Real Property

Question 1

Real Property:

Freehold Estates

Answer 1

Fee Simple: complete ownership unlimited period of time
Fee Simple Defeasible: ownership auto. terminates upon happening of event
Life Estate: Title held by grantor or third party, but subject to holder of life estate to the possession, use, and ordinary profit
- taxable as gift or inheritance and can be mortgaged
- life tenant must maintain property and pay taxes
Future Interests: nonpossory interest where right to possession is postponed
- Reversion Interest: when terminated, reverts to owner
- Remainder Interest: life estate to son, title to grandkids

Question 2

Real Property:

NonFreehold Estate

Answer 2

Leasehold Estates:

1. Tenancy for Years: specific time period
2. Tenancy from Period to Period: auto renewal unless terminated
3. Tenancy at Will: continues with permission
4. Tenancy at Sufferance: without consent

Question 3

Real Property:

NonPossessory Interests

Answer 3

Easements:

1. Appurtenant: right to adjacent land
2. In Gross: right to single tract of land
3. Profit: take part of land
4. Grant: conveyance by contract or deed
5. Implication: parties demonstrate, by circumstances, intent to create an easement
6. Necessity: created by law to allow another access to that land

Question 4

Real Property:

NonPossessory Interests 2

Answer 4

Fixtures

• All fixtures are initially personal property. Trade fixtures, such as display case, remain that way
• Becomes a fixture if:
  
  • intent to be a fixture
  • so attached that it becomes part of realty

Question 5

Real Property:

NonPossessory Interests 3

Answer 5

Liens

• Judicial Liens: real property
• Mechanic’s Lien: statutorily filed lien by creditor who renders services, labor, or material to improve real estate and not paid
  
  • must file, usually within 60-120 days
  • creditor can be: materials supply store, subcontractor, general contractor, employee of either
  • lien on entire realty and if not paid, foreclosed
  • most states mechanic’s lien and mortgage are equal
  • upon foreclosure, only surplus to owner

Question 6

Real Property:

Acquisition

Answer 6

General: Same as acquisition of personal property for:

1. Gift
2. Will or inheritance
3. Sale or Contract
   - writing
   - earnest money aka liquidated damages
   - give marketable title
   - creditor furnished either abstract or title insurance
   - implied warranty of habitability
   - monies placed in escrow
   - assignable
   - Closing is final settlement

Question 7

Real Property:
Acquisition
How Transfer Occurs By Deed

Answer 7

Warranty Deed: highest protection
Special Warranty Deed: no problems with title only for time owned by grantor
QuitClaim Deed: only what title grantor has
Requirements to be valid:
1. writing
2. signed by grantor
3. include description of land
Recording:
- not required, but protects from loss of title
1. Race: first to record takes clear of any subsequent
2. Notice: last to take title from grantor
3. Race/notice or notice/race: first BFP to record unless they know

Question 8

Real Property:

Methods of Holding Title

Answer 8

Tenancy in Common
- 2+ individuals
- sell, will, or mortgage interest
Joint Tenancy
- held equally by 2+ people
- unity in time, title, interest, and possession
- right of survivorship
- one tenant transfers interest, joint tenancy is severed and transfeeree becomes tenant in common