Real Property
Ownership
- Present estates
(1) FSA – To A or To A & his heirs – No future interest
(2) FT – To A and the heirs of his body – Reversion in O
(3) LE – To A for life – Reversion in O or Remainder in 3P
(4) FDS – To A so long as – PoR in O
(5) FSSCS – To A but if – Right of Entry
(6) FSSEL – To A but if… to B – Shifting executory interest in B
- Future Interests
(1) In Grantor – PoR; Right of Entry; Reversion
(2) In Transferee – Vested Remainder; Contingent Remainder; Executory Interest
- Special Rules
(1) Dest. Of Cont. R. – destroyed if still contingent when preceding estate ends
(2) Shelley’s Case – LE remainder to heirs merges into a FSA.
(3) Worthier Title – Remainder in O’s heirs void – O has a reversion.
- Concurrent Estates
(1) Joint Tenancy
(a) Unity of TTIP = time, title, interest, possession
(b) Destruction – SPAM = sale, partition, and mortgage (only in title theory state)
(2) Tenancy by the Entirety
(a) Destruction – divorce, mutual assent, joint creditor
(3) Tenancy in Common
- Rule Against Perpetuities
RULE: Interests in a GRANTEE that are CONTINGENT or SUBJECT TO OPEN are VOID
when CREATED if they may still exist and be contingent or subject to open 21 years after the
death of a validating life.
(1) Bright-Line Rules
(a) Gift to open class conditioned on members surviving to age past 21.
(b) Executory interest with no limit on time in which it must vest.
Landlord/Tenant
- Tenancy for Years – fixed period, no notice needed to terminate
- Periodic Tenancy – successive intervals until notice equal to 1 period or as agreed
- Tenancy at Will – no fixed duration; terminated by either party, usually reasonable demand to quit
- Tenancy by Sufferance – T wrongfully holds over until LL evicts or holds T to new tenancy
- Duties of Tenant
(1) Liability to Third Parties – TORT – maintain in reasonably good repair
(2) Repair – maintain premises & ordinary repair. NO WASTE
(3) Pay Rent – LL may evict through courts & sue for rent owed
- Duties of Landlord
(1) Deliver PHYSICAL possession
(2) Quiet Enjoyment – no interference from LL
(a) Constructive Eviction – SING = substantial interference, notice, goodbye.
(3) Habitability – nonwaivable – fit for basic human dwelling
(b) MR3 – Move, Repair, Reduce, Remain
(4) No Retaliatory Evictions
- Assignment = transfer of rights under K
(1) LL and T2 are in privity of estate & liable to each other.
(2) LL and T2 are NOT in privity of K unless T2 assumed ALL promises in original lease
(3) LL and T1 are still in privity of K – they are secondarily liable to each other
- Sublease = new K between T1 and T2
(1) LL and sublessee are in neither privity of K nor estate.
(2) T1 and T2 are liable to eachother
(3) LL & T1 are still in privity of K and estate
- LL’s Tort Liability – CLAPS
(1) Common areas
(2) Latent defects
(3) Assumption of repairs
(4) Public Use
(5) Short term lease of furnished dwelling
Nonpossessory Interests in Land
- Easements
(1) Creation - PINE = prescriptive, implication, necessity, grant.
(2) Termination – END CRAMP
(a) Estoppel – servient owner materially changes position
(b) Necessity – extinguished when no longer necessary
(c) Destruction of servient land without fault of owner
(d) Condemnation of servient estate (e.g. eminent domain)
(e) Release
(f) Abandonment
(g) Merger
(p) Prescription
- Licenses – mere privilege to enter; can be revoked
- Covenants
(1) Real covenants – promise related to land – contract limitation
(a) Burden runs – WITHN – writing, intent, touch/concern, horiz/vert privity, notice
(b) Benefit runs – WITV – writing, intent, touch/concern, vert privity
(2) Equitable Servitudes – promise enforced against successors by equity
(a) Creation – WITNES – writing, intent, touch/concern, notice = ES
- Profits – holder may enter servient land the soil of some substance thereof
- Fixtures – T objectively shows intent to permanently improve realty
- Zoning - Gvt may reasonably control land use.
Deeds and Conveyances
- Adverse Possession – COAH = Continuous, Open/Notorious, Actual, Hostile
- Land Sale K
(1) Statute of Frauds – Writing signed by Δ, describing property, and consideration
(a) Exception: part performance: possession + part of price or substantial improvements
(2) Marketable Title = free from reasonable doubt, suits, and threat of litigation at closing
(a) Unmarketable if: adverse possession, encumbrances, zoning violations
(3) False Statements (lies & ommissions)
- Deeds
(1) Execution – writing, description, signed by the grantor
(2) Delivery – present intent to be bound + acceptance
(3) Covenants of title
(a) Present – Seisin, right to convey, covenant against encumbrances
(b) Future – quiet enjoyment, warranty, further assurances
- Recording Systems
(1) BFP = buyer for value without notice of prior conveyance
(2) Notice = BFP always wins, even if never recorded
(3) Race-Notice = BFP wins if he records first
(4) Special Rules
(a) Shelter Rule – one who takes from a BFP will step into that BFP’s shoes.
(b) Wild Deed – missing record of transfer – cannot give record notice
(c) Estoppel by Deed – if don’t own deed at xfer, but later gets it, estopped from denying
Mortgages and Security Interests
- Transfer
(1) Mortgage – indorsement + delivery to transferee OR separate document of assignment
(a) HDC – negotiable, indorsed, delivered, good faith, value
(b) Defenses – FAIDS
(2) Mortgaged Property – recorded mortgage remains on the land
(a) If buyer assumes the mortgage, he is personally liable
(b) If buyer takes subject to mortgage, O personally liable, B secondarily
- Payment & Discharge
(1) Equitable redemption – any time prior to foreclosure sale O pays balance of mortgage
(2) Statutory redemption – after sale, O pays sale price
- Foreclosure
(1) Terminates junior interests
(2) Senior interests remain – buyer is not personally liable, but mortgagee may foreclose.