Real Property Flashcards
Easement
An easement is a non-possessory right to use another person’s land for a specific purpose.
There are several types of easements, including:
- easement appurtenant (benefits an adjoining land),
- easement in gross (benefits an individual or entity, regardless of property ownership), 3. affirmative easement (permits certain use), and
- negative easement (prevents certain use).
Easements can be established expressly through granting or reservation, or implicitly through prescription, necessity, implication, or estoppel.
Tenant’s Duties at Common Law
Common law= a tenant has a duty to pay rent and maintain the premises, which includes making ordinary repairs and avoiding waste, whether it be voluntary, permissive, or ameliorative.
If a tenant uses the premises for illegal purposes, the landlord may terminate the lease, seek damages, or obtain injunctive relief.
Additionally, if third parties invited by the tenant suffer injuries, the tenant is liable, even if the landlord promised to make repairs.
Adverse Possession
Adverse possession is a means by which a trespasser may acquire title to another’s property without compensation by possessing the property for a specified period in a manner conflicting with the true owner’s rights.
The trespasser’s possession must be (CHOAm):
1. Continuous for the statutory period,
2. Hostile to the true owner’s interest;
3. Open and notorious, and
4. Actual and exclusive.
Land Sale Contract
A land sale contract must be in writing, signed by the parties to be bound, and articulate essential terms, such as the consideration to be paid and a description of the land, to be enforceable under the Statute of Frauds.
However, if the buyer takes possession and either (1) pays all or part of the purchase price or (2) makes substantial improvements, the contract is outside the Statute of Frauds.
Equitable Conversion
Equitable conversion applies once a contract for the sale of property is signed, but before legal title is transferred during the closing.
The buyer is deemed the equitable owner of the property and the seller retains legal title as security for the payment of the purchase price.
This means that despite not yet holding legal title, the buyer generally assumes the risk of loss or damage to the property during this interim period.
The seller, though holding legal title, is essentially holding it in trust for the buyer until the transaction is finalized.
Waste
A life tenant is obligated to maintain the estate by making reasonable repairs and keeping the property in a reasonable state of repair. The life tenant is prohibited from committing waste by acting in a way that would cause permanent damage to the property or significantly decrease its value.
Voluntary Waste
Voluntary waste occurs when a life tenant takes affirmative action beyond what is necessary for the property’s maintenance, resulting in damage to the property. Depletion of natural resources is generally considered waste, except where the consumption of resources constitutes the normal use of the land under the open mines doctrine.
Permissive Waste
Permissive waste occurs when a life tenant fails to maintain the property. The life tenant is obligated to make ordinary repairs, but not replacements. Their repair obligation is limited to the amount of rents and profits received from the land. If there are no rents and profits, the obligation is based on the reasonable rental value of the land, provided the life tenant is using it. If not in use and no income is derived, there’s no repair obligation.
Ameliorative Waste
Occurs when life tenant substantially alters the property but the activity actually increases its value. If changed conditions have made the property relatively worthless, then the life tenant can commit ameliorative waste without liability to the future interest holder.
Joint Tenancy
A joint tenancy is an estate in land held concurrently by two or more co-tenants. To form a joint tenancy the four unities must be present at the outset:
(1) unity of TIME (interests must have vested at the same time),
(2) unity of TITLE (grant to all joint tenants must be by the same instrument),
(3) unity of INTEREST (all joint tenants must take the same kind and amount of interest), and
(4) unity of POSSESSION (all joint tenants must have identical rights of possession.
The language of the conveyance must clearly reflect the grantor’s intent to create a joint tenancy. The modern rule will presume that a tenancy in common is created if there is any uncertainty.
The right of survivorship must be expressly stated, which means that the surviving joint tenants take automatically on the death of a joint tenant.
Termination of Joint Tenancy
A joint tenancy can be terminated by the acts of one co-tenant, such as conveyance inter vivos (while alive). This destroys the joint tenancy and creates a tenancy in common.
Mortgages depend on the jurisdiction:
(1) Majority rule = regarded as a lien on title.
(2) Minority rule = a transfer of title, destroys the unity of title and severs the joint tenancy.
Conveying an interest via a will does not destroy a joint tenancy.
Partition (Joint Tenancy)
A joint tenant has the right to seek a partition to own a specific portion of the jointly held land outright, thereby terminating the joint tenancy.
Ouster (Co-tenancy)
Each co-tenant has the right to possess and enjoy all portions of the property subject to the equal right of the co-tenant. If one co-tenant wrongfully excludes the other, it constitutes ouster. The ousted co-tenant is entitled to receive their share of the fair rental value of the property for the time they were wrongfully deprived of possession.
Accounting to Co-Tenant
A co-tenant who pays more than their share for repairs is entitled to contribution from others in actions for accounting or partition. Each co-tenant must pay their share of taxes and mortgage payments on the entire property. A co-tenant in sole possession can only receive reimbursement for taxes that exceed the rental value. A co-tenant out of possession has a right to share in rents from third parties.
Severance (Joint Tenancy)
Severance refers to the involuntary termination of a joint tenancy due to a disturbance in any of the four unities, commonly resulting from a sale, mortgage, contract of sale, or creditor’s sale.
Mortgages:
(1) Majority = lien theory, no severance occurs
(2) Minority = title theory, title transfers, severance
Leasehold Estate
A leasehold estate involves a tenant having a current possessory interest in the leased property while the landlord retains a future interest.
Tenancy in Common
Tenancy in common requires only the unity of possession, allowing each co-tenant to possess the entire property.
Default tenancy: it is freely alienable, permits forced partition, and lacks survivorship rights.
Tenancy by the Entirety
Tenancy by the entirety arises when the four unities and unity of MARRIAGE exist. Common law grants survivorship rights and prohibits unilateral termination.
Termination occurs upon death, written mutual agreement, divorce, or joint creditor execution.
Tenancy for Years
A tenancy for years has a fixed period with definite beginning and ending dates. Tenancies exceeding one year must be in writing to comply with the statute of frauds, while one-year tenancies may be oral. No notice is needed for termination between landlord and tenant.