Property

Question 1

Freehold Estates: (3)

Non-Freehold Estates: (1)

Answer 1

1. Fee Simple Absolute
2. life Estate
3. Fee Tail
4. Landlord Tennant

Question 2

Garth conveys large home “to Reba for life” Reba sells her life estate to AL. AL dies after Reba.

1. Reba_____
2. AL_____
3. After AL dies____
4. General Rule:______

Answer 2

1. life estate
2. life estate measured by Reba life
3. Property stays with AL’s estate till Reba dies
4. life tenant dies before measuring life property stays with life tenant until measuring life dies.

Question 3

LIFE ESTATE HOLDER

1. What is the general law on WASTE:
2. What is the key word?

Answer 3

1. life tenant must “maintain” the estate

2. “maintain”

Question 4

LIFE ESTATE HOLDER

1. Voluntary Waste:
2. So maintaining life tenant can do what?
   ex:

Answer 4

1. any affirmative action beyond general maintenance that cause harm.
2. continue to use the land as normal

farm the land
coal mine

Question 5

LIFE ESTATE HOLDER

1. Permissive Waste:
2. 3 things life tenant must do to avoid permissive waste

Answer 5

1. Permissive waste is failure to maintain
2. Taxes
3. Maintenance
4. Mortgage debt

Question 6

LIFE ESTATE HOLDER

How is the obligation to repair, pay taxes and pay mortgage interest limited (3)

Answer 6

1. limited to rents or profits of land
2. no rents or profits then reasonable value
3. not using or no income = NO obligation

Question 7

1. What is AMELIORATIVE waste:
   ex. old mansion surrounded by oil refinery. B life tenant wants to tear down and make land available for other uses. Can B do so? If so why? (four words)

Answer 7

1. life tenant alters property substantially but increase value of land
2. yes (changed condition / relatively worthless)

Question 8

1. What is a future interest:

2. 2 claissifications of future interests

Answer 8

1. an interest that exists now but possession will not take place till later if ever
2. Future inrest in GRANTOR
3. Future intrest in GRANTEE

Question 9

Future interests retained by Grantor: (3)

Future interests retained by Grantee: (2)

Answer 9

1. Reversion
2. Possibility of Reverter
3. Right of Re-Entry
4. Remainder (vested or contingent)
5. Executive Interest

Question 10

1. O conveys Blackacre to A for life and A is 86. Later A leases Blackacre to B for 50 years.

A:____ B:___O:____

2. Ten years after A gives B the 50 year lease A dies:

A:___B:___O:___

Answer 10

1. A: Reversion for life
   B: Non-FreeHold estate
   O: Reversion FSA

2.
A: Nothing
B: Nothing
O: FSA

Question 11

O conveys Blackacre to A and his heirs, provided however, that if liquor is ever consumed on the premises then O or O’s heirs shall have the right to re-enter and retake the premise.

A:___O:___

Answer 11

A: Fee Simple on Condition Subsequent

B: Right of Re-Entry

Question 12

1. All future interests a grantor may have are:

2. Inter vivios:

Answer 12

1. Vested

2. Transfer during life

Question 13

A remainder is a future interest in a ___ that comes ___and ___on the ___of proceeding estate.

Remainders are generally (2):

Answer 13

3 rd party
naturally
immediately
termination

1. Vested
2. Contingent

Question 14

1. Contingent Remainder:
2. O conveys Blackacre to A for life then to B and his heirs if B survives.

A:___B:___O:____

Answer 14

1. taking property subject to a condition precedent
2. A: life estate
   B: contingent remainder
   O: reversion FSA

Question 15

O conveys Blackacre to A for life then to B and his heirs when B reaches 21 (B is 15).

If A dies and B is 18

A:___B:___O:___

Answer 15

A: life estate
B: springing executive interest
O: Reversion FSA

Question 16

O conveys Balckacre to A for life, then to A’s children. At the time O makes this grant, A has three children B,C and D.

A:__B:__C:__D:__

2. B C and D’s rights are also sometimes called?

Answer 16

A: life estate
B: vested remainder subject to open
C: vested remainder subject to open
D: vested remainder subject to open

2. Vested remainder subject to partial divestment

Question 17

Testators Will devises Blackacre “to A’s children” at the time the will is executed, A has two children, B and C. After the will is executed and before Testator dies, A has another child, D, and child B dies. Then Testator dies. Finally, two years after Testator date, A has another child E.
B:__C:__D:__E:__

Answer 17

B: nothing (member of class who predeceases testator

C: FSA

D: FSA

E: Nothing (Rule of Convenience

Question 18

O conveys Blackacre to A so long as the property is used for residential purposes; and if the property is ever used for other than residential purposes, then to B and heirs.

A:__B:__

Answer 18

A: FSA subject to executory interest

B: executory internest

• But this would violate RAP so (jj)
  A: Fee Simple Determinable
  B: Nothing
  C: Possibility of Reverter

Question 19

1. What does modern say about the RAP

2. What interest always violates RAP

Answer 19

1.Many states adopt “wait and see” / apply 90 year period

2. Executory Interest
   Contingent Remainder
   Vested Remainder Subject to Open

Question 20

O conveys Blackacre to A and heirs for so long as no liquor is consumed on the premises; and if liquor is consumed on the premises during the lifetime of A and B or within 21 years after the death of the survivor of A or B then in that event title shall pass to B and his heirs.

A:___ B:___O:___

Answer 20

A: FSA subject to executory interest

B: executory interest

C: possibility of reverter

Question 21

1. What is the general rule Right of First Refusal and RAP?
2. B conveys Blackacre to F and his heirs; but if F and his heirs ever try to sell the property G and his heirs have right of first refusal.

Answer 21

1. Right of first refusals will violate RAP if they can be exercised outside the time period of the rule.
2. F: FSA
   G: Nothing (violates RAP)
   B: Nothing

Question 22

O conveys Blackacre to Mary for life, then to such of Mary’s children as reach age 30. Mary is now 87, and she has three children, all in their 60’s.

Mary:___Mary’s Children_____ (intended)

2. Violate RAP
3. What is the rule as it relates to 2 called?

Answer 22

Mary: life estate

Mary Children: vested remainder subject to open

2. yes
3. Fertile Octogenarian Rule

Question 23

O conveys Blackacre to Mary for life, then to such of Mary’s children as reach age 30. Mary is now 87, and she has three children, all in their 60’s.

What interest do Mary’s existing children have?

Mary:___Mary’s Children_____ O:___

Answer 23

1. None - general rule if violate RAP then any member of class interest is void.
2. Mary: life estate
   Mary’s Children: nothing
   O: Reversion

Question 24

not card

What are the three concurrent estates in land with brief definition: (3)

Answer 24

1. Joint Tenancy - as joint tenants with right of survivorship
2. Tennant in Common - as tenants in common or any language that is not Joint tenancy - no right of survivorship to other tenants
3. Tenancy by Entirety - has TTIP + marriage, right of survivorship

Question 25

1. What are the magic words are necessary for Joint Tenancy? 2. What test is used?

Answer 25

1. "as joint tenants w/ right of survivorship" "in joint tenancy w/ right of survivorship" 2. TTIP Unity Time - vest at same time Unity Title- conveyed same title Unity Interest- same amount of interest Unity Possession- same rights of possession

Question 26

1. Severance: 2. Severance generally occurs if: 3. What can't sever a joint tenancy:

Answer 26

1. an involuntary termination of joint tenancy 2. any of the four UNITIES TTIP 3. A Will (must sever while alive)

Question 27

In 1971 Ringo mortgages his 1/4 interest in his joint tenancy with John, paul and George. 1 What happened: A)Majority _____Theory B)Minority_____Theory

Answer 27

A) Majority - Lean Theory no severance B) Minority - Title Theory severance occurs

Question 28

On January 1 Ringo enters into a contract of sale of his interest in joint tenancy, with closing to be on April 1. 1. What happened: 2. What is doctrine called:

Answer 28

1. Severance occurred on January 1 | 2. Doctrine of Equitable Conversion

Question 29

What are the 4 exceptions to Co-tenant not having to share profits? (general rule co-tenants do not have to account to another co-tenant for his share of profits)

Answer 29

1. Ouster -denies use to other co-tenant 2. Agreement -agree to share 3. Lease - co-tenantleases to 3rd party 4. Depletion -co-tenant depletes resources

Question 30

Co-tenant 1. Contribution:

Answer 30

1. The right of one co-tenant to force another co-tenant to pay their share of expenditures made on a property

Question 31

``` Co-tennat have to contribute: A) adding a house B) who could co -tenant get C)Fixing Barn D)pay Mortgage E)pay taxes ```

Answer 31

``` A) no B) tenant could get profits on resale C) yes D) yes E) yes all types gov assessed taxes ```

Question 32

NON-FREEHOLD ESTATES 4 Landlord - Tennant Estates are:

Answer 32

1. Tenancy for the Years 2. Periodic Tenancy 3. Tenancy at Will 4. Tenancy at Sufferance

Question 33

1. What is the key thing about Periodic Tenancy ? | 2. How is Periodic Tenancy created? (3)

Answer 33

1. estate continues until one party gives notice 1. Agreement 2. Implication 3. By law

Question 34

1. Cher leases Blackare to Madonna for #100 per month commencing on 1/1/2007, but the lease is silent as to duration. Madonna pays first months rent. What tenancy os created and how? 2. Whats the general rule if a lease does not specify how long the tenancy is?

Answer 34

1. Periodic Tenancy - By implication | 2. Presumed Periodic Tenancy

Question 35

1. What are the two situations in which a Periodic Tenancy is created by law?

Answer 35

1. Oral lease violates SOF | 2. Holdover Tenant

Question 36

What 2 things do you need for valid Notice re terminating a periodic tenancy?

Answer 36

1. Time - same amount of time equal to the period 2. Effective Date - date must be at the end of the period of the tenancy (if started on 15th of month must end on the 15th even if give more than a month notice)

Question 37

5 ways At Will Tenancy terminate by law:

Answer 37

1. Death of either party 2. Waste - voluntary-permissive-amielative 3. Assignment by tenant 4. Title transfer landlord 5. Lease by landlord

Question 38

1. Duty of tenant to pay rent? 2. Duty to maintain premises lease is silent? 3. Premises are destroyed not tenants fault what will generally tenant be able to do?

Answer 38

1. yes 2. tenant can't commit Waste 3. terminate the lease

Question 39

1. Lease includes "Tenants Covenant to Repair" : 2. Whats the modern view once Tenants Covenants to repair: 3. Modern view premises destroyed by fire not tenants fault and there is a "Tenants Covenant to Repair." :

Answer 39

1. makes tenant responsible to maintain and repair leased premises - tenant absolute insurer - except for wear and tare 2. responsible for everything and wear and tear 3. tenant will not have to rebuild - unless expressly stated

Question 40

1. Implied Covenant of Quite Enjoyment? | 2. How is it breached (3)?

Answer 40

1. Every lease (residential, commercial) landlord promise NOT to interfere with enjoyment of leased premises 1. Total Eviction 2. Partial Evciiton 3. Constructive Eviction

Question 41

1. Constructive eviction: | 2. 4 requirements of Constructive Eviction:

Answer 41

1. landlord fails to provide some service that the landlord is obligated to provide and failure makes property uninhibital 1. Landlord (not 3rd party) fails to provide service 2. Substantial interference of quite enjoyment 3. Notice to Landlord 4. Tenant abandons with-in reasoanvble time

Question 42

Liability of Successive Landlords: Tennant sues Landlord (i.e. Landlord sells his property) 1. What is the general rule Original landlord? 2. What is the general rule successor landlord? Liable if? (2) 3. Successor landlord under privity of estate if covenant ______?

Answer 42

1. Original landlord continues to be liable because of Privity of Contract. 2. Privity of Contract or Privity of Land 3. Runs with the land.

Question 43

Landlord 1 leases apartment to Tennant. Landlord 1 sells apartment to Landlord 2. A) Tenant sues landlord 2 to enforce covenant in original lease...ok claim under Privity of Contract? B) What could change answer to A? C)Tennant sues landlord 2 under Privity of Estate? D) Can Tenant sue Landlord 1. Privity of Estate? privity of Contract?

Answer 43

1. N0 - No privity of Contract 2. landlord 2 expressly assumed 3. Maybe if Covenant "runs with the land" 4. No Yes

Question 44

1. Non-Assignment or Non-Sublease clause? 2. Are these clause valid/ 3. What does it mean that courts strictly construe clauses? 4. If Tennant violates is sublease void?

Answer 44

1. A clause that states tenant many not assign or sublet w/out permission of landlord 2. Today all courts say yes (despite restrictions alienation) 3. wording that prohibits sublease does not prohibit assignment and vice versa 4. No Voidable - Landlord must take action

Question 45

5 exceptions to general rule that landlord has no duty for injures sustained on property?

Answer 45

1. Latent Defects 2. Short term lease furnish apartment 3. Common passage ways 4. Negligent Repairs by Landlord 5. Public use

Question 46

Landlord leases house. The steps to house are rotten. No evidence that landlord knows but he painted the steps a week prior to renting. Tenant uses steps and they collapse, injuring the Tenant? 1. Landlord liable? 2. General Rule? 3. What was a latent defect?

Answer 46

1. yes 2. landlord is under a duty to disclose defects he knows or has reason to know 3. a defect that the Tennant does not know of and a reasonable person in Tenants position would not discover.

Question 47

What is the scope of Landlord duty in regards to defects?

Answer 47

1. Landlord has a duty to disclose but no duty to repair.

Question 48

Patron goes into a bar and is seriously injured when he trips on a broken wooden floor. 1. landlord liable? 2. what 3 requirements are needed to involve Public Use Exception>

Answer 48

1. yes 1. landlord must or should have known of major defect 2. landlord must or should know tenant will not fix 3. landlord must or should know public will use.

Question 49

If there is no agreement as to what a fixture is what four factors do you look at?

Answer 49

1. degree of attachment 2. degree of harm is removed 3. general custom 4. is it a trade fixture

Question 50

1. What is an easement? 2. So the key concept is Right of ______. 3. 2 types of easements:

Answer 50

1. Non-possessory interest in land involving the right to use the land. 2 Right of Use 1. Easment Appurtenant 2. Easment in Gorss

Question 51

Easment Appurtenant: Easment in Gross:

Answer 51

An easement that directly benefits the use and enjoyment if a specific parcel of land. (our driveway to russels) No dominant estate, one parcel of land which property in burdened (utility gas lines / railroad)

Question 52

Easments can be created in 3 ways

Answer 52

1. express 2. implied 3. by prescription

Question 53

1. Express _____ of easement to some one else. 2. Express _____ of easement when land is sold to another person. 3. example of 2

Answer 53

1. Grant 2. Reservation 3. You own large farm in IOWA you sell a portion of the farm BUT reserve a right to a portion of the land for an easement

Question 54

2 ways an implied easement arises:

Answer 54

1. Previous use Common Grantor | 2. Absolute Access Rule

Question 55

Bill sells part of large farm to George. In deed Bill does not retain an easement to continue use of road. George denies use of road build a fence. Bill now can only use a road that is very inconvenient. 1. Can Bill continue use? 2. What 3 things do you need to satisfy previous use

Answer 55

1. Yes - implied use presumes common grantor 1. Continues 2. Apparent / Obvious 3. Reasonably Necessary

Question 56

1. How is an Easement by Prescription created? 2. Four requirements 3. Dolly and Tammy own adjoining lots. Everyday Dolly drives over part of Tammys lot to get into Dollys garage. Dolly does so for 20 years then Tammy tries to fence off Dolly. Can Dolly do this?

Answer 56

1. by creating an easement like adverse possession 1. adverse 2. continues (20 years) 3. visible to owner 4. hostile w/out permission 3. No (Dolly has easement by prescription)

Question 57

1. What does the Transfer of Easement in Gross largely depend on ? Tipper owns a farm in Tennesse. She grants two easements in gross; one to Southern Railway to run tracks and one to her friend Hillary to go fishing. 1. Can Southern Transfer Easement? 2. Can Hillary Transfer Easement?

Answer 57

1. Is it Commercial or Personal 1. Yes 2. No - personal * Hillarys is in gross because she does not own adjoining land

Question 58

1. What is the general rule of the burden of easement being transferred to subsequent owners? 2. How is the successor in interest put on Notice? (3)

Answer 58

1. they are bound as long as there is Notice 1. Actual / Express 2. Constructive 3. Inquiry

Question 59

Mia conveyed an express easement over her lot to Woody and the deed of easement was properly recorded. Later Mia transfers to Seinfeld but deed does not mention the easement previously granted to Woody, Does Seinfeld take the property subject to burden? Any exception?

Answer 59

1. Yes - Seinfeld has constructive notice | 2. If Seinfeld took property as Bona Fide Purchaser without Notice

Question 60

Scope of Easement 1. What is the general rule 2. What is silent on USE 2 presumptions:

Answer 60

1. Any specific terms of Easement control question of use 1. Easement is perpetual 2. use is reasonable for development of dominate estate (what would have been contemplated at time of granting)

Question 61

1. How is an irrevocable license created (2) in easement question? 2. Donald grants Marla an "oral easement" Later Marla goes out on Donald's land and clears up weeds a puts expensive stone walking in, what has happened?

Answer 61

1. easement fails due to SOF which creates a license 2. Money is spent in furtherance the oral license and becomes irrevocable Marla 1. acquired a license and 2. made it irrevocable by adding stone Donald is estopped from terminating license

Question 62

1. Restrictive Covenant: does what? 2. What 2 categories do Restrictive Covenants fall into? 3. Both involve a written promise (usually in a deed) so how do you tell the difference?

Answer 62

1. gives the holder go the interest the right to restrict some 3rd party in use of her land. 1. Covenants 2. Equitable Servitudes 3. Where enforced: Court of law=Covenant Court of Equity=Equitable Servitude

Question 63

What 4 requirements to enforce a Restrictive Covenant?

Answer 63

1. Intent 2. Notice 3. Touch and Concern 4. Privity

Question 64

2 types of Privity for a Restrictive Covenant:

Answer 64

1. Horizontal | 2. Vertical

Question 65

1. What must you distinguish between in regards to what kind of Privity (Horizontal or Vertical) must be present to enforce a Covenant? 2. On a Bar Exam you should look for: 3. If successor in interest is Plaintiff they are: 4. If successor in interest is Defendant they are:

Answer 65

1. Benefit form the Burden of the Covenant. 2. Successor in interest (property passed) 3. seeking benefit of Covenant 4. seeking to quash the burden of the covenant

Question 66

1. If the successor in interest is a DEF fighting the burden what type of privity is needed?

Answer 66

1. Horizontal and Vertical

Question 67

1. Vertical Privity exists: 2. Horizontal Privity exists: There must be a ______ of the property between the _____ parties.

Answer 67

1. if those who subsequent obtain the property must take Full Estate held by predecessor 2. original parties share same interest in the land. There must be a conveyance of properties between original properties CONVEYANCE ORIGINAL

Question 68

1. If the successor in interest is a PLAINTIFF fighting for benefit of covenant what type of privity is needed: 2. What is the general rule on the benefit side of covenant:

Answer 68

1. vertical 2. the holder of any succeeding possesory estate MAY enforce benefit of the promise as a covenant of law. No Horizontal privity required

Question 69

Sam and Diane agree to a covenant Sam builds fence and Diane and her heirs agree to maintain. Agreement was written and recorded Diane sells to Frazier. Sam sues for damages to recover from Frazier for failure to maintain. 1. What does Sam need to be able to recover?

Answer 69

1. intent 2. notice 3. touch and concern 4. privity Horizontal and Vertical

Question 70

Sam owns a lot. Sam sells a portion of his lot to Diane. In the deed there is a promise that Diane will maintain a fence that Sam will build. Sam sells his property to Norm. Diane sells her lot to Frazier. What must Norm show to prevail against Fazier? Will Norm prevail?

Answer 70

Intent Touch and Concern Horizontal and Vertical Privity 2. No - Horizontal privity does not exist.

Question 71

1. What must you show to enforce the burden of promise as an equitable servitude? 2. What must you show to enforce the benefit of a promise as an equatable servitude?

Answer 71

1. Intent Notice Touch and Concern 2. Intent Touch and concern

Question 72

1. what are the elements for adverse possesion (AP)? 2. What happens to true owners rights once AP occurs? 3. So issue for the person on the land is are they ______ or _____?

Answer 72

``` 1. Hostile Exclusive Lasting Uninterrupted Visible Actual ``` 2. Owner looses right to EJECTMENT and TITLE to property 3. Trespassing or have Title?

Question 73

X goes on property under a color of title to 100-acre farm but actually only posses 85 acres. Statutory period runs and all other requirements of adverse possession are met. 1. what is color of title? 2. what does x get?

Answer 73

1. making claim to land but it is not valid 2. 100 acres by adverse possession 85 adverse possessed 15 constructive adverse possession

Question 74

1. SOF happy to sale of real property? | 2. What must it include?

Answer 74

1. yes 1. Description of property 2. Price 3. name of parities (signed)

Question 75

What 2 requirements are needed to rely on part performance exception to SOF real property? How does Buyer geneally satisfy the second requirement? (3ways)

Answer 75

1. Oral K must be clear | 2. Acts of part performance must clearly prove up existence of contract

Question 76

1. What is the general rule re marketable title in a land sale K? 2. What is marketable title?

Answer 76

1. Implied Covenant that seller is dealing in marketable title 2. Title that a reasonable buyer would accept, minor defects ok Minor defects = 1/4 encroachment on other property ok, not 8 feet.

Question 77

What 3 things satisfy Implied Covenant of Title?

Answer 77

1. Proof of Title 2. Free of encumbrances 3. Delivery of Title on closing day

Question 78

1. What does free of encumbrances mean? 2. What would seller need to do if there was an encumbrance? 3. L leases a farm to T for 5 years w/ an option to purchase at the end of the lease. 2 years into lease L contracts to sell to B. The contract w/ B does not mention T's option to buy. L brach implied warranty ? Why?

Answer 78

1. NO - easements, restrictive covenants, mortgages, options ect... 2. Disclose 3. YES - valid option on property and not disclosed

Question 79

1. what are the measure of damages for breach of sale of real property? 2. Liquidated damages (bar exam) clause for brach of sale of real property? 3. what must it be: 4. Specific performance available buyer / seller?

Answer 79

1. difference between contract price and the value of property? 2. For bar means buyers deposit can be forfieted 3. reasonable not exceed 10% 4. yes (land is unique)

Question 80

1. what if there are defects on property that render property unfit for ordinary purposes? can buyer rescind? 2. what changes answer? 3. Duty to disclose?

Answer 80

1. NO "caveat emperor" 2. seller actively conceals defects 3. NO but can't conceal

Question 81

1. what happens when a deed is accepted at closing? 2. what could change the above answer (2)? 3. what 2 requirements for Deed to pass title:

Answer 81

1. the sale K is extinguished and its provisions 1. K specifies it survives 2. provisions in the deed itself 1. execution 2. delivery

Question 82

1. Is Deed subject to SOF? 2. Who signs? 3. The Deed must ______ or Deed will be ______. (what must deed do)?

Answer 82

1. yes 2. the Seller (transferor) of property NOT buyer 3. describe land with sufficient accuracy or will be void for vagueness and NOT pass title

Question 83

1. what is the test to determine if a Deed is delivered? 2. Grantor starts to hand a deed gift to daughter & daughter says no you keep it mama safer with you. Constitute delivery? 3. what does a recorded Deed raise?

Answer 83

1. Grantor had necessary intent (do not need physical delivery) 2. Yes - grantor intended delivery 3. a presumption of delivery

Question 84

1. once delivery of Title occurs what affect does returning title have? 2. can you use parol evidence to show intent of Grantor re delivery of a Deed? 3. what is the presumption if Grantor dies before delivering of Deed?

Answer 84

1. None 2. Yes (comments - actions) 3. No delivery of Deed (can be rebutted by Grantee)

Question 85

Language of deed is "X to H" but in handing over deed X tells H "of course you this is not effective until you marry G." X:____ H:_____ What rule is this called:____

Answer 85

X: nothing H: FSA Plurality Rule says ignore oral condition and consider delivery complete.

Question 86

1. Quitclaim deed? | 2. If grantor makes promises regarding title, what are those called?

Answer 86

1. a Deed in which grantor makes no promises | 2. Covenants

Question 87

Deeds that include the 6 traditional forms of Covenants for title are called? What are the 6 Covenants and how broken down (2)?

Answer 87

General Warranty Deeds PRESENT COVENANTS 1. Covenant Seison 2. Covenant Right to Convey 3. Covenant Against Encumbrances FUTURE COVENANTS 1. Covenant Quite Enjoyment 2. Covenant of Warranty 3. Covenant of Future Assurances

Question 88

1. Estoppel by Deed Doctrine | 2. What does the above let grantee due?

Answer 88

1. Courts say Grantor gave an Implied Covenant that title will be conveyed to grantee 2. sue to compel title from grantor

Question 89

1. what does a sale to a bona fide purchaser do to earlier grantees in regards to estoppel by deed doctrine? 2. K conveys Blackacre to L but K does not own Blackacre. 5 months later G true owner of Balckacre conveys to K. If L sues for title who wins?

Answer 89

1. cuts their right to rely on Doctrine of Estoppel | 2. L because he can use Estoppel by Deed Doctrine

Question 90

1. K conveys Blackacre to L but K does not own Blackacre. 5 months later G true owner of Balckacre conveys to K. K then conveys to M a bona fide purchaser. M has no knowledge of earlier conveyance to L. If M sues who wins?

Answer 90

1. M because bonafide purchaser cuts off estoppel by deed argument by K.

Question 91

Recording Deeds Statutes Notice: Race: Race Notice:

Answer 91

1. any BFP who takes w/out notice keeps 2. whoever records first (BFP or not) keeps the property 3. BFP takes w/out notice and records

Question 92

1. What is Record / Constructive Notice: | 2. To import Record / Constructive Notice where must deed be recorded:

Answer 92

1. Notice arising from the record | 2. Direct chain of title

Question 93

INQUIRY NOTICE 1. In order to be a BFP who takes with out notice what must you do ?

Answer 93

1. must examine land and make inquiry as to an unexplained uses or possessions? * subsequent purchaser will be charged with notice of whatever she finds after physical inspection.

Question 94

Title Searching 1. What are you looking for (2) ? 2. What is the concept of "legal binds" when doing title search 3. Deed must record during Grantors of ______ otherwise recorded too ______ or to ______.

Answer 94

1. Encumbrances (easements, mortgages) 2. granter passion property onto someone else outside link chain 2. Only look at Grantors actions during ownership 3. Record ownership - early or late

Question 95

O sells to A, no recording. Then O sells to B and B records promptly. Next A records. Finally B sells the farm to C and C had no actual notice of the earlier sale to A. 1. Since A recorded before C is charged with/ constructive notice of sale to A? 2. Explain what C buyers would have seen when conducted chain of title search?

Answer 95

1. No - A recorder too late and therefore outside chain of title 2. C's lawyer would never see A because A recorded too late, after B recorded therefore outside chain of title.

Question 96

To qualify as a BFP without Inquiry notice, the subsequent purchaser must?

Answer 96

Make a physical inspection of the property and investigate any unexplained possession or uses.

Question 97

1. What is a security interest in real property? What are the three types of security interests?

Answer 97

1. A device to secure a loan on the property 1. Mortgage 2. Deed of Trust 3. Land sale Contract

Question 98

1. A mortgage is given by the ______ ( ) to the _____ ( ). 2. What happens if loan is not paid in full?

Answer 98

1. Debtor (mortgagor) Creditor (mortgagee) 2. Sheriff sells the land at court ordered foreclosure sale.

Question 99

1. A Deed of Trust is given by the _____to a _______ who holds the Deed of Trust until the loan is paid in full. 2. What 2 options does a trustee have if the loan is not paid?

Answer 99

1. Debtor Trustee 1. Obtain court order for foreclosure on the property 2. Sell the property by himself at a public auction

Question 100

1. can a Right of Redemption ( mortgage) be waived? 2. An attempt to waive Right of Redemption in original mortgage or Deed of Trust is called _____ and is prohibited. 3. Statutory Right of Redemption?

Answer 100

1. No - exception if new consideration and terms given 2. Closing 3. alf the states yes typically 6 months to a year.

Question 101

F mortgaged fam house to Bank 1. Later takes out a second mortgage from Bank 2. F needs new stable so takes out a mortgage from Bank 3. later another loan from Bank 4 and they took a mortgage. Later another loan from bank 5 and they take a mortgage. F can't pay and Bank 3 forecloses. What happens to all the mortgages and why?

Answer 101

``` Bank 1 - continues - senior mortgage Bank 2 - continues -senior mortgage Bank 3 - forecloses Bank 4 - wiped out - junior mortgage Bank 5 - wiped out - junior mortgage ```

Question 102

Ex. of F and 5 mortgages 3 forecloses (card 101 cont) So Bank 4 and 5 are wiped out and Bank 1 and Bank 2 still have their senior interests. What does the buyer of forecloses on mansion take ? Does bank 1 and 2 automatically y get paid?

Answer 102

property subject to Bank 1 and 2 mortgages No

Question 103

F mortgaged her horse farm to B 1 who recorded. F them granted an easement to neighbor C which was recorded. F then mortgaged her farm to B2 who recorded. Finally F gave a three year lease to some stables to M. F stops paying mortgage to B2 and B2 forecloses. Purchaser will take property subject to. 1. B1 2. Easment 3. Lease 4. Whats the moral of the story

Answer 103

1. Yes -senior interest 2. Yes -senior interest 3. No-junior interest 4. all junior interests get wipes out

Question 104

What happens if foreclosures sale doe NOT raise sufficient funds to pay off mortgage, what can mortgagee do?

Answer 104

Mortgagee / creditor can sue Mortgagor / Debter personally for balance

Question 105

1. If a Grantor transfers title to the property, the Grantee will take the property subject to? 2. What is Buyers / Grantees personal liability on existing mortgage? 3. But what can happen as it relates to question #2, if mortgage is not paid?

Answer 105

1. Any mortgage 2. None unless specifically assumes 3. If mortgage not paid property could be foreclose and Grantee is subject to losing the property in foreclosure sale (* remember senior mortgages)

Question 106

C mortgaged farm to B Bank. C later sold farm to M subject B Banks mortgage and M assumes mortgage. 2 years later M sells farm to P who takes property subject to B Banks mortgage. P fails to pay mortgage to B Bank. B Bank forecloses and sells farm for less due on mortgage. B Bank sues what result? 1. C 4. What could happen to P after foreclosure sale? 2. M 3. P 5. What could P do?

Answer 106

1. Prevails - C signed original note (remember fact pattern is not M purchasing farm from C and paying off mortgage, like typical home resale) 2. Prevails- M assumed 3. No - P did not assume mortgage 4. P could lose property subject to foreclosure sale 5. P could pay delinquent mortgage