Real Property

Question 1

What is a Present Estate?

Answer 1

A current possessory right into some real property.

Question 2

What are the 4 Present Estates?

Answer 2

Fee Simple Absolute, Fee Simple Determinable, Fee Simple Subject to Condition, Life Estate

Question 3

Fee Simple Absolute

Answer 3

A fee simple absolute is indefeasible and indefinite. It is the most complete former of ownership.

Question 4

Fee Simple Determinable

Answer 4

A fee simple determinable is defeasible and indefinite. It grants a buyer the immediate right of ownership with a possibility of reverter when a specified event occurs.

Question 5

Fee Simple Subject to Condition Subsequent

Answer 5

A fee simple subject to condition subsequent is defeasable. When the condition subsequent occurs the grantor may chose to reenter the property and retake possession. Buyers ownership does not end if grantor does not reenter. Look for conditional language such as but if or provided that.

Question 6

Life Estate

Answer 6

A life estate grants exclusive possession for life. Upon death the estate transfers to automatically to a beneficiary. a life tenant owes a duty to the land avoid permissive waste, voluntary waste, or ameliorative waste.

Question 7

What is a Future Interest?

Answer 7

A future interest is an interest in property that will vest after some occurrence in the future.

Question 8

Reverter

Answer 8

A future interest in property from a simple simple determinable. A reverter automatically vests when the predetermined event occurs.

Question 9

Remainder

Answer 9

The possessory interest remaining after a life estate is natural concluded. A remainder may be vested or contingent

Question 10

Executory Interest

Answer 10

An executory interest is a future interest in a transferee that must either divest the prior estate or spring out of the grantor to become possessory. Executory interests are non-vested interests and are subject to the Rules Against Perpetuities.

There are two types of executory interests: shifting and springing. A shifting executory interest divests some interests in another transferee prior to its natural expiration, thereby cutting short the prior estate. Many shifting executory interests will violate the Rules Against Perpetuities. A springing executory interest divests the transferor in the future and has a gap of time. If there is any time not accounted for, the estate reverts back to the original owner as a reversion.

Question 11

Concurrent Ownership

Answer 11

Cotenancy. A condition where multiple owners hold a simultaneous interest in property.

Question 12

Tenancy in Common

Answer 12

Each co-tenant holds an undivided interest and is entitled to possession at anytime in its entirety. Co-tenants may not exclude each other from access tot he property. Each co-tenant may freely transfer their share in the property.

Question 13

Joint Tenancy with Right of Survivorship

Answer 13

Joint tenancy is a type of joint ownership of property in the field of property law, where each owner has an undivided interest in the property. This type of ownership creates a right of survivorship, which means that when one owner dies, the other owners absorb the deceased owner’s interest.

There are 4 units of joint tenancy (Four conditions that are required in order for there to be a formation of a joint tenancy): Time, Title, Interest, Possession. If any of these conditions are not satisfied or are altered so that they no longer exist, then the joint tenancy is extinguished.

Unity of interest: The interest of each owner is equal.
Unity of time: The interest of the owners is acquired at the same time.
Unity of possession: The owners have the right of survivorship.
Unity of title: The document must specify a joint tenancy vesting.
    If a vesting is not specified, it is presumed to be a tenancy in common.

Question 14

Severance

Answer 14

When a joint tenant severs their interest in the property. The joint tenancy is destroyed and the new owner takes possession of a tenancy in common with the remaining cotenants who exist in the original joint tenancy.

Question 15

Partition

Answer 15

The court may order that a Joint Tenancy is broken up into partitions by interest

Question 16

Leasehold

Answer 16

Temporary conveyance of land with reversion to landlord. A leasehold conveys duties on each party. For the tenant they have a duty to pay rent, avoid waste, must not abandon. The landlord must deliver the premises free from burdens and honor the implied warranty of quiet enjoyment.

Question 17

Warranty of Quiet Enjoyment

Answer 17

Neither the landlord or any party with superior title will disturb the tenants enjoyment of the property. This includes constructive eviction or the failure to resolve problems that deprives the tenant of the use and enjoyment of the property. Failure to maintain the warranty of quiet enjoyment means the tenants may, after giving notice and opportunity to correct, vacate or otherwise terminate the lease, seek damages, and stop paying rent.

Question 18

Abandonment

Answer 18

When a tenant unjustifiably leaves the premises and ceases paying rent without intent to return to the property. The landlord may accept the abandonment (novation), lease the property on the tenants behalf, or leave vacant and seek damages. However, the landlord does have a duty to minimize the losses on the property. Abandonment does not break the lease and privity of contract remains intact.

Question 19

Condemnation

Answer 19

Terminates the lease if the property loses all value. The tenant may be entitled to the takings from the loss of the property.

Question 20

Assignment

Answer 20

Tenants assigns their entire leasehold interest to an asignee. Tenant remains in privity of contract. Assignee gains privity of estate and possession and is therefore liable for the covenants that run with the land.

Question 21

Novation

Answer 21

The landlord may release the original tenant from their privity of contract through a novation.

Question 22

Sublease

Answer 22

A tenant leases their interest to a subtenant. Privity of contract and estate remain with the orginal tenant as part of the prime lease. The subtenant gains privity of contract and estate with the prime tenant. Subtenant and landlord gain no privity.

Question 23

Easement

Answer 23

An interest in property giving limited rights. It runs with the land and transfers to future owners. The initial parcel is called the dominant parcel and the burdening land is the subservient.

Question 24

Prescriptive Easement

Answer 24

When an easement is used openly and notoriously, without permission, and continuously for a time determined by statute that use will become an official easement.

Question 25

Easement by Prior Use

Answer 25

If 2 parcels of land are separated from common ownership, and 1 parcel continually and openly uses one parcel for the benefit of the other, and this existing use is important or necessary for the continued use of the benefited property, and easement by prior use will be created.

Question 26

Easement by Necessity

Answer 26

When an easement is necessary for the continued use of another parcel. Court's hate waste and will establish an easement to prevent the parcel from wasting.

Question 27

Termination of an Easement

Answer 27

1) by the terms of the easement 2) affirmative release of the subservient tenement 3) estoppel 4)condemnation of the servient tenement 5) merger 6) abandonment by easement holder

Question 28

Restrictive Covenant

Answer 28

An agreement to use or limit use of tract of land for the benefit of another. This covenant can be enforced against successive owners and runs with the land as an easement if the original owners intended it to.

Question 29

Rule Against Perpetuities

Answer 29

The rule against perpetuities is a common law property rule stating that no interest in land is good unless it must vest, if at all, not later than twenty-one years after some life in being at the creation of the interest. Many jurisdictions are moving away from this rule for the wait-and-see rule, where the courts will wait until interest is actually in violation before violating the term. Courts may also rewrite the offending terms to fit.

Question 30

Fixture

Answer 30

An item of personal property incorporated into a property with the intent to make the chattel a permanent part of the property.

Question 31

Deed

Answer 31

A deed is a legal document that grants ownership to a piece of real estate or other property asset. A deed transfers the title of an asset to a new owner, and it is usually recorded in the local county clerk’s office. Additionally, different deeds contain different warranties of title. The different types of deeds include a warranty deed, special warranty deed, and quitclaim deed. After the closing, the purchase contract merges with the deed and the buyer can only sue on the warranties contained within the deed.

Question 32

6 Covenants of Title

Answer 32

1) Seisin: grantor actually owns the party they are transferring 2) Right to Convey: grantor has the legal authority to transfer title 3) Covenant against encumbrance: promise that there are no encumbrances except those listed in the contract. Open and notorious encumbrances are considered to be part of the contract. 4) Quiet Enjoyment: no one with superior title will interfere grantee's possession and enjoyment 5) Warranty: grantor will defend and indemnify the grantee against claims by those with superior title 6) further assurances: grantee will take care of any further assurances needed to complete the transfer

Question 33

Which runs with the land, future or present covenants?

Answer 33

Future covenants always stick with the land. Present covenants only taken at the moment of conveyance.

Question 34

Mortgage

Answer 34

interest in real property to secure a debt through foreclosure. Only conveys a security interest in the property in most jurisdictions under the lein theory. In title theory it convey the title until the debt is paid back. Debtors are given priority in foreclosures. Leins are resolved through bankruptcy in order of seniority with purchase money leins being resolved first.

Question 35

First in Time recording

Answer 35

first to make a purchase has the superior interest

Question 36

Race statute

Answer 36

First to record has priority.

Question 37

Notice statute

Answer 37

bonafide purchaser has priority over any other claims they were not aware of regardless of recording

Question 38

Race-Notice statute

Answer 38

bonafide purchaser has priority over other claims as long as they record first.