Property Wrong Answer Bar Exam Outline

Question 1

What is a defeasible life estate?

Answer 1

A life estate that may be terminated upon the death of an individual OR by the occurrence of a stated event

A defeasible life estate can be subject to conditions that may lead to its termination.

Question 2

What is a remainder in real property?

Answer 2

A future interest capable of becoming possessory upon the expiration of a life estate or term of years

Remainders can be vested or contingent.

Question 3

Define a vested remainder.

Answer 3

Not subject to any condition precedent AND held by an identifiable living person

A vested remainder can be subject to complete divestment.

Question 4

What is a contingent remainder?

Answer 4

Subject to some condition precedent or held by an unknown or unborn person

Contingent remainders depend on future events.

Question 5

What is reversion in property law?

Answer 5

If the estate reverts to the grantor

Reversion follows a defeasible life estate.

Question 6

What is an executory interest?

Answer 6

If the estate passes to a third party

An executory interest usually follows a defeasible life estate.

Question 7

What does the Rule Against Perpetuities address?

Answer 7

It limits the duration of certain future interests in property to prevent them from lasting indefinitely

This rule aims to avoid uncertainty in property ownership.

Question 8

What is the Rule of Convenience?

Answer 8

Applies to class gifts and closes class membership once any member is entitled to immediate possession

This rule ensures clarity in the distribution of class gifts.

Question 9

Define Tenancy in Common.

Answer 9

A concurrent estate where two or more persons hold separate but undivided property interests with no right of survivorship

Each tenant can independently transfer their interest.

Question 10

What is Joint Tenancy?

Answer 10

A type of concurrent estate in which two or more persons own an undivided and equal interest in property with the right of survivorship

The right of survivorship means a joint tenant’s interest disappears upon death.

Question 11

What happens to a joint tenant’s interest upon their death?

Answer 11

It disappears, and the remaining joint tenants incorporate the new interest

This feature is a key characteristic of joint tenancy.

Question 12

Can joint tenants devise their interest at death?

Answer 12

No, joint tenants cannot devise their interest at death

Their interest is automatically passed to the remaining joint tenants.

Question 13

What are the types of partition in a joint tenancy?

Answer 13

• In kind
• By sale

Partition can be voluntary or involuntary.

Question 14

What is adverse possession?

Answer 14

Acquiring title by adverse possession requires OCEAN: Open and Notorious, Continuous, Exclusive, Actual, Nonpermissive

These elements must be met for the claim to be valid.

Question 15

What does the acronym OCEAN stand for?

Answer 15

• Open and Notorious
• Continuous
• Exclusive
• Actual
• Nonpermissive

These are the requirements for adverse possession.

Question 16

What constitutes a valid deed?

Answer 16

• Signed by the grantor
• Identify the grantor and the grantee
• Contain words of transfer
• Identify land with reasonable certainty

A valid deed must meet these criteria for legal effectiveness.

Question 17

What is the purpose of recording statutes?

Answer 17

To protect purchasers and establish priority of property interests

Different types include Race Statute, Notice Statute, and Race-Notice Statute.

Question 18

What is the Shelter Rule?

Answer 18

Gives donees who acquire property from a grantor protected by a recording act the same protection as the grantor

This rule ensures fairness in property transfers.

Question 19

What does ‘due on sale’ clause entail?

Answer 19

Allows a lender to demand full payment if the debtor transfers the mortgaged property without consent

This clause protects the lender’s interests.

Question 20

What is a mortgage?

Answer 20

A legal agreement where property is pledged as security for a loan

Mortgages can follow different theories, such as lien theory and title theory.

Question 21

What is a lien theory in mortgages?

Answer 21

Lender receives security interest in property, and mortgagor retains title and possession unless lender forecloses

This is the majority rule in mortgage theory.

Question 22

What is an equitable servitude?

Answer 22

Similar to real covenants, created when an injunction is sought, with less stringent requirements

Implied equitable servitudes arise from common schemes.

Question 23

What is a fixture?

Answer 23

Tangible personal property attached to real property, treated as part of the realty

Fixtures transfer automatically with the land unless specified otherwise.

Question 24

What is a public nuisance?

Answer 24

Interferes with a right common to the general public

This type of nuisance affects the community at large.

Question 25

What is a private nuisance?

Answer 25

Interferes with a private property right ## Footnote Liability arises when the interference is substantial and unreasonable.

Question 26

Debtor Obligations when there is a transfer of mortgaged property

Answer 26

After transfer, mortgage remains on the property and the debtor remains personally liable for debt.

Question 27

Grantee obligations when there is a transfer of mortgaged property

Answer 27

(1) Took subject to the mortgage? Grantee does not agree to pay and is not liable (2) Assumed the mortgage? Grantee agrees to pay and becomes primarily liable while the debtor becomes seconarily liable

Question 28

Buyer ethics when assuming a mortgage

Answer 28

When a buyer assumes a mortgage, a buyer may not raise defenses that the debtor would to avoid the mortgage.

Question 29

Which interests does a foreclosure on mortgaged property affect?

Answer 29

It temrinates all interest in the property that is junior to the foreclosed interest. The senior interests are allowed to stay with the land

Question 30

What happens when there is a foreclosure on a property that was not recorded?

Answer 30

The "first in time, first in right" rule applies

Question 31

What are a borrower's options when they fail to pay their mortgage?

Answer 31

1. Allow the borrower to retain ownership but some form of restitution is required to the lender 2. Borrower's equitable right of redemption 3. If there is an installment land contract, treat it like a mortgage so that the lender must foreclose to get access to the property

Question 32

What is an equitable right of redemption?

Answer 32

A borrower can keep a defaulted property by paying the full balance of the amount due prior to foreclosure

Question 33

What is lien priority on real property?

Answer 33

1. Purchase money mortgages (PMM) 2. First recorded liens 3. All other recorded liens 4. Unrecorded liens

Question 34

What is a purchase money mortgage?

Question 35

What are the types of recording statutes?

Answer 35

Notice, Race, and Race-Notice

Question 36

What is the language of a Notice statute?

Answer 36

"In good faith", "without notice"

Question 37

What is the language of a Race Statute?

Answer 37

"first recorded"

Question 38

What is the language of a Race-Notice Statute?

Answer 38

"In good faith", "without notice" WITH "first recorded"

Question 39

Doctrines that effect conveyance of will?

Answer 39

1. Lapse 2. Ademption 3. Exoneration 4. Abatement

Question 40

What is Lapse, Ademption, Exoneration, and Abatement?

Answer 40

1. Lapse causes a devise to fail if beneficiary dies before the grantor 2. Ademption causes a devise to fail by extinction or satisfaction 3. Exoneration allows a beneficiary of specifically devised real property to use an estate's assets to pay off debt on the property 4. Abatement reduces devises that cannot be satisfied by assets remaining after grantor's debts are paid and residuary devises are apid first followed by general and specific devises.

Question 41

How does a covenant run with the land?

Answer 41

1. Writing 2. Intent to Run 3. Horizontal Privity 4. Vertical Privity 5. Notice

Question 42

What is Horizonal and Vertical Privity?

Answer 42

Horizonal Privity: Horizontal parties transfer the land and create the covenant at the same time Vertical Privity: Successors have an unbroken chain of ownership from the original parties.

Question 43

What are the factors in an equitable servitude?

Answer 43

1. Writing 2. Intent to run 3. Touch and Concern 4. Notice Equitable servitudes are brought about by injunctions.