Property Final Review Outline Flashcards

(96 cards)

1
Q

Fee Simple Absolute

A

Fee simple absolute is the most complete estate in land.

  • Freely alienable, devisable, and descendible
  • Potentially infinite in duration
  • Not subject to any future interest

Created by:
- “To A” or “To A and his heirs”

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2
Q

Fee Simple Determinable

A

Fee simple determinable ends automatically upon occurrence of a condition.

  • Uses durational language (“so long as,” “until”)
  • Future interest: Possibility of reverter in grantor
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3
Q

Fee Simple Subject to Condition Subsequent

A

Fee simple subject to condition subsequent gives grantor a right to re-enter if condition occurs.

  • Uses conditional language (“but if,” “provided that”)
  • Future interest: Right of entry in grantor (The grantor must take affirmative steps to reclaim the property.)
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4
Q

Fee Simple Subject to Executory Interest

A

Fee simple subject to executory interest ends automatically and transfers to a third party.

  • Uses either durational or conditional language
  • Future interest: Executory interest
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5
Q

Life Estate

A

Life estate is measured by the life of a person.

  • Ends automatically at death of measuring life
  • May be defeasible
  • Future interest: Reversion (grantor) or remainder (third party)
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6
Q

Term of Years Tenancy

A

Created by: Agreement (i.e., lease)
Duration: Fixed period (e.g., 1 month, 3 years)
Termination: Ends automatically or upon breach of major covenants (e.g., rent)

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7
Q

Periodic Tenancy

A

Created by: Agreement, implication, or operation of law (e.g., holdover tenant)
Duration: Periodically renews until terminated
Termination: Ends with proper notice or breach of covenant

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8
Q

Tenancy at Will

A

Created by: Agreement or implication when possession is allowed without rent
Duration: Indefinite
Termination: At any time with reasonable notice

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9
Q

Tenancy at Sufferance

A

Created by: Tenant holds over after lease ends
Duration: Continues until landlord acts
Termination: Landlord evicts, tenant vacates, or landlord accepts rent (forms periodic tenancy)

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10
Q

Reversion

A

Reversion is a future interest retained by the grantor when a present estate is given that is less than a fee simple, and no other recipient is named.

Example:
- “To A for life” → grantor retains a reversion

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11
Q

Remainder

A

Remainder is a future interest held by a third party that becomes possessory when a prior estate (typically a life estate) ends naturally.

Types of remainders:
- Vested: Given to an ascertained person, not subject to a condition precedent
- Contingent: Either unascertained grantee or subject to a condition precedent

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12
Q

Vested Remainder Subject to Open

A

Vested remainder subject to open exists when:
- At least one class member is vested
- The class is still open to additional members

Each member’s share is subject to partial divestment as new members join the class.

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13
Q

Vested Remainder Subject to Complete Divestment

A

Vested remainder subject to complete divestment is a vested interest that may be fully lost if a condition subsequent occurs.

Example: “To A for life, then to B, but if B marries X, then to C.”

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14
Q

Possibility of Reverter

A

Possibility of reverter is a future interest retained by the grantor following a fee simple determinable.

The estate automatically returns to the grantor upon the occurrence of the specified event.

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15
Q

Right of Reentry

A

Right of reentry (also called power of termination) is a future interest retained by the grantor following a fee simple subject to condition subsequent.

The grantor must take affirmative steps to reclaim the property.

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16
Q

Executory Interest

A

Executory interest is a future interest held by a third party that takes effect by divesting:
- A prior grantee (→ shifting executory interest), or
- The grantor (→ springing executory interest)

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17
Q

Rule Against Perpetuities (RAP)

A

Rule Against Perpetuities (RAP): A future interest is valid only if it must vest or fail no later than 21 years after the death of a life in being at the time the interest is created.

Applies to:
- Contingent remainders
- Executory interests
- Class gifts (vested subject to open)
- Powers of appointment
- Options and rights of first refusal

Does NOT apply to:
- Grantor’s retained interests (e.g., reversion, possibility of reverter, right of reentry)
- Transfers from one charity to another

Common RAP violations include:
- “Survival beyond age 21” conditions
- Fertile octogenarian
- Unborn spouse
- Defeasible fee followed by an executory interest
- Conditional interest that may vest too remotely

Class Gifts and RAP:
- If RAP voids a transfer to any class member, the entire class gift fails: “bad as to one, bad as to all” rule
- Rule of Convenience: Class closes when any member is entitled to possession, preventing later members from joining and saving the gift from RAP violation

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18
Q

Tenancy in Common

A

Tenancy in common is the default form of co-ownership.

Key features:
- Each tenant has an equal right to possess the whole
- Shares may be unequal and separately transferable
- No right of survivorship

Freely:
- Alienable during life
- Devisable by will
- Inheritable via intestate succession

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19
Q

Joint Tenancy

A

Joint tenancy is a co-ownership with right of survivorship.

Requires four unities (PITT):
- Possession: equal right to possess the entire property
- Interest: equal and undivided shares
- Time: interests created at the same time
- Title: interests created in the same instrument

Alienable during life (but severs the joint tenancy)

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20
Q

Tenancy by the Entirety

A

Tenancy by the entirety is a joint tenancy held by married spouses.

Key features:
- Includes right of survivorship
- Only severable with the spouse’s consent

Presumed for married couples in some states.
Not recognized in all jurisdictions.

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21
Q

Rights and Duties of Cotenants

A

Each cotenant has the right to possess the entire property.

  • No obligation to pay rent to each other (unless agreed)
  • Ouster: Denial of possession → injured cotenant may seek damages or injunction

Expenditures and income:
- Contribution allowed for necessary taxes and mortgage payments
- No contribution for repairs (but may recover in accounting/partition)
- No contribution for improvements, but may recover value added on sale

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22
Q

Partition

A

Partition is the division of concurrent property interests.

Can be:
- Voluntary: by mutual agreement
- Involuntary: by court action

Types:
- Partition in kind (preferred): physical division of property
- Partition by sale: if physical division is impracticable or unfair

Cotenants may agree not to partition, but the agreement must be:
- Clear and
- Reasonable in duration

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23
Q

Conflict of Laws

A

In cases involving real property, the forum court will apply the law of the situs (i.e., the law where the property is located) except:
- When a document that conveys or transfers an interest in land specifies the applicable law
- When property is acquired during marriage (in which case the law of the spouses’ domicile when the property was acquired determines whether the property is marital or separate property) or
- For collateral issues (e.g., fraudulent transfer of land), where the law of the state with the most significant interest may apply.

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24
Q

Statute of Frauds – Leases

A

A lease longer than one year must satisfy the Statute of Frauds:

Writing must:
- Identify the parties and premises
- State the duration of the lease
- State the rent to be paid
- Be signed by the party to be charged

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25
Tenant’s Duties – Pay Rent, Avoid Waste, Repair
**General Rule:** A tenant has the duty to **pay rent**, **avoid waste**, and **make repairs** (subject to lease terms and local law). **1. Duty to Pay Rent** - Tenant must pay agreed rent **unless**: - The premises are **destroyed** (ends lease) - The landlord **materially breaches** (e.g., eviction) **2. Duty to Avoid Waste** - Tenant must avoid **affirmative**, **permissive**, and (sometimes) **ameliorative** waste - Waste rules apply when a tenant shares an interest in the land - Look for **acts or omissions affecting value** **3. Duty to Repair** - **Nonresidential lease**: Tenant must repair if agreed in the lease (except for damage caused by landlord) - **Residential lease**: Tenant generally **not responsible** for repairs, but must **notify landlord** of needed repairs
26
Landlord’s Duty to Deliver Possession
**English Rule (majority):** Landlord must deliver **actual physical possession**. **American Rule (minority):** Landlord must deliver only **legal right to possession**. Breach allows tenant to: - Refuse to pay rent - Terminate the lease - Sue for damages
27
Landlord’s Duty to Repair
**Majority rule:** Implied in **residential** leases, even if lease shifts burden. **Common law:** No implied duty to repair. Breach may be treated as: - **Constructive eviction** - **Violation of warranty of habitability**
28
Implied Warranty of Habitability
**Implied in most residential leases**. Landlord must: - Maintain premises suitable for **residential use** - Fix issues threatening **health or safety** Tenant must **notify** landlord and allow reasonable time to cure before: - Withholding rent - Repairing and deducting - Defending against eviction
29
Covenant of Quiet Enjoyment
**Implied in all leases** (residential and commercial). Tenant has right to possess **without interference** by: - Landlord - Someone with superior title **Remedies:** - **Actual eviction** (entire premises): lease terminates, rent excused - **Partial eviction**: - By landlord: all rent excused - By third party: rent reduced - **Constructive eviction**: substantial interference + tenant vacates
30
Constructive Eviction
**Landlord breach** substantially interferes with use/enjoyment (e.g., lack of heat or water). Tenant must: 1. **Notify** landlord and give time to fix 2. **Landlord fails** to remedy 3. **Tenant vacates** within a reasonable time → Rent is excused
31
Lease Assignment vs. Sublease
**Assignment** = Tenant transfers **entire remaining lease** to a new tenant (assignee). **Legal effects:** - **Assignee** has privity of estate with landlord → liable for rent and covenants that run with the land - **Original tenant** retains privity of contract (liable unless released by landlord) vs. **Sublease** = Tenant transfers **less than entire lease term**. **Legal effects:** - **Sublessee** has no privity with landlord - Sublessee liable only to **sublessor** (original tenant) - **Original tenant** remains liable to landlord for rent and other covenants **Absent lease restrictions, tenant may freely assign or sublet.** **If lease requires landlord consent:** - **Majority rule**: Landlord may withhold consent **only for commercially reasonable grounds** - **Minority rule**: Landlord may withhold consent **at discretion** **Waiver:** Landlord may waive objection by knowing of a transfer and **not objecting**.
32
Landlord’s Assignment of Lease
**A landlord may assign lease rights and duties without tenant’s consent.** - **Tenant** owes rent and duties to **assignee-landlord** - **Assignee** must perform duties that run with the land - **Original landlord** remains liable unless released
33
Landlord’s Remedies for Tenant’s Breach
**If tenant fails to pay rent:** - Landlord may **terminate lease** and recover possession - May enforce a **forfeiture clause** (if included) - Most states **preclude recovery of future rent** **If anticipatory repudiation applies:** - Damages = future rent minus: - Reasonable rental value, or - Rent collected upon reletting **If tenant pays rent late:** - Landlord may recover **damages** - May evict if **material breach** occurs **If tenant abandons property:** - Acceptance = lease terminates, tenant not liable for future rent - Rejection = landlord must **mitigate damages** **If tenant refuses to leave:** - Landlord may: 1. **Evict** after written notice 2. **Bind** tenant to new **periodic tenancy**
34
Retaliatory Eviction Doctrine
**A landlord may NOT evict a residential tenant** in retaliation for: - **Good-faith complaints** about housing code violations - **Withholding rent** after breach of the **warranty of habitability** **Purpose:** Protects tenants from punishment for exercising legal rights. **Applies to:** Residential leases (not typically commercial). **Evidence of retaliation** may include: - Eviction shortly after a complaint - Sudden increase in rent or decrease in services
35
Security Deposit
**A landlord may require a security deposit**, subject to **state law**. **General requirements:** - Amount and terms governed by statute - Must be **promptly returned** at lease end or - Landlord must provide **notice of deductions** (with itemized explanation) **Purpose:** Covers damages beyond normal wear and tear, unpaid rent, or cleaning costs.
36
Formation of Land-Sale Contract: how is it formed and who is typically involved?
**A land-sale contract is formed** like any other contract: - **Offer, acceptance, consideration** Often involves **real estate brokers**: - **Listing broker** sets price and advertises - **Selling broker** finds buyer (often subagent of listing broker) **Brokers owe fiduciary duties**: loyalty, care, competence, diligence, disclosure, confidentiality
37
Statute of Frauds – Land-Sale Contract
**Land-sale contracts must satisfy the Statute of Frauds:** - Be **in writing** - Be **signed by the party to be charged** - Contain all **essential terms**: - **Identity of parties** - **Description of property** - **Purchase price** - **Intent to buy/sell**
38
Exceptions to Statute of Frauds – Land Sale
**A land-sale contract may be enforceable without a writing if:** **1. Part Performance:** Most jurisdictions require 2 of 3: - Payment (full or partial) - Possession - Substantial improvements **2. Full Performance:** Seller conveys property **3. Detrimental Reliance:** Buyer relies reasonably and suffers hardship **4. Admission:** Opposing party admits contract exists
39
Implied Covenant of Marketable Title
**Seller must deliver marketable title at closing.** Title must be: - **Free of undisclosed encumbrances or defects** - Not subject to **unreasonable litigation risk** **Common title defects:** - Easements - Liens - Leases - Zoning violations - Adverse possession claims **Remedies:** Buyer may: - **Rescind** - **Sue for breach** - **Seek specific performance**
40
Time Is of the Essence
**Time is of the essence** only if: - Expressly stated in the contract, or - Implied by the circumstances If **not** of the essence: - Late party is still in breach, but liable only for **incidental losses** (e.g., taxes, interest)
41
Implied Warranty of Fitness or Suitability
**Applies to new home sales** by a builder. Covers **latent construction defects** (not observable). **Buyer may sue within a reasonable time** after discovery. **May be disclaimed** by clear and specific language. **General “as is” clauses are NOT enough.**
42
Seller’s Duty to Disclose Defects
**Seller of a residence must disclose** known, **material physical defects** that: - Are **not readily observable** - **Substantially affect value, desirability, or safety**
43
Merger Doctrine
**At closing, land-sale contract merges into the deed.** Post-closing, buyer must sue under **deed warranties**, not the contract. **Exceptions:** - Parties intended obligation to **survive closing** - Obligation is **collateral** to the conveyance
44
Remedies for Breach – Land Sale
**Damages:** - Buyer or seller may recover **expectation damages** (market value – contract price) - Buyer limited to **out-of-pocket expenses** if seller fails in **good faith** to convey marketable title **Liquidated damages:** - Enforced if reasonable (usually ≤10%) - May be denied if seller suffers no actual loss
45
Specific Performance – Land Sale
**Either party may seek specific performance** of a land-sale contract. Some courts **do not allow sellers** to seek specific performance (since they receive money, not land)
46
Equitable Conversion
**At signing**, buyer gains **equitable title**, seller retains **legal title** until closing. **Risk of loss** is on the **buyer**, unless: - Loss caused by seller’s acts - Jurisdiction follows Uniform Vendor and Purchaser Risk Act
47
Options and Rights of First Refusal
**Option:** Buyer pays consideration for the **right to buy** within a set time. **Right of first refusal:** Buyer has the right to match a **third-party offer**. Both are **subject to the Statute of Frauds**.
48
Adverse Possession – Elements (ECHO)
**Adverse possession** allows a trespasser to gain legal title by possession over time. **Elements (ECHO):** - **Exclusive** – Cannot share with true owner - **Continuous** – Possession as an ordinary owner would, for statutory period - **Hostile** – Without permission; intent to claim as own - **Open and Notorious** – Visible enough to put true owner on notice **Statutory period**: Typically 10 years (varies by state)
49
Tacking and Disabilities – Adverse Possession
**Tacking**: Successive possessors may combine periods if in **privity** (non-hostile transfer). **Disabilities**: Statute of limitations **does not run** against a true owner who has a disability **at the time AP begins**: - Infancy - Insanity - Imprisonment
50
Constructive Adverse Possession
**Constructive adverse possession** arises when: - Possessor enters under **color of title** from an invalid instrument - Possessor **occupies part** of the described land Result: Possessor gains title to **entire parcel** described in instrument, not just portion occupied
51
Delivery of Deed
**Deed is effective upon delivery**, which requires: - **Grantor’s present intent** to transfer interest **Presumptions:** - Delivery = deed given to grantee - No delivery = deed retained by grantor **Third-party delivery:** - Grantor’s agent → not delivered - Grantee’s agent → delivered - Independent agent → delivery depends on grantor’s instructions
52
Acceptance of Deed
**Acceptance is required** for a valid transfer. **Presumed** if the transfer is beneficial to the grantee
53
Requirements for a Valid Deed
**To be valid, a deed must:** - Be **written** and **signed by the grantor** - **Identify** the grantor and grantee - **Describe** the land with reasonable certainty - Include **words of transfer** (e.g., “grant,” “sell,” “convey”) **Invalid if:** - Oral (except some gifts) - Grantee is nonexistent or ambiguous
54
Recording Acts – Purpose and Default Rule
**Recording acts** establish priority among conflicting property interests. **Default rule (if no act applies):** - **First in time, first in right**
55
Types of Recording Acts
**1. Race:** First to record wins (regardless of notice) **2. Notice:** Subsequent purchaser prevails if: - Took **without notice** of prior interest **3. Race-Notice:** Subsequent purchaser prevails if: - Took **without notice**, and - **Recorded first**
56
Notice – Actual, Inquiry, Record
**Types of Notice:** - **Actual**: Personal knowledge - **Inquiry**: Reasonable investigation would have revealed it (e.g., visible occupant) - **Record**: Prior interest was recorded in **grantor’s chain of title**
57
Shelter Rule
**A grantee who takes from a protected purchaser** also gets the benefit of the recording act protection—even if the grantee would not otherwise qualify. **Purpose:** Encourages marketability of title
58
Estoppel by Deed
**If a grantor conveys land before owning it**, but later acquires title: - Grantor is **estopped** from denying validity of prior conveyance
59
Types of Deeds
**1. General Warranty Deed:** - Contains **all six covenants of title** **2. Special Warranty Deed:** - Same six covenants, but only covers **defects during grantor’s ownership** **3. Quitclaim Deed:** - **No covenants** of title; conveys **only what grantor has**
60
Covenants of Title
**Present Covenants** (breached at conveyance, do NOT run with land): - **Seisin**: Grantor owns what they claim to convey - **Right to Convey**: Grantor has legal right to transfer - **Against Encumbrances**: No undisclosed encumbrances **Future Covenants** (breached upon interference, DO run with land): - **Warranty**: Grantor will defend title - **Quiet Enjoyment**: Grantee won’t be disturbed by superior claim - **Further Assurances**: Grantor will do what's needed to perfect title
61
Conveyance by Will
**Real property may be transferred by will:** - **Specific devise**: “My home to my daughter” - **Residuary clause**: “All else to my brother” **Ademption**: Gift fails if property no longer owned at death **Lapse**: Gift fails if devisee dies first, unless anti-lapse statute applies
62
Conveyance by Trust
**Trust = fiduciary relationship** for benefit of beneficiaries **Types:** - **Inter vivos trust**: Created during settlor’s life - **Testamentary trust**: Created by will - **Pourover trust**: Funded at death via will **Trustee** holds legal title, **beneficiaries** hold equitable title
63
Conveyance by Operation of Law
**Occurs when no valid will exists** (or will does not dispose of all property) **Property passes by intestacy** to closest relatives: - Spouse - Children - Others by degree **Escheat**: If no heirs, property passes to the state
64
Restraints on Alienation
**A restraint on alienation** is a restriction on transferring property. **General Rule:** Direct restraints are **disfavored** and only valid if **reasonable**. Any restraint based on **race, ethnicity, or religion** is **unenforceable**. **Types of Restraints:** - **Disabling Restraint**: Total prohibition on transfer → **Always void** - **Forfeiture Restraint**: Interest forfeited upon attempted transfer → Valid on **life estates or future interests** - **Promissory Restraint**: Promise not to transfer → Enforceable by **injunction or damages** - **Equitable Interest Restraint**: Applies to **spendthrift clauses** in trusts → Generally **valid**
65
Mortgage – Definition and Theories
**Mortgage**: A security interest in real property to secure repayment of a loan. **Two theories:** - **Lien Theory (majority):** Mortgagor holds title, mortgagee has lien - **Title Theory (minority):** Mortgagee holds title, mortgagor retains right to regain title upon repayment
66
Mortgagee’s Right to Possession
**Lien Theory (majority):** - Mortgagee has a lien only - **Cannot take possession** before foreclosure **Title Theory (minority):** - Mortgagee holds legal title - **Can take possession at any time**, but usually barred by contract until default **If mortgagee takes possession:** - Has duty **not to commit waste**
67
Mortgage Alternatives
**1. Deed of Trust:** Like a mortgage, but uses a third-party trustee **2. Installment Land Contract:** Buyer makes payments, gets title upon full payment **3. Absolute Deed:** Treated as mortgage if intended to secure a debt **4. Conditional Sale and Repurchase:** Seller leases property with repurchase option
68
Transfer of Mortgaged Property
**Mortgaged property may be transferred**, but liability varies: **1. Subject to the mortgage:** - Transferee is **not personally liable** - Property may still be foreclosed **2. Assumes the mortgage:** - Transferee is **primarily liable** - Original mortgagor is **secondarily liable as surety**
69
Due-on-Sale and Due-on-Encumbrance Clauses
**Due-on-sale clause:** Lender may demand full repayment upon property transfer **Due-on-encumbrance clause:** Lender may accelerate upon a second mortgage
70
Redemption – Mortgages
**Redemption** allows mortgagor to regain property: **1. Equitable Redemption:** - At any time **before foreclosure sale** - Pay full amount owed plus interest **2. Statutory Redemption (some states):** - **After foreclosure sale**, during statutory period - Mortgagor pays **foreclosure sale price** to reclaim property
71
Deed in Lieu of Foreclosure
**Mortgagor may voluntarily transfer deed** to mortgagee - In exchange for release from debt - Avoids foreclosure - Mortgagee takes property subject to junior interests
72
Foreclosure – Methods and Requirements
**Foreclosure** allows the mortgagee to sell the property upon **default**. **Methods:** - **Judicial foreclosure** (all states): Court-supervised sale - **Private sale** (power-of-sale): Allowed if mortgage includes clause (in most states) - **Strict foreclosure** (rare): Title transfers without sale **Requirements:** - Mortgagee must give **notice** - May collect **only the amount currently due**, unless acceleration clause applies
73
Priority of Mortgage Interests
**Foreclosure terminates all interests that are **junior** to the foreclosed mortgage.** - **Senior interests remain** and buyer takes property subject to them **General Rule:** First in time, first in right **Exceptions:** - **Purchase-money mortgages**: Priority over earlier interests - **Recording acts**: May reverse priority if earlier interest was not recorded - **Subordination agreements**: Prior interest agrees to be junior - **Mortgage modification**: Modified portion is subordinate if it prejudices junior lenders
74
Distribution of Foreclosure Sale Proceeds
**Proceeds distributed in this order:** 1. **Costs of sale** (e.g., court fees, attorney) 2. **Foreclosing mortgagee’s claim** 3. **Junior lienholders** in priority order 4. **Debtor/mortgagor** receives surplus (if any)
75
Deficiency Judgment – Foreclosure
**Deficiency = foreclosure sale proceeds < debt owed** **Majority Rule:** - Mortgagee may sue debtor for deficiency **Minority Rule:** - No deficiency for **purchase-money mortgages** - No deficiency after **non-judicial sale** - Recovery may be limited to **fair market value**
76
Easement – Definition and Types
**Easement**: A nonpossessory right to use another's land. **Types:** - **Affirmative**: Right to do something on land (e.g., access road) - **Negative**: Prevents landowner from doing something (e.g., blocking light) - **Appurtenant**: Benefits another parcel (transfers automatically) - **In gross**: Benefits person/entity (burden transfers, benefit may not)
77
Creation of Easements (WIPE)
Easements may be created by: **W – Writing**: Must satisfy Statute of Frauds **I – Implication**: Prior use, continuous, apparent, reasonably necessary **P – Prescription**: Like adverse possession but no exclusivity **E – Estoppel**: Good-faith reliance on permission to use land
78
Termination of Easements (DAMPER)
Easements can terminate by: **D – Destruction** of the servient estate **A – Abandonment**: Clear intent + physical act **M – Merger**: Same owner of dominant + servient estates **P – Prescription**: Servient owner blocks use as AP **E – Estoppel**: Detrimental reliance by servient owner **R – Release**: Writing that satisfies Statute of Frauds
79
License vs. Easement
**License**: Revocable privilege to use land (no writing required). - Becomes irrevocable only by **detrimental reliance** or when **coupled with an interest** - If an attempted easement fails the Statute of Frauds → creates a **license**
80
Profit
**Profit**: Nonpossessory right to **enter and remove natural resources** (e.g., minerals, timber). - Created and analyzed like an easement - Cannot be created by **necessity**
81
Duty to Maintain Easement
**Easement owner** has the right and **duty to maintain** the easement. - Must keep it in **reasonable repair** - May seek **contribution** from co-users (e.g., servient owner who also uses it) - Contribution is **proportional to use** **Servient owner** generally has **no duty** to maintain unless otherwise agreed
82
Real Covenant – Definition and Remedies
**Real covenant**: A promise concerning land use that runs with the land. **Enforced by:** Suit for **damages** (legal remedy)
83
Equitable Servitude – Definition and Remedies
**Equitable servitude**: A promise concerning land use enforceable in **equity**. **Enforced by:** Suit for **injunction**
84
Requirements – Real Covenant
**To run with the land:** - **Writing** (Statute of Frauds) - **Intent** for it to bind successors - **Touch and concern** the land - **Notice** (for burden to run) - **Privity:** - **Horizontal privity** (original parties had mutual land interest) - **Vertical privity** (successor has same or lesser interest)
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Requirements – Equitable Servitude
**To bind successors in equity:** - **Writing** (unless implied reciprocal) - **Intent** to bind successors - **Touch and concern** the land - **Notice** to burdened party **Privity not required**
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Implied Reciprocal Servitude
**Applies to planned communities or subdivisions.** **Requirements:** - **Common scheme or plan** - **Restriction is negative** (e.g., no commercial use) - **Notice** (actual, inquiry, or record) **Gives rise to enforceable equitable servitude even without writing**
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Termination of Covenants and Servitudes
**Covenants and servitudes may terminate by:** - **Release** (in writing) - **Merger** (same person owns burdened and benefited land) - **Abandonment** - **Estoppel** - **Prescription** - **Laches** - **Changed conditions** (restriction no longer serves purpose)
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Common-Interest Ownership Communities
**Common-interest ownership communities** (e.g., condos, HOAs): - Individual units owned separately - Common areas managed by an **association** **Association powers and duties:** - Governed by **declaration**, bylaws, and statutes - Managed by a **board of directors** - Enforce **rules, covenants, and dues** - Provide **services** to members **Members must pay dues**, which are enforceable as covenants running with the land
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Fixtures
**Fixture**: Tangible personal property attached to real property so that it becomes part of the real estate. **Rules:** - Structures and incorporated materials become part of the property - **Buyer** is entitled to fixtures unless seller reserves right to remove in contract - **Good-faith trespassers** may remove or recover value of improvements
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Zoning – General Rule
**Zoning laws** are enacted under a government's **police power** to regulate land use. **Standard:** Must be **rationally related** to a **legitimate public purpose** (e.g., health, safety, welfare)
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Types of Zoning Laws
**Types of zoning laws may regulate:** - **Use**: Residential, commercial, industrial - **Development**: Density, setbacks, height - **Special concerns**: Environmental, historic, flood zones
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Challenges to Zoning Laws
**Zoning laws may be challenged under:** - **Takings Clause (5th Amend.)**: Law is a taking if it eliminates all economically viable use - **Substantive Due Process (14th Amend.)**: Must satisfy rational basis (unless fundamental rights affected) - **Equal Protection (14th Amend.)**: Strict scrutiny if suspect class is affected - **Fair Housing Act**: Prohibits discriminatory impact based on protected characteristics
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Nonconforming Uses and Variances
**Existing Nonconforming Use:** - Allowed to continue under old zoning rules (grandfathered in) - May not expand or substantially change use **Post-Ordinance Use:** - May require: - **Variance**: If compliance causes unnecessary hardship - **Special Exception**: Allowed deviation under the ordinance
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Riparian and Prior Appropriation Water Rights
**Riparian Doctrine (Eastern states):** - Water belongs to landowners along watercourse - Reasonable use allowed, domestic use prioritized **Prior Appropriation Doctrine (Western states):** - Rights based on **priority of beneficial use** - First in time, first in right - Rights are transferable and not tied to land
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Support Rights – Lateral and Subjacent
**Lateral support:** - Strict liability for damage to **undeveloped** adjoining land - For **improved land**, only liable if negligence or improvements did not cause collapse **Subjacent support:** - Owner of mineral rights must support surface and existing structures - Liable for damage to later-added structures only if **negligent**
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Air Rights
**Air rights** include the right to **reasonable use and enjoyment of the airspace** above land. - Must not unreasonably interfere with another's use and enjoyment