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38 Cards in this Set
- Front
- Back
Rule: Life Tenant Responsibilities
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Life tenant is responsible for reasonable upkeep, including taxes
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Rule: tax sales and future interests
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A tax sale will cut off the rights of remaindermen
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Future Interests: "so long as . . ."
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Fee Simple Determinable
Ends AUTOMATICALLY, going to the next future interest or returning tot he grantor. |
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Rule: RAP and Interests Held by Grantor
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RAP does NOT apply to interests held by the grantor.
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Future Interests: "provided that . . ."
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Fee Simple Subject to condition subsequent
Does NOT automatically come to an end. Must be a valid ejectment action. |
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Future Interests: "but if . . ."
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Fee Simple Subject to Condition Subsequent
Does NOT automatically end. Must be subject to valid ejectment action. |
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Rule: Life Tenant and Mining
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Life tenant cannot start mining since it would decrease the value of the property, UNLESS
1: express permission 2: open mines doctrine |
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MBE Shortcut: Fee Simple Determinable and RAP
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In a fee simple determinable, the estate over will be VOID almost ALL of the time.
Revert to original grantor or whoever that has been transferred to. |
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RAP Fact Pattern: Fee Simple Determinable
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Type: Convey to X in Fee Simple, so long as . . .
VOID if there is no way to determine when the condition would occur. |
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RAP Fact Pattern: Life Estate Series
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To X for life, then to Y for life, then to Z for life, . . . then to Q in fee simple.
1: last person mentioned by proper name is OK 2: first group not mentioned by proper name is OK 3: everything after that is OUT |
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Rule: Class gift opening/closing
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A class gift opens at the time of conveyance.
A class gift closes when ANY member has a right possess. |
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Rule: Interest timing and joint tenants
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If you get yoru interests at different times, CANNOT be joint tenants
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Rule: Conveying Property Held in Joint Tenancy
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EITHER Joint Tenant has an absolute right to convey interests, but the joint tenancy will become tenancy in common.
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Rule: Lease Contracts and Property Sales
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A landlord does not escape responsibilities under a lease by selling the property.
A buyer of leased property is responsible for all promises made to the tenant that 1: the purchaser agrees to accept; OR 2: that run with (touch and concern) the land. |
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Rule: dealing with holdover tenants
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Will be a commercial lease on the MBE as residential leases vary.
Landlord can either eject or hold tenant to a periodic lease. 1: if tenant notified of rent increase, increased rent applies 2: if original lease was more than one year, new lease will be year-to-year 3: if original lease was less than one year, new lease will be determined by the period of payments. |
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Rule: assignment of leases and liability
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Assignment of a lease occurs when a tenant transfers his entire interest.
1: an assignor of a lease REMAINS liable 2: an assignee of a lease is liable ONLY for the period of time they have the right to be on the property (until a reassignment occurs) 3: a sublease does not shift liability. |
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Rule: easements and conveyances
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An easement is a valid interest and will be enforced. It may be conveyed.
If property subject to easement is conveyed, the new buyer will be subject to the easement if he had: 1: actual notice (told or in deed) 2: record notice (in past deed) 3: inquiry notice (reasonable person would have inquired) |
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Rule: subdivision plans
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Similar to easements. Buyer must honor if he had notice.
Same notice conditions as easements, plus record notice if the plan was recorded in a state that allows such. Anyone bound by the restriction may sue to enforce it. |
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Rule: Tenants and Fixtures
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The basic rule that fixtures become part of the property does NOT apply to fixtures installed by tenants.
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Rule: Equitable Conversion
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Buyer bears risk during the period between the signing of a contract and closing. (although many states have changed by statute)
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Rule: providing marketable title
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There is an implied warranty to proivide a marketable title at closing. Marketable is a title that a reasonable person would accept.
TWO types that are NEVER marketable (and common on MBE) 1: gap in the record chain of title that seller can't clear up 2: title acquired in whole OR IN PART by adverse possession WITHOUT a judicial determination of title. |
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Elements: Adverse Possession
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1: open and notorious
2: exclusive 3: hostile 4: continuous ***can obtain an easement through adverse possession*** |
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Rule: adverse possession and mental competancy
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mental incompetancy arising after adverse possession has started does NOT toll the running.
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Rule: Recording Deeds and Delivery
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Recording creates a PRESUMPTION of delivery. Presumption is rebutable.
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Rule: Meets and Bounds Description
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A valid description must end up where it started.
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Rule: Imperfect Tender
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If the seller tenders at closing something less than promised, the buyer has the option to accept but deduct from the purchase priced something reflecting the diminished value.
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Rule: rights of first refusal
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Are valid and will be enforced.
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Define: Pure Notice Recording Act
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if the party to receive the first conveyance fails to record, a subsequent purchaser will take superior title REGARDLESS of who records first.
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Define: Race Notice Recording Act
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if the party to receive the first conveyance fails to record and a second conveyance is made, the first party to record has superior title.
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Basic Rules: Recording
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1: anyone lending money on a piece of property with a mortgage will be treated like any other purchaser for recording purposes
2: judgment creditors cannot benefit from a failure to record |
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Define: Shelter Rule
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if a person takes superior title under any record statute, they can convey, even to someone who knows about the previous problems
(a grantee from a bona fide purchaser is protected as a bona fide purchaser, even though the grantee would not otherwise qualify for this status) |
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Rule: Paying off secured promissory notes
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Promisory notes are freely transferable.
If you pay off a promisory note that has been secured by a mortgage, and pay the wrong person because the note has been transfered, STILL LIABLE. |
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Which mortgage holders may foreclose?
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Any mortgage holder who has not been paid has a right to foreclose.
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Which mortages are removed at a foreclosure sale?
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the foreclosing mortgage and all junior mortgages.
Senior mortgages remain on the land. |
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How are foreclosure sale proceeds distributed.
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Proceeds of the sale go to the forecloser, then remaining amounts to junior mortgages.
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What recourse does a mortgage holder have who is not fully paid in the foreclosure sale?
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If a mortgage holder is not fully paid, they can sue the borrow for the deficiency, but no longer have a lien.
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Rule: Junior Mortgage holder Rights
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If a mortgage is foreclosed, a junior mortgage holder has a common law right to pay off the senior holder and assume rights.
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Rule: Riparian Rights
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an upstream owner can use all the water necessary for domestic use (natural use).
He will ALWAYS prevail over a downstream owner who makes commercial use. |