Property

Question 1

Joint Tenants

Answer 1

joint tenancy is when two or more people own property equally. A joint tenancy has the right of survivorship meaning that when one joint tenant dies, the other gets the entire interest in land.

Question 2

Creation of Joint Tenancy

Answer 2

• Time = created at the same time
• Title = same title
• Interest
• Possession
• Express right of suvivorship

Question 3

Severance of Joint Tenancy

Answer 3

A joint tenancy is severed by a conveyance or partition and depending on if its a title or lien theory jurisdiction, a mortgage. If title jurisdiction, a mortgage does sever the joint tenancy. If a lien theory jurisdiction, the mortgage is just a lien on the property.

Question 4

Tenants in Common

Answer 4

A tenancy in common is the default form of tenancy. tenancy in common is when two or more people each own a undivided interest in land. Tenants in common have no right to survivorship, so when they die, their interest in property pass to their heirs.

Question 5

Tenancy by the Entirety

Answer 5

• Husband and wife only
• right of survivorship
• severed by death, divorce or agreement

Question 6

Co-Tenancy Rules

Answer 6

• Right to Possession
• Tax/Mortgage = equal share and may seek reimbursement
• Improvements = no right to reimbursement for unnecessary improvements
• cotenants do not have to share profits earned while working on the land.
• cotenants have to share profits from renting to 3rd parties

Question 7

Landlord/Tenant Types of Tenancy

Answer 7

1. Tenancies For Years
   Lease for a fixed period
2. Periodic Tenancies
   Automactically renews from one period to the next, unless a party terminates the lease
3. Tenancies at will
   Month to Month
4. Tenancies at Sufferance
   Holdover tenant. Landlord can evict the tenant or hold him over to another term

Question 8

Landowner Duties

Answer 8

1. Duty to deliver possession of premises
2. Covenant of Quiet Enjoyment
3. Implied Warranty of Habitability (residential only) premises must be fit for human habitation
4. Duty to repair

Question 9

Tenants Remedies

Answer 9

1. Constructive Eviction
2. Partial Eviction
3. Violation of Implied Warranty of Habitability

Question 10

Constructive Eviction

Answer 10

• premises must be uninhabitable
• substantial interference with use & enjoyment
• notice to landlord
• landlord fails to respond
• tenant can move out

A landlords action must substantially and permanently interfere with the tenants use and enjoyment of the property and the tenant must vacate the property. If the tenant does not vacate the property, the rent payment is still owed.

Question 11

Partial Eviction

Answer 11

• Tenant cant occupy the entire premise

- Tenant may withhold rent and doesn’t have to move out

Question 12

Violation of Implied Warranty of Habitability

Answer 12

Tenant has three options.. can

1. Terminate the lease and move out
2. Make repairs and deduct cost from rent
3. pay reduced rent, remain and sue for damages

Question 13

Tenants Duties

Answer 13

1. Duty to repair
2. Duty of no illegal activity on land
3. Duty to pay rent

Question 14

Landlord Remedies

Answer 14

A landlord can evict a tenant. If the tenant abandons the land, the landlord can (1) terminate the lease (2) leave the premises vacant and sue for rent

Question 15

Waste

Answer 15

1. Voluntary (decreases value)
2. Permissive (Neglect)
3. Ameliorative (alterations)

If a mortgage commits waste without consent such as reducing the value of the property, the bank can foreclose and find the mortgager to be in default

Voluntary Waste - a tenant for life is liable to the vested remainderman for voluntary waste

Question 16

Assignments

Answer 16

An assignment is when one person transfers all of their rights under a contract to another person. Assignments and subleases are strictly construed against the landlord so if the covenant prohibits assignment, it doesn’t prohibit sublease.

• New tenant is personally liable
• old tenant is also liable unless the landlord releases them by novation
• An assignment does not give privity between the original landlord and the new tenant unless they sign a formal assignment

Question 17

Sublease

Answer 17

Not the entire Interest

• New tenant is not personally liable
• Old tenant is liable

Question 18

Easement and types of easement

Answer 18

An easement is a non-possessory right to use someone’s land.

Easement Appurtenant =
requires two pieces of land owned by two different people. There is a dominant (benefited land) and a servient (burdened land). it runs with the land. Easement belongs to the land and not the specified person

Easement in gross=
requires only one piece of land. It benefits a person. If the land is sold to a new owner, the easement is transferred with the land but the holder of the easement cannot transfer the easement to another person personally.

Question 19

Creation of an Easement

Answer 19

1. Express (in writing)
2. Implied
3. By necessity
4. By prescription
5. Estoppel (reliance)

Question 20

Terminate an Easement (END CRAMP)

Answer 20

1. Estoppel (reliance)
2. Necessity Ends
3. Destruction
4. Condemnation (eminent domain)
5. Release
6. Abandonment with action
7. Merger of Parcels
8. Prescription

Question 21

Profits

Answer 21

Holder has the right to enter and remove soil of something off the land

Question 22

License

Answer 22

Right to use land for a specific Purpose and is revocable at will

Question 23

Real Covenant

Answer 23

A covenant is a written promise to do or to not do something on the land. If a part is seeking money damages, it is a real covenant. Real covenants run with the land, which means that subsequent owners of the land may enforce or be burdened by the covenant.

1. writing
2. intent
3. touch and concern land
4. horizontal & vertical privity
5. notice

intent = intent for the covenant to apply to future owners

touch & concern = promise restricts the use of the parcel or requires the parcel to do something

Horizontal Privity = privity between the original parties. Must have some shared interest in the land

Vertical Privity - Successor must own the entire interest

Question 24

Covenant of Quiet Enjoyment

Answer 24

Landlords cannot interfere, or permit others (such as other tenants in a multi-unit property) to interfere, with one’s right to use, possess and enjoy their possessory interest.

Question 25

Equitable Servitude

Answer 25

An equitable servitude is also a written promise to do or not do something on the land. If a plaintiff wants an injunction, then equitable servitude applies. 1. Writing 1. Intent 3. Touch and Concern Land 4. Notice Remedies = Injunction Equitable Servitude is implied 1. Common plan or scheme 2. Notice An equitable Servitude can be invalidated for change in the character of the neighborhood. From a residential to a business area. Zoning ordinances do not invalidate a equitable servitude

Question 26

Termination of Covenant & Equitable Servitude

Answer 26

- Agreement - Abandonment with action - changed conditions

Question 27

Adverse Possession

Answer 27

When someone wrongfully enters someones property to get possession. Doesn't convey marketable title 1. Open and notorious 2. Hostile 3. Exclusive 3. Continuous 4. Statutory Period Government owned property cant be won by adverse possession

Question 28

Land Sale Contract

Answer 28

A contract that governs the agreement until the time of closing, at which time the deed merges and becomes controlling

Question 29

SOF Land Sale Contract

Answer 29

Contract must be in writing - parties identified - signed by the person to be bound - describes the land - price Part Performance = doctrine of part performance may be used to enforce an otherwise invalid oral contract of sale provided the part performance unequivocally prove the existence of the contract

Question 30

Equatable Conversion

Answer 30

Once the contract is signed, the buyer is the owner. If the property is destrouyed before closing, the risk is on the buyer

Question 31

Marketable Title

Answer 31

There is an implied promise in every land sale contract that the seller covenants to transfer marketable title at the time fof closing. Marketable title is title free from doubt. There cant be - defects in chain of title - Encumbrances - Zoning - Waiver - Quitclaim deeds - Installment land Contract

Question 32

Remedy for Breach of Land Sale Contract

Answer 32

1. Damages | 2. Specific Performance

Question 33

Specific Performance

Answer 33

1. Valid Contract 2. Legal remedies inadequate 4. Mutuality (both are bound) 5. Plaintiff has fully performed 6. Feasible to enforce 7. No defenses

Question 34

Mortgages

Answer 34

A security interest in land, where the land is collateral. A mortgage must be in wiriting and satisfy the SOF. The mortgage must have a description of the property so a BFP is put on notice of the mortgage. "All real property I won" is insufficient for a mortage.

Question 35

Deed

Answer 35

Deed passes legal title Must be: 1. Signed by grantor 2. Describe the land 3. No consideration required

Question 36

Types of Deeds

Answer 36

1. Quitclaim 2. General Warranty 3. Special Warranty

Question 37

Quitclaim Deed

Answer 37

Passes whatever interest the grantor actually had

Question 38

General Warranty Deed

Answer 38

Warrants against all defects in title 1. Seisin (owns what he says he owns) 2. Right to convey 3. Encumbrances (no encumbrance on land). Covenant by grantor that the estate he will convey is free from encumbrances and is breached the second the deed is delivered entitling damages ABOVE are personal covenants which must be broken the moment the deed is delivered or they are never broken. These personal covenants never run with the land. BELOW are continuous in nature and may be enforced by later parties because of privity of estate continues to exist for subsequent owners who have warranty deeds 4. Warranty of Title (promise to defend there is a lawsuit 5. Quiet Enjoyment (promise possession wont be take) 6. Further Assurances (promise will do anything to perfect title if there is a problem.. Not breached until there is an eviction from the property or person is damaged)

Question 39

Special Warranty Deed

Answer 39

Promise that grantor hasn't conveyed the property to someone else and the land is free from encumbrances. Seller warrants that no title defects have occured during his ownership of the property

Question 40

Deed Delivery

Answer 40

1. Physical transfer 2. Intent to make a present transfer 2. Acceptance Delivery of a deed must have the present intent to transfer an interest. Ex: When Lisa graduates law school is a valid deed delivery because the grantor has relinquished control of the deed.

Question 41

Recording Acts

Answer 41

Types 1. Notice 2. Race 3. Race Notice BFP - take for value - no notice Types of Notice 1. Actual 2. Record 3. Inquiry Make sure that the original deed was recorded because it may be outside the chain of title and later purchasers will validly own the land

Question 42

Subject to or Assumes mortgage

Answer 42

"Subject to" grantee not personally liable | "assumes the mortgage" is personally liable

Question 43

Uniform Vender & Purchaser Risk Act (M)

Answer 43

Minority of states, the risk of loss remains with the seller until the buyer takes possession of the land

Question 44

Vested Remainder

Answer 44

If the contingency never happens, then the person gets to keep the land. The property is going to pass to the person so it cant be contingent just the person may not be able to keep it if something happens

Question 45

Property Uninhabitable at Common Law (M)

Answer 45

the tenant is still liable to the landlord for the monthly rent despite the fact the property is uninhabitable.

Question 46

Ouster

Answer 46

Because a tenant has the right to exclusive possession of a property, a tenant cannot claim ownership of the property through adverse possession unless he commits an ouster. An ouster occurs when one tenant manages to wrongfully exclude their co-tenant from possession of the property. Has to be hostile and adverse to the co-tenants interest and the clock doesn't start running if there hasn't been an ouster. An out of possession co-tenant is entitled to share in rents from 3rd parties, but an out of possession co-tenant is not entitled to collect rent from a co-tenant who is in actual possession unless the in possession co-tenant has wrongfully ousted the other co-tenant.

Question 47

If the tenant buys the property they are paying rent for (M)

Answer 47

The tenant is no longer obligated to pay under the contract because the landlord no longer has title.

Question 48

Non-Assignability Clause

Answer 48

Non assignability clause only prevent assignments and not subleases and vis a versa.

Question 49

Junior interest

Answer 49

Junior interest are usually extinguished when the property is sold at a foreclosure sale. However, if the junior interest holder is not made a party in the judicial proceeding and not provided notice of the foreclosure sale, its interest will not be extinguished and they can proceed against the buyer personally

Question 50

The right to redeem (M)

Answer 50

The right to redeem cannot be waived at the time the mortgage is created

Question 51

Installment Land Sale Contract

Answer 51

Not a mortgage. The buyer takes possession under a contract and makes payments to the seller. The seller doesn't deliver a deed and legal title until all the payments have been made. If buyer defaults, foreclosure isn't necessary. Lender can retake the property and the buyer forfeits all installment payments

Question 52

Proceeds of a Foreclosure Sale

Answer 52

1. 1st to the costs of the sale 2. Mortgage interest foreclosed 3. then to junior interest 4. then to the mortgager if any proceeds remain. If there isn't enough money left over for the mortgagor, then they can get a judgment personally against the mortgagee

Question 53

Fixtures

Answer 53

Trade fixtures, fixtures a tenant uses in a commercial lease for their business may be removed before the end of the lease unless removal would cause substantial damage. If damage is caused the tenant must either restore the premises or pay the cost of restoration.

Question 54

Estoppel by Deed

Answer 54

Also known as after acquired title. If a party grants title he doesn't actually have and later acquires it, it will automatically transfer

Question 55

Fee Simple Subject to Condition Subsequent

Answer 55

an ownership interest in land where the present owner owns the land until something occurs. Then the grantor has the option to reenter the land and retake possession. Grantor must use words such as "but if" "right to reentry".

Question 56

Restraint on Alienation

Answer 56

when a grantor attempts to restrict the transfer of land. A grantor can impose certain conditions on the land but cant stop a grantee from transferring the land to others. Sometimes a court will uphold a reasonable restraint on alienation such as a restriction that lasts only for a specified period of time, like a life estate.

Question 57

Fee Simple Determinable

Answer 57

Creates a possibility of reverter in the granto which means that the grantor's right vests automatically as soon as the occurrence takes place without any action needed by the grantor.