Real Property Flashcards

Question

Real Property: Landlord/Tenant Law Difference between an Assignment and a Sublease?

Answer 1

In the absence of some prohibition in the lease, T may freely transfer his or her interest in whole (ASSIGNMENT) or in part (SUBLEASE) L can prevent T from assigning or subletting without L's prior written approval However, once L consents to one transfer by T, L waives the right to object to future transfers by that T, unless L reserves that right

Answer 2

1. Redemption in equity - Debtor can try to redeem the land up to the date of sale - universally recognized ----Must pay off the missed payment(s) plus interest plus costs or if there is an acceleration clause then must pay off the full balance plus interest plus costs 2. Statutory Redemption - NOT MD - For some time after the foreclosure sale, the debtor is allowed to pay the foreclosure sale price in order to get his house back

Answer 3

May not engage in acts that will enhance the property's value, unless all future interest holders are known and consent

Answer 4

L and T2 are in NEITHER privity of estate nor privity of contract. T2 is liable to T1 and vice versa. The original legal relationship between L and T1 remains fully intact.

Answer 5

1. Shifting executory interest- always follows a defeasible fee and cuts short the interest of someone other than the grantor 2. Springing executory interest- always follows a defeasible fee and cuts short the interest of the grantor

Answer 6

It contains no covenants. Grantor isn't even promising that he has title to convey, but is promising implicitly in the K to provide marketable title. Any problems post-closing, grantor is off the hook.

Answer 7

Through proper judicial action

Answer 8

Provided for by statute in many states, this deed contains two promises that grantor makes only on behalf of himself. 1. Grantor promises she hasn't conveyed Blackacre to anyone other than grantee AND 2. Blackacre is free from encumbrances made by grantor

Answer 9

Until recording the deed, creditor has no priority Once recorded, priority is determined by 1st in time, 1st in right Purchase money mortgage is given superpriority and is always granted 1st priority

Answer 10

Certain kinds of future interests are void if there is any possibility, however remote, that the given interest may vest more than 21 years after the death of a measuring life.

Answer 11

- Quitclaim - General Warranty Deed - Special Warranty Deed

Answer 12

1. Vested remainder 2. Contingent Remainder 3. Executory Interest

Answer 13

LASS L ight A ir S upport S treamwater from artificial flow NOTE: In minority of states: (-) easements may be acquired for scenic view. Negative easements can ONLY be created expressly, by a writing signed by the GRANTOR. No natural or automatic right to one of these!

Answer 14

By the terms that created it.

Answer 15

The deed must be recorded properly within the chain of title, which refers to that sequence of recorded documents capable of giving notice to later takers. In most states, this is established through a title search of the grantor-grantee index.

Answer 16

1. The Possibility of Reverter - Fee simple determinable 2. Right of Entry - Fee simple subject to condition subsequent 3. Reversion - Any time O transfer some, but not all of his interest in land that is not a determinable or a condition subsequent

Answer 17

One who has (i) bought for value (any substantial pecuniary consideration, even a "bargain basement" sale), and (ii) without notice that someone else got there first.

Answer 18

At CL, a contingent remainder was destroyed if it was still contingent at the time the preceding estate ended, and the grantor would take in fee simple absolute. Has been abolished- the contemporary rule states that if a contingent remainder is still contingent at the time the preceding estate ends, the grantor's then hold the estate subject to a springing executory interest.

Answer 19

END CRAMP - Estoppel - Necessity- easement created by necessity end need ends - Destruction of the servient land, other than through the willful conduct of the servient owner - Condemnation of the servient estate by eminent domain - Release- written release from the easement holder to the servient owner - Abandonment- demonstrated by the easement holder by physical action - Merger doctrine- easement is extinguished when title to the easement and title to the servient land become vested in the same person - Prescription- servient owner extinguishes by adverse possession

Answer 20

The SOL will not run against a true owner who is afflicted by a disability at the start of the adverse possession. Common disabilities include insanity, infancy, and imprisonment.

Answer 21

A mortgage is the conveyance of a security interest in land intended by the parties to be collateral for the repayment of a debt (union between a debt and a voluntary lien in debtor's land to secure that debt)

Answer 22

When tenant removes a fixture she commits waste A fixture is a once movable chattel that, by virtue of its annexation to realty: OBJECTIVELY SHOWS the intent to permanently improves the realty, therefore T MUST NOT REMOVE A FIXTURE, NO MATTER THAT SHE INSTALLED IT 2. Express agreement controls In the absence of agreement, T may remove a chattel that she has installed so long as removal does not cause SUBSTANTIAL HARM to the premises ALWAYS REMEMBER - If removal will cause substantial damage, then in OBJECTIVE JUDGMENT T has shown the intent to install a fixture; the fixture stays put

Answer 23

Notice: "A conveyance of an interest in land shall not be valid against any subsequent purchaser for value, without notice thereof, UNLESS THE CONVEYANCE IS RECORDED" Race-Notice: "Any conveyance of an interest in land shall not be valid against any subsequent purchaser for value, without notice thereof, WHOSE CONVEYANCE IS FIRST RECORDED"

Answer 24

Means that one who takes from a BFP will prevail against any entity that the transferor-BFP would have prevailed against. Results in transferee "taking shelter" in the status of her transferor, in that she would be allowed BFP status even if she herself might fail to meet those requirements.

Answer 25

Water beneath the surface of the Earth that is not confined to a known channel The surface owner is entitled to make reasonable use of ground water, however, the use must not be wasteful

Answer 26

1. English Rule - [Majority & MD] - L put T in actual possession of the premises. Thus, if at the start of T's lease a prior holdover T is still in possession, L has breached and the new T gets damages 2. American Rule [minority] - T must get the holdover out, L must only deliver legal possession

Answer 27

1 Riparian Doctrine - MD ---Water belongs to those who own the land bordering the water course - They are known as riparians, who share the right of REASONABLE use of the water 2. Prior Appropriation Doctrine --Water belongs initially to the state, but the right to divert it and use it can be acquired by an individual, regardless of whether or not he happens to be a riparian owner --Any productive or beneficial use of water, including use for agriculture is sufficient to create the appropriation right

Answer 28

1. Indefeasibly vested remainder- Holder is certain to acquire an estate in the future ("no strings attached") 2. Vested remainder subject to complete defeasance/divestment- Holder's right to possession may be cut short because of a condition subsequent 3. Vested remainder subject to open- Holder is but one in a group of takers, whose share is subject to partial diminution because additional members may join

Answer 29

The covenant is a promise to do or not to do something related to land. It is UNLIKE the easement b/c it is not the grant of a property interest, but rather a contractual limitation or promise regarding the land. Can be negative or affirmative. - Negative= promise to refrain from doing something related to the land - Affirmative= promise to do something related to the land

Answer 30

When each superior lien holder obtains satisfaction in full

Answer 31

To satisfy the SOF, the contract must be in writing signed by the party to be bound, it must describe the land & state some consideration. - EXCEPTION to the SOF: Doctrine of Part Performance: If B takes possession, pays for all or part of the price and/or makes substantial improvements the doctrine is satisfied and equity will decree specific performance of an oral K for the sale of land (need 2 of the 3)

Answer 32

Created when T has wrongfully held over past the expiration of the lease Gives the wrongdoer a leasehold estate, to permit L to recover rent Lasts only until L either evicts T or elects to hold T to a new tenancy

Answer 33

Applies when ), who is alive, tries to create a future interest in his (yet unascertained) heirs ("To A for life, then to O's heirs). Results in the contingent remainder (to O's heirs) being void, with A having a life estate and O having a reversion. Aims to promote free transfer of land. Still viable, although grantor's intent controls.

Answer 34

2 or more owners with the right of survivorship. A joint tenant's rights are alienable, but not devisable or descendable. Creation: need the 4 unities "T-TIP"- Time, Title, Identical Interests, AND right to Possess the whole. Also grantor must clearly express the right of survivorship

Answer 35

Yes. Recording statutes apply to both deeds AND mortgages. Same rules apply (depending on notice or race-notice jurisdiction).

Answer 36

A tenancy for no fixed duration - Increasingly rare Unless the parties expressly agree to a tenancy at will, the payment of regular rent will cause a court to treat this as a an implied periodic tenancy The tenancy at will may be terminated by either party at any time, but a reasonable demand to vacate is usually needed ---MD must have one month's notice

Answer 37

1. Determine which future interests have been created by the conveyance (RAP applies only to contingent remainders, executory interests, and certain vested remainders subject to open). 2. ID the conditions precedent to the vesting of the suspect future interest (ask: What has to happen before a future interest holder can take?). 3. Find a measuring life (a person alive at the date of the conveyance whose life or death is relevant to the condition's occurrence) 4. Ask: Will we know, with certainty, within 21 years of the death of our measuring life, if our future interest holder(s) can or cannot take? If YES: Conveyance good. If NO: Conveyance void

Answer 38

In an assignment: L and T2 are in privity of estate, which means that they are liable to each other for all covenants in the original lease that run with the land. They are NOT in privity of contract, unless T2 assumed performance of all promises in original lease. L and T1 are no longer in privity of estate, but remain in privity of contract. They are secondarily liable to each other.

Answer 39

SPAM: Sale, Partition And Mortgage Sale- a JT can sell or transfer her interest during her lifetime. Buyer becomes a tenant in common, other JTs remain JTs. ALSO- in equity a JT's mere act of entering into a K for sale of her share will sever the JT as to the contracting party's interest: Doctrine of Equitable Conversion Partition- By voluntary agreement, Partition in kind (judicial action for physical division), Forced Sale Mortgage- One JT's execution of a mortgage or a lien on his or her share will sever the JT as to that share in a minority of states- NOT MD. IN MD & MAJORITY lien theory of mortagages, no severance of JT.

Answer 40

1. O to A, but if X event occurs, then to B 2. Estate automatically ends in favor of someone other than the grantor 3. Shifting executory interest

Answer 41

A remainder is a future interest created in a grantee that is capable of becoming possessory upon the expiration of a prior possessory estate created in the same conveyance in which the remainder is created. KEY CONCEPTS: Remainders always accompany a preceding estate of known, fixed duration (usually life estate or term of years). Remainders also never cut short or divest the possessory interest in which it is created- the preceding possessory interest always comes to its natural conclusion.

Answer 42

Possession for a statutorily prescribed period of time can, if certain elements are met the possession will ripen into title. 4 elements of adverse possession (COAH): - Continuous - Open and Notorious - Actual - Hostile elements gaged objectively

Answer 43

"AIR" A ctual notice I nquiry notice (on notice for whatever an inspection of Blackacre or follow-up on a recording instrument would show) R ecord notice (B on notice of a properly recorded deed)

Answer 44

1. T's liability to 3rd parties 2. T's duty to repair 3. T's duty to pay rent

Answer 45

Must be LEAD- Lawfully Executed And Delivered -Lawful Execution: Must be in writing signed by grantor (don't need consideration) & include an unambiguous description of the land - Delivery: Grantor physically transfers the deed to the grantee but this is a legal standard and is solely a test of present intent. Delivery doesn't require physical transfer of the deed itself, just need manifestation of intent to be bound -- Express rejection defeats delivery

Answer 46

1. O to A [for so long as, during, until] - durational language ------if the state condition is violated, forfeiture is automatic 2. Devisable, descendable, alienable, BUT ALWAYS SUBJECT TO THE CONDITION 3. Grantor has a POSSIBILITY OF REVERTER ---- FSDPOR

Answer 47

Two-step process 1. The land contract, which endures until step 2 2. The closing, where the deed becomes the operative document

Answer 48

A promise that equity will enforce against successors. It is accompanied by injunctive relief. Remember WITNES: - Writing: original promise was in writing - Intent: parties intended that promise would bind - Touch and Concern: promise affects parties as landowners - Notice: Successors of burdened land had notice of promise - ES: Equitable Estoppel PRIVITY NOT REQUIRED TO BIND SUCCESSORS

Answer 49

EA: Passes automatically with the dominant tenement, regardless of whether it is mentioned in the conveyance (burden also passes this way, unless new owners is a bona fide purchaser without notice) EIG: Not transferable UNLESS it is for commercial purposes

Answer 50

An easement that confers upon its holder only some personal or pecuniary advantage that is not related to his use or enjoyment of his own land. Only ONE parcel involved for this.

Answer 51

"PING" P rescription (may be acquired by satisfying elements of adverse possession) I mplication (court may imply if previous use is apparent, and parties expected it to continue b/c of reasonable necessity to dominant land's use) N ecessity (commonly tested via landlock scenario) G rant (for more than 1 year- needs to be in writing for SoF)

Answer 52

1. Duty to deliver possession 2. The implied covenant of quiet enjoyment 3. Implied warranty of habitability 3. Bar from retaliatory eviction

Answer 53

1. Land is leased with no mention of duration, but provision is made for rent at set intervals 2. An oral term of year in violation of the Statute of Frauds creates an implied periodic tenancy measured by the way rent is tendered 3. The Holdover: In a residential lease, if L elects to hold over a T who has wrongfully stayed on past the conclusion of the original lease: An implied periodic tenancy arises measured by the way rent is now tendered Termination by Notice - usually in writing at least equal to the length of the period itself unless otherwise agreed Exception: year to year or greater MBE = 6 months MD = 3 months, but if its a farm tenancy its 6 months Note 1: By private agreement, the parties may lengthen or shorten these common-law prescribed notice provisions MD may only lengthen Note 2: The periodic tenancy must end at the conclusion of a natural lease period

Answer 54

1. A gift to an open class that is conditioned on the members surviving to an age beyond 21 violates the common law RAP - Bad as to one, bad as to all: Condition precedent applies to every class member and must occur for every class member w/in the perpetuities period or the entire class gift is void 2. Many shifting executory interests violate the RAP. An executory interest w/ no limit on the time within which it must vest violates the RAP - Charity-to-charity exception: A shifting executory interest from one charity to another does not violate RAP.

Answer 55

First, determine if the promise runs with the burdened parcel of land. For a burden to run remember WITHN: - Writing: the promise between A & B was in writing - Intent: Original parties A & B, intended that the covenant would run - Touch and concern the land: promise must affect the parties' legal relations as land owners and not simply as members of public at large - Horizontal and vertical privity: both are needed for the burden to run. Horizontal= nexus between original parties and requires that they be in succession of estate (grantor/grantee, landlord/tenant, mortgagor/mortgagee relationship), Vertical= nexus between original party and successor. Simply requires a non-hostile nexus (blood, contract, devise, descent). - Notice: successor had notice of the promise when took the land Second, determine if benefit runs from benefitted parcel's original owner to successor. Remember WITV: -Writing -Intent -Touch and concern -Vertical privity

Answer 56

"CLAPS" C ommon Areas (L must maintain these) L atent Defects Rule (L must warn of known/should of known hidden defects- no duty to repair!) A ssumption of Repairs (if voluntarily but negligently made, L is liable) P ublic Use Rule (L who leases public space and who should know because of nature of defect and length of lease, that T will not repair, is liable) S hort-Term Lease of Furnished Dwelling (L liable for any defects on site)

Answer 57

Changed Conditions- the changed circumstances alleged by the party seeking release from the terms of an equitable servitude must be so pervasive that the entire area has changed. Mere pockets of limited change not enough.

Answer 58

Typically yes, to satisfy the SoF. The writing is referred to as the "legal mortgage," "the note," "the mortgage deed," "the security interest," "a deed of trust," or "a sale lease-back."

Answer 59

Those which come from the rain, springs, or melting snow, and which have not yet reached a natural watercourse or basin Surface water is subject to the common enemy rule A landowner may change drainage or make any other changes/improvements on his land to combat the flow of surface water - but may not cause unnecessary harm to another's land

Answer 60

Once the K is signed buyer owns the land, subject to course of the condition that he pay the purchase price at closing. SO, if Blackacre is destroyed through no fault of either party between K and closing, B bears the ROL unless the K says otherwise.

Answer 61

A mere privilege to enter another's land for a delineated purpose. - Not subject to SOF - Freely revocable unless estoppel applies

Answer 62

1. O to A, but if event occurs, grantor reserves the right to re-enter and retake -------Clear durational language and grantor carves out the right to re-enter 2. Does not automatically end, grantor must exercise power to termination once the condition subsequent occurs 3. Right of entry, not automatic

Answer 63

1. Note must be negotiable, made payable to transferee (new mortgagee); 2. Original note must be indorsed, signed by the named mortgagee; 3. Original note must be delivered to transferee (no photocopies); 4. Transferee must take note in good faith, without any notice of illegality; AND 5. Transferee must pay value for the note, meaning some amount that is more than nominal.

Answer 64

Mortgagor: Title and right to possess (unless/until foreclosure) Mortagee: Lien

Answer 65

T is responsible for keeping the premises in good repair (tort based) T is liable for injuries sustained by 3rd parties T invited, even where L promised to make repairs

Answer 66

Government's 5th Amendment power to take private property for public use in exchange for just compensation Explicit Takings - Taking your land to build a highway Implicit or regulatory takings - a governmental regulation that although not intended to be a taking, has the same effect ---Remedy fore regulatory taking is to compensate owner or terminate the regulation and pay owner for damages that occurred while it was in effect

Answer 67

An easement that benefits its holder in his physical use or enjoyment of his property. Need TWO parcels for this.

Answer 68

Recognized in 21 states incl. MD. Created between married partners w/ right of survivorship. Protected form of co-ownership: Creditors of 1 spouse can't touch this tenancy and neither tentant acting alone can unilaterally transfer to a 3rd party

Answer 69

1. If B is a BONA FIDE PURCHASER, and we are in a notice jurisdiction, B wins, regardless of whether or not she records before A does. 2. If B is a BFP and we are in a race-notice jurisdiction, B wins if she records properly before A does.

Answer 70

"COAH" C ontinuous use for statutory period O pen and notorious A ctual use H ostility (w/out servient owner's consent- permission defeats this!)

Answer 71

Mortgagee brings a deficiency action against debtor

Answer 72

Applies to both residential and commercial leases T has a right to quiet use and enjoyment of the premises without interference from L 1) Breach by actual wrongful eviction: This occurs when L wrongfully evicts T or excludes T from the premises 2) BREACH BY CONSTRUCTIVE TRUST: SING SUBSTANTIAL INTERFERENCE - Due to L's actions or failures chronic or persistent problems exist NOTICE - T must tell L of the problems and L must fail to act meaningfully GET OUT - T must vacate within a reasonable time after L fails to fix the problem 3) Generally landlord is not liable for acts of other tenants - Exceptions: a) L must not permit a nuisance on site b) L must control common areas

Answer 73

If land is improved by buildings and an adjacent landowner's excavation causes that improved land to cave in, the excavator will be liable if negligent Strict liability attaches if plaintiff can show that plaintiff's improved land did not contribute to the collapse

Answer 74

1. "Wait and see" or "second look" doctrine - Majority reform effort, the validity of any suspect future interest is determined on the basis of the facts as they now exist, at the end of the measuring life. 2. Uniform Statutory Rule Against Perpetuities - Codifies the common law RAP and provides an alternative 90 yr vesting period BOTH embrace the cy pres doctrine- "as near as possible" to the grantor's intent while complying with the RAP. AND reduction of any offensive age contingency to 21 years.

Answer 75

If T lawfully reports L for housing code violations, L is barred from penalizing T, by example, raising rent or ending the lease or harassing T

Answer 76

1. T's duty to repair when the lease is silent ----T must maintain the premises and make ordinary repairs (In residential MD the lease must state each party's duties as to repair) ----T must not commit waste (voluntary, permissive, ameliorative) LOOK OUT FOR LAW ON FIXTURES REGARDING WASTE 2. T's duty to repair when T has expressly covenanted in the lease to maintain the property in good condition for the duration of the lease: CL --- T was liable for any loss to the property including loss due to force of nature Today -- T is off the hook when the premises are destroying without T's fault

Answer 77

Attorney's fees, foreclosure expenses and any interest on the First Bank's lien

Answer 78

A recorded deed which is not connected to the chain of title because of a failure to record properly before the present conveyance. A wild deed is unable to give notice of its existence- owner of wild deed usually suffers the consequence.

Answer 79

Affirmative: The right to do something on servient land. Negative: Entitles holder to prevent the servient landowner from doing something that would otherwise be permissible.

Answer 80

A deed that is absolute on its face.

Answer 81

1. T breaches this and is in possession of the premises: --The landlord's only options are to evict through the courts or continue the relationship and sue rent due. ---If the landlord evicts, she is nonetheless entitled to rent from the tenant until the tenant, who is now a tenant at sufferance, vacates LANDLORD MAY NOT ENGAGE IN SELF-HELP 2. T breaches this duty but is out of possession - SIR -SURRENDER- L could choose to treat T's abandonment as an offer of surrender that L accepts - Surrender is when T shows by words or actions that she wants to give up on the lease - If term is longer than 1 year then must satisfy the SoF -IGNORE the abandonment and hold T responsible for the unpaid rent, just as if T were still there -------------not available in most states -RE-LET the premises on the wrongdoer tenant's behalf, and hold him or her liable for any deficiency ----Majority rule is that L must at least TRY to re-let in order to mitigate damages ----MD agrees with the majority rule except for commercial leases

Answer 82

"MAD FIFIIII" M aterial A lteration D uress FIF: Fraud in Factum (lie about the instrument) I ncapacity I llegality I nfancy I nsolvency

Answer 83

1. A lease for a fixed period - perhaps as short as 2 days or as long as 50 years 2. When you know the termination date from the state, you have a term of years, therefore no notice is needed to terminate 3. If a term of years is greater than one year it must be writing

Answer 84

Under the common scheme doctrine, the ct. will imply a reciprocal negative servitude to hold an unrestricted holder to a restrictive covenant. 2 elements to general or common scheme doctrine: 1. When sales began there was a general scheme of residential development, which included the lot in question 2. The lot holder in question had notice of the covenant in the prior deeds. 3 forms of notice potentially imputed to defendant. Remember AIR: - Actual notice: literal knowledge of promises in prior deeds - Inquiry notice: the neighborhood conforms to common restriction - Record notice: the form of notice sometimes imputed to buyers on the basis of publicly recorded docs. ---- Some state, incl MD say subsequent buyer is on record notice of contents of prior deeds transferred to others by common grantor. Other states say subsequent buyer is not on record notice.

Answer 85

A future interest created in a transferee (3rd party) which takes effect by either cutting short some interest in another person ("shifting") or in the grantor/his heirs ("springing")

Answer 86

1. Foreclosure will terminate interests junior to the mortgage being foreclosed but will not affect senior interests 2. Those with interests subordinate to those of the foreclosing party are necessary parties for the foreclosure action - debtor-mortgagor is also considered a necessary party ---Failure to include a necessary party results in the preservation of that party's claim, despite the foreclosure and sale ---Thus if a necessary party is not joined, his mortgage remains on the land

Answer 87

1. Any future interest in O the grantor 2. Indefeasibly vested remainders 3. Vested remainders subject to complete defeasance

Answer 88

1. O to A for life: A has a life estate and O has a reversion Life estate pur autre vie - a life estate measure by a life other than the grantees 2. Life tenent's entitlements are rooted in the important doctrine of waste ----Life tenant is entitled to all ordinary uses and profits from the land ---Life tenant must not commit waste 3. If held by O it is a reversion; if held by a third party it is a remainder

Answer 89

Vested Remainders: Created in an ascertained (known) person AND is not subject to any condition precedent Contingent Remainders: Created in an unascertained (as yet unknown or unborn) person OR is subject to a condition precedent, or both.

Answer 90

Life tenant allows the land to fall into disrepair Life tenant must simply maintain the premises in reasonably good repair. --Life tenant is obligated to pay all ordinary taxes on the land, to the extent of income or profits from the land, or if no income or profits, then all ordinary taxes to the extent of the premises fair rental value

Answer 91

Debtor: Mortgagor Creditor: Mortgagee