Real Property Flashcards
(166 cards)
1
Q
What is marketable title?
A
Title that a reasonably prudent buyer would be willing to accept.
2
Q
When the buyer of land dies before the real property contract closes, their successors to the buyer’s real property may do what at closing?
A
Demand a conveyance.
3
Q
Which party/parties are entitled to specific performance of a sale of land contract?
A
Both the buyer and the seller.
4
Q
A title insurance policy owned by a mortgagee protects whom?
A
The mortgagee only.
5
Q
A real estate broker will only be considered a buyer’s agent if what?
A
It is specifically agreed to.
6
Q
Under the doctrine of equitable conversion, the buyer of the land is considered as owning the land when . . .
A
the contract is signed.
7
Q
When the seller of land dies before the contract closes, the successors to the seller’s real property must . . .
A
give up legal title at closing.
8
Q
A seller who has not conveyed title will not be considered in breach of her land sale contract if . . .
A
the buyer tenders the purchase price on the closing date.
9
Q
The Statute of Frauds requires a contract be ________.
A
Written
10
Q
What are the exceptions to the Statute of Frauds writing requirement?
A
a buyer’s detrimental reliance; the buyer’s acts of partial performance.
11
Q
The existence of a mortgage on which the Statute of Limitations has run does not make land ____________.
A
Unmarketable.
12
Q
Under the doctrine of equitable conversion, the seller of the land holds bare legal title _________ for the buyer.
A
in trust
13
Q
Under the doctrine of equitable conversion, if improvements on realty are destroyed without fault before the closing date, the risk of loss is on whom?
A
The buyer.
14
Q
What happens if a buyer of land determines the seller’s title is unmarketable?
A
Notify the seller; give the seller a reasonable time to cure the defects.
15
Q
What may a buyer do if a seller of land is in breach of a land sale contract at closing?
A
Demand specific performance if the buyer tenders the purchase price of the land.
16
Q
What might happen if a seller of land acquires title to land by adverse possession?
A
The implied covenant of marketability is breached.
17
Q
How are the damages calculated for a breach of a real estate contract?
A
Contract Price - Market Value of the land on the date of the breach.
18
Q
The Statute of Frauds requires that a ____________ of a land sale contract be signed by the party to be charged.
A
memorandum
19
Q
How can a buyer of land obtain specific performance of an oral land sale contract?
A
The buyer has taken possession of the land and made substantial improvements to it.
20
Q
What can happen if a seller of land breaches the implied covenant of marketable title?
A
The closing date can be extended to allow the seller time to cure the defect.
21
Q
A buyer of land who does not tender the purchase price until after the closing date is in breach of the contract if . . .
A
the seller has conveyed title to the buyer.
22
Q
How can a land seller avoid liability for property defects on the land?
A
Including a clause identifying the defects and disclaiming liability for them.
23
Q
Does a zoning ordinance which restricts the use of land make title to land unmarketable?
A
No.
24
Q
Does a prior deed from a grantor who lacked capacity to convey the land make title to land unmarketable?
A
Yes.
25
Does a restrictive covenant limiting the development of the land make title to the land unmarketable?
Yes.
26
Does a hidden easement which reduces the value of the land make its title unmarketable?
Yes.
27
What kinds of interests are not effected by a foreclosure? What kind are?
Senior interests; junior interests.
28
Define "mortgage"
A legal security interest in the home for which the loan was made.
29
A bank makes a home loan secured by a mortgage interest. The owner later defaults on their loan. Who gets the house?
The bank.
30
Under the doctrine of equitable conversion, a deceased seller's interest in land generally passes as what?
Personal property.
31
Are proceeds of a real estate sale personal or real property?
Personal property.
32
Land devised to someone upon the owner's death is what kind of property?
Real property.
33
Under equitable conversion, after a real estate sale contract has been signed, the buyer becomes the equitable owner of the ___________, and the seller becomes the equitable owner of the ___________.
Land; money.
34
Following the signing of a real estate sale contract, when do the seller and buyer take possession of their respective property?
At closing.
35
May an easement be resurrected after it has been extinguished?
No.
36
Fee Simple Determinable —
an estate that will end automatically when the stated event or condition occurs. The interest will revert to the grantor or the heirs of the grantor.
37
Open-ended conditions in a conveyance evidence a potential violation of what legal doctrine?
The Rule Against Perpetuities.
38
If a clause of a conveyance is found to violate the Rule Against Perpetuities, what will the court do with the clause?
Delete it.
39
To create an easement by prescription, the land must be:
open and notorious; adverse; continuous and uninterrupted; and lasting for the statutory period for adverse possession.
40
Generally, a foreclosure terminates all ______________ that have been joined in the foreclosure action.
junior interests
41
If an occupier initially has the true owner’s permission to enter the land, may she acquire title to the land by adverse possession?
Yes, if the occupier communicates hostility
42
A deed generally must contain what in order to be valid?
grantor's words of intent
43
A recording act that provides: “Any conveyance of an interest in land, other than a lease for less than one year, shall not be valid against any subsequent purchaser for value, without notice thereof, unless the conveyance is recorded,” is a:
notice statute
44
“Any conveyance of an interest in land, other than a lease for less than one year, shall not be valid against any subsequent purchaser for value, without notice thereof, whose conveyance is first recorded.” is an example of what?
a race-notice statute.
45
In order to prevail over a prior grantee under a race-notice statute, when must a subsequent bona fide purchaser record?
Before the prior grantee records.
46
What is the effect of a grantee of land's returning a deed to the grantor?
No effect
47
May a buyer obtain specific performance of an oral land sale contract?
Yes, if the buyer has taken possession of and made substantial improvements to the land
48
When a seller of land dies before the contract closes, the successors to the seller’s real property must . . .
give up legal title at closing.
49
In a sale of land contract, who is entitled to specific performance?
Both the buyer and the seller generally are entitled to specific performance
50
The essential terms of a land sale contract under the Statute of Frauds are:
1. A description of the property; 2. An identification of the parties to the contract; and 3. A price and manner of payment, if agreed upon. The Statute also requires the contract to be in writing and signed by the party to be charged.
51
Does the existence of a mortgage whose statute of limitations has run on land result in the land's title being unmarketable?
No
52
In general, a party who fails to tender performance on the closing date:
Has a reasonable time after the closing date to tender performance. Generally, the time of performance stated in a land sale contract is not absolutely binding.
53
Deed of Trust —
a security interest in land by which the debtor (i.e., the trustor) transfers title to the land to a third party (i.e., the trustee), such as the lender’s lawyer or a title insurance company, acting on behalf of the lender (i.e., the beneficiary).
54
What does it mean for a grantee to assume a mortgage?
The grantee becomes primarily liable to the lender. The original mortgagor becomes secondarily liable as a surety. Assumption of a mortgage does not mean the grantee becomes a surety for the original mortgagor.
55
When a mortgagee transfers a promissory note without a written assignment of the mortgage, generally . . .
the mortgage follows the note. No separate written assignment of the mortgage is necessary.
56
Title Theory —
in a minority of states, legal title is in the mortgagee until the mortgage has been satisfied or foreclosed.
57
Intermediate Theory —
in some states, legal title transfers from the mortgagor to the mortgagee on default.
58
Lien Theory —
followed in a majority of the states, the mortgagee is deemed to hold a security interest in the land and the mortgagor is considered the owner until foreclosure.
59
When may a mortgagor redeem her land in equity?
Before the foreclosure sale.
60
As between two mortgages, what is the effect on the junior mortgage when the mortgagor accepts an advance of funds from the senior mortgagee?
The junior mortgage is given priority over the advance if the advance was optional
61
In most states, the reservation of an annual rent, payable monthly, in a lease with no set termination date creates a:
Year-to-year periodic tenancy
62
If a landlord's breach of duty renders the premises unsuitable for occupancy, under the doctrine of constructive eviction, the tenant may:
Vacate the premises, terminate the lease, and sue for damages
63
If a landlord consents to one transfer that violates a covenant against assignment or sublease, he _________ his right to avoid future transfers.
waives
64
May a tenant remove a chattel that the tenant affixed to the leased premises?
No, because chattels affixed to the leased premises become the property of the landlord
65
A fee simple subject to an executory interest is an estate that:
Automatically divests in favor of a third party on the happening of a stated event
66
A grantor who conveys a fee simple determinable retains:
A possibility of reverter
67
Which interests in property are subject to the Rule Against Perpetuities?
Contingent remainders, executory interests, and vested remainders subject to open
68
Does a testamentary disposition of a joint tenant's land sever a joint tenancy?
NO
69
The burden of an equitable servitude will run to successors in interest if:
1. The covenanting parties intended that successors in interest be bound by the covenant; 2. The successor in interest has notice of the covenant (if she has given value); and 3. The covenant touches and concerns the land (i.e., it benefits the covenantor and his successor in their use and enjoyment of the burdened land).
70
Profit —
a nonpossessory interest in land where the holder has the right to go upon another’s land and take the soil or a substance of the soil (e.g., minerals, timber), but has no right to possess and enjoy the land.
71
Real Covenant —
a nonpossessory interest in land; a written promise to use or not to use land in a certain manner, and does not confer a right to possess the land on the covenantee.
72
License —
a privilege to go upon another’s land; it is not an interest in land.
73
To acquire a prescriptive easement on property, the claimant’s use must be:
Open and notorious, adverse, and continuous for the statutory period
74
Prescriptive Easement —
analogous to acquiring title to property by adverse possession, except that the use need NOT be exclusive (i.e., the user may share the use with the owner or other easement claimants).
75
Does use of an easement outside its legal scope terminate the easement?
No, but the grantor of the easement may get an injunction to stop the specific use of the easement which exceeds its legal use.
76
Can non-use of an easement end the easement?
No. Non-use is never sufficient by itself to end an easement.
77
An easement in gross —
an interest in land which gives the holder the right to use someone else’s land independent of his ownership or possession of his own tract.
78
If a grantor executes a deed but fails to deliver it during her lifetime, __________.
Title does not pass
79
Must a deed have language showing the grantor's intent to convey?
Yes
80
A court will never reform a deed that __________.
has been relied on by a bona fide purchaser
81
Properly recording a deed creates a presumption that . . .
the deed is authentic
82
Parol evidence generally will not be admitted to show __________.
oral conditions on the delivery of a deed given to a grantee
83
A deed that does not express the parties’ intention because of a mutual mistake:
Presents a ground for reformation
84
In a __________ deed, the grantor covenants against only the title defects he himself created.
Special warranty
85
Under __________ statute, a subsequent transferee with notice of a prior conveyance can prevail over the prior grantee.
a race statute (not the same as a race-notice statute).
86
When a grantor transfers land to hinder a creditor:
The creditor may seek to have the transfer set aside.
87
What is the effect of language in an otherwise properly delivered deed specifying that title will not pass to the grantee until the grantor’s death?
The deed creates a life estate in the grantor and a future interest in the grantee.
88
A deed delivered to a grantee who is dead at the time of delivery is:
void
89
What type of consideration is required in order to make a deed valid?
no consideration
90
Forged deeds are _________.
automatically void.
91
Deeds executed by a minor grantor or executed under duress are ________.
voidable
92
Voidable deeds will be set aside only if the property has . . .
not passed to a bona fide purchaser.
93
When a watercourse or body of water forms the boundary of a parcel of real property, accretion causes the legal boundary to change due to __________.
The slow and imperceptible deposit of soil
94
A grantor’s acknowledgment of a deed before a notary and subsequent recordation constitutes . . .
a valid delivery.
95
If a deed never was delivered, but the listed grantee discovers the deed and records it, the deed is:
void. A deed is not effective unless it has been delivered and accepted.
96
To what will a court afford the most weight when construing a deed’s inconsistent property descriptions?
Natural monuments
97
Marketable Title —
Marketable title is title reasonably free from doubt, i.e., title that a reasonably prudent buyer would be willing to accept. Generally, this means an unencumbered fee simple with good record title.
98
When a buyer of land dies before the contract closes . . .
The successors to the buyer’s real property rights may demand a conveyance of the land at closing
99
A title insurance policy owned by the mortgagee protects:
the mortgagee only
100
A seller who has not conveyed title will be considered in breach of her land sale contract __________.
if the buyer tenders the purchase price on the closing date
101
Does a restrictive covenant that limits development on the land render title unmarketable?
No, if the buyer waives title defects in the land sale contract
102
Absent an agreement to the contrary, if neither the buyer nor the seller of land tenders performance on the closing date:
The closing date is extended indefinitely until one tenders performance
103
What may not be recovered for breach of a real estate contract?
The fair market value of the land.
104
The usual measure of damages for breach of a real estate contract is . . .
the difference between the contract price and the market value of the land on the date of breach. Incidental damages, such as the buyer's title examination and moving or storage costs, also can be recovered.
105
A title insurance policy ensures that ______________________________ and ______________________________.
good record title exists as of the policy’s date; defends record title in the event of litigation
106
Title insurance protects _________________.
only the person who owns the policy.
107
Does title insurance run with the land?
No. It sticks with the person who took out the policy.
108
If a seller refuses to convey land pursuant to an oral land sale contract, a court likely will __________.
award the buyer specific performance if the buyer has paid the purchase price and has taken possession of the land
109
A seller cannot avoid liability for defects in the property by including a _____________ disclaimer in the sale of land contract, but can if he includes a _______________ disclaimer.
general; specific
110
The Statute of Frauds requires that a memorandum of a land sale contract be signed by:
The party to be charged
111
May a buyer obtain specific performance of an oral land sale contract?
Yes, if the buyer has taken possession of and made substantial improvements to the land
112
When a seller of land breaches the implied covenant of marketable title . . .
the closing date may be extended to allow the seller time to cure.
113
Absent an agreement to the contrary, if the buyer of land does not tender the purchase price until after the closing date, __________.
Whether the buyer is in breach depends on whether the seller has tendered a conveyance of title
114
If the buyer breaches the land sale contract, the seller may recover:
The difference between the contract price and the market value of the land on the date of breach
115
A party, even though late in tendering her own performance, can still enforce the contract if she tenders ____________________ after the stated date.
within a reasonable time
116
Will a prior deed from a grantor who lacked capacity to convey the land make the title to land unmarketable?
No
117
If a grantor transfers a deed in exchange for cash, and the grantee promises to return the land when the cash is repaid, a court will likely treat the transaction as:
An equitable mortgage
118
If a mortgagor conveys mortgaged property, when does the grantee become primarily liable to the lender?
If the grantee assumes the mortgage
119
A due-on-sale clause:
Permits the mortgagee to demand full payment of a mortgage debt if the mortgagor transfers her interest without the lender’s consent
120
Statutory Redemption —
the right of a mortgagor to recover the land by paying the foreclosure sale price after the foreclosure sale has occurred.
121
As between two mortgages, what is the effect on the junior mortgage when the mortgagor accepts an advance of funds from the senior mortgagee?
The junior mortgage is given priority over the advance if the advance was optional
122
Mortgages on the property that are __________ to a mortgage being foreclosed are __________ by the foreclosure if they are made parties to the foreclosure proceeding.
Junior; extinguished
123
Foreclosure destroys interests (e.g., liens, mortgages, leases, easements) ____________ to the mortgage being foreclosed, but does not affect any interest _________ to the mortgage being foreclosed.
junior; senior
124
What is the order of priority for allocating mortgage foreclosure sale proceeds, from first to last?
The foreclosing party, any junior lienors in the order of their priority, and then the mortgagor
125
A __________ purchase money mortgage usually has priority over a __________ purchase money mortgage.
Vendor’s; third-party lender’s
126
What happens when a mortgagee transfers a promissory note without a written assignment of the mortgage?
the mortgage generally follows the note.
127
When may a mortgagor redeem her land in equity?
Before the foreclosure sale.
128
May the lender who is foreclosing a mortgage bid on the land during the foreclosure sale?
Yes, regardless of whether the parties contracted for this before default.
129
The mortgagee’s acceptance of a ____________ in lieu of foreclosure will preclude the mortgagee’s right to foreclose upon the mortgagor’s default.
deed
130
Must a junior mortgagee be named as a party to a senior mortgagee’s foreclosure action?
Yes, because it has the right to pay off the senior mortgage to avoid being wiped out by foreclosure
131
May the vendor of an installment land contract containing a forfeiture clause reinstate strict performance once she has waived it?
Yes, by giving the purchaser notice and a reasonable time to catch up on payments
132
“Power of sale” provisions generally apply to what type of security interest in land?
Deeds of trust
133
A clause that requires full payment of a mortgage debt if the mortgagor transfers her interest without the lender’s consent (a "due-on-sale" clause) is enforceable by __________.
an institutional mortgage lender
134
May a mortgagee validly transfer the note without the mortgage?
Yes, but the mortgage will automatically follow the note
135
If a mortgagee purports to transfer the mortgage without the note, which of the following is not a possible result?
Payment of the mortgage debt would become due in full
136
As between two mortgages, what is the effect on the junior mortgage when the mortgagor agrees to an increased interest rate on the senior mortgage?
The junior mortgage is given priority over any increase in the senior mortgage debt
137
May a mortgage be foreclosed by judicial sale?
Yes, in all jurisdictions
138
"To A" or "To A and his heirs" evinces what?
a fee simple absolute
139
A living person has no ___________.
heirs
140
"To A so long as" evinces what?
a fee simple determinable
141
To create a fee simple subject to a condition subsequent, there must be what?
1) clear durational language, and 2) a statement of the right to reenter the property.
142
A conveyor of property in fee simple subject to a condition subsequent retains what?
A right of reentry.
143
Must a conveyor of property in fee simple subject to a condition subsequent exercise their right of reentry?
No, it is optional.
144
When does a fee simple subject to a condition subsequent terminate?
When the conveyor exercises their right of reentry.
145
Fee Simple Subject to Executory Limitation —
like a fee simple subject to a condition subsequent, except that in the event of the executory limitation, the property transfers to a third party rather than reverting back to the original holder.
146
The third party to whom property would transfer if an executory limitation takes place holds what?
A shifting executory interest.
147
"To A for his life" evinces what?
A life estate
148
Reversion —
when a life estate terminates, the property reverts back to the grantor.
149
Remainder —
when a life estate terminates, the property goes to a third party.
150
To whom does property transfer after a life estate terminates?
It depends on the words of the instrument. It can be either a remainder or a reversion.
151
Life Estate Autre Vie —
a life estate held by one person but which is measured by the life of another.
152
"To A for _____ years" evinces what?
A term of years.
153
The holder of a life estate is referred to as that what?
Life tenant
154
The life tenant is entitled to __________________________ of the land.
all ordinary uses and profits
155
A life tenant must not commit ___________.
waste
156
What are the types of waste?
There are three types of waste: 1) voluntary waste; 2) permissive waste; and 3) ameliorative waste.
157
Voluntary Waste —
an affirmative act which causes harm or destruction to the land and decreases the land's value.
158
Permissive Waste —
the land is allowed to fall into disrepair or the life tenant fails to reasonably protect the land.
159
Ameliorative Waste —
the life tenant must not engage in acts that will enhance the property's value unless all future interest holders are known and consent.
160
Generally, a life tenant must not consume natural resources on the land unless what?
unless the land was previously used for exploitation, mines were open on the land prior to their holding the land, the resources are consumed to make reasonable repairs to the land, the holder is granted permission to exploit resources, or the purpose of the land is for exploitation.
161
Who holds a possibility of reverter as a future interest?
The grantor of land subject to a fee simple determinable.
162
Equitable Servitude —
a covenant that, regardless of whether it runs with the land at law, equity will enforce against the assignees of the burdened land who have notice of the covenant. The usual remedy is an injunction.
163
Deed —
a document which transfers title to an interest in real property.
164
Race Statute —
a subsequent BFP prevails over a prior grantee who failed to record, because the only thing that matters is who records first; i.e. there is a *race to the courthouse to record.
165
Race-Notice Statute —
a subsequent BFP is protected only if she takes without notice and* records before the prior grantee.
166
Race Statute —
notice is irrelevant. Whoever records first wins.
