser has good title if she buys without notice of a prior unrecorded conveyance (in good faith or without notice)
78
Race-Notice Statute
Subsequent purchase has good title if they purchased without notice of a prior unrecorded conveyance and they record first (both in good faith or without notice and first duly recorded or first recorded)
79
Shelter Rule
A person who takes from a bona fide purchaser protected by the recording act has the same rights as his grantor
80
Estoppel by Deed
Arises when a grantor conveys land the grantor does not own--if a grantor subsequently acquires title to the land the grantor is estopped from trying to repossess on grounds that he didn't have title when he made the original conveyance
81
Kinds of Deeds
General, Special, Quit Claim
82
General Warranty Deed
Provides the greatest amount of title protection; grantor warrants title against all defects even if the grantor didn't cause the defects
83
Present Covenants
Covenant of Seisin, Covenant of the Right to Convey, Covenant against Encumbrances
84
Covenant of Seisin
Warrants that the deed describes the land in question
85
Covenant of the Right to Convey
Warrants that the grantor has the right to convey the property
86
Covenant against Encumbrances
Warrants that there are no undisclosed encumbrances on the property that could limit its value
87
Future Covenants
Covenant of Quiet Enjoyment, Covenant of Warranty, Covenant of Future Assurances
88
Covenant of Quiet Enjoyment
Grantor promises to defend against future challenges to the grantees title to the property
89
Covenant of Warranty
Grantor promises to defend against future assertions of encroachment
90
Covenant of Further Assurances
Grantor promises to fix future title problems
91
Special Warranty Deed
Grantor warrants against defects caused by the grantor. This type of deed provides a lesser amount of title protection than a general warranty deed--includes all six covenants but apply to the acts or omissions of the grantor (grantor has to create the defect)
92
Quitclaim Deed
Grantor makes no warranties as to the health of the title
93
Breach of Covenants
Breach of present covenants occurs at time of the conveyance; breach of future covenants occurs after the conveyance once there is interference with possession
94
Fixtures
Tangible personal property that is attached to real property in a manner that is treated as part of the real property
95
Gifts in a Will
Specific Gift; General Gift; Demonstrative Gift; Residuary GIft
96
Specific Gift
A devise of property that can be distinguished from the rest of the testators estate
97
General Gift
A devise of personal property that will be satisfied from the general assets of the estate
98
Demonstrative Gift
A general devise that is satisfied from a particular source
99
Residuary Gift
The balance of the estate after all the general and specific gifts have been made
100
Ademption (by Extinction)
Devise of property that falls (or is adeemed) because it is no longer in the testators estate at the testator's death
101
Ademption by Satisfaction
If the testator gives the property to the beneficiary while the testator is alive, the gift is adeemed by satisfaction
102
Lapse Statute
A devise of property can also fail (lapse) if the beneficiary dies before the testator dies, and alternate beneficiary is named in the will (lapsed gift becomes apart of residuary)
103
Anti-Lapse Statute
All jurisdictions have statutes that are designed to prevent gifts from lapsing. Satisfied when: a lapsed gift was made to a party in the statute (almost always a family member); and deceased beneficiary survived by issue
104
Trust
Device for managing property whereby on person (trustee) owns property for the benefit of another person (beneficiary)
105
Easement
Right held by one person to make use of another person's land
106
Servient Estate
Land burdened by the easement
107
Dominant Estate
Land benefitted by the easement
108
Affirmative Easement
Gives the holder the right to do something on someone else's property
109
Negative Easement
Gives the holder the right to prevent someone from doing something on her land (must be express cannot be created by implication)
110
Easement Appurtenant
Is tied to the land, the holder is benefitted in her use of the land
111
Easement in Gross
Benefits the holder personally
112
Ways to Create Easement
Express or Implied
113
Express Easements
An express easement by grant arises when it is affirmatively created by the parties in a writing that is in compliance with the Statute of Frauds.
114
Express Easement by Reservation
Created when a grantor conveys land but reserves an easement right in the land for the grantors use and benefit
115
Implied Easements
Are not formal and arise out of factual circumstances, four kinds: Necessity, Implication, Prescription, Estoppel
116
Easement by Necessity
An easement by necessity is generally created only when property is virtually useless (e.g., landlocked) without the benefit of an easement across neighboring property, and it ends when it is no longer necessary
117
Easement by Implication
An easement by implication is created by an existing use on a property: a large estate owned by one owner (common ownership), before division the owner of the large tract uses the land as if there's an easement on it (quasi easement), Use must be continuous and apparent at the time of severance, use must be reasonably necessary to the dominant estate's use and enjoyment
118
Easement by Prescription
Easements can be obtained by prescription similarly to the way land can be acquired by adverse possession. There must be continuous, actual, open, and hostile use for a specific period (use need not be exclusive)
119
Easement by Estoppel
Good-faith, reasonable, detrimental reliance on permission by a servient estate holder
120
Termination of and Easement
Release (holder expressly releases it in writing);
Merger (if the owner of the easement acquires fee title to underlying estate, it merges into title);
Abandonment (owner acts in an affirmative way that shows a clear intent to relinquish the right );
Prescription (holder fails to protect against a trespasser for the statutory period);
Sale to a bona fide purchaser;
Estoppel (servient owner changes position to his detriment in reliance on statements/conduct of the easement holder that the easement is abandoned);
End of necessity (easement by necessity last as long as the easement is necessary
121
Profit
Right to enter another's land and remove a specific natural resource
122
License
A revocable permission to us another's land (easements are not revocable but licenses are)
123
Real Covenant
A promise concerning the use of the land that runs to successors to the promise
124
Real Covenant Elements
Writing (subject to SOF); Intent (original parties must intend for covenant to run with the land); Touch and Concern(must touch and concern the land in order to run):Notice(actual or constructive notice--inquiry notice is ok for equitable servitude); Privity(horizontal and vertical)
125
Negative Covenants
A restriction on use will usually touch and concern because they restrict what you can do with your land
126
Affirmative Covenant
Covenant to pay money
127
Horizontal Privity
Horizontal Privity refers to privity of estate, where the estate and covenant are contained in the same instrument
128
Vertical Privity
Vertical privity refers to the relationship between the original party to the agreement and his/her successor to the property; to run the burden of the covenant to the successor the successor must take the original party's entire interest
129
Equitable Servitude (steps)
To bind a successor: it must be in writing, must have been intent to run with the land, must touch and concern with the land, successor must have notice, no privity requirement
130
Implied Reciprocal Servitude
Equitable servitude is implied and need not be in writing; must be an intend a covenant on all plots in the subdivision; must be reciprocal; must be negative; successor must be on notice of the restriction; must be a common plan or scheme
131
Changed Circumstances Doctrine
Where a restriction no longer makes due to drastic changes in the surrounding area since the restriction was put in place
132
Riparian Rights
Doctrine of riparian rights holds that landowners who border a waterway own the rights to the waterway; riparian a share the right to a reasonable use of the water, such that one riparian is liable to another for interference with the other's use
133
Prior Appropriation
The first person to use the water regardless of where their land is located has the rights to the water
134
Lateral Support Rights
Neighboring landowner cannot excavate so as to cause a cave in on a neighbors land: Negligence liability when the actions caused subsidence on a neighbors land and the neighbors surface buildings contributed to subsidence; strict liability when the actions caused subsidence on a neighbors land and the neighbors surface buildings did not contribute to the subsidence
135
Subjacent support
Rights of surface landowners not to have their land subside from the activities of the owners of the underground rights: owner of mineral rights is strictly liable for any failure to support the land any buildings on it that existed before the rights were created
136
Zoning
State and local governments may regulate the use of land through zoning laws which are enacted for the protection and safety of the community
137
Exemptions and Variances
F
138
Eminent Domain
F
139
Private Nuisance
A substantial and unreasonable interference with another individuals use or enjoyment of his property. Substantial: one that would be offensive, inconvenient, or annoying to an average person in the community. Unreasonable: the injury outweighs the usefulness of the defendants actions
140
Public Nuisance
Unreasonable interference with the health, safety, or property rights of the community
