Property Flashcards
(30 cards)
Life Estate Rule Statement
he kicks the bucket, title reverts to owner =reversion
Life estate is a present possessory estate that is limited in duration by a life. Upon the end of the measuring life, title reverts to the grantor or specified remainderman. This future interest is known as REVERSION.
Fee Simple Subject to Executory Interest
future interest= executory interest
Fee Simple subject to executory interest is a present fee simple estate that is limited by EITHER conditional or durational language. Upon the occurrence of the specified condition, title will pass to a 3rd party automatically.
The future interest held by the 3rd party is called an executory interest.
Fee Simple Absolute
A fee simple absolute is the broadest ownership interest recognized by law. It is absolute ownership of potentially infinite duration, is freely alienable, and has no accompanying future interest. It is a present estate that does not terminate unless owner dies intestate without heirs, then it escheats to the state.
Fee Simple Determinable
automatically reverts back to grantor, possibility of reverter
The fee simple determinable is present fee simple estate that is limited by specific DURATIONAL language such that it terminates automatically upon the happening of a stated condition and full ownership is returned to the grantor. Upon occurrence of the stated condition, the estate automatically reverts back to the grantor. (POSSIBILITY OF REVERTER)
Fee Simple Subject to Condition Subsequent
right to re-entry is the subby-way
A fee simple subject to condition subsequent is a present fee simple that is limited in duration by SPECIFIC CONDITIONAL LANGUAGE. Unlike a fee simple determinable, termination of a FSSCS (subby) is NOT AUTOMATIC. The present fee simple will terminate only if the grantor affirmatively demonstrates intent to terminate and take action to recover possession known as RIGHT OF RE-ENTRY.
Springing executory interest divests
grantor
Shifting executory interest divests
PRIOR grantee
Who would breach the Implied Covenant of Quiet Enjoyment?
landlord
Implied Covenant of Quiet Enjoyment
Does every lease contain this implied covenant?
What does the landlord disrupt (and thus breach)?
Is Landlord liable for acts by other tenants?
What does the breach of this covenant actually amount to?
(hint: eviction)
Tenant can withhold rent upon constructive eviction when 4 steps occur
1) …. unsuitable
2) ….notifies the landlord
3) …..does not correct problem
4) tenant …. the premises after….time
Every lease (both commercial and residential) contains an implied covenant of quiet enjoyment which is breached when the landlord (or someone with superior title) disrupts the possession of the tenant.
Landlord is not liable for acts of other tenants, but he has a duty to take action against a tenant’s nuisance like behavior and to control the common areas.
Any actions by the landlord that breach this covenant amount to an actual or constructive eviction of the tenant.
Tenant can withhold rent when the landlord takes actions that make the premises wholly or substantially unsuitable for their intended purposes and tenant is constructively evicted.
1) premises unsuitable for their intended purpose
2) tenant notifies landlord
3) landlord does not correct problem
4) tenant vacates the premises after reasonable amount of time
Implied Warranty of Habitability
Implied in what kind of leases?
What standard does the landlord have to maintain the residence in?
There is an implied warranty of habitability in most residential leases.
Landlord has the obligation to maintain the property such that it is reasonably suitable for residential use.
If premises are not habitable, tenant may to refuse pay rent; tenant may remedy the defect and offset the costs; OR defend against eviction.
Generally, tenant must notify landlord of the problem and give her reasonable opportunity to correct the problem.
Implied warranty of habitability applies only to what leases?
Residential
Periodic tenancy (what I’m in if I went month to month)
What is a periodic tenancy?
Does the SOF apply?
When is this tenancy created?
Is termination automatic?
Must notice to terminate be provided? (yes)
By when?
A periodic tenancy is a repetitive, ongoing estate measured by a set period of time but with no predetermined termination date.
The SOF does not apply to a periodic tenancy because its nature is that it is for a non-fixed term.
A periodic tenancy is created by express agreement, implication or operation of law.
AUTOMATIC RENEWAL until one party gives a valid termination notice. A party is required to provide notice to terminate. Notice must be given before the beginning of the intended last period.
Tenancy for Years (what I’m in!)
What is this estate measured by a fixed and … ?
How is it created?
Does the SOF apply? What if it’s longer than a year and not in writing?
is termination automatic?
Is notice required?
A tenancy for years is an estate measured by a fixed and ascertainable amount of time.
It is created by an agreement between landlord and tenant.
The SOF applies to a tenancy for years that is longer than one year; such agreements must be in writing.
A lease subject to the SOF IS VOIDABLE until the tenant takes possession and the landlord accepts rent.
Termination automatically occurs upon the expiration of the term; NO NOTICE IS REQUIRED.
Tenancy at Will
What is this leasehold estate defined by?
Does this tenancy have to be expressly created?
What if it’s not expressly created? It converts into…?
Is advanced notice required today?
A tenancy at will is a leasehold estate that does not have a specific term and continues until terminated by either the landlord or the tenant.
A tenancy at will can be created by the express agreement of the parties or by implication if a person is allowed to occupy the premises.
It must be expressly created or payment of rent by tenant converts a tenancy at will into a periodic tenancy.
Today tenancy at will requires a party to give advance notice to terminate.
What is marketable title?
Marketable title is a title that is free from an unreasonable risk of litigation.
Absent contrary language, an implied covenant of marketable title is part of a land sales contract (regardless of the type of deed)
If transferee-buyer “assumes” mortgage are they liable?
Yes! Both transferee-buyer AND mortgagor-borrower is liable upon a default
If transferee-buyer takes title “subject to” an existing mortgage is he personally liable?
What if it’s silent as to liability?
No!
If it’s silent in the deed as to transferee-buyer’s liability, then subject to is inferred.
What are the elements for adverse possession?
Open and Notorious; (such that it would put a reasonable true owner on notice of the adverse possession)
Hostile; (possession is adverse to the owner’s interest)
Exclusive; (cannot share possession with true owner)
Continuous (for the statutory period)
equitable servitude= ____ relief
equitable servitude= injunctive relief
real covenant = _____ damages
real covenant = money damages
For a foreclosure sale to eliminate a junior interest, the holder of the junior interest must be made a ____ to the foreclosure action.
For a foreclosure sale to eliminate a junior interest, the holder of the junior interest must be made a party to the foreclosure action.
If a deed is not executed when two people are married = no tenancy by the _____. And the subsequent marriage of joint tenants does not convert a _____ ______ into a tenancy by the entirety.
If a deed is not executed when two people are married = no tenancy by the entirety. And the subsequent marriage of joint tenants does not convert a joint tenancy into a tenancy by the entirety.
Generally, the foreclosure of a senior mortgage by a sale eliminates any ____ mortgages. However, when a junior mortgagee is not given _____ of the foreclosure proceedings, the junior mortgage is ____ eliminated.
Generally, the foreclosure of a senior mortgage by a sale eliminates any junior mortgages. However, when a junior mortgagee is not given notice of the foreclosure proceedings, the junior mortgage is not eliminated.
under the doctrine of equitable conversion, equitable title to real property passes to the _____ upon entering the contract, even though the seller retains _____ title.
Most jurisdictions place the risk of a loss that occurs after the contract has been entered into on the ____.
under the doctrine of equitable conversion, equitable title to real property passes to the buyer upon entering the contract, even though the seller retains legal title. Most jurisdictions place the risk of a loss that occurs after the contract has been entered into on the buyer.
