Property

Question 1

Three Future Interests in Grantor

Answer 1

1. Reversion
2. Possibility of Reverter
3. Right of Entry

Question 2

Possibility of Reverter

Answer 2

• Whenever the Grantor conveys a Fee Simple Determinable (FSD), the grantor automatically retains a possibility of reverter
• The FSD will determine (or end) automatically on the occurance of the stated event
• Magic Words to Identify FSD
  
  • so long as
  • while
  • during
  • until

Question 3

Right of Entry (power of termination)

Answer 3

• Title does not go back to the grantor automatically when the condition is broken
• Title stays with the grantee until the owner exercises the right of entry
• Grantor keeps a right of entry whenever he grants a Fee Simple Subject to Condition Subsequent (FSCS)
• Magic words for an FSCS
  
  • provided however
  • but if
  • on condition that
• To create an FSCS, the magic words must be followed by language where Grantor expressely reserves the right of entry to retake the property

Question 4

Two Future Interests in the Grantee

Answer 4

1. Remainders
2. Executory Interests

Question 5

Whats a Remainder

Answer 5

• A remainder is a future interest in 3rd person grantee that comes naturally and immedietly on the termination of the preceeding estate

Question 6

Types of Remainders

Answer 6

1. Vested
2. Contingent

Question 7

Vested Remainder

Answer 7

• A remainder is vested if nothing stands in the way of its becoming possessroy at the natural experation of the preceeding estate -2 criteria
  
  1. Taker must be ascertainable
  2. no conditions to the taking

Question 8

Contingent Remainder

Answer 8

Arises where there is a condition (such as a sruvivorship clause) that the grantee must satisfy before his interest will become possessory

Question 9

Class Gifts & Vested Remainders Subject to Open

Answer 9

• A class gift is a gift to a group of unamed persons
• Where the remiander is a class gift to unamed persons whose members are not fully known, the class remains open to allow for future persons to qualify for the gift - this is know as:
  
  • Vested Remainder Subject to Open to allow for the birth of a future sibiling
    
    • Sometimes called Vested Remainder Subject to Prior Divestment

Question 10

Time for Vesting of Class Gifts and the Rule of Convenience

Answer 10

• Under the rule of convenience, the class closes for a class gift whenever any class member is entitled to a distribution
• Members of a class who predecease the Testator are eliminated
  
  • Their gifts lapses (unless they were in gestation at the time of Testators death)

Question 11

Executory Interests

Answer 11

• An exutory interest operates to cut short the estate that comes before it
• If a future interest in a grantee is not a remainder, the it is an executory interest
• A vested remainder subject to an executory interest is sometimes called:
  
  • Vested Remainder subject to Complete Divestment
  • Vested Remainder Subject to Executory Limitation
    *

Question 12

In Sum - Deafeasable Fees are:

Answer 12

• Fee Simple Determinable
• Fee Simple Subject to Condition Subsequent
• Fee Simple Subject to Executory Interest

Question 13

Future Interests and the law of Wastes

Answer 13

• Holders of executory interests do not have standing to sue for waste
• holder of a remainder does have standing to sue for waste

Question 14

The Rule Against Perpetuities

Answer 14

• No interest will be valid unless it must vest, if it is going to vest at all, within 21 years after the death of some life in being who was alive at the moment the conveyance was made
• Applies to:
  
  • Executory Interests
  • Contingent Remainders
  • and Vested Remainders Subject to Open
• Ask:
  
  • is it possible that everyone dies at the creation of the interest dies, plus 21 years, before that interest might vest?
    
    • If Yes - interest is void
      
      • cross out the language of the interest
    • If no - Interest is valid
• Rule kicks in at creation of the interest
  
  • Will - death of Testator
  • Deed - when deed takes effect

Question 15

The 4 landlord-tenant estates are:

Answer 15

1. Estate for Years (Tenancy for Years)
2. Periodic Tenancy
3. Tenancy at Will
4. Tenancy at Sufferance

Question 16

Estate for Years (Tenancy for Years)

Answer 16

• This estate must specify 2 dates:
  
  1. a definate beginning date; and
  2. definate ending date
• To satisy Statute of Frauds, any tenancy for years over 1 year must be in signed writing
• A 1 year tenancy may be oral
• No notice is required between landlord or tenant to terminate the tenancy for years

Question 17

Periodic Tenancy

Answer 17

• Key word is repeating
• This estate rolls on and on for the period specified in the grant until one party gives proper notice

Question 18

Tenancy at Will

Answer 18

• Either party can terminate this tenancy at any time by giving the other party notice of the termination and a reasonable time to vacate the premises
• This can also be terminated by operation at law. Look for:
  
  • Death of either party
  • Waste by tenant
  • Assignment by tenant
  • Transfer of title by landlord
  • lease by landlord to 3rd party

Question 19

Tennancy at Sufferance

Answer 19

This tenancy refers to the bare possession of the property by the tenant when the tenant wrongfully holds over

Question 20

Landlord’s Options in a Tenancy at Sufference

Answer 20

1. Sue to Evict
   
   • sue in trespass to remove the tenant and to recover damages for the holdover
2. Impose a New Periodic Tenancy
   
   • If the old, expired tenancy was for less than a year, the new tenancy willbe measured by the period covered by the rent payment
   • In the case of residential property, the new period will usually be month-to-month
   • In the case for leases of commercial property , the landlord can elect to impose a tenancy will be year-to-year if the expired tenancy was year-to-year

Question 21

Assignment: Liability of Successive Assignees for Payment of Rent

Answer 21

• Tenant is liable for rent if there is either privity of contract or estate.
• Privity of estate exists only where there is evidence of an agreement between the Landlord and the particular tenant from whom the landlord seeks to recover the rent

Question 22

Assignment: Assignees Liability on other lease covenants

Answer 22

• Covenant to pay rent always runs with the land and thus is always enforceable based on either privity of estate or privity of contract
• Covenant will run with the land if it touches or concerns the land
  
  • makes land more valuable or more useful

Question 23

Liability of Successive Landlords on the LEase Obligations

Answer 23

• where the original tenat sues the original landlord, the original landlord continues to be liable to the original tenant because of privity of contract
• successor landlords may be held liable if there is either privity of contract or estate and the lease obligation runs with the land

Question 24

Sublease

Answer 24

• Landlord can recover from anyone with privity of estate or contract
• In the case of a sublease, the sublesee keeps the estate, but the estate is not transferred to the sublesee
  
  • essentially the sublesee is not liable to the lanlrd for lease covenants, but the sublessor continues to be liable

Question 25

General Rules of Fixtures

Answer 25

* Fixtures become part of the property and therefore cannot be removed * whether an item is to be considered a fixture hangs on intent * did the one doing the installing intend for the item to become a permanent fixture? * If there is an express agreement between the parties, then the agreement controls

Question 26

Where there is no agreement between the parties as to the fixture, there are four factors relevant to determine intent

Answer 26

1. Degree of attachment 2. General Custom 3. Degree of Harm to premises on removal * if it can be removed without damage, courts will presume there was no intent to make permanent 4. Trade fixtures * items used in trade and business are never permanent fixtures