REAL PROPERTY Flashcards
1
Q
Life tenants are obligated to make which payments on a mortgage on the land?
A
Only the interest
2
Q
If A, B, and C own property as joint tenants, and P obtains a money judgment against A, what interests do the parties own on B’s death?
A
A owns a 1/2 interest subject to P’s lien, and C owns a 1/2 interest
3
Q
A co-tenant has the right to possess:
A
The entire estate
4
Q
In the case of a will, the perpetuities period begins to run on the date:
A
The testator dies
5
Q
A fee simple subject to an executory interest is an estate that:
A
Automatically divests in favor of a third party on the happening of a stated event
6
Q
The Rule against Perpetuities applies to:
A
(i) Contingent remainders;
(ii) Executory interests;
(iii) Class gifts (even if vested remainders);
(iv) Options and rights of first refusal; and
(v) Powers of appointment.
7
Q
A ____________________is an estate that, upon the happening of a stated event, is automatically divested in favor of a third person rather than the grantor.
A
fee simple subject to an executory interest
8
Q
A __________________ is an estate that automatically terminates on the happening of a stated event and goes back to the grantor.
A
fee simple determinable (determinable fee)
9
Q
“O to A for so long as the premises are used as an animal shelter.” A has a ___________.
A
A has a fee simple determinable
10
Q
“O to A, but if the premises cease to be used as an animal shelter, O may enter and terminate the estate” A has a _______________.
A
A has a fee simple subject to a condition subsequent
11
Q
“O to A for life until the premises cease to be used as an animal shelter.” A has a:
A
life estate determinable
12
Q
“O to A and her heirs.” A has a:
A
fee simple absolute
13
Q
A __________ restraint provides that the grantee covenants not to transfer the property.
A
promissory
14
Q
A _________ restraint provides that any attempted transfer of the property is ineffective. A conveyance from “O to A, and neither A nor her heirs shall have the right to transfer the land or any interest therein” contains a ______ restraint.
A
disabling
*Disabling restraints on any legal interest are void.
15
Q
A _________ restraint provides that if the grantee attempts to transfer the property, it is surrendered to another person. A conveyance from “O to A, but if A attempts to transfer the land or any interest therein during her lifetime, to B” contains a __________ restraint.
A
forfeiture
Reasonable forfeiture restraints on legal interests generally are valid.
16
Q
Under modern law, a conveyance from “O to A” creates which interest in A?
A
fee simple absolute
17
Q
If O conveys property “to A for life, then to B; but if B predeceases A, to C,” what interest does B have?
A
vested remainder subject to total divestment
18
Q
A _____________________arises when the remainderman is in existence and ascertained and his interest is not subject to any condition precedent, but his right to possession and enjoyment is subject to being defeated by the happening of a condition subsequent.
A
vested remainder subject to total divestment
19
Q
An ________________ is a remainder that (i) can be created in and held only by an ascertained person in being, (ii) must be certain to become possessory on the termination of the prior estate, (iii) must not be subject to being defeated or divested, and (iv) must not be subject to being diminished in size.
A
indefeasibly vested remainder
20
Q
A _________________ is a remainder created in a class of persons that is certain to take on the termination of the preceding estate, but is subject to diminution by reason of other persons becoming entitled to share in the remainder.
A
vested remainder subject to open
21
Q
A ______________ is a remainder that is (i) subject to a condition precedent, or (ii) created in favor of unborn or unascertained persons
A
contingent remainder
22
Q
A tenancy by the entirety can be terminated by:
A
- the death of either spouse
- divorce
- mutual agreement of the spouses, or
- execution by a joint creditor of both spouses
23
Q
These 3 things will sever a joint tenancy:
A
- a suit for partition by one joint tenant
- an inter vivos conveyance by one joint tenant
- In a title theory state, the execution of a mortgage by one joint tenant
24
Q
In general, a life tenant commits voluntary waste when he:
A
Consumes or exploits natural resources on the property
25
Exceptions to the rule that generally a life tenant commits voluntary waste when he consumes/exploits natural resources on the property include: (4)
A life tenant is allowed to consume such resources when:
(i) in reasonable amounts when necessary for repair and maintenance of the land;
(ii) when the life tenant is expressly given the right to exploit such resources in the grant (e.g., a mineral lease);
(iii) when prior to the grant, the land was used in exploitation of such natural resources, so that the grantor most likely intended the life tenant to have the right to exploit; and
(iv) in many states, when the land is suitable only for such exploitation (e.g., a mine).
26
If O conveys property “to A for her support until she remarries,” what interest does A have?
fee simple determinable
27
If O conveys property “to A for life, then to B; but if B predeceases A, to C,” what interest does C have?
Shifting executory interest
28
A __________ restraint provides that any attempted transfer of the property is ineffective.
disabling
29
A grantor who conveys a fee simple determinable retains __________.
a possibility of reverter
30
If O conveys property “to charity A, but if the premises are no longer used as a museum, to charity B,” charity A has __________ and charity B has __________.
a fee simple subject to an executory interest; an executory interest
31
What interest arises when the remainderman is in existence and ascertained, but her right to possession and enjoyment is subject to being defeated by the happening of a condition subsequent?
Vested remainder subject to total divestment
32
If T devises property “to A for life, then to B’s children,” and B has at least one child living at all relevant times, when does the class of “B’s children” close?
At A's death
33
Which future interest divests the interest of another transferee?
a shifting executory interest
34
At common law, a conveyance of property from O “to O and A as joint tenants with right of survivorship” creates a __________.
tenancy in common
35
A conveyance from O “to A for life, and A covenants not to transfer her interest to anyone” contains a __________ restraint.
promissory
36
Contingent remainders, executory interests, and vested remainders subject to open, are all subject to the ________________.
Rule against perpetuties
37
A grantor who conveys a lesser estate than the grantor owns retains __________.
a reversion
38
A ______________is the future interest retained by a grantor who conveys a fee simple determinable.
possibility of reverter
39
A __________ is the future interest retained by a grantor who conveys a fee simple subject to a condition subsequent.
right of entry
40
At common law, a contingent remainder must vest prior to or upon termination of the preceding estate or it is extinguished under to the __________.
Rule of Destructibility of Contingent Remainders
41
If A, B, and C own property as joint tenants, and A conveys his interest to D, what interests do the parties own on B’s death?
C owns a 2/3 interest, and D owns a 1/3 interest
42
A ________ futuer interest follows a gap in possession or divests the estate of the transferor?
springing executory interest
43
In most states, when tenants by the entirety divorce, they hold the property as __________.
tenants in common
44
A fee simple determinable is an estate that:
Automatically terminates on the happening of a stated event and reverts to the grantor
45
A vested remainder subject to total divestment arises when the remainderman is in existence and ascertained, but her right to possession and enjoyment is subject to:
Being defeated by the happening of a condition subsequent
46
In the case of a deed, the perpetuities period begins to run on the date the deed is:
Delivered with intent to pass title
47
A grantor who conveys a fee simple absolute retains:
no interest
48
In general, a life tenant commits permissive waste when he:
Fails to make required repairs to the land or pay required carrying charges
49
If O conveys property “to A for life, then to B; but if B predeceases A, to C,” what interest does B have?
Vested remainder subject to total divestment
50
At common law, if O conveyed property “to A for life, then to B’s heirs” and A predeceased B, B’s heirs would have:
no interest
51
If A and B own property as joint tenants, and B dies leaving a will devising her interest in the property to C, who owns the property?
A only
52
Must a co-tenant in possession share profits gained by her personal use of the property with co-tenants out of possession?
No, unless there has been an ouster or agreement to the contrary
53
A grantor who conveys a fee simple subject to a condition subsequent retains __________.
A right of entry
54
A grantor who conveys a fee simple determinable retains __________.
A possibility of reverter
55
A grantor who conveys a lesser estate than the grantor owns retains __________.
A reversion
56
Absent an express agreement, if a tenant has affixed chattels to leased premises, when must she remove them to ensure they do not become the landlord’s property?
If the duration of the tenancy is definite, the tenant must remove annexed chattels before the tenancy terminates
57
Under the growing trend of modern case law, a landlord will be held liable for personal injuries of residential tenants and their guests resulting from the landlord’s __________ negligence.
ordinary
58
When a landowner owns a chattel that she affixes to the realty, what determines whether the chattel is a fixture?
The objective intention of the annexor
59
When a landowner owns a chattel that she affixes to the realty, whether the chattel is a fixture depends on the objective intention of the annexor.The annexor’s intention, which governs in common ownership cases, is determined by considering:
1. The nature of the chattel (i.e., how essential it is to the normal use of the realty);
2. The manner in which the chattel is attached to the realty (the more substantially attached, the more likely it was intended to be permanent);
3. The amount of damage that would be caused by the chattel’s removal; and
4. The adaptation of the chattel to the use of the realty (e.g., custom window treatments, wall-to-wall carpet).
60
A ___________is a leasehold estate that is terminable at the will of either the landlord or the tenant.
tenancy at will
61
A ____________is a leasehold estate that continues from period to period until terminated by proper notice by either the landlord or the tenant.
A periodic tenancy
62
A _____________ is a leasehold estate that continues for a fixed period of time and automatically expires without either the landlord or the tenant giving notice to the other.
tenancy for years
63
A _____________is a property relationship between landlord and tenant in which the tenant has a present possessory interest in the leased premises, and the landlord has a future interest (reversion).
leasehold estate
64
If the government condemns only part of leased land, the tenant’s liability for rent:
Is not extinguished, but the tenant may be entitled to compensation for the taking
65
In most states, the landlord must deliver __________ possession to the tenant at the beginning of the leasehold term.
actual
66
One week after a month-to-month tenant reports her landlord for housing code violations, the landlord gives the tenant 30 days’ notice that he is terminating her lease.
May the landlord evict the tenant after 30 days?
No, unless the landlord can show a valid, nonretaliatory motive
67
If L leases property to T, and L subsequently assigns L’s interest to L2, whom may T hold liable when X, a paramount title holder, ejects T?
L or L2
68
A tenant leases premises that are destroyed without the fault of either the landlord or the tenant.
Under the majority view, which is true in the absence of a contrary lease provision?
The lease may be terminated at the tenant’s option, and the tenant may cease paying rent
69
Under the growing trend of modern case law, may a landlord be held liable for defects arising after the tenant takes possession?
No, unless the landlord knew or should have known of them
70
If a month-to-month tenant reports a landlord for housing code violations, may the landlord increase the tenant’s rent the following month?
No, if the landlord has a retaliatory motive
71
In residential leases, a tenant who holds over after termination of a year-to-year periodic tenancy may be held to a new periodic tenancy from __________.
Month to month
72
Absent a specific covenant in the lease, a tenant who fails to repair ordinary wear and tear commits __________.
No waste
73
Under the growing trend of modern case law, may a landlord be held liable for injuries inflicted on a tenant by a third-party criminal?
Yes, if the landlord failed to maintain ordinary security measures
74
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
75
A leasehold is:
A nonfreehold estate in land
76
May personal property that is not affixed to land be classified as a fixture?
Yes, if the item is uniquely adapted to the realty
77
The Rule in Dumpor’s Case provides that:
If a landlord consents to one transfer that would otherwise violate a covenant against assignment or sublease, he waives his right to assert that future transfers breach the lease
78
__________ waste results when a tenant intentionally or negligently damages the leased premises.
Voluntary
79
A tenant for years may remove a chattel the tenant affixed to the leased premises if __________.
the tenant removes the chattel before the termination of the lease, and doing so causes no damage to the premises
80
A tenant who goes into possession of the premises under an invalid lease and pays monthly rent is a:
Periodic tenant
81
Is a tenant obligated to repair ordinary wear and tear?
Yes, if the lease contains a covenant to repair that fails to exclude ordinary wear and tear.
82
At common law, if a tenant defaulted on her rent obligation, the landlord could:
Sue the tenant for rent
*At modern law, can sue or evict.
83
If a landlord substantially interferes with a tenant’s quiet enjoyment of the premises, the tenant may:
Vacate the premises, terminate the lease, and sue for damages
84
Under the growing trend of modern case law, a landlord will be held liable for personal injuries of residential tenants and their guests resulting from the landlord’s __________ negligence.
ordinary
85
May a trespasser remove her annexed chattel from the landowner’s property?
No, regardless of whether the chattel was installed in good faith
86
If L leases property to T, and L subsequently assigns L’s interest to L2, is L2 liable to T on all covenants that are contained in the original lease?
Yes, if the covenants run with the land
87
In the majority of states, if a hold-over tenant is occupying the premises when a new tenant’s term begins, who must evict the hold-over tenant?
the landlord
88
Under the growing trend of modern case law, may a landlord be held liable for defects arising after the tenant takes possession?
No, unless the landlord knew or should have known of them
89
If L leases a residence to T for five years, ending on December 31, at $400 per month, and T remains in possession of the premises on January 1 of the sixth year, L may hold T to a __________.
month-to-month tenancy at $400 per month
90
In a majority of states, what type of possession must the landlord deliver to the tenant at the beginning of the leasehold term?
Actual
91
List all of the remedies a landlord has under modern law when a tenant defaults on her rent obligation.
Sue the tenant for rent, evict the tenant, or deduct the unpaid rent from the tenant’s security deposit
92
L leases property to T. L subsequently assigns L’s interest to L2. T thereafter continues paying rent to L.
May L2 evict T for failure to pay rent?
Yes, if T received reasonable evidence of the assignment
93
If L leases a residence to T “for as long as T desires,” T most likely has a __________.
Life estate determinable
94
If the government condemns __________ of the leased land, the tenant’s liability for rent __________, and the tenant __________ entitled to compensation for the taking.
all; is extinguished; may be
95
What is the result when a tenant at will assigns the tenancy?
The tenancy terminates
96
If the government condemns all of the leased land, the tenant’s liability for rent:
Is extinguished, and the tenant may be entitled to compensation for the taking
97
A landlord and tenant enter into a valid lease agreement in which the tenant covenants to repair the premises.
If the leased premises are destroyed without the fault of either the landlord or the tenant, must the tenant undertake the repairs?
No, unless the covenant expressly includes such repairs
98
Is an easement extinguished when the easement and the servient tenement become owned by the same person?
Yes, but only if the interest acquired is equal to or greater than the interest owned.
99
Easements, profits, real covenants, and equitable servitudes all create __________.
A right to use or restrict the use of land possessed by someone else.
100
If an easement is said to be surcharged, this means:
The easements legal scope was exceeded.
101
_____________will terminate an easement. The easement holder may be entitled to compensation for the value lost.
Condemnation of the servient estate
102
By granting an affirmative easement across her land, a landowner grants:
A right to use that portion of her land
103
What is the effect of a profit holder’s using the profit beyond its legal scope?
the profit automatically terminates
104
When may the grant of a perpetual easement be enforced as a license?
When it fails to satisfy the Statute of Frauds
105
To acquire a prescriptive easement on property, the claimant’s use must be:
Open and notorious, adverse, and continuous for the statutory period
106
By granting an affirmative easement across her land, a landowner grants:
A right to use that portion of her land
107
To acquire a prescriptive easement on property, the claimant's use does not need to be __________.
exclusive.
| Must be open & notorious, adverse, & continuous
108
In a residential subdivision, will a commercial builder be bound by a residential-use restriction that was omitted from his deed?
Yes, if the builder had inquiry notice of a common scheme for development
109
A real covenant is a written promise to do or not to do something on the land. The benefit of the covenant will run to successors in interest if:
1. The covenanting parties intended that successors in interest be benefitted by the covenant;
2. There is vertical privity between the covenantee and her successor in interest; and
3. The covenant touches and concerns the land (i.e., it benefits the covenantee and her successor in their use and enjoyment of the benefited land).
110
At common law, horizontal privity is required _________.
For the burden of a real covenant to run with the land.
111
At common law, horizontal privity is required for the burden of a real covenant to run with the land. It is NOT required simply for a real covenant to be created.The burden of the covenant will run with the land 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;
3. There is horizontal privity between the original covenanting parties;
4. There is vertical privity between the covenantor and her successor in interest; and
5. The covenant touches and concerns the land (i.e., it benefits the covenantee and her successor in their use and enjoyment of the benefited land).
112
If a plaintiff seeks an injunction for breach of a promise relating to the use of land, she must show that the promise qualifies as:
an equitable servitude.
An equitable servitude is a covenant that, regardless of whether it runs with the land at law, equity will enforce against assignees of the burdened land who have notice of it.
113
If a driveway is located partly on the property of each of two adjoining landowners, what interest does each landowner have in the driveway absent express agreement?
Cross-easement for support
114
An _______________arises when the owner of a tract of land conveys title but expressly reserves the right to continue to use the tract for a special purpose after the conveyance. Here, there is no express agreement.
easement by reservation
115
An________________arises when the owner of a tract of land sells a part of the tract and by this division deprives one lot of access to a public road or utility line. That is not the case here.
easement by necessity
116
If a party to a real covenant transfers his entire durational interest to a third person, the party and his successor in interest are:
In vertical privity
117
If the benefited party seeking to enforce an equitable servitude is violating a similar restriction on his own land, which of the following defenses should the burdened party assert?
Unclean hands
This defense will apply as long as the plaintiff’s violation is of the same general nature.
118
The defense of ____________ applies when the benefited party acquiesces to one burdened party’s violation of the servitude and thus may be deemed to have abandoned the servitude as to other burdened parties. Here, the benefited party himself is violating the servitude and thus has unclean hands.
acquiescence
119
This defense applies when the benefited party fails to bring suit against the burdened party within a reasonable time.
laches
120
This defense applies when the neighborhood has changed significantly since the time the servitude was created such that it would be inequitable to enforce the restriction.
changed conditions
121
For the burden of a real covenant to run to successors in interest, the original parties to the covenant must be in __________.
horizontal privity
122
If a party to a real covenant transfers his entire durational interest to a third person, the party and his successor in interest are:
in vertical privity
123
For the burden of a real covenant to run to a successor in interest, the successor must be in __________ with the covenantor.
vertical privity
124
If a plaintiff seeks money damages for breach of a promise relating to the use of land, she must show that it qualifies as:
a real covenant
125
Two neighbors install a common driveway and covenant to be mutually responsible for its maintenance.
If one conveys his property by a deed that does not mention the driveway, is his grantee mutually responsible for maintaining it?
Yes, because the burden of the maintenance covenant runs to successors in interest
126
Which of the following is required for the burden of an equitable servitude to run to a subsequent purchaser of the land?
The purchaser must have notice of the covenant
127
Vertical privity refers to the relationship between:
An original party to a real covenant and his successor in interest
128
Horizontal privity exists between:
Parties to a real covenant who shared an independent interest in the land at the time they entered the covenant
129
If a zoning ordinance is more restrictive than a real covenant, __________.
The ordinance controls
130
At common law, horizontal privity is required _________.
For the burden of a real covenant to run with the land
131
A cross-easement for support is:
An easement implied for adjoining landowners who share a common wall or driveway
132
If someone burdened by an equitable servitude can raise the defense of estoppel to prevent its enforcement, it is probably because the benefited party:
Acted so that a reasonable person would believe she abandoned the covenant, and the burdened party relied on this
133
For the burden of a real covenant to run to successors in interest, the original parties to the covenant must be in __________.
horizontal privity
134
A breach of a real covenant is remedied by __________.
an award of money damages
135
If the benefited party seeking to enforce an equitable servitude previously consented to another party’s violation of the servitude, the burdened party should assert the defense of:
acquiescence
136
If a real covenant is more restrictive than a zoning ordinance, __________.
The covenant controls
137
May a grantee be bound by a covenant that does not appear in his deed or chain of title?
Yes, if there is a common scheme for development and the grantee had notice of the covenant.
138
If the benefited party seeking to enforce an equitable servitude is violating a similar restriction on his own land, which of the following defenses should the burdened party assert?
unclean hands
139
O conveys to A a fee simple subject to a condition subsequent and retains a right of entry.
When must X go into adverse possession in order to acquire O’s interest?
When O asserts his right of entry
140
What is the result if a landowner timely brings an ejectment action against a would-be adverse possessor, but the judgment is rendered after the statutory period expires?
The judgment relates back to when the complaint was filed
141
When an occupier adversely goes into possession of land owned by someone who is legally able to sue, the statute of limitations for ejecting the occupier __________.
has commenced
142
How can a landowner prevent an occupier of land from taking title by adverse possession?
by obtaining a judgment in an action for ejectment.
143
An occupier will establish title by adverse possession if he can show:
(i) An actual entry giving exclusive possession that is
(ii) Open and notorious,
(iii) Adverse (hostile), and
(iv) Continuous throughout the statutory period.
144
For purposes of determining title by adverse possession, tacking is not available when _______________ or the first claimant abandons and the next claimant goes into possession.
one adverse claimant ousts the other
145
Periods of adverse possession between two successive claimants may be tacked together to make up the full statutory period if there is ____________ between the claimants.
privity of possession
*Privity is satisfied if the first adverse claimant purports to transfer the land to the next; i.e., the subsequent possessor takes by descent, by devise, or by deed purporting to convey title.
146
For purposes of determining title by adverse possession, when does the statute of limitations begin to run against someone who holds a future interest that was created before the adverse possession commenced?
when the interest becomes possessory
147
Someone who does not __________ may still acquire the property by adverse possession if he has __________.
possess an entire tract of land; color of title to it
*Color of title is a document that purports to—but does not actually—give someone title to land.
148
Generally, an adverse possessor gains title only to land that he actually occupies. However, one who actually possesses a portion of land may gain title to the entire tract through adverse possession if:
(i) there is a reasonable proportion between the portion possessed and the whole tract, and
(ii) the possessor has color of title to the whole tract.
149
If an adverse possessor uses land in violation of a recorded real covenant for the limitations period, she:
Takes title free of the real covenant
150
Periods of adverse possession between two successive claimants may be tacked together to make up the full statutory period if __________.
The first adverse claimant purports to transfer the land to the next
151
The hostility element of adverse possession requires that the possessor:
Lack the true owner’s permission to be on the land
152
If an adverse possessor uses land in compliance with a recorded real covenant for the limitations period, he:
Takes title subject to the real covenant
153
If a landowner is under a disability to sue before an occupier goes into adverse possession, the statute of limitations:
Does not commence until the disability is removed
*The statute of limitations for adverse possession does not begin to run if the true owner was under a disability to sue (e.g., because of minority, imprisonment, or insanity) when the cause of action first accrued. Rather, if the owner was not legally able to sue at the time the cause of action arose (i.e., at the inception of the adverse possession), the statute will not begin to run until all of the disabilities in existence at that time are removed. Only the owner’s disabilities existing at the time the cause of action arose are considered
154
If a landowner comes under a disability to sue after an occupier enters into adverse possession, the statute of limitations:
continues to run
155
For purposes of determining title by adverse possession, whose periods of disability may be tacked together to prevent the statute of limitations from running?
No one's
156
O conveys a life estate to A, with a remainder to B.
If during A’s lifetime, X enters into actual, exclusive possession that is open and notorious and hostile for the statutory period, will X obtain title to the land?
No but X will acquire A's life estate
157
If someone has __________, he may still acquire title by adverse possession if he __________.
initial permission to occupy the land; communicates hostility
158
When an occupier adversely goes into possession of land owned by someone who is legally able to sue, the statute of limitations for ejecting the occupier __________.
has commenced
159
Disability to sue means
1. insane
2. minor
3. incarcerated
160
The hostility element of adverse possession requires that the possessor:
Lack the true owner's permission to be on the land
161
Whose agent is the real estate broker who lists property for sale, absent an agreement to the contrary?
the seller's agent
162
If a real estate contract states that time is of the essence, a party who fails to tender performance on the closing date:
Is in total breach and loses her right to enforce the contract
163
If the seller is in breach of a land sale contract at closing, is the buyer entitled to specific performance?
Yes, if he tenders the purchase price
164
If the buyer of land determines that the seller’s title is unmarketable, the buyer must:
notify the seller and give reasonable time to cure defects
165
What happens 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
166
May a buyer obtain specific performance of an oral land sale contract?
Yes, if the buyer has done at least 2 of the following 3: (despite a general SOF requirement for writing):
1. taken possession of the land
2. made substantial improvements to the land
3. paid all or part of the purchase price.
167
The _________________ may not be recovered for breach of a real estate contract.
fair market value of the land
*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.
168
_____________ is title reasonably free from doubt, i.e., title that a reasonably prudent buyer would be willing to accept.
Marketable title.
*Generally, this means an unencumbered fee simple with good record title.
169
Every land sale contract contains an implied covenant that the seller will provide marketable title at closing. While it need not be perfect title, it must be free from ______________________________________.
questions that might present an unreasonable risk of litigation.
170
Every land sale contract contains an implied covenant that the seller will provide marketable title at closing. While it need not be perfect title, it must be free from questions that might present an unreasonable risk of litigation.
The successors to the seller’s real property must give up legal title at closing
171
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
172
The Statute of Frauds requires that a memorandum of a land sale contract be signed by:
the party to be charged
173
A seller may avoid liability for some property defects by including in the land sale contract:
A clause identifying the specific defects and disclaiming liability for them
174
Under the doctrine of equitable conversion, equity regards the buyer of land as __________.
owning the real property as soon as the contract is signed
175
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
176
Under the doctrine of equitable conversion, if improvements on realty are destroyed without fault before the closing date, the risk of loss is on _______.
the buyer
177
A title insurance policy protects __________.
only the person who is named as an insured in the contract.
178
If a deed is delivered with the __________ left blank, courts will presume that the person taking delivery has authority to fill in the blank.
Identity of the grantee
179
Under __________ statute, a subsequent transferee with notice of a prior conveyance can prevail over the prior grantee.
A race
180
_________ and ___________recording acts protect bona fide purchasers (“BFPs”) from prior unrecorded conveyances of the same property.
Notice; race-notice
181
A _____________is a purchaser who takes land without notice of a prior instrument and pays valuable consideration.
Bona fide purchaser
*Donees, heirs, and devisees are not BFPs because they do not give value for their interests; i.e., they are not purchasers.
182
When is parol evidence admissible to show oral conditions on the delivery of a deed?
If the deed was placed in escrow.
*Parol evidence is not admissible for this purpose if the deed was given directly to a grantee
183
A deed must contain an identification of the ___________ in order to be valid.
A deed must identify the parties (grantor and grantee) by name or other description (e.g., “my eldest son”).
A deed must also identify the land to be conveyed.
*Note, however, that if a deed is delivered with the identity of the grantee left blank, courts will presume that the person taking delivery of the deed has the authority to fill in the grantee’s name.
184
When a mistake or inconsistency in the description leaves in doubt the exact location of the property, and the court otherwise lacks clear evidence of the parties’ intent, the following rules of construction apply:
1. Natural monuments prevail over all other methods of description, including artificial monuments, courses and distances, and quantity measurements;
2. Artificial monuments prevail over all but natural monuments;
3. Course measurements (i.e., angles) prevail over distance measurements; and
4. All of the foregoing prevail over general descriptions, such as the name of the property or quantity (e.g., square footage or acreage).
185
A race-notice statute is a recording act that alters the common law rule of “first in time, first in right” to protect a subsequent bona fide purchaser (“BFP”)—i.e., one who pays valuable consideration and lacks notice of the prior conveyance. However, to obviate questions about the time of delivery and to induce parties to record promptly, race-notice statutes protect BFPs only if _________________.
they are the first to record.
186
“No conveyance or mortgage of an interest in land is valid against any subsequent purchaser for value without notice thereof whose conveyance is first recorded."
This is an example of a typical _____________ staute.
Race-notice statute.
187
“No conveyance or mortgage of an interest in land is valid against any subsequent purchaser for value without notice thereof, unless it is recorded."
This is an example of a typical __________ statute.
Notice
188
“No conveyance or mortgage of an interest in land is valid against any subsequent purchaser whose conveyance is first recorded."
This is an example of a typical __________ statute.
race
189
Under a race statute, the first party to record wins, regardless of whether she has ______________________.
notice of a prior conveyance.
190
Under a notice statute, a subsequent BFP need not record in order to prevail over a prior grantee who failed to record. A notice statute requires only that the subsequent purchaser have no _________________________ notice at the time of the conveyance.
actual or constructive (i.e., record or inquiry)
191
In a deed, if the signature of the ___________ is left blank, the deed is void.
grantor
192
In a deed, if the ______________is left blank, no such authority is presumed, and the deed is void unless the person taking delivery was explicitly given authority to fill in the description and did so.
description of the land
193
Under __________ statute, a subsequent transferee with notice of a prior conveyance can prevail over the prior grantee.
A race
194
Inquiry notice means that a subsequent grantee is held to have knowledge of any facts that a reasonable inquiry would have revealed, even if he made no inquiry. A quitclaim deed releases whatever interest a grantor might have in the property and contains no covenants for title. Nonetheless, in the majority of states, grantees are not charged with inquiry notice from the mere fact that a __________________ was used.
quitclaim deed
195
In order to prevail over a prior grantee under a race statute, when must a subsequent transferee record?
Before the prior grantee records.
196
When O does not acquire title to property until after he purported to convey the property to A, _____________________.
A can accept title to the land or possibly sue O for breach of covenants for title.
197
A deed will not transfer an interest in land unless it has been ______________________.
delivered by the grantor and accepted by the grantee. Unless the grantor clearly expressed his intent that title pass to the grantee without physical delivery, the grantor’s continued possession of the deed raises a presumption of nondelivery.
198
If a deed never was delivered, but the listed grantee discovers the deed and records it, the deed is:
void
199
Under the Uniform Fraudulent Transfer Act, which nearly all states have adopted, a conveyance is fraudulent and may be set aside by the grantor’s creditors if the grantor/debtor actually intended to hinder, delay, or defraud a creditor; or if the grantor:
(i) did not receive a reasonably equivalent value in exchange for the transfer and
(ii) was insolvent or became insolvent as a result of the transfer.
200
Someone who purchases land over which several recent tire tracks pass, leading to an adjacent parcel, will be charged with __________ notice of the adjacent landowner’s unrecorded easement.
inquiry
201
Which of the following is true when a grantor transfers land to hinder a creditor?
the creditor maky seek to hav ethe transfer set aside
202
If a grantor executes a deed but fails to deliver it during her lifetime, __________.
Title does not pass
203
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
204
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.
205
When a grantee’s successor is lawfully ejected by a third party, the original grantor who conveyed the general warranty deed may be held liable for breaching the covenant of warranty
the covenant of warranty
206
Against whom may a grantee invoke the doctrine of estoppel by deed?
the original grantor only
207
In a ________________ deed, the grantor covenants against title defects created by both himself and all prior titleholders.
general warranty
208
In a _____________ deed, the grantor covenants against only the title defects he himself created, and not those created by his predecessors.
special warranty
209
In a _________deed, the grantor releases whatever interest he has in the property, if any. Thus, a quitclaim deed contains no covenants warranting the grantor’s title.
quitclaim
210
A court will never reform a deed that __________.
has been relied on by a bona fide purchaser
211
A ___________ restraint provides that the grantee covenants not to transfer the property.
promissory
A conveyance from “O to A, and A hereby covenants not to transfer the land or any interest therein without O’s consent” contains a promissory restraint. Reasonable (i.e., limited in time and purpose) promissory restraints on legal interests generally are valid.
212
A _________________ restraint provides that any attempted transfer of the property is ineffective.
disabling restraint
A conveyance from “O to A, and neither A nor her heirs shall have the right to transfer the land or any interest therein” contains a disabling restraint. Disabling restraints on any legal interest are void.
213
A ________ restraint provides that if the grantee attempts to transfer the property, it is surrendered to another person.
forfeiture
A conveyance from “O to A, but if A attempts to transfer the land or any interest therein during her lifetime, to B” contains a forfeiture restraint. Reasonable forfeiture restraints on legal interests generally are valid.
214
General warranty deeds typically contain what covenants?
Present Covenants:
1. covenant of seisin: Gor promises he owns this estate
2. covenant of right to convey: Gor has the power to transfer
3. Covenant against encumbrances: no servitudes or liens on Blackacre
Future Covenants:
1. the covenant for quiet enjoyment: Gee won't be disturbed in possession by a 3rd party's lawful claim of title.
2. Covenant of warranty: Gor will defend grantee against any lawful claims of title brought by others.
3. Covenant for further assurances: Gor will do whatever is needed in the future to perfect the title
215
What are the 3 things that can make title unmarketable?
1. encumbrances
2. adverse possession (if any portion of title was gotten through a.p.)
3. zoning violations
216
A bona fide purchaser is one who:
1. Buys Blackacre for value and
| 2. without notice that someone else got there first.
217
T/F: In a notice statute jx, the last BFP to enter wins.
True. If at the time B takes, he is a BFP he wins.
218
Under a race-notice statute jx, to prevail, B must 1)_________ and 2) ____________.
1. be a BFP
| 2. Win the race to record
219
The charity exemption for the RAP only applies if the conveyance goes from _______ to _______.
charity to charity
220
To exercise your right of reentry (following the failure of a condition subsequent), you must file an action for ejectment.
True.
221
T/F: The open mines doctrine does not apply to defeasible fees.
True.
222
The class closes when:
anyone in the class has a present possessory interest.
* Watch for unborn children in gestation.
223
T/F: The holdover tenant has to pay the new rent amount if the landlord notified the tenant prior to the lease expiring.
True.
224
T/F: A holdover tenant in a residential lease is held to a month to month lease generally while a holdover tenant in a commercial lease is held to a lease reflecting the terms of the prior lease.
True.
225
T/F: A security interest in a fixture prevails even over a prior recorded mortgage on the land with respect to that fixture. As long as the secured interest in the fixture is recorded within 20 days after the chattel is affixed to the land.
True.
226
T/F: Only the mortgagor holds the statutory right to redeem the property.
False! Junior creditors can also exercise the right in order to protect their interests. So a finance company can pay off the bank's mortgage to preserve it's own interest in the land.
*Where the finance company is a junior creditor and the bank is the senior creditor.
227
If proper notice is not given by the foreclosing creditor to the creditors junior to it,
the junior creditor's encumbrance stays on the property and becomes senior to the foreclosing party's.
228
T/F: Under the riparian rights doctrine (majority rule on the MBE), domestic use of water trumps agricultural or commercial us.
True.
229
An out of possession co-tenant is not entitled to profits made by the tenant in possession.
True. If the possessing co-tenant (or joint tenant) farms the land for profit, then you don't get to share in that. *Rent to a 3rd party is different.
230
Co-tenants are entitled to rent collected by a possessing co-tenant so long as the rent is collected from a 3rd party.
True. Can't collect rent from the co-tenant himself just because he chooses to live there, but if he rents to a 3rd party, then rent $ is split between the co-tenants according to their share of ownership in the property.
231
A possessing co-tenant can collect carrying costs (mortgage/taxes) from co-tenants out of possession, but can't collect for losses due to farming the land, e.g.
True.
