Property

Question 1

Defeasible Fees

Answer 1

A fee simple estate of potentially infinite duration that can be terminated upon the occurrence of a specific event.

Question 2

3 types of defeasible fees

Answer 2

1) fee simple determinable
2) fee simple subject to condition subsequent
3) fee simple subject to executory interest

Question 3

Fee simple Determinable

Answer 3

Property automatically reverts to grantor on the occurrence of the condition.

grantor retains the possibility of reverter

Created using durational language—such as “so long as,” “until,” or “while”

transferability - alienable, devisable, descendible

Question 4

Fee simple Subject to Condition Subsequent

Answer 4

Grantor retains power to terminate grantee’s estate

grantor retains the right of reentry which is not transferable inter vivos

transferability - alienable, devisable, descendible

Question 5

Fee Simple Subject to an executory interest

Answer 5

property automatically transfers to a third party upon occurrence of the event

third party retains a shifting executory interest

transferability - alienable, devisable, descendible

Question 6

Life Estate

Answer 6

An interest that last only for the life of the interest holder

transferability is dependent on the rights transferred

Can have an accompanying reverter if there is no disposition to a third party

can have an accompanying remainder if a third party is named

The life measured can be any life

Question 7

Doctrine of Waste

Answer 7

A life tenant cannot consume or exploit natural resources on the land except
1) where necessary for repairs or maintenance of land
2) when the grant expressly gives the right to exploit
3) if land was used for exploitation of resources prior to the grant

Question 8

Permissive Waste

Answer 8

harm to the property due to neglect

a life tenant has a duty to repairs and maintain the property to the extent of income or profits derived from the land or its rental

Question 9

Ameliorative waste

Answer 9

Life tenant acts that economically benefit the land prohibited under common law, but now usually permitted in most modern jurisdictions

Question 10

Remainder

Answer 10

A future interest in a third person that arises immediately ipon the termination of the proceeding life estate

Vested Remainder
Contingent Remainder

Question 11

Vested Remainders

Answer 11

Indefeasibly vested
vested remainder subject to total divestment
vested remainder subject to open

Question 12

Contingent Remainder

Answer 12

1) There is a condition precedent to the future interest becoming possessory
2) the future interest vests in an unascertained taker

Question 13

Rule of destructibility

Answer 13

at common law a contingent remainder is destroyed if it remains contingent when the preceding estate ends

under the modern rule a reversion to grantor or their estate is made until grantee satisfies the condition

Question 14

Merger and Shelley’s Rule

Answer 14

when a conveyance attempts to give a life estate to grantee with a remainder to grantees intestate heirs, at common law the estates merge, under the modern rule the heirs are granted a contingent remainder

Question 15

Doctrine of worthier title

Answer 15

arises when grantor creates a life estate in another but creates a future interest in the grantors heirs, the doctrine voids the contingent remainder and grants a life estate in a and o has reversion

Question 16

Executory interest

Answer 16

a future interest in a third party that takes effect by cutting short some interest, executory interest holders lack standing to sue for waste

Question 17

Shifting executory interest

Answer 17

A shifting executory interest is a type of future interest in a third-party transferee that divests a prior transferee of their interest in property upon the occurrence of a specific, conditional event before its natural expiration.

Question 18

Springing executory interest

Answer 18

cuts short a present interest held by the grantor or grantors estate

Question 19

Rule Against Perpetuity

Answer 19

No property interest is valid unless it must vest no later than 21 years after the death of a life in being at the time the interest was created, a future interest is void if there is any possibility that it will vest more than 21 years after the death of the measuring life

options and rights of refusal are included in the rule against perpetuity

for class gifts the class must be closed and all conditions precedent satisfied for every member

does not apply to charity to charity gifts

Question 20

Tenancy in Common

Answer 20

An estate with multiple tenants in which each co-tenant owns a distinct, undivided interest and each has a right to possession of the whole estate.

Freely transferable
no survivorship rights
may be partitioned

Question 21

Joint tenancy

Answer 21

four conditions must exist concurrently when the tenants take their interests

1) time
2) title
3) interest
4) possession

express interest required
right of survivorship
alienable only
severance creates a tenancy in common
transfer converts the transferred parcel into a tenancy in common

Question 22

Tenancy by the Entirety

Answer 22

Marital similar to a joint tenancy but between a married couple

right of survivorship
no right to convey or partition
protected from individual creditors
severable by death, divorce, or execution by a joint creditor

Question 23

8 rights and duties of co-tenants

Answer 23

1) possession
2) rents and profits
3) ban on adverse possession
4) carrying costs
5) contribution for repairs
6) no right to contribution for improvements
7) prevent waste
8) sell/partition and apportion

Question 24

Leasehold Estates

Answer 24

An estate in which the tenant has a present possessory property interest and the landlord has a future interest

1) Tenancy for years
2) periodic tenancy
3) tenancy at will
4) tenancy at sufferance

Question 25

Periodic Tenancy

Answer 25

A leasehold that is continuous for successive interval until either party gives notice of termination created by express agreement, implication, and operation of law terminated by proper notice 1) 1 full period in advance, or 1 month under the modern view 2) effective date must be the end of a period

Question 26

Tenancy at Will

Answer 26

A tenancy with no fixed duration, terminable by either party at any time without notice Created by express agreement Termination by will or by operation of law 1) death 2) waste 3) assignment 4) transfer of title by landlord 5) lease by the landlord to a third party

Question 27

Tenancy at Sufferance

Answer 27

A default Tenancy that arises when a tenant continues to possess property after the lease expires. creation - tenant holds possession after the lease expiration landlord options: 1) sue to evict 2) impose a new reasonable periodic tenancy - reasonability is based on length of possession, tenant is not at fault, seasonal leases

Question 28

Tenant's Duties at Common Law

Answer 28

Duty to Repair Duty to pay rent Duty not to use property for illegal purposes

Question 29

Fixtures

Answer 29

Once movable chattel that is annexed to real property such that it becomes part of the realty. intent of the installer is usually controlling tenant may remove if removal is done before lease expires or the removal does not cause substantial harm to the property

Question 30

Landlord remedies for tenant breach

Answer 30

Tenant in possession - file for eviction, continue the lease and sue for rent Tenant abandons - treat as a surrender, ignore and hold liable for rent, re-let

Question 31

Landlord's duties and warranties

Answer 31

1) Duty to deliver possession on first day of lease 2) Implied covenant of quiet enjoyment 3)implied warranty of habitability 4)Tort Liability

Question 32

Implied Covenant of Quiet Enjoyment

Answer 32

A tenant has an implied right to quiet use and enjoyment of the premises without landlord interference Actual eviction - landlord wrongfully evicts or excludes tenant from property Constructive eviction - landlords actions or inaction render the property uninhabitable or unusable 1) breach of duty 2) substantial interference 3) notice 4) vacate

Question 33

Implied warranty of habitability

Answer 33

Residential property must be fit for basic human dwelling, absolute duty that cannot be modified tenant remedies 1) move 2) repair 3) reduce or withhold rent 4) remain

Question 34

Landlord Tort Liability

Answer 34

Common areas - reasonable care in maintaining and repairing Latent defects - duty to disclose Assumption of repairs - negligence Public use - liable for known defects in property is for public use and tenant is unlikely to repair Seasonal or short term lease of a furnished dwelling

Question 35

Assignment

Answer 35

Entire leasehold transfers from tenant to assignee assignee gains privity of estate with landlord assignor remains in privity of contract with landlord assignee owes rent directly to landlord assignor remains liable for unpaid rent

Question 36

Sublease

Answer 36

partial leasehold transfer from sublessor to sublessee sublessor is in privity of estate and contract with landlord sublessee pays rent to sublessor as their tenant sublessee is not liable to landlord for rent and is not bound by any lease covenants unless expressly assumed

Question 37

Easement

Answer 37

a non-possessory property interest that confers a right to use another's land servient estate - burdened land dominant estate - benefited land

Question 38

Types of Easement

Answer 38

Easement Appurtenant Easement in gross Affirmative easement Negative easement

Question 39

4 ways to form an easement

Answer 39

prescription implication necessity express grant or reservation

Question 40

Scope of Easements

Answer 40

An easements scope is determined by the terms or conditions that create it, reasonable intent of original parties holders cannot unilaterally expand the scope of their easement easement holders have a duty to repair, if both estates use easement than apportioned repair costs

Question 41

Express Easement

Answer 41

Grant - an express creation of an easement created by instrument Reservation - grantor conveys title to land but reserves the right to continue using the land for a designated purpose requirements - in writing and signed by the servient estate holder

Question 42

Easement by prescription

Answer 42

1) continuous use for the applicable period 2) open and notorious 3) actual 4) hostile can also be used to terminate and easement

Question 43

Easement by implication

Answer 43

An easement legally implied based on prior use by a common grantor on land subsequently divided into plots 1) easement exists prior to division of a single tract of land 2) common grantor's use is continuous and apparent 3) use is reasonably necessary for enjoyment of the dominant tenement 4) parties intended the use to continue after division of the land Exceptions - easement may be implied without prior use where: 1) lots in a subdivision are sold with reference to a map plan 2) implied easement to travel over land as reasonably necessary to extract materials

Question 44

Easement by necessity

Answer 44

if access to or from a property is impossible without the easement created when a land loses access to a public utility or road expires when the necessity ends

Question 45

Negative Easement

Answer 45

prevents the servient landowner from performing certain actions on their property four categories of preventable acts 1) light 2) air 3) subjacent or lateral support 4) stream of water from artificial flow

Question 46

Termination of easements (8 ways)

Answer 46

1) estoppel 2) end of necessity 3) destruction of servient tenement 4) release 5) abandonment 6) merger 7) prescription 8) expiration

Question 47

License

Answer 47

The right to use another person's land which is revocable at the licensors will is not a legal interest, may not be transfered

Question 48

Covenant

Answer 48

A Promise to do or refrain from doing something related to land Real Covenant - a covenant concerning real property - runs with the land at law and subsequent owners will be burdened or may enforce it termination by 1) written release 2) merger of estates 3) condemnation of burdened property

Question 49

Requirements for a burdens to run with the land

Answer 49

1) writing 2) intent 3) touches and concerns the land 4) horizontal and vertical privity 5) Notice

Question 50

horizontal and vertical privity

Answer 50

horizontal - relationship between the covenanting properties vertical - relationship between the coventing parties and their successors in interest

Question 51

Requirements for benefits to run with land

Answer 51

1) writing 2) intent 3) touches and concerns the land 4) vertical privity

Question 52

Equitable Servitudes

Answer 52

Equitable servitudes are covenants enforced in equity against successors through injunctive relief 1) writing 2) intent 3) touches and concerns the land 4) notice

Question 53

defenses to enforcement of an equitable servitude

Answer 53

1) pervasive change to the neighborhood 2) estoppel 3) acquiescence 4) unclean hands 5) laches

Question 54

Reciprocal Negative Servitude

Answer 54

If a land is subdivided into parcels under a common development scheme, with only some parcels having negative servitudes, these restrictions may be impliedly binding against all subdivided parcels Created through implication: 1) common scheme through recorded plat, general pattern, oral representations 2) notice of other covenants and deeds in the other subdivisions through inquiry/record/knowledge

Question 55

Adverse Possession

Answer 55

1) continuous for the statutory period 2) open and notorious 3) actual and exclusive 4) hostile

Question 56

Land Sale Process

Answer 56

1) contract 2) escrow period 3) closing 4) conveyance sales are subject to SoF and partial performance

Question 57

Equitable Conversion

Answer 57

during escrow buyer owns the real property but seller owns personal property, actions against the property are converted into interest in sale proceeds, buyer is protected

Question 58

Risk of loss

Answer 58

if property is destroyed before closing through no fault of the parties buyer bears the risk of loss

Question 59

Implied Promises in Land Sales

Answer 59

1) Promise to provide marketable title - title will be free from risk of litigation upon closing 2) promise to disclose and make no material false statements

Question 60

Defects rendering a title unmarketable

Answer 60

1) aquired via adverse possession 2) encumbered by interests 3) zoning ordinance violations existing at sale can be waived only by buyer

Question 61

Requirements for a lawful deed

Answer 61

A lawful, valid deed must be in writing, identify the grantor (seller/giver) and grantee (buyer/receiver), include a legal description of the property, show intent to convey (granting clause), be signed by the grantor, and be delivered to and accepted by the grantee. It must also be notarized, often witnessed, and recorded in public records to protect against future legal challenges.

Question 62

3 types of deeds

Answer 62

General Warranty Special warranty Quitclaim

Question 63

6 covenants included in the general warranty

Answer 63

Present 1) seisin - grantor is rightful owner 2) right to convey 3) against encumbrances future 1) quiet enjoyment 2) warranty 3) further assurances

Question 64

Bonafide Purchaser

Answer 64

One who purchases a property for value without notice of a prior conveyance includes mortgagees for value, does not include donees, heirs, or devisees notice 1) actual 2) inquiry 3) record

Question 65

Recording Statutes

Answer 65

If a prior conveyance or interest is not recorded, a subsequent purchaser may be protected under a recording state

Question 66

Notice Statute

Answer 66

A notice statute is a real estate recording law that gives priority to a subsequent purchaser of property if they buy it for value without notice of a prior, unrecorded conveyance.

Question 67

Race-notice statutes

Answer 67

A race-notice jurisdiction is a real estate law system where the first person to record a deed or mortgage wins ownership priority, provided they had no notice (actual or constructive) of prior, unrecorded claims.

Question 68

Race statutes

Answer 68

A race statute is a type of state recording act that determines property ownership by prioritizing the party who records their deed first, regardless of whether they had notice of prior, unrecorded claims.

Question 69

Shelter Rule

Answer 69

one who takes from a bonafide purchaser will prevail against any interest the transferor-BFP would have prevailed against, even if transferee has notice of prior conveyance

Question 70

Wild Deeds

Answer 70

a recorded deed unconnected to the chain of title does not provide record notice

Question 71

Estoppel by deed

Answer 71

a grantor who conveys title to land he does not own is estopped from subsequently acquiring the same land

Question 72

Equitable Mortgage

Answer 72

Debtor gives creditor a deed to his land as collateral for the debt

Question 73

Mortgages

Answer 73

A mortgage is a security interest in land that serves as collateral for the repayment of a loan (a.k.a. “mortgage deed,” “note”) Writing required—must be in writing to satisfy the SoF Mortgagor = debtor/borrower/landowner Mortgagee = creditor

Question 74

Lien Theory

Answer 74

mortgagor has title and the right to possession absent foreclosure Mortgagee has a lien, conferring a right to take action for ownership of the land if the mortgagor defaults on the loan

Question 75

Equitable mortgage

Answer 75

debtor gives creditor a deed to his land as collateral for the debt (instead of executing a mortgage)

Question 76

Acceleration clauses

Answer 76

terms in loan agreements that require mortgagor to pay off full loan immediately if certain conditions are met, e.g., if mortgagor misses too many payments

Question 77

Mortgagor transfer

Answer 77

where mortgagor sells property, mortgage remains on the land (i.e., grantee takes subject to the mortgage but is not liable for repayment) Mortgagor remains liable to mortgagee for the loan Assumption—grantee promises to pay existing mortgage loan Grantee becomes primarily liable to mortgagee; original party is secondarily liable as surety

Question 78

Holder in due course

Answer 78

a holder in due course lender takes a mortgage note free of any personal defenses mortgagor could have raised against original mortgagee (e.g., lack of consideration, fraudulent inducement) He still remains subject to real defenses (e.g., duress, fraud, etc.) Requirements for holder in due course status: Negotiable note—must be made payable to the named mortgagee; Indorsed—note must be signed by the named mortgagee; Delivered—note must be delivered to the transferee; and Good faith and value paid—transferee must take the note in good faith (i.e., without notice of illegality) and pay value

Question 79

Foreclosure

Answer 79

upon default, mortgagee can satisfy debt through foreclosure by judicial action Property is sold to satisfy the debt in whole or in part Deficiency judgment—if the debt exceeds sale proceeds, mortgagee can file suit against mortgagor for debt balance If proceeds exceed the debt balance, junior liens are paid in order of priority

Question 80

Redemption in equity

Answer 80

at any time prior to a judicial foreclosure sale, mortgagor can redeem the property by paying the amount due Equitable mortgage—redemption rights apply to an equitable mortgage situation where creditor appears to hold legal title to the land via a deed Statutory right of redemption—some jurisdictions allow mortgagor, for a certain period, to buy back the property after foreclosure sale

Question 81

Priority of creditors

Answer 81

creditors must record their interests Recorded interests take priority in the order recorded Purchase money mortgages (PMM)—superior to all interests PMM = mortgage given in exchange for funds used to buy the property; PMM is given either to the seller as part of the purchase price or to a third-party lender (if both, seller’s PMM is senior to the third-party lender) Creditors can agree to subordinate priority to a junior creditor

Question 82

Junior interests

Answer 82

terminated by foreclosure of a superior claim I.e., upon foreclosure, junior interest holders cannot look to the land to satisfy debts Junior interest holders can seek a deficiency judgment against debtor, but they have no interest in the subject property Necessary parties—junior interests are necessary parties and must be included in a senior foreclosure action Otherwise, the junior interest will remain on the land

Question 83

Senior interests

Answer 83

unaffected by junior interest foreclosures Buyer of foreclosed property takes it subject to senior interests Buyer is not liable for senior debt, but the senior mortgage remains on the land