Property PQs Flashcards
(133 cards)
1
Q
What are a life tenant’s duties?
A
Duty to pay current charges
Duty to prevent waste
Duty to make ordinary repairs
2
Q
What is a life tenant’s duty to pay current charges?
A
A life tenant must pay all current charges due during life tenancy (e.g. property taxes, mortgage interest) up to financial benefit received from property.
3
Q
What is a life tenant’s duty to prevent waste?
A
A life tenant must prevent affirmative waste (i.e. voluntary waste) permissive waste, and ameliorative waste.
4
Q
What is a life tenant’s duty to make ordinary repairs?
A
A life tenant must make reasonable repairs to preserve property.
5
Q
What is a life estate?
A
A life estate is a present possessory interest that is limited in duration by the life of the grantee, unless otherwise specified.
6
Q
What circumstance controls how the financial benefit is determined in the circumstance of a life tenant?
A
The financial benefit is determined depending on:
whether the life tenant occupies the property or does not occupy the property.
7
Q
What is the financial benefit when a life tenant occupies the property?
A
The financial benefit is measured by the fair market rental value of the property (e.g. reasonable rental value)
8
Q
What is the financial benefit when a life tenant does not occupy the property?
A
The financial benefit is measured by the income derived from the land (e.g. third party rental income, crops grown on the land)
9
Q
What is the obligation a remainder holder owes to a life tenant when the life tenant fails to pay property taxes?
A
the holder of the remainder interest may pay the taxes to protect that interest, but has no duty to the life tenant to do so.
10
Q
What is a remainderman?
A
A remainderman is the person who gains title when a life estate ends, unless title reverts to the grantor.
11
Q
What is the remainderman’s damage when the life tenant fails to pay property taxes?
A
The remainderman can sue the life tenant for taxes paid, not to exceed the value of the financial benefit that the life tenant received from the property.
12
Q
What is joint tenancy?
A
Joint tenancy is a type of concurrent state in which each tenant holds an undivided and equal interest in the property with the right of survivorship
13
Q
How can a joint tenant sever the joint tenancy?
A
By conveying his or her interest during life to another
14
Q
When a joint tenant serve a joint tenancy, what is created?
A
A tenancy in common
15
Q
May a joint tenant device or her property interest
A
No, a joint tenant see cannot be devised because of death. The joint tenants interest ceases to exist.
16
Q
What happens when a joint tenant dies?
A
The joint tenants interest ceases to exist in his automatically absorbed into the surviving joint tenants interests.
17
Q
What is a defeasible fee?
A
A fee simple estate that may be terminated upon the occurrence of a stated event or condition.
18
Q
What type of estate is created with conditional language, such as “but if”
A
A fee simple subject to a condition subsequent
19
Q
What happens when the condition occurs in a valid fee simple subject to condition subsequent?
A
title automatically passes to the future interest holder.
20
Q
What is a future interest, held by a third party, which is created with conditional language, like but if?
A
A fee simple subject to an executory limitation.
21
Q
What type of estate is created with this language of conveyance: To A
A
fee simple absolute
22
Q
What type of estate is created with this language of conveyance: To A and his heirs
A
Fee simple absolute
23
Q
Are there any future interests in a fee simple absolute?
A
No
24
Q
What type of estate is created with this language of conveyance: So long as
A
Fee simple determinable
25
What type of estate is created with this language of conveyance: during
Fee simple determinable
26
What type of estate is created with this language of conveyance: until
fee simple determinable
27
What kind of future interest exists in a fee simple determinable estate
Grantor's possibility of reverter
28
What type of estate is created with this language of conveyance: but if
Fee simple subject to condition subsequent
29
What type of estate is created with this language of conveyance: provided that
Fee simple subject to condition subsequent
30
What type of estate is created with this language of conveyance: unless
Fee simple subject to condition subsequent
31
What kind of future interest is there in a fee simple subject to condition subsequent?
GRANTOR'S RIGHT OF REENTRY
32
What type of estate is created with this language of conveyance: Durational languge
Fee simple subject to executory interest
33
What type of estate is created with this language of conveyance: conditional
Fee simple subject to executory interest
34
What kind of future interest exists in a fee simple subject to executory interest?
Third party's executory interest
35
What is a restraint on alienation
A restriction on transferring property
36
What kind of restraint is a prohibition on a transfer of property interest by its owner
A disabling restraint
37
Is a disabling restraint void
It is always void
38
What is a restraint where the owner forfeits property interest if the owner attempts to transfer it
A forfeiture restraint
39
Is a restraint on future interest transfer void?
No. It is a valid forfeiture restraint
40
Is a restraint on life estate interest transfer void?
No. This is a valid forfeiture restraint.
41
What is a promise by a property-interest holder not to transfer property interest?
A promissory restraint.
42
Is a promise by a property-interest holder not to transfer a property interest valid?
It can be valid.
43
What kind of restraints on alienation are void?
Direct (or absolute) restraints are void.
44
What is a disabling restraint?
A total prohibition on the transfer of the property interest by its owner.
45
What is a right of first refusal?
A partial, promissory restraint on alienation that gives its holder a preemptive right to acquire property prior to its transfer to another party.
46
Is a right of first refusal a valid restraint
Yes. It is generally reasonable if the holder of the right can purchase the property under the same terms offered to another.
47
What is a landlord's legal relationship with a tenant?
Privity of estate and privity of contract
48
Can a party transfer their interests under a lease?
Yes. Unless the lease states otherwise, each party may freely transfer their interests under the lease
49
What is an assignment of a lease?
A complete transfer of a tenant's interest to a third party for the remainder of the tenant's lease term
50
In an assignment, what is the privity?
Original tenant remains in privity of contract with landlord. Assignee gains privity of estate with the landlord. Tenant and assignee are in privity of contract.
51
What is a sublease?
Transfer for less than the entire duration of the lease is a sublease.
52
What is the privity arrangement in a sublease?
The landlord and tenant are still in privity of estate and contract. The tenant and subleasee are in privity of contract.
53
What is the liability of an original tenant and an assignee to a landlord when a landlord is harmed due to breach of the lease?
The original tenant and assignee are jointly and severally liable for the landlord's entire harm arising from the breach because the tenant is in privity of contract and the assignee is in privity of estate.
54
What type of tenancy is for a fixed period
Term of years
55
How is a tenancy that is a term of years created?
by agreement
56
How is a tenancy that is a term of years terminated?
The end of the term automatically ends the tenancy
Breach of certain covenants can terminate (rent, habitability)
57
What kind of tenancy is for a specific duration, which renews until the tenancy is terminated?
A periodic tenancy
58
What are the three ways to create a periodic tenancy
Agreement
presumed when the lease has no specified termination date
Operation of law (i.e. holdover tenant)
59
What kind of tenancy is created when a lease has no specified termination date
A periodic tenancy
60
What kind of tenancy is created when a tenant holds over
A periodic tenancy
61
What type of tenancy lasts for an indefinite period
Tenancy at will
62
How is a tenancy at will created
Agreement
Implied when a person is allowed to possess the premises without paying rent
63
What kind of tenancy is created by implication when a person is allowed to possess the premises without paying rent
Tenancy at will
64
How is a tenancy at will terminated
At any time with reasonable notice
65
What is reasonable notice to terminate a tenancy at will
Most states require 30 days advance notice
66
What is the duration of a tenancy at sufferance
It continues until terminated
67
How is a tenancy at sufferance created
Implied when a tenant keeps possession after the lease expires
68
How is a tenancy at sufferance terminated
Landlord evicts
Tenant vacates
Landlord accepts rent (forms a periodic tenancy)
69
What kind of recording act applies when the statute reads, "first to record" or "first duly recorded"
Race statute
70
What language is necessary for a race statute?
first to record
71
What kind of recording statute applies when the language "in good faith, without notice" and "first to record" or "first duly recorded" is used
race notice
72
What kind of recording statute applies whenever the language is "in good faith, without notice"
Notice statute
73
What is a notice statute
A purchaser need only purchase without notice of the prior interest to prevail under a notice statute
74
What is a race statute
The purchaser who records first prevails, regardless of his knowledge of any conflicting interest
75
What kind of recording statute is this:
No conveyance or mortgage of real property shall be good against subsequent purchasers for value and without notice unless the same be recorded according to law
*without notice* Notice statute
76
What kind of recording statute is this?
No conveyance or mortgage of real property shall be good against subsequent purchasers for value unless the same be first recorded according to law
Race statute *first recorded*
77
What is the common law rule for recording?
First in time, first in right
78
What is the effect of failure to record?
It does not affect the validity of the instrument between the parties to the instrument. A buyer's failure to record the deed does not preclude the buyer from suing his seller for unjust enrichment when the seller resells the same property to a third party
79
Why are recoding statutes implemented?
This establishes priorities between conflicting claims to real property interests and promotes certainty of title
80
What is a race notice statute
A recording statute which requires a subsequent purchaser to take the interest without notice of a prior conflicting interest and be the first to record
81
What kind of recording statute is this?
No conveyance or mortgage of real property shall be good against subsequent purchasers for value and without notice who shall first record
Race notice. *without notice . . . first record*
82
What is the effect of a recording statute
Recording acts mean that prior conveyances and mortgages that would otherwise prevail under th common law first in time, first in right rule may lose priority to certain subsequent purchasers for value who meet the requirements of the recording act.
83
What rule applies when a later purchaser does not meet the requirements of the recording act?
The common law first in time first in right rule applies
84
who is entitled to protection under recording statutes
Only a grantee who pays value for an interest in real property.
85
What is the shelter rule
Under the shelter rule, a person who receives a property interest from a bona fide purchaser is entitled to the same protection under the recording act as the bona fide purchaser
86
What is the estoppel by deed doctrine
A grantor who conveys an interest in land by warranty deed before actually owning the land is estopped from later denying the effectiveness of that deed. When the grantor acquires ownership of the land, the after acquired title is transferred automatically
87
What is an equitable servitude?
A promise to do or not to do something on land that is enforceable at equity by injunction
88
when is an express equitable servitude enforceable?
It must be in writing which statisfies the statute of frauds
It must be intended to run (promising parties intend for the servitude to bind their successors in interest)
Touch and concern (the servitude must relate to the use, enjoyment, or occupation of the dominant and servant estates
Notice (the person to be bound needs actual, record, or inquiry notice of the servitude
89
Who can an express equitable servitude be enforced by?
The original parties of their successors in interest
90
What is a real covenant
real covenants restrict the right to use real property or impose obligations on the owners of real property. When damages are sought to enforce the covenant, the covenant is called a real covenant
91
What is an equitable servitude
An equitable servitude restricts the right to use real property or imposes obligations on the owners of real property. When an injunction is sought to enforce the covenant, it is an equitable servitude
92
How can an easement by necessity be terminated
When the dominant estate and servant estate is merged.
93
When is an easement by necessity implied?
1. Necessity - the dominant estate is virtually useless without an easement across the servant estate
2. Common ownership - the dominant and servant estates were under common ownership in the past
3. Severance - the necessity arose when the land was severed and the dominant and servient estates were created.
94
What is a license
A revocable privilege to enter and use another's land for specific performance
95
How is a license created?
Orally, in writing, or by another act demonstrating the licensor's intent to create a license
96
How is a license terminated?
At any time upon revocation by the licensor
a) Automatically upon death of a licensor or licensee or
b) conveyance of licensed property
97
Is a license freely revocable?
Yes, unless
a) the licensee detrimentally relied on the license (paid money to use or maintain the license) or
b) the license was coupled with an interest in the proper (a remainderman's license to enter and inspect property
98
What is the implied covenant of marketable title
the seller promises to deliver title that is reasonably free from doubt and under no threat of litigation, such that a reasonable person would accept and pay for it
99
Which type of deed does not include the implied covenant of marketable title
None. Regardless of the type of deed created, the implied covenant of marketable title is part of a land sale contract
99
What is the merger doctrine
Any obligations contained in the land sale contract merge into the deed and are extinguished at closing.
100
What happens to obligations in a land sale contract under the merger doctrine
The obligations are only enforceable if they are contained in the deed, because obligations in the land sale contract merge into the deed and are extinguished at closing.
101
What is the doctrine of equitable conversion?
When a land sale contract is silent regarding the risk of loss, the risk of loss is placed on the party with equitable title at the time the property was destroyed unless the other party is at fault for the loss.
102
What are the titles involved in a land sale contract?
Legal title and equitable title
103
What is the timing of a seller's title transfer to the buyer in a land sale contract
A seller begins with both equitable and legal title. Upon contract formation, the buyer obtains equitable title. The seller maintains legal title through the executory period until closing.
104
Who are the parties in a mortgage? Which is the lender and lendee
The lender is the mortgagee and is granted a mortgage by the debtor, the mortgagor.
105
May a mortgagor transfer mortgaged property?
Yes. Generally the debtor mortgagor can freely transfer mortgaged property to a grantee unless the mortgage states otherwise.
106
What happens if a debtor mortgagor transfers the mortgaged property? Think mortgage, debtor, and grantee
The mortgage remains attached to the property
the debtor remains personally liable for the mortgage debt.
The grantee's obligations depend on whether the grantee took subject to the mortgage or assumed the mortgage
107
What does it mean when a grantee takes subject to the mortgage?
the grantee does not agree to pay and is not personally liable for the debt
108
What does it mean when a grantee assumes a mortgage
The grantee expressly agreed to pay and become personally liable for the debt, while the debtor becomes secondarily liable as a surety
109
What is the right of redemption?
This allows a debtr to retain the property under foreclosure by paying the amount currently owed on the loan plus any accrued interest before the foreclosure sale, which the creditor must accept
110
Must a creditor accept payment made by a debtor in an effort to exercise the right of redemption?
Yes.
111
What is the timing requirement for a debtor's offer to prevent foreclosure under the equitable right of redemption?
At any time prior to the foreclosure sale.
112
What happens if a debtor fails to make a payment to exercise the equitable right of redemption? Consider any statute?
If there is a statutory right, the debtor may make a payment equal to the foreclosure sale price, to the purchasing party, within the statutory period after the property has been sold in foreclosure.
113
What are the ways to avoid foreclosure?
Equitable redemption
Deed in lieu of foreclosure
Renegotiating debt
114
What is deed in lieu of foreclosure
mortgagor (debtor) conveys all interest in mortgaged property to mortgagee (lendee)
This requires that all parties agree.
115
What is renegotiating debt to avoid foreclosure
Parties renegotiate terms of promissory note and mortgage.
116
What is the general rule about priorities of interests in foreclosure?
1. Senior interests. These are interests acquired before the interest that is being foreclosed. They survive the foreclosure
2. Junior interests. These were acquired after the interest that is being foreclosed. They are extinguished by the foreclosure
3. First in time. These are surviving debts that are satisfied chronologically
117
What is a remainder?
A remained is a future interest in real property that is capable of becoming possessory upon the expiration of a life estate or term of years.
118
What are the two categories of remainders?
Vested or contingent`
119
What is a vested remainder
not subject to any condition precedent and held by an identifiable living person
120
What is a contingent remainder
subject to some condition precedent other than the natural termination of the prior estate OR held by an unknown or unborn person
121
What kind of language makes a vested remainder?
then to my son and daughter
122
When is a vested remainder subject to complete divestment
If the occurrence of a subsequent condition will eliminate the remainder interest
123
What kind of language makes a vested remainder subject to complete divestment?
then to my heirs; but if none survive my friend, then to my lawyer
124
What is a life estate?
A present possessory interest that terminates upon the death of an individual
125
What is a future interest
A future interest follows a life estate
126
What is a reversion
A future interest that follows a life estate and reverts to the grantor
127
What is a remainder
A future interest that follows a life estate and passes to someone other than the grantor.
128
When is a remainder vested?
A remainder is vested if the interest is not subject to a condition precedent and is created in an ascertainable grantee
129
What is a defeasible life estate?
A life estate that may be terminated upon the death of an individual OR by the occurrence of a state event.
130
What follows a defeasible life estate?
A reversion when the estate reverts to the grantor OR an executory interest if the estate passes to a third party
131
What is the rule of convenience
Class membership is closed once any member of the class is entitled to immediate possession of a share in the class gift.
132
