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Notes--Property--3 days

By Katie Anderson,2014-01-15 22:58
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Notes--Property--3 days

    ? Copyright 2006. All rights reserved.

    PROPERTY

    I. OVERVIEW

    A. Freehold estates

    i. Fee simple absolute

    ii. Defeasible fees (use clear durational language; absolut restraints void)

    1. FS determinable (auto forfeiture; possibility of reverter)

    2. FS subj to cond subs (must say re-entry & use it to terminate)

    3. FS subj to exec limitation (auto forfeiture)

    iii. Life estate (lifetime terms; reversion; life T gets all ord uses)

    1. No waste (voluntunless: prior use, reas repairs, grant,

    exploitation; neglect; ameliorative)

    B. Future interests

    i. In grantor (poss of reverter; rt of re-entry; reversion) ii. In transferee

    1. Vested (“asc‟d person” + no c/p; 3 kindsindef vested, subj to

    comp defeasance, subj to openrule of conv, gestation)

    2. Contingent (destructibility(x)must vest @ end prior estate;

    Shelley‟s(x)merge present & future int‟s to give A fsa;

    worthier()no cont rem if O alive & tries fut int in his heirs)

    3. Executory interest (must cut short prior estate) iii. RAP (certain future int‟s void if possible not vest w/in LIB + 21 yrs)

    1. Only to (cont rem; exec ints; some vested rem subj to open)

    a. N/A to (any fut int in grantor; indef vested rem; vested

    rem subj to comp defeasance)

    2. RAP reform (wait & seefacts @ LIB death, cy pres, ages to

    21; USRAPalt vest period of 90 yrs, cy pres, ages to 21)

    C. Concurrent estates

    i. Joint tenancy (express rt of survivorship; createtake w/ same time,

    title, int, possess rts; strawman)

    1. Severance (saleonly sever seller‟s int; partitionvolunt, in

    kind, forced sale; mtgemin:title=severs mtgor‟s j/t int,

    maj:lien=not severs j/t‟s int)

    ii. Tenancy by entirety (createpresumed in conveyance to H&W;

    neither T acting alone can defeat survivorship)

    iii. Tenancy in common(rt to possess all; int freely transf; presumption t/c)

    1. Co-T‟s rights (possess all; share rent income/costs; no adv

    possess unless ouster; repairscontrib f/ nec if tells others;

    improversno contrib rt but „improver‟ gets +/- value; no

    waste; partitionvolunt, in kind, forced sale)

    D. Landlord/tenant law

    i. Leaseholds

    1. Tenancy f/yrs (fixed period; SOF if >1yr; no termin notice nec)

    2. Periodic tenancy (successive intervals until L/T notifies;

    creationexpress, implied: pymt @ interval, oral K w/in SOF,

    holdover; terminationusually written, notice @ least equal to

    period length, m/b @ end natural period)

    3. Tenancy at will (need express agreement; terminby L/T but

    must give reas demand to quit)

    4. Tenancy at sufferance (T wrongfully holds over; terminL

    evicts or holds new term)

    ii. T‟s duties

    1. Liability (invitee‟s injuries; maintain reas‟y good condition)

    2. Repair (K silentreas‟y good; no waste—fixtures go w/

    ownership; K has covenantC/L holds T f/ force of nature,

    today T can termin if prop destroyed w/o T‟s fault)

    3. Pay rent (T breach in possessL can evict, sue f/ rent, no self-

    help; T breach w/o possessL can: treat as surrender, ignore

    (min‟y), re-let & sue f/ deficmaj: L must try to re-let) iii. L‟s duties

    1. Give T actual phys possess (maj)

    2. Implied QE (w/o L‟s interf; breach if eviction wrong, or

    constructive: subst interf + notice ignored by L + get-out; not

    allow nuisances; control commons)

    3. Implied habitability (basic human habitation; non-waiveable;

    only resid leases) 3 (move, repair & deduct, reduce or a. T‟s remedies—MR

    w/hold rent, remain & sue f/ dmgs; retaliatory evict n/a) iv. L‟s tort liability (C/Lcaveat lessee unless: commonas, latent defects,

    assumed, public space rented, S/T lease of unfurnished)

    v. Assignment/sublease (K silentfreely done; K prohibitsneed L‟s

    prior written—waived if not reserved; effect of ass‟tno K privity

    unless T2 express assume K‟s perf, T1 secondarily liable)

    E. Servitudes

    i. Easements (affirmative, or negativem/b expressly createdLASS)

    1. Transferability (appurtdom: auto passes regardless of

    mention in K, servient: auto passes unless BFP w/o notice; in

    gorssonly transf f/ comm‟l purps)

    2. Creation (prescriptionCOAH; implied from useapparent +

    parties expect b/c reas‟y nec; neccessity; grantSOF applies)

    3. Termination (estoppelholder says won‟t enforce; necessity

    ends, unless express grant; duress; condemnation; release in

    writing; abandonmentby phys act showing intent to never

    use; mergertitle to easement & servient joined; prescription)

    ii. License (privilege to enter; freely revoke unless estoppellicensee

    invest subst $/labor relying on cont‟d use; SOF n/a; eg: neighbors talk)

    iii. Profit (holder enters servient & take soil/subst thereof; easement rules)

    iv. Covenant (seeking $$ damages)

    1. Burdens run (writing + intent that it‟d run + touch & concern

    qua land-owners + horizontal/vertical privityhor: nexus w/

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    succession of estate: grantor/grantee, L/T, mtgor/mtgee, ver:

    any non-hostile nexus + notice (some) of assignee)

    2. Benefit run (writing + intent + touch/concern + vertical privity)

    v. Equitable servitude (seeks injunction; equity enforces vs. successors)

    1. Requirements (writing + intend apply to assignees + touch/

    concern + notice to burdened assignee + esso no prvity nec)

    2. Implied (gen/common shceme @ sales time, + noticeactual,

    inquiry, or record—cts split if deed‟s mention is enough)

    3. Equitable defensechanged conditions (of entire area/subdiv)

    F. Adverse possession (COAH; tacking if privity:non-hostile; owner‟s disability)

    G. Land conveyancing (buy/sell r/e)

    i. Land K (writing + signed, unless part perf: 2/3 of possess, improv,

    pymt + state consid + describe land; equit conv‟nB‟s ROL @ sign)

    1. Implied (mktble titleno reas doubts & no suits + full

    disclosures made; abatementmat‟l defect + not xs variance;

    workmanlike warranty if new home)

    ii. The Closing deed (deed merges into K & discharge‟s S‟s liability)

    1. Req‟ts (lawful executionwritten + sign + unamb describe

    land, consid not nec; deliverypresent intent to immed bound)

    2. 3 types (quitclaim; gen warrseisin, rt to convey, no encumb,

    QE, warrantydefend suits, further assur; specialno other

    conveyances, no encumbrances)

    H. The recording system (noticeBFP always; race-noticeBFP must win race)

    i. “BFP” (for value, + w/o noticeactual, inquiry, recordwilds are

    dead, estoppel)

    I. Mortgages (legalneed writing, equitno writing OK if: parties understand land is collateral + Dr deeds to Cr; P/EV to show intent, BFP wins if Cr sells)

    i. Transferring interests

    1. Mortgagee (endorse & deliver, or execute assignement K)

    a. HIDC (value + endorsed + g/f + orig copy + negotiable)

    i. Pers defs n/a (fraud inducement; unconsc; no

    consid; estoppel; waiver)

    ii. Subj to Real defs (mat‟l alt; duress; fraud in

    factum; illegality; insanity; infancy; insolvency)

    2. Mortgagor (lien stays if recorded properly; B not liab unless

    assumesassignor secondarily liab unless novation) ii. Foreclosure (effectjuniors term‟d & sue f/ defic; seniors unaffected

    iii. Priorities (if recordedfirst in time, unless PMM: superpriority vs.

    other foreclosersnot BFPs)

    iv. Redemption (in equityup to sale day; statutepay foreclosure price)

    J. Miscellaneous

    i. Lateral support (land improved by bldg & adjacent‟s excavation

    causes cave-in; liabilityexcavator only f/ negl, unless P shows land

    would‟ve caved even in natural state—S/L then)

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    ii. Water rights (watercoursesriparian owner or prior appropriation;

    groundwatersurface owner gets reas use; surface watersmay

    drainage/other to combat flow w/o harming s/o‟s land unnecess‟ly)

    iii. Possessor‟s rights (no trespassby tangible phys object, action f/

    ejectment; nuisanceinterf that is: subst‟l + intentional + unreas)

    iv. Eminent domain (explicit, or implicit/regulatoryeconomic wipe-out)

    v. Zoning (varianceundue hardship + no detriment to surrounding prop

    values; non-conforming usenot @ once unless just compens pd;

    exactionreas related + proportional)

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II. FREEHOLD ESTATES

    Estate Duration Transferability Future Interest How to Create

    Fee Simple "To A and his heirs." Absolute Devisable, None

    absolute "To A." ownership, of descendible,

    potentially alienable

    infinite duration

    Fee Tail "To A and the heirs of Lasts only as Passes Reversion (if

    his body." long as there are automatically to held by grantor);

    lineal blood grantee's lineal Remainder (if

    descendants of descendants held by third

    grantee party)

    Defeasible Fees: "To A so long as..." Potentially Alienable, Possibility of Fee simple "To A until..." infinite, so long devisable, Reverter (held determinable "To A while..." as event does descendible, by grantor) determinable

    (upon happening of a not occur subject to

    stated event, the land is condition

    to revert to the grantor)

    Fee Simple subject "To A, but if X event Potentially Same Right of to condition happens, grantor infinite, so long Entry/Power of subsequent reserves the right to as the condition Termination

    reenter and retake." is not breached (held by grantor)

    (Grantor must carve out and, thereafter,

    right of reentry) until the holder

    of the right of

    entry timely

    exercises the

    power of

    termination

    Fee Simple subject "To A, but if X event Potentially Same Executory to an executory occurs, then to B" infinite, so long Interest (held by limitation as stated third party)

    contingency

    does

    not occur

    Life Estate "To A for life." Measured by Alienable, Reversion (if

    "To A for the life of life of devisable and held by grantor);

    B." transferee or by descendible if or

    some other life pur autre vie Remainder (if

    (pur autre vie) and measuring held by third

    life is still alive party).

    A. The Present Estates

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    i. Fee Simple Absolute

    1. Words = “to A”, “to A and his heirs”

    a. Today”and his heirs” no longer required

    2. Features

    a. Absolute ownership, devisable, descendible,

    alienable

    3. Accompanying future interest = none, because living person

    has no heirs (they are “prospective”)

    ii. Fee Tail

    1. Words = “to A and the heirs of his body” (lineal blood

    descendants)

    NY: NY has abolished this, as has virtually every other state in

    the US.

    ; Effect of abolitioncreates a fee simple absolute

2. Accompanying future interest

    a. Reversion (in owner) or remainder (in third party)

    iii. Deafeasible fees

    1. Rules of construction

    a. Must use clear durational language

    i. Words of desire, hope, or intention are

    insufficient

    b. Absolute restraints are void

    i. “Absolute” = absolute ban on the power to sell

    or transfer that is not linked to any reasonable

    time-limited purpose

2. 3 kinds

    a. Fee simple determinable

    NY: NY calls it fee on limitation

    i. Words = Must use clear durational language

    1. “to A so long as”; “during”; “until

    ii. Features

    1. If condition violatedautomatic

    forfeiture

    2. Devisable, descendible, alienable

    iii. Accompanying future interest = possibility of

    reverter

    b. Fee simple subject to condition subsequent

    i. Words = Must use clear durational language

    and carve out the right to re-enter

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    1. eg, “to A, but if X event occurs,

    grantor reserves right to re-enter and

    retake”

    ii. Features

    1. Not automatically terminated upon

    condition‟s occurrence, but can be cut

    short at grantor’s option

    iii. Accompanying future interest = right of entry

    (aka power of termination)

    NY: NY calls this the right of re-

    acquisition

c. Fee simple subject to executory limitation

    i. Words = “to A, but if X event occurs, then to

    B

    ii. Features

    1. Automatic forfeiture if condition

    broken, but in someone other than

    grantor

    iv. Life Estate

    1. Words = Must be in explicit lifetime terms and never in

    terms of years (because that is leasehold interest) a. Eg, “to A for life

    b. Pur autre vielife estate measured by a life other than

    grantee‟s

    2. Features

    a. Life tenant entitled to all ordinary uses and profits

    from the land, and cannot commit any “waste”:

    i. Voluntary or affirmative waste

    1. Rulelife tenant must not consume or

    exploit natural resources on the property

    (eg, oil, timber, gas)

    2. 4 Exceptions:

    a. Prior usebefore the grant the

    land was used for exploitation

    b. Reasonable repairsmay

    consume resources to cover

    reasonable repairs and

    maintenance of premises

    c. Grantmay exploit if granted

    the right to do so

    d. Exploitationthe land is only

    suitable for exploitation

    ii. Permissive waste/neglect

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    1. Occurs when either:

    a. Land is allowed to fall into

    disrepair

    b. Life tenant fails to reasonable

    protect the land

    i. Need only simply

    maintain the premises in

    reasonable good repair

    iii. Ameliorative (improvement) waste

    1. Life tenant must not engage in acts that

    will enhance the property’s value, even

    if all future-interest holders are known

    and consent

    3. Accompanying future interest = reversion (in grantor) or

    remainder (in third party)

    III. FUTURE INTERESTS

    A. Capable of creation in grantor

    i. Possibility of reverter

    1. Accompanies = fee simple determinable ii. Right on entry (aka power of termination)

    1. Accompanies = fee simple subject to condition subsequent iii. The reversion (the catch-all)

    1. Defined = future interest that arises in grantor who transfers an

    estate of lesser quantum other than fee simple determinable or

    fee simple subject to condition subsequent

    B. Capable of creation in transferees

    i. Vested remainder

    1. Definitions

    a. “Vested” = if both created in ascertained person and

    not subject to any condition precedent

    b. “Remainder” = future interest created in grantee that

    is capable of becoming possessory upon expiration of

    prior possessory estate created in the same

    conveyance in which the remainder is created

    i. “Remainderman” = accompanies preceding

    estate of known, fixed duration

    1. usually follows life estate or term of

    years (never follows a defeasible fee)

    2. 3 kinds

    a. Indefeasibly vested remainder

    b. Vested remainder subject to complete defeasance (aka

    total divestment)

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    i. Look for condition subsequent to create the

    “total divestment”

    NY: This is called a “remainder vested subject to

    complete defeasance

    c. Vested remainder subject to open

    i. Remainder vested in a class, at least one of

    whom can take possession

    1. “Class” is either

    a. Openpossible f/ others to enter

    b. Closedwhen maximum

    membership is met

    2. Test for closed or open?

    a. Common law rule of

    convenienceclass is closed

    whenever any member can

    demand possession

    i. Exceptionwomb rule

    b. EX: “to A for life, then B‟s

    kids.” B has 2 kids—C&D. A

    diesC&D can demand

    possession under rule, and class

    is closed.

    i. If B had a kid in the

    womb at A‟s deathkid

    may share too

    ii. If C&D die before

    Agoes to devisees or

    heirs

    ii. Contingent remainder

    NY: NY has abolished the distinction between executory interests and contingent remainders. Instead, contingent remainders and

    executory interests are called a remainder subject to a condition precedent (any future interest in transferee that is subject to a

    condition precedent)

    1. Defined“Contingent” = if it is created in an as-yet

    unascertained person or subject to a condition precedent

    2. Rules disfavoring contingent remainders

    a. Rule of destructibility of contingent remainders

    NY: This rule has been abolished

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    i. Common lawremainder was destroyed if

    didn‟t vest at the time the preceding estate

    ended

    ii. Todayabolished

    b. Rule in Shelley’s case

    NY: This rule has been abolished

    i. Common law”to A for life, then when A dies,

    to A‟s heirs”the rule would merge the present

    and future interests and give A a fee simple

    absolute

    ii. Todayabolished

    c. Doctrine of worthier title

    This is alivetries to promote free transfer of land

    i. Common law & TodayIf O is alive and tries

    to create future interest in O‟s heirsthe

    contingent remainder in O‟s (prospective) heirs

    is void

    1. Grantor’s intent controls because this

    is a rule of construction, not rule of law

    a. EX: “to A for life, then to O‟s

    heirs”A gets life estate and O‟s

    heirs are void, so O gets

    reversion

    NY: the doctrine worthier title has been

    abolished in NY with respect to transfers

    taking effect after September 1, 1967

    iii. Executory interest

    1. Defined = future interest created in transferee, not a remainder,

    and takes effect by cutting short an interest either in grantor

    (springing) or third party (shifting)

    a. Shiftingalways follows defeasible fee

    b. Springingcuts short the grantor‟s interest

NY: NY has abolished the distinction between executory interests

    and contingent remainders. Instead, contingent remainders and

    executory interests are called a remainder subject to a condition

    precedent

    C. Rule against perpetuities

    i. The Rulecertain kinds of future interests are void if there is any

    possibility, however remote, that it may vest more than 21 years

    after death of a measuring life

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