1
Q
What is a fee simple absolute?
A
The largest estate; it is capable of lasting forever. Inheritable: Upon the owner’s death, the owner can pass it by will or by intestate succession; can also be transferred by gift or sale during owner’s life. To create: Look for magic words ‘and his/her heirs’ — but these are not required; ‘O to A’ or ‘O to A and her heirs’ are the same thing. Fee simple absolute is the default estate; there’s a presumption that the grantor conveys the most that it has. Don’t be fooled by words of intent or purpose.
This estate is the most complete form of ownership in real property.
2
Q
What is a defeasible fee?
A
May be terminated by the occurrence of an event; capable of lasting forever but also of being terminated early. Condition will cut short the fee simple.
Defeasible fees are subject to specific conditions that can limit their duration.
3
Q
What is a Fee Simple Determinable?
A
Limited by specific durational language. Examples: ‘while,’ ‘during,’ ‘until it is no longer used as a farm.’ The fee simple lasts while the period is in play (e.g., while used as a farm), but as soon as the period ends (e.g., when the land is no longer used as a farm), the fee simple ends.
This type of fee automatically reverts to the grantor when the specified condition is no longer met.
4
Q
What is a Fee Simple Subject to Condition Subsequent?
A
Limited by specific conditional language. Examples: ‘provided that the land is not farmed,’ ‘on the condition that the land is not farmed.’ Focus on the language to the grantor: Suggests that the grantor must exercise a right in order to take possession.
This type of fee does not automatically terminate but gives the grantor the right to reclaim the property.
5
Q
What future interests are associated with defeasible fees?
A
- Possibility of Reverter: Future interest held by a grantor following a fee simple determinable. Interest vests automatically after the durational period ends.
- Right of Entry / Power of Termination: Future interest held by a grantor following a fee simple subject to condition subsequent. Grantor must exercise the right (e.g., right to re-enter).
These interests determine what happens to the property if the conditions of the defeasible fees are not met.
6
Q
What is a remainder?
A
A future interest that follows what present possessory estate? A life estate. A remainder cannot follow a vested fee simple. Why? A future interest following a vested fee simple would have to divest the prior interest (the fee simple) but a remainder does not function that way because it instead waits for the prior interest to end.
Remainders can be vested or contingent based on the conditions set forth.
7
Q
Can remainders be vested or contingent?
A
Yes. RAP generally applies only to contingent remainders. Vested Remainder—an interest that is: (1) Given to an ascertained grantee; and (2) Not subject to a condition precedent (i.e., there is no condition that must be satisfied in order for the interest to vest).
The distinction between vested and contingent remainders affects their validity under the Rule Against Perpetuities.
8
Q
What is a vested remainder subject to open?
A
Vested remainder in a class gift; full class membership is unknown. At least one person in the class must be vested for it to be vested subject to open; if no one in the class has vested, the remainder is contingent. When all members of a class are identified, the class is closed.
This concept is important for understanding how interests in property can change over time.
9
Q
What is the Rule of Convenience for class gifts?
A
A class-closing mechanism to avoid application of the rule against perpetuities. The grant does not have an express closing date, the Rule of Convenience closes the class when any member of the class becomes entitled to immediate possession.
This rule helps to determine when a class gift is considered complete.
10
Q
What is a reversion?
A
Future interest held by a grantor following something other than the grantor. The future interest is held by a transferee. Interest vests automatically.
Reversions occur when a grantor conveys an estate but retains a future interest in the property.
11
Q
What is an executory interest?
A
Future interest that will cut short or terminate, an earlier interest. Two kinds: * Springing executory interest: Divests the grantor. * Shifting executory interest: Divests a prior grantee.
Executory interests are important for understanding how interests in property can be transferred.
12
Q
When are interests created in inter vivos transfers?
A
Inter vivos transfers: Interests created at time of the grant. Devise (will): Interests created at testator’s death, not when the will is drafted.
This distinction is crucial for determining the timing of property interests.
13
Q
What interests are subject to RAP?
A
RAP applies to: * contingent remainders; * executory interests; * gifts (subject to open), if not closed by rule of convenience. Does not apply to vested remainders unless subject to open.
The Rule Against Perpetuities limits the duration of certain future interests.
14
Q
Who is a relevant life?
A
Relevant life: Person who affects vesting, usually mentioned or implied by the grant (e.g., prior life tenant, the parent where a conveyance is made to a child). Validating life: Person who tells us whether or not the interest vests within the perpetuities period (lifetime plus 21 years). Must have been alive when the interests were created; can validate her own interest; if no validating life, then the interest is no good and we strike it from the grant; if there is a validating life, then the interest is good.
Identifying relevant and validating lives is essential for applying the Rule Against Perpetuities.
15
Q
What is a life estate?
A
Present estate that is limited by a life. Whose life? Example: Oliver conveys Blackacre ‘to Anna for life.’ This life estate is measured against Anna’s life. Example: Oliver conveys Blackacre ‘to Anna for Ben’s life.’ Anna’s life estate is measured against ‘pur autre vie’ (meaning measured against the life of someone else).
Life estates are temporary and end when the measuring life dies.
16
Q
What are the magic words to create a life estate?
A
‘for life.’ If ambiguous, look for the grantor’s intent to create an estate that will end upon the death of the measuring life.
The intent of the grantor is crucial in determining the nature of the estate.
17
Q
When does a life estate terminate?
A
Ends naturally when the measuring life ends. Transferable? Example: Oliver conveys Blackacre ‘to Anna for life.’ Anna later transfers her interest to Ben. When will Ben’s interest terminate? When Anna dies.
Life estates cannot be inherited and end with the death of the measuring life.
18
Q
Can a life tenant pass the property by will?
A
No—the life estate ends at the life tenant’s death.
This limitation affects the transferability of interests in property.
19
Q
What is waste?
A
Comes into play when more than one party has an interest in the same piece of real property. Example: Oliver conveys Blackacre ‘to Anna for life.’ Anna has been dumping hazardous materials onto the property, which have caused serious damage to Blackacre. The doctrine of waste gives Oliver a claim to stop Anna from injuring the land. Why? Because Oliver has a reversion.
Waste laws protect the interests of property owners from harm caused by tenants.
20
Q
What are the three kinds of waste?
A
- Affirmative / Voluntary Waste: Waste caused by conduct which causes a decrease in value.
- Permissive / Neglect: Waste caused by neglect toward the property, which causes a decrease in value.
- Ameliorative Waste: Special situation where a life tenant or other person in possession changes the use of the property and actually increases the value of the property.
Understanding the types of waste is essential for property law.
21
Q
How to spot a waste problem?
A
- Do multiple parties have simultaneous interests (e.g., life tenant, remainder, future interests, landlord v. tenant)?
- Is there a change in the value of the property due to the actions/inactions of the party in possession?
- Will the waste substantially change the interest taken by the party out of possession?
Identifying these factors can help in resolving disputes over property interests.
22
Q
What is the special rule for class gifts under the Rule Against Perpetuities (RAP)?
A
If a gift to any member of the class is void under RAP, the gift is void as to all members of the class (the ‘all or nothing’ rule)
This rule ensures that if any part of the class gift fails, the entire gift fails.
23
Q
Under RAP, what presumption applies regarding a person’s ability to have children?
A
Property law assumes that anyone alive can still have children, regardless of age (fertile octogenarian rule)
This presumption affects the validity of future interests.
24
Q
What is the ‘unborn widow’ issue under RAP?
A
A conveyance to someone’s widow may violate RAP if the widow could be unborn at the time of the conveyance, potentially delaying vesting beyond the perpetuities period
This issue highlights the complexities of future interests and potential beneficiaries.
25
Does a class gift survive RAP if it requires survival but a potential class member could be born after the **perpetuities period**?
No, the gift does not survive RAP in such cases
## Footnote
This reinforces the strict nature of RAP regarding future interests.
26
What happens to a **striking interest** under RAP if it is void?
A void striking interest results in the offending interest being stricken, with the prior interest potentially becoming a fee simple absolute or reversion
## Footnote
This outcome affects the distribution of interests in property.
27
What is the **Rule of Convenience** under RAP?
It is an interpretive rule that can save a class gift from invalidation under RAP by closing the class as soon as any member is entitled to possession
## Footnote
This rule helps to ensure that class gifts can be valid even if some members may not be born yet.
28
What is an **exception** to the 'all or nothing' class gift rule under RAP?
Transfers of a specific dollar amount to each class member that vest at a specific time (e.g., upon the death of a life tenant) are not subject to the 'all or nothing' rule
## Footnote
This allows for partial gifts to be valid even if others fail.
29
What is the **charity-to-charity exception** to RAP?
RAP does not apply to a gift from one charity to another charity
## Footnote
This exception facilitates charitable giving without the constraints of RAP.
30
What options are **exempt** from RAP?
* An option held by a current tenant to purchase the leased property
* A right of first refusal in a commercial transaction
## Footnote
These exemptions allow certain interests to exist without being hindered by RAP.
31
What is the **Wait-and-See Approach** to RAP?
A reform that softens traditional RAP by waiting to see if the interest actually vests or fails within a specified period (often 90 years under the Uniform Statutory Rule Against Perpetuities)
## Footnote
This approach provides more flexibility in determining the validity of future interests.
32
How have some states modified the **vesting period** under the Wait-and-See Approach?
Some states have changed the perpetuities period to a flat 90 years, during which the interest must vest
## Footnote
This modification aims to simplify the application of RAP.
33
What is the **Cy Pres doctrine** in relation to RAP?
An equitable doctrine from trust law that allows a court to reform a transfer to avoid violation of RAP
## Footnote
This doctrine helps to ensure that the intent of the transferor is honored while complying with legal constraints.
34
What is the **definition** of **concurrent ownership** of real property?
Ownership or possession of real property by two or more persons simultaneously.
## Footnote
This concept is fundamental in property law.
35
What is the **basic rule** for **concurrent owners**?
Concurrent owners each have a right to use or possess the property (the whole).
## Footnote
This rule ensures shared access to the property.
36
What is an **exception** to the basic rule for **concurrent owners**?
Concurrent owners can contract out of the basic rule.
## Footnote
This allows for customized agreements between owners.
37
What are the **three kinds** of **concurrent ownership/concurrent estates**?
(1) Tenancy in common; (2) Joint tenancy; (3) Tenancy by the entirety.
## Footnote
Each type has distinct characteristics and legal implications.
38
What is the **default concurrent interest**?
Tenancy in common.
## Footnote
This is the assumed form of ownership unless specified otherwise.
39
What **presumption** applies to any conveyance to more than one person?
It is presumed to be a tenancy in common.
## Footnote
This presumption can be overridden by explicit language in the conveyance.
40
Do concurrent owners in a **tenancy in common** have **separate interests** in the property?
Yes, but undivided (each has a right to possess the whole).
## Footnote
This means that while they own distinct shares, they share access to the entire property.
41
Is there a **right of survivorship** in a **tenancy in common**?
No.
## Footnote
This distinguishes it from joint tenancy, where such a right exists.
42
Can a co-tenant **transfer the property freely** at death as well as during life in a **tenancy in common**?
Yes.
## Footnote
This flexibility is a key feature of tenancy in common.
43
What is the **defining characteristic** of a **joint tenancy**?
The right of survivorship, whereby the surviving joint tenant(s) automatically take the deceased tenant's interest.
## Footnote
This feature ensures that ownership remains within the surviving tenants.
44
How do you **create a joint tenancy**?
Grantor must make a clear expression of intent, such as 'as joint tenants with a right of survivorship.'
## Footnote
Clear language is essential to establish this form of ownership.
45
What are the **four unities** required to create a **joint tenancy** (PITT)?
(1) Possession: Equal right to possess the whole; (2) Interest: Equal share/type of interest; (3) Time: Interests received at the same time; (4) Title: Interests received in the same instrument.
## Footnote
These unities ensure that all joint tenants have the same rights and interests.
46
What happens if one **unity is lost** in a **joint tenancy**?
The joint tenancy is severed (destroyed), and it turns into a tenancy in common.
## Footnote
This change alters the rights of the owners significantly.
47
What are **common situations** that cause **severance** of a **joint tenancy**?
(1) Inter vivos transfer; (2) Transfer during life that will destroy/sever the right of survivorship and convert the estate into a tenancy in common.
## Footnote
These actions can fundamentally change the ownership structure.
48
Does a **conveyance by only one** of more than two joint tenants destroy the joint tenancy of the remaining joint tenants?
No.
## Footnote
The remaining joint tenants retain their joint tenancy status.
49
Does a joint tenant granting a **mortgage** sever the joint tenancy?
It depends on jurisdiction: Majority (lien theory): Mortgage is treated as a lien and does not destroy the joint tenancy; Minority (title theory): Mortgage severs title between the joint tenants and the mortgagee.
## Footnote
This distinction is crucial for understanding how mortgages affect ownership.
50
Does a **lease** sever the joint tenancy in jurisdictions where the lease severs the tenancy?
Some jurisdictions hold that the lease severs the joint tenancy; others treat it as a temporary suspension of the joint tenancy.
## Footnote
Jurisdictional differences can lead to varying outcomes.
51
What happens upon a joint tenant's **death** if the surviving tenant(s) terminate the lease?
The lease is not renewed, so the joint tenancy interests/interests are not renewed.
## Footnote
This impacts the continuity of ownership.
52
Between whom is a **tenancy by the entirety**?
Married spouses.
## Footnote
This form of ownership is specifically designed for married couples.
53
What is a **right of the entirety** in a **tenancy by the entirety**?
Right of survivorship.
## Footnote
This right ensures that the surviving spouse automatically inherits the deceased spouse's interest.
54
What words convey property '**as tenants by the entirety**'?
Magic words: Property conveyed 'as tenants by the entirety, with a right of survivorship.'
## Footnote
Specific language is necessary to establish this form of ownership.
55
If the grant is **ambiguous**, what is presumed in a **tenancy by the entirety**?
Courts presume property is held as joint tenants or as tenants in common.
## Footnote
This presumption helps resolve disputes over unclear language.
56
What is the general rule regarding **possession and use** among co-tenants?
Each co-tenant has the right to possess all of the property, regardless of their share size.
## Footnote
This rule ensures that all co-tenants can utilize the property fully.
57
What is an **exception** to the general rule of possession among co-tenants?
Co-tenants have entered into an agreement to the contrary.
## Footnote
Such agreements can dictate different terms for possession.
58
Can one co-tenant **adversely possess** against another co-tenant?
No, because possession is not adverse to the other co-tenant's interest.
## Footnote
Adverse possession requires an interest that conflicts with the rights of the other party.
59
Does one co-tenant owe **rent** to another co-tenant who is out of possession?
No, there is no duty to pay rent to co-tenants out of possession.
## Footnote
This reflects the nature of co-tenancy where all have equal rights to the property.
60
What constitutes **ouster** in a co-tenancy?
A co-tenant in possession denies another co-tenant access to the property (e.g., changes the locks or throws out the co-tenant's stuff).
## Footnote
Ouster can lead to legal remedies for the denied co-tenant.
61
What **remedies** are available to an ousted co-tenant?
* Injunction granting access to the property
* Recover damages for the value of the use while the co-tenant was unable to access the property
## Footnote
These remedies help restore rights to the ousted co-tenant.
62
How is **rent received** from a third party's possession divided among co-tenants?
Rent, minus operating expenses, is divided based on ownership share of each co-tenant.
## Footnote
This ensures fair compensation relative to each co-tenant's stake.
63
What are **operating expenses** in a co-tenancy, and how are they handled?
* Necessary charges such as taxes or mortgage payments
* Divided based on ownership
* A co-tenant can collect contribution from other co-tenants for payments in excess of her share
## Footnote
Operating expenses are essential for maintaining the property.
64
Is there a right to **reimbursement** from co-tenants for necessary repairs?
No, but the co-tenant who makes the repairs can get credit in a partition action.
## Footnote
This encourages co-tenants to maintain the property without financial penalty.
65
Is there a right to **reimbursement** from co-tenants for improvements?
No, but the co-tenant who makes the improvements can get credit in a partition action.
## Footnote
Improvements may enhance property value but do not guarantee reimbursement.
66
What is **partition**, and who is it available to?
An equitable remedy available to all holders of a tenancy in common or a joint tenancy; it is a unilateral right.
## Footnote
Partition allows co-tenants to separate their interests in the property.
67
Do tenants by the **entirety** have a unilateral right to partition?
No.
## Footnote
This reflects the unique nature of tenancy by the entirety, which requires mutual consent.
68
What is the effect of a **partition**?
The court will divide the property into distinct portions.
## Footnote
This division can help resolve disputes among co-tenants.
69
What is the court's **preference** in partitioning property?
Physical division (partition in kind).
## Footnote
Courts generally prefer to divide property physically when feasible.
70
When will a court order a **partition by sale** instead of physical partition?
If physical partition is not practical (e.g., land has complicated terrain) or not fair to all parties.
## Footnote
This ensures equitable treatment of all co-tenants.
71
How are proceeds from a **partition by sale** divided?
Divided among the co-tenants based on their ownership interests.
## Footnote
This distribution reflects each co-tenant's stake in the property.
72
Can co-tenants agree **not to partition**, and what makes such an agreement enforceable?
Yes, provided the agreement is clear and the time limitation is reasonable.
## Footnote
Such agreements can help maintain co-tenancy relationships.
73
What legal frameworks govern **landlord-tenant law**?
A mix of contract law and property law.
## Footnote
These frameworks define the rights and responsibilities of landlords and tenants.
74
What are the **four types of tenancies** that can govern the landlord-tenant relationship?
* Tenancy for years
* Periodic tenancy
* Tenancy at will
* Tenancy at sufferance
## Footnote
Each type has distinct characteristics and implications for both parties.
75
What two key aspects should be known about each type of **tenancy**?
* How it is created
* How it is terminated
## Footnote
Understanding these aspects is crucial for managing tenancy agreements.
76
What is the definition of a **tenancy for years**?
An estate measured by a fixed and ascertainable amount of time.
## Footnote
This can be any length, not necessarily in years.
77
What is required to create a **tenancy for years**?
An agreement by the landlord and tenant demonstrating intent to create a leasehold; if the term is longer than one year, the agreement must be in writing and signed under the Statute of Frauds.
## Footnote
This ensures legal enforceability of the lease.
78
How is a **tenancy for years** terminated?
Automatically upon expiration of the term.
## Footnote
No additional action is needed unless specified in the lease.
79
When can a **tenancy for years** be terminated before the end of the term?
* If the tenant surrenders the lease
* If the tenant or landlord commits a material breach of the lease
## Footnote
Examples of material breaches include failure to pay rent.
80
What is the definition of a **periodic tenancy**?
An estate that is repetitive and ongoing for a set period of time.
## Footnote
It renews automatically until proper notice of termination is given.
81
How is a **periodic tenancy** created?
By express intent (e.g., signed lease) or implication (e.g., payment of rent).
## Footnote
This reflects the mutual agreement between landlord and tenant.
82
How is a **periodic tenancy** terminated?
By proper notice; old approach requires six months for year-to-year leases; newer approach shortens to one month's notice in many states.
## Footnote
Notice must be given before the start of the last term.
83
What is the definition of a **tenancy at will**?
An estate that may be terminated by either landlord or tenant at any time, for any reason.
## Footnote
This type of tenancy offers the most flexibility.
84
How is a **tenancy at will** created?
By express agreement or implication.
## Footnote
This can occur through actions that indicate mutual consent.
85
How is a **tenancy at will** terminated?
By either party without notice; death of landlord or tenant terminates it.
## Footnote
This differs from other tenancies which may require notice.
86
Is notice required to terminate a **tenancy at will**?
No, unless the lease requires it.
## Footnote
This allows for immediate termination if desired.
87
What is the definition of a **tenancy at sufferance**?
A temporary tenancy created when a tenant holds over after the lease has ended.
## Footnote
This occurs before the landlord evicts or creates a new tenancy.
88
How is a **tenancy at sufferance** created?
By the tenant's holdover, without agreement.
## Footnote
This distinguishes it from a tenancy at will.
89
What obligation does the holdover tenant have in a **tenancy at sufferance**?
Owes landlord reasonable value for daily use (fair rental value).
## Footnote
This ensures the landlord is compensated during the holdover period.
90
How is a **tenancy at sufferance** terminated?
* Tenant voluntarily leaves the premises
* Landlord re-rents to the tenant
* Landlord evicts
## Footnote
These actions resolve the holdover situation.
91
What does the **Fair Housing Act (FHA)** prohibit?
Discrimination in the sale, rental, and financing of dwellings.
## Footnote
It also prohibits advertising that states a discriminatory preference.
92
What is the primary focus of coverage under the **FHA**?
Multi-family residential housing.
## Footnote
This includes apartments and similar living arrangements.
93
What are the **three exemptions** from the FHA?
* Single-family housing sold or rented without a broker
* Owner-occupied buildings with four or fewer living units
* Religious organizations and private clubs
## Footnote
These exemptions have specific conditions and limitations.
94
What **protected traits** does the FHA cover?
* Race
* Color
* Religion
* National origin
* Sex (including sexual orientation and gender identity)
* Disability
* Familial status
## Footnote
These traits are protected from discrimination in housing.
95
What special exemptions exist under the FHA for **senior living**?
Exemptions for seniors-only communities.
## Footnote
These communities can legally restrict occupancy based on age.
96
What does the FHA's **disability provision** mandate?
Reasonable accommodations for persons with disabilities.
## Footnote
Examples include ramps or elevators to ensure accessibility.
97
What actions are prohibited under the **FHA**?
* Refusing to rent, sell, or finance a dwelling
* Requiring different terms
* Falsely denying availability
* Providing different services or facilities
## Footnote
These actions contribute to discriminatory practices.
98
What is an **exception** to prohibited actions under the FHA?
Making a reasonable accommodation for a tenant with disabilities.
## Footnote
This ensures compliance while addressing individual needs.
99
What types of discrimination does the **FHA** address?
* Intent (disparate treatment)
* Effect (disparate impact)
## Footnote
Causation must be linked to a protected basis.
100
What is the basic rule for **choice of law** in property cases?
The controlling law is the law of the situs.
## Footnote
This refers to the location where the property is situated.
101
In what property disputes is the **choice of law** rule particularly relevant?
* Foreclosure
* Land contract disputes
* Equitable interests (e.g., trusts)
* Interstate succession
* Interpreting conveyances
## Footnote
These disputes often involve multiple jurisdictions.
102
When do you ignore the basic rule for **tenancy by the entirety**?
If the instrument designates an applicable jurisdiction.
## Footnote
This includes cases involving marital or separate property.
103
What are the **two basic duties** of a tenant?
* Pay rent
* Avoid waste
## Footnote
These duties are fundamental to the tenant-landlord relationship.
104
Why does the duty to **pay rent** arise?
Because of the contractual relationship between the landlord and tenant
## Footnote
The lease requires the tenant to pay rent.
105
In what **three situations** is the duty to pay rent suspended?
* Premises are destroyed (if tenant didn't cause damage)
* Landlord completely or partially evicts tenant
* Landlord materially breaches the lease
## Footnote
Particularly breaches of the implied covenant of quiet enjoyment or implied warranty of habitability.
106
What is a **complete eviction**?
Removal of the tenant from the entire property
## Footnote
This type of eviction affects the tenant's right to occupy the entire leased premises.
107
What is a **partial eviction**?
Removal of the tenant from a portion of the property
## Footnote
This affects the tenant's right to occupy only part of the leased premises.
108
When can a tenant **withhold rent** under the implied covenant of quiet enjoyment?
When the landlord takes actions that make the premises wholly or substantially unsuitable
## Footnote
This protects the tenant's right to enjoy the leased property.
109
Is the duty to **avoid waste** required to be expressed in the lease?
No, it is a background rule that applies regardless
## Footnote
This duty is inherent in the tenant's responsibilities.
110
What types of waste does a tenant have a duty **not to commit**?
* Affirmative (voluntary) waste
* Permissive (neglectful) waste
## Footnote
These types of waste can diminish the property's value.
111
May a tenant make changes to the property that increase its value (**ameliorative waste**)?
Yes, but landlords usually require permission before a tenant can make the change
## Footnote
This ensures that the landlord is aware of and approves any modifications.
112
Can a landlord **prohibit** a tenant from making improvements to the property?
Yes, by putting a provision in the lease
## Footnote
This allows landlords to maintain control over property modifications.
113
Who is presumed responsible for **repairs** in a residential lease?
The landlord
## Footnote
The tenant must notify the landlord of any needed repairs.
114
Is the landlord responsible for repairs caused by the **tenant's actions**?
No
## Footnote
Tenants are typically liable for damages they cause.
115
In a **commercial lease**, who can be responsible for repairs?
The landlord can place the duty to repair on the tenant
## Footnote
This is often negotiated in the lease agreement.
116
What are the **four elements** of constructive eviction?
* Premises were unusable for their intended purposes
* Tenant notifies landlord of the problem
* Landlord does not correct the problem
* Tenant vacates the premises after a reasonable time
## Footnote
Constructive eviction allows tenants to terminate the lease due to uninhabitable conditions.
117
What is the **implied warranty of habitability (IWH)**?
The landlord has an obligation to maintain the property suitable for residential use
## Footnote
This is concerned with conditions that threaten the tenant's health and safety.
118
Can a tenant **waive** habitability protection under IWH?
No
## Footnote
Tenants cannot give up their rights to a habitable living environment.
119
What constitutes evidence of a **breach** under IWH?
The landlord's failure to comply with applicable codes
## Footnote
This can include health and safety regulations.
120
To what types of properties does IWH **apply**?
Residential leases, not commercial; usually multi-family buildings
## Footnote
This ensures that residential tenants have safe living conditions.
121
If the premises are not habitable under IWH, what **remedies** may the tenant pursue?
* Refuse to pay rent
* Remedy the defect and offset costs against the rent
* Defend against eviction
## Footnote
Tenants have several options to address breaches of habitability.
122
Alternatively to the above remedies, how may a tenant treat a breach under IWH?
As a constructive eviction by vacating the property
## Footnote
This allows tenants to terminate the lease due to uninhabitable conditions.
123
If a tenant chooses to **withhold rent** under IWH, what must the tenant do?
* Notify the landlord of the problem
* Give the landlord a reasonable opportunity to correct the problem
## Footnote
This process is essential to protect the tenant's rights.
124
Unlike constructive eviction, does IWH require the tenant to **vacate** the premises?
No (unless the state requires it due to severe conditions)
## Footnote
Tenants may remain in the property while addressing habitability issues.
125
Under common law, what is a tenant's **duty of care** in tort liability?
The tenant owes a duty of care to invitees, licensees, and foreseeable trespassers
## Footnote
This duty ensures safety for those who enter the property.
126
Under common law, when is a landlord responsible in **negligence** for tort liability?
* For latent (hidden) defects not warned about
* For the landlord's agent's negligence
* For negligence causing injuries in common areas
## Footnote
Landlords have a duty to maintain safe conditions on their properties.
127
What is the **modern trend** for a landlord's duty in tort liability?
Landlords have a general duty of reasonable care
## Footnote
This reflects a shift towards greater accountability for landlords.
128
What are the **three parties** involved in a transfer of a lease?
* Landlord (transferor)
* Tenant (transferrer)
* Sublessee or Assignee (transferee)
## Footnote
Each party has specific roles in the lease transfer process.
129
What is an **assignment** in the context of lease transfers?
Transfer of the tenant's entire remaining term
## Footnote
This means the assignee takes over the lease responsibilities.
130
What is a **sublease** in the context of lease transfers?
Transfer for less than the entire duration of the lease
## Footnote
The original tenant retains some responsibilities.
131
In an **assignment**, from whom can the landlord collect rent?
* The assignee (privity of contract)
* The original tenant (privity of estate)
## Footnote
This allows the landlord to seek rent from either party.
132
In a **sublease**, from whom can the landlord collect rent?
Only the original tenant (privity of contract and estate)
## Footnote
The sublessee has no direct obligation to the landlord.
133
In a sublease, what **rent obligations** does the sublessee have to the landlord?
None; the sublessee only has rent obligations to the original tenant
## Footnote
This structure protects the sublessee from direct landlord claims.
134
If a lease is silent on **assignment or subletting**, may the tenant transfer freely?
Yes
## Footnote
Tenants have the right to transfer their lease without restrictions.
135
If a lease requires the landlord's **permission** to transfer but is silent on the standard, what is the **majority rule**?
Landlord may deny permission only for a reasonable reason
## Footnote
This protects tenants from arbitrary denials.
136
If a lease requires the landlord's **permission** to transfer but is silent on the standard, what is the **minority rule**?
Landlord may deny permission for any reason or no reason at all
## Footnote
This gives landlords more discretion in lease transfers.
137
Does a landlord need the tenant's **permission** before transferring her interest?
No
## Footnote
The new landlord is bound by the terms of the existing lease.
138
What is the **framework for land sale contracts**?
* Contract stage (parties negotiate terms)
* Deed stage (parties transfer property)
## Footnote
This framework outlines the two critical phases in the process of land sale agreements.
139
How is **liability determined** in a land sale contract breach?
* Contract stage liability based on contract provisions
* Deed stage liability based on deed warranties
## Footnote
Liability varies depending on the stage at which the breach occurs.
140
What is the **doctrine of merger** in land sale contracts?
Covenants under the contract merge into the deed, and remedies flow from the deed
## Footnote
This doctrine signifies that once the deed is executed, prior agreements are no longer enforceable.
141
Are land sale contracts subject to the **Statute of Frauds**?
Yes
## Footnote
The Statute of Frauds requires certain contracts, including land sale contracts, to be in writing.
142
What are the **three requirements** for a land sale contract under the Statute of Frauds?
* Must be in writing
* Must be signed by the party to be charged (seller and buyer)
* Must include essential terms (parties, property description, price and payment info)
## Footnote
These requirements ensure the enforceability of land sale contracts.
143
What are the **two main exceptions** to the Statute of Frauds for land sale contracts?
* Part performance
* Detrimental reliance (estoppel)
## Footnote
These exceptions allow for enforcement of contracts that might otherwise be unenforceable due to lack of writing.
144
What constitutes **part performance** as an exception to the Statute of Frauds?
* Payment of all/part of purchase price
* Possession by purchaser
* Improvements by purchaser
## Footnote
Many states require at least two acts of part performance to enforce an otherwise unenforceable contract.
145
What is **detrimental reliance** as an exception to the Statute of Frauds?
Applies where a party reasonably relied on the contract and would suffer hardship if not enforced
## Footnote
This often overlaps with part performance and protects parties from unfair outcomes.
146
What **implied covenant** is in every land sale contract?
Implied covenant of marketable title (title free from unreasonable risk of litigation)
## Footnote
This covenant ensures that the buyer receives a title that is legally sound.
147
What are examples of **defects rendering title unmarketable**?
* Title by adverse possession not quieted
* Private encumbrances (mortgage, covenant, easement)
* Zoning ordinance violation
## Footnote
These defects can create legal challenges for the buyer.
148
When must a defect in title be **cured** under the marketable title covenant?
Before closing
## Footnote
At closing, the contract and deed merge, and the deed controls the transaction.
149
What standard is used to judge if title is **unmarketable**?
That of a reasonable buyer
## Footnote
This standard assesses the title's acceptability from a buyer's perspective.
150
If seller cannot deliver **marketable title**, what is the buyer's remedy?
Rescission of the contract
## Footnote
This allows the buyer to cancel the agreement if the title is not marketable.
151
Is **time of the essence** in land sale contracts?
No, unless the contract or parties specify it
## Footnote
This means that delays in closing do not automatically void the contract unless explicitly stated.
152
What is the effect if **time is not of the essence** in a land sale contract?
Failure to close on the set date may be a breach but not grounds for rescission; specific performance is still available
## Footnote
This provides flexibility for parties in fulfilling contract terms.
153
To what does the **implied warranty of fitness or suitability** apply?
Defects in new construction
## Footnote
This warranty protects buyers from issues that arise in newly built properties.
154
Who can recover under the **implied warranty of fitness** in most jurisdictions?
* Initial homeowner-purchaser
* Subsequent purchasers
## Footnote
Some jurisdictions limit recovery to the original buyer.
155
What is the **time limit for suit** under the implied warranty of fitness?
Reasonable time after discovery of defect
## Footnote
Some jurisdictions have a statutory period for filing claims.
156
Do most jurisdictions impose a **duty on sellers** to disclose defects?
Yes, all known physical and material defects (latent/hidden)
## Footnote
This duty ensures transparency in real estate transactions.
157
What makes a defect **material** under the duty to disclose?
Substantially affects home's value, health/safety of occupants, or desirability
## Footnote
Material defects must be disclosed to protect buyers.
158
Do general disclaimers like **'as is'** satisfy the duty to disclose?
No
## Footnote
Sellers must disclose known defects regardless of disclaimers.
159
What happens to contract obligations after closing under **merger**?
They merge into the deed; if not in the deed, cause of action is lost as deed controls
## Footnote
This principle emphasizes the importance of the deed in real estate transactions.
160
Under the majority rule for **risk of loss** in land sale contracts, who bears the risk if property is damaged?
Buyer, during the period between contract execution and closing/delivery of deed
## Footnote
This rule places the burden on the buyer until the transaction is finalized.
161
Under the majority rule, who has the right to **possess** during the risk of loss period?
Seller, as holder of legal title
## Footnote
The seller retains possession rights until the deed is delivered.
162
Under the minority rule for **risk of loss**, who bears the risk?
Seller, until closing and delivery of deed
## Footnote
This rule protects buyers by placing the risk on the seller.
163
What **remedies are available** to the seller on buyer's breach?
* Damages (difference between contract price and market price)
* Rescission (sell to someone else)
* Specific performance
## Footnote
These remedies provide options for sellers to address buyer breaches.
164
What **remedies are available** to the buyer on seller's breach?
* Damages (difference between contract price and market value on breach date)
* Out-of-pocket expenses if seller acted in good faith
* Specific performance
## Footnote
Buyers have several options to seek redress for seller breaches.
165
Can buyers/sellers get both **damages and specific performance** on breach?
No, must choose between them
## Footnote
This rule prevents double recovery for the same breach.
166
What is the gist of the **doctrine of adverse possession**?
It allows a person in unlawful possession to acquire good title to property if they meet the required elements until the statute of limitations runs out
## Footnote
This doctrine encourages productive use of land.
167
What are the **four elements of adverse possession**?
* Continuous (for statutory period)
* Open and notorious
* Hostile
* Exclusive
## Footnote
These elements must be proven for a claim of adverse possession.
168
What does the **'continuous'** element require in adverse possession?
Possession for the statutory period, which is not literal; seasonal or infrequent use may suffice if consistent with the type of property
## Footnote
This flexibility allows for varied property uses.
169
What are the **three phases** of the continuous element in adverse possession?
* Entry phase: Adverse possessor enters the land
* End phase: Statute of limitations runs out, possessor becomes legal owner by operation of law
* Middle phase: Between entry and end phases
## Footnote
Understanding these phases clarifies the timeline of adverse possession.
170
What is **tacking** in adverse possession?
An adverse possessor can add her predecessor's time on the property to satisfy the statute of limitations if there is privity
## Footnote
This allows for continuity in claims of adverse possession.
171
How do **disabilities** affect the statute of limitations in adverse possession?
The statute does not run against a true owner with a disability at the time the trespasser enters
## Footnote
This protects owners who are unable to assert their rights.
172
What does the **'open and notorious'** element require in adverse possession?
Use must be open (not hidden) and such that it would put a reasonable true owner on notice of the adverse use
## Footnote
This ensures that the true owner is aware of the adverse claim.
173
What does **'hostile'** mean in adverse possession?
Possession must be adverse to the true owner's interest
## Footnote
This element distinguishes adverse possession from permissive use.
174
Under the majority rule for **hostility** in adverse possession, what is ignored?
The adverse possessor's state of mind
## Footnote
This simplifies the analysis of adverse possession claims.
175
Under the good-faith minority rule for **hostility** in adverse possession, when is a claim hostile?
If the adverse possessor thinks the land is unowned or there is a mistake
## Footnote
This rule considers the possessor's intent.
176
Under the bad-faith minority rule for **hostility** in adverse possession, when is a claim hostile?
If the adverse possessor knows the land is not hers and tries to acquire title by aggressive trespass
## Footnote
This rule penalizes bad-faith actions.
177
What does the **'exclusive'** element require in adverse possession?
The adverse possessor cannot share possession with the true owner
## Footnote
This ensures that the possessor's claim is not contested.
178
Can two people **adversely possess** property together?
Yes, they can acquire title as tenants in common
## Footnote
This allows for joint claims of adverse possession.
179
What is the **scope of possession** in adverse possession?
It generally traces the legal boundaries of the property
## Footnote
This defines the extent of the adverse possessor's claim.
180
What is **constructive adverse possession**?
Adverse possessor enters under color of title from an invalid instrument and occupies a portion; they possess the remaining land described in the instrument
## Footnote
This allows for claims based on flawed documents.
181
Does adverse possession include **subsurface rights**?
Yes, unless those rights already belong to a third party
## Footnote
This extends the scope of adverse possession claims.
182
Can **easements** be acquired by adverse possession (prescription)?
Yes
## Footnote
This allows for the establishment of rights to use another's property.
183
How can a true owner **interrupt** the adverse possession period?
By ejecting the adverse possessor, which stops the adverse possession clock
## Footnote
This action protects the true owner's rights.
184
When a person acquires title by **adverse possession**, what is the new title's relation to the former owner?
It relates back to the date of the person's entry onto the property
## Footnote
This means the new title is effective from the time of entry.
185
What are **two basic rationales** for the doctrine of adverse possession?
* Punishing the true owner for sleeping on her rights
* Rewarding the adverse possessor for earning good title
## Footnote
These rationales justify the legal framework surrounding adverse possession.
186
What is a **deed**?
A legal instrument that transfers ownership of real property.
## Footnote
Deeds are essential for the formal transfer of property rights.
187
For a deed to be valid, what two key requirements must be met?
* It must be delivered
* It must be accepted
## Footnote
Both delivery and acceptance are critical for the legal effectiveness of a deed.
188
What is the controlling question for **delivery of a deed**?
Whether the grantor had the present intent to transfer the property.
## Footnote
The intent of the grantor is crucial in determining if delivery has occurred.
189
Is **physical transfer** of a deed required for delivery?
No.
## Footnote
Delivery can occur without physical transfer if the intent is clear.
190
Can a grantor deliver a deed through an **agent**?
Yes, if the grantor gives proper delivery to the agent.
## Footnote
Agents can facilitate the delivery process under the grantor's instructions.
191
What is the **Equal Dignities Rule** for agents executing deeds?
If an agent is required to sign/execute a deed, the agency relationship must be created in writing.
## Footnote
This rule ensures that the authority of the agent is properly documented.
192
Is **acceptance** of a deed generally presumed?
Yes.
## Footnote
Acceptance is typically assumed unless there is evidence to the contrary.
193
If a grantee no longer wants the property after acceptance, what must they do?
Execute a new deed back to the grantor.
## Footnote
This process formally returns the property to the original owner.
194
Can real estate agents and brokers prepare a **contract of sale**?
Yes, in most states (permissible).
## Footnote
Agents are often allowed to prepare contracts as part of their services.
195
Can real estate agents draft legal documents like a **deed** or **mortgage**?
No (impermissible, as it usually involves the exercise of legal discretion or giving legal advice).
## Footnote
Drafting such documents typically requires a licensed attorney.
196
What must a valid deed identify per the **Statute of Frauds**?
The parties (grantor and grantee).
## Footnote
Identification of the parties is essential for the enforceability of the deed.
197
What must a valid deed include regarding **transfer**?
Words of transfer (a granting clause with any words evidencing present intent to transfer).
## Footnote
This clause indicates the grantor's intention to convey the property.
198
What must a valid deed include regarding the **property**?
A sufficient description of the property.
## Footnote
The description must be clear enough to identify the property being transferred.
199
Does a deed's property description have to be a **legal description**?
No; it can be based on monuments or physical attributes.
## Footnote
Various methods can be used to describe property in a deed.
200
Can **extrinsic evidence** be admitted to clarify an ambiguous deed description?
Yes.
## Footnote
Courts may allow additional evidence to interpret unclear descriptions.
201
Whose **signature** is required for a deed's execution to be effective?
The grantor's (as a general matter).
## Footnote
The grantor's signature is essential for the deed's validity.
202
Is the **grantee's signature** required on a deed?
No.
## Footnote
Only the grantor's signature is necessary for execution.
203
Must a deed be **witnessed** or **notarized**?
No.
## Footnote
While not required, witnessing or notarization can provide additional legal protection.
204
What if a deed's **signature** is forged?
The deed is void, even if the purchaser is a bona fide purchaser (BFP).
## Footnote
Forgery invalidates the deed regardless of the circumstances.
205
What does it mean to **record** a deed, and what is its purpose?
To publicly register the deed; purpose is notice (tell the world you own the property).
## Footnote
Recording helps establish ownership and protect against claims.
206
Does **recording** affect the validity of a deed?
No.
## Footnote
A deed remains valid regardless of whether it is recorded.
207
What is the big deal with **recording statutes**?
They mediate conflicts between first and subsequent purchasers.
## Footnote
Recording statutes help determine priority in property claims.
208
Under the common-law recording rule, does a deed have to be recorded to be **valid**?
No.
## Footnote
A deed can be valid without being recorded under common law.
209
What is the baseline principle for **recording problems** under common law?
"First in time" (the first grantee to receive a deed wins).
## Footnote
This principle establishes priority among competing claims.
210
How do **recording statutes** modify the common-law rule?
Every state has a recording statute that gives priority to certain deeds in competing claims to title.
## Footnote
These statutes can alter the outcomes of disputes over property ownership.
211
What is the scope of **recording acts**?
* Types of interests like deeds
* Mortgages
* Leases
* Options
* Judgments affecting title
* Other instruments creating an interest in land such as easements or covenants
## Footnote
Recording acts protect interests in land by providing a public record of ownership and claims.
212
Who is **protected** by recording acts?
Subsequent purchasers
## Footnote
These are individuals who acquire an interest in land after the original transaction.
213
Who is **not protected** by recording acts?
Grantees who acquire title by:
* Gift
* Intestacy
* Devise
## Footnote
These individuals do not have the same protections as purchasers.
214
What is the **policy** behind recording acts?
To protect those who make economic investments by purchasing property
## Footnote
This policy aims to ensure that buyers can rely on the public record of property ownership.
215
What is the concept of **notice** in recording acts?
* Actual notice
* Constructive notice
* Inquiry notice
## Footnote
Notice is crucial for determining the rights of subsequent purchasers regarding prior interests.
216
What are two common situations for **inquiry notice**?
* Use on the land
* Mentioned interest
## Footnote
Inquiry notice arises when a reasonable investigation would have disclosed prior claims.
217
What are the **three types of recording statutes**?
* Race
* Notice
* Race-notice
## Footnote
These statutes determine the priority of claims based on recording and notice.
218
What is the key language for a **race statute**?
"First recorded" or "First to record"
## Footnote
This language indicates that the first party to record their interest has priority.
219
What is the key language for a **notice statute**?
"In good faith" or "Without notice"
## Footnote
This language indicates that a subsequent purchaser can prevail if they had no notice of prior claims.
220
What is the key language for a **race-notice statute**?
"In good faith" or "Without notice" plus "First duly recorded" or "First recorded"
## Footnote
This language combines elements of both race and notice statutes.
221
Under a **notice statute**, when does adverse possession NOT provide good title?
If a conveyance or mortgage of real property shall be good against subsequent purchasers for value and without notice unless the same be recorded according to law
## Footnote
This highlights the importance of recording for protecting title.
222
In a **race-notice statute**, who wins if the subsequent purchaser records first but had notice?
The prior grantee
## Footnote
This emphasizes the priority of prior claims despite later recording.
223
What are the **three kinds of deeds** in a hierarchy from best to worst protection?
* General warranty deed
* Special warranty deed
* Quitclaim deed
## Footnote
This hierarchy reflects the level of protection each deed provides to the grantee.
224
What does a **general warranty deed** provide?
The greatest amount of title protection; the grantor warrants title against all defects, even if the grantor did not cause the defects
## Footnote
This type of deed offers comprehensive protection for the buyer.
225
What are the **six implied covenants** in a general warranty deed?
* Covenant of seisin
* Covenant of the right to convey
* Covenant against encumbrances
* Covenant of quiet enjoyment
* Covenant of warranty
* Covenant of further assurances
## Footnote
These covenants provide various assurances regarding the title and ownership.
226
What does a **special warranty deed** warrant against?
Defects caused only by the grantor
## Footnote
This deed provides limited protection compared to a general warranty deed.
227
How many covenants does a **special warranty deed** typically include?
The same six covenants as a general warranty deed, but they only apply to the acts (or omissions) of the grantor
## Footnote
This means the protections are limited to the grantor's actions.
228
What does a **quitclaim deed** provide?
No warranties; the least amount of title protection
## Footnote
This deed transfers whatever interest the grantor has without guarantees.
229
When is a **quitclaim deed** often used?
* In tax sales
* In intra-family disputes (e.g., divorce)
## Footnote
These situations often require quick and uncomplicated transfers of property.
230
What is a **restraint on transferring property**?
A restriction on alienation
## Footnote
This can limit the ability to sell or transfer property.
231
Where are **restraints on alienation** commonly seen?
* Inter vivos grant of an estate smaller than a fee simple
* Devise of an estate smaller than a fee simple
* Co-tenant agreement
* Covenants that run with the land
* Easements
## Footnote
These examples illustrate various contexts where restraints may apply.
232
What is the rule about **absolute restraints on alienation**?
An absolute restraint on alienation is void
## Footnote
This means such restrictions cannot be enforced.
233
When is a **partial restraint on alienation** valid?
If it is for a limited time and a reasonable purpose
## Footnote
This allows for some restrictions while still permitting transfers.
234
Is a restriction on the **use of property** generally permissible?
Yes
## Footnote
Restrictions on use, such as covenants, are typically allowed.
235
What is the effect of a valid **restraint on alienation**?
Any attempt to alienate the property will be null and void
## Footnote
This means the property cannot be transferred in violation of the restraint.
236
What is the effect if a **restraint on alienation** is invalid?
The restraint is rejected and the property can be alienated in violation of the restraint
## Footnote
Invalid restraints do not affect the ability to transfer property.
237
When does a **breach of the present covenants** occur?
At the conveyance
## Footnote
Breaches of present covenants are immediate upon transfer.
238
When does a **breach of the future covenants** occur?
After the conveyance, once interference with possession
## Footnote
Future covenants are breached when issues arise post-transfer.
239
What remedy is available for **breach of covenants**?
Damages
## Footnote
This is the typical legal remedy for breaches of covenants.
240
Can **real property** be transferred by will?
Yes
## Footnote
Wills can specify how real property should be distributed after death.
241
What is the guiding principle in the **interpretation of wills**?
Intestate succession
## Footnote
This is the default estate plan created by the legislature if a person dies without a will.
242
Who are **heirs** in the context of wills?
People who take a decedent's intestate estate
## Footnote
Heirs typically include a surviving spouse and descendants.
243
What is a **devisee**?
A person who takes a devise by will
## Footnote
This term is also known as a legatee.
244
What is a **decedent**?
Dead guy
## Footnote
This term refers to a person who has died.
245
What is a **testator**?
Dead guy who made a will
## Footnote
This term refers to someone who has created a will before their death.
246
What is **escheat**?
If a decedent dies without a will and without heirs, the decedent's property goes to the state
## Footnote
This process ensures that unclaimed property is managed by the state.
247
What is **ademption**?
A devise of property that fails because it is not in the testator's estate at death
## Footnote
This means the intended gift cannot be fulfilled.
248
What is the basic rule for **ademption**?
The gift fails, and the intended recipient gets nothing
## Footnote
This rule underscores the importance of the property being part of the estate at death.
249
What is **satisfaction** in wills?
If the testator gives the intended beneficiary the promised gift during life, then the beneficiary keeps the gift
## Footnote
This is known as ademption by satisfaction.
250
What is **lapse/anti-lapse** in wills?
* Lapse: The intended beneficiary predeceases the testator
* Anti-lapse: Statute to prevent a gift from falling due to a predeceasing beneficiary
## Footnote
Anti-lapse statutes typically apply to relatives of the testator.
251
How does an **anti-lapse statute** work?
The statute replaces the intended beneficiary with a family member who stands in the shoes of their parent
## Footnote
This allows the gift to continue to a relative of the original beneficiary.
252
Why is an **anti-lapse statute** more consistent with the testator's intent?
Rather go to family than the residuary
## Footnote
This reflects the testator's likely desire to keep gifts within the family.
253
What is a **trust**?
A device for managing property with bifurcated ownership: one person (the trustee) owns property (legal title) for the benefit of another person (the beneficiary) who holds equitable title
## Footnote
Trusts are used to manage and protect assets.
254
What is a **charitable trust**?
Trust designed to benefit the public and is charitable in nature
## Footnote
These trusts are established for purposes that serve the public good.
255
What is a **private trust**?
Trust designed to satisfy some legal purpose by giving property to a person or group for the benefit of another person or group
## Footnote
Private trusts are typically established for specific beneficiaries.
256
Who is the **settlor** in a trust?
Person who creates the trust
## Footnote
The settlor establishes the terms and conditions of the trust.
257
Who is the **beneficiary** in a trust?
Person who benefits from the trust; holds equitable title
## Footnote
Beneficiaries receive the benefits of the trust property.
258
Who is the **trustee** in a trust?
Person who manages the trust property and holds legal title
## Footnote
The trustee has a fiduciary duty to act in the best interest of the beneficiaries.
259
What property is **subject to a trust**?
Generally, a trust must contain property
## Footnote
This property is managed according to the terms of the trust.
260
What is **bifurcated transfer** in trusts?
Ownership is divided: giving someone legal title to act as the owner (trustee); giving someone equitable title to benefit from that ownership (beneficiary)
## Footnote
This division allows for effective management of the trust.
261
At deed closing, what **merges into the deed**?
The land sale contract
## Footnote
Any liability must arise out of the deed, not the contract.
262
What is a **shelter rule** in deeds?
A person who takes from a bona fide purchaser protected by the recording act has the same rights as her grantor
## Footnote
This rule protects subsequent purchasers.
263
What is **estoppel by deed**?
Arises when a grantor conveys land the grantor does not own; if grantor subsequently acquires title to the land, the grantor is estopped from trying to repossess on grounds that he didn't have title when he made the original conveyance
## Footnote
This principle prevents the grantor from claiming rights to the property after conveying it.
264
What is a **wild deed**?
A deed that is recorded but not connected to the chain of title because a link in the chain is unrecorded
## Footnote
Wild deeds can create confusion regarding property ownership.
265
Do **easements** make warranties as to the state of the title?
No, because she used a quitclaim deed
## Footnote
This means easements do not guarantee clear title.
266
What kind of **recording act** is it?
Race-notice
## Footnote
This type of act combines elements of both race and notice statutes.
Florida Bar Exam
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