Term
Doctrines Furthering Marketability |
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Definition
Doctrines Furthering Marketability |
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Term
Rule Against Perpetuities |
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Definition
"No interest is good unless it must vest, if at all, not later than 21 years after some life in being at the creation of the interest." |
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Term
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Definition
Deed or other instrument of conveyance that purports to convey title of land in question.
- Not required in all J's
- Shortens the length of time required
- Assists with constructive possession of parts of land not physically possessed
- Adverse possession may be under Color of Title |
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Term
Disabilities that may be sufficient to prevent the SOL from running for Adverse Possession |
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Definition
- Mentally incapacitated
- Imprisoned
- Minor
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Term
Adverse Possession: The disability must have occurred after the possession |
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Definition
False
The disability must have occurred before the start of the Adverse Possession |
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Term
Adverse Possession: When does the statute of limitations start running? |
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Definition
When the possession starts, unless there is a disability of the original owner. In that case, the statute of limitations starts to run after the disability has been relieved. |
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Term
When is chattel considered a fixture |
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Definition
- Physical Attachment (to what extent is the item attached? Is it movable?
- Adaptation (to what degree is the item specially adapted to the property?) Has it lost value because it is attached?
- Intent (what is the intent of the annexing party?) |
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Term
How does one acquire title? |
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Definition
- Convey (passing of deed by sale or gift)
- Devise (testimentary gift)
- Inheritance (intestate to heirs)
- Dominion and Control (ability to use, possess, enjoy, exclude, without consent) |
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Term
Doctrine of Adverse Possession |
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Definition
- Exception to rule of possession
- SOL upon true owners right to recover possession of land from an adverse possessor
- Once elements are met, the true owner can no longer bring legal action to recover
- Adverse Possessor's possession ripens into good title |
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Term
Marketable Title
(Define) |
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Definition
A title that a reasonable, prudent, intelligent person guided by legal advice would willingly take and pay fair market value without apprehension of its validity. |
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Term
Elements to Establishing Adverse Title |
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Definition
1. Demonstrate maintained actual possession of the land
2. For the duration of the statutory period on an action to recover
3. Throughout period, the possession was:
- Open and notorious (visible)
- Hostile (w/o permission)
- Continuous (no interruption)
- exclusive (dominion and control)
** Also look at the color of title and th payment of taxes. |
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Term
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Definition
Allows someone to be a successor to another's claim (in the best position to benefit until legitimate title is established) |
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Term
Finder becomes Possessor by: |
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Definition
1. Taking control of the property
2. With the intent to maintain possession of it |
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Term
Court takes these into account when something is found |
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Definition
- Type of location of the find
- Identity and characteristics of the finder
- Control by owner in public or private space |
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Term
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Definition
- Fraud
- Subsequent purchasers are protected |
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Term
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Definition
- Theft
- Original owner is protected |
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Term
Gift Causa Mortis
(Elements) |
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Definition
1. Apprehension or expectation of imminent death by donor
2. Delivery of property
3. Intention that control take effect immediately (becomes absolute at time of death)
4. Acceptance by donee |
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Term
How do Private Restrictions affect the Marketability of Title? |
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Definition
- If they are not stated clearly to the buyer, this is an encumbrance - even if there is no violation, and the title is not marketable.
- If there is a violation, title is not marketable. |
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Term
Doctrine of Merger
(Sale of Land) |
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Definition
Upon delivery of the deed, the terms of the contract merge into the deed.
The deed becomes the only instrument governing the transaction. |
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Term
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Definition
Time between the signing of the contract for the sale of land and the delivery of the deed. |
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Term
How do Municipal Restrictions affect the Marketability of Title? |
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Definition
- Not an encumbrance, even if there is no notice to the buyer from the seller
- Title remains marketable unless there is a violation of the restriction |
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Term
Doctrines Furthering Marketability |
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Definition
- Destructibility of Contingent remainder
- Rule in Shelly's Case
- Doctrine of Merger
- Doctrine of Worthier Title
- Rule Against Perpetuities |
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Term
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Definition
The most desirable kind of title to protect the buyer. |
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Term
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Definition
Next best thing to a Title of Record. Seller has moved to quiet title. |
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Term
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Definition
Risk of loss after contract has been entered:
- Buyer is treated as the legal owner, property goes to the buyer
- Seller receives only cash
(J can changes this.) |
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Term
Purpose of Action to Quiet Title |
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Definition
To make a title marketable upon meeting the elements of Adverse Possession. |
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Term
Classification of Encumbrances |
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Definition
1. Pecuniary charge against the premises (mortage, lien)
2. Estates or interests in the property (leases, life estates)
3. Easements or servitudes on land (restrictive covenants, rights of way, zoning requirements) |
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Term
Court's opinion of building code violations |
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Definition
Unlikely to deem building code violations as encumbrances.
- easily discoverable
- buyer should investigate and learn about the property
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Term
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Definition
Third party future interest:
- Fee simple Determinable Subject to Executory Interest (FSD)
- Fee Simple Subject to Condition Subsequent (FSSCS)
- Fee Simple Subject to Executory Limitation (FSSEL)
Can be:
Springing - Grantor
or
Shifting - Grantee
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Term
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Definition
Warrants the title against all defects whether or not they arose before or after the grantee took possession. |
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Term
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Definition
Contains warranties only against the grantor's own act but no the acts of predecessors in ownership. |
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Term
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Definition
Future interest of a third party in a Life Estate or term of years.
1. Not ascertainable or
2. Contains unmet conditions |
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Term
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Definition
Future interest in 3rd party for Life Estate or term of years. Must be:
1. Ascertainable
2. Have no unmet conditions |
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Term
Determining Ascertainability |
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Definition
Element #1 of Vested Remainder (Life estate, term of years, future interest)
- Does remainder go to children not yet born?
- Does remainder go to heirs of person not yet dead?
- Does remainder go to window/er when spouse is still alive? |
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Term
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Definition
Contains no warranties of any kind. Merely conveys whatever title the grantor had. |
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Term
Requirements for a valid deed |
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Definition
- Compliance with SOF
- Signatures (notarized)
- Adequate legal description
- Expression of consideration
- Proper delivery (present intent to deliver the deed) |
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Term
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Definition
Vested - No condition precedent & person holding interest has been born & identity is ascertained.
Contingent - Subject to condition precedent or created to favor a person who is unborn or unascertained at time of creation |
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Term
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Definition
The finder of lost property has greater rights to the found property than all the world except for the true owner or prior possessor.
Greater rights than all subsequent finders other than true owner, prior rightful possessor. |
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Term
General Warranty Deeds Contain: |
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Definition
Present
1. Warranty of Seisin
2. Warranty of Right to Convey
3. Warranty against encumbrances
Future
4. Covenant of general warranty
5. Covenant of quiet enjoyment
6. Covenant of further assurances |
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Term
Components of Law of Finders |
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Definition
1. True owner has superior title (Hierarchy of Rights)
2. Type of property
- lost
- abandoned
- mislaid
- Treasure trove
3. Exceptions
- private/public
- public with private features
- best place to keep
- employee finder
- limited purpose of finder on premises
- surface or concealed |
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Term
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Definition
Bailee takes item into possession on a temporary basis. Requires reasonable care of finder/bailee. |
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Term
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Definition
Property transferred to another's possession through no deliberate action of true owner. Requires reasonable care of finder/bailee. |
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Term
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Definition
Action or monetary compensation for conversion of personal property loses right to possess property (prevents windfall).
Action available to true owner and not the present person. |
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Term
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Definition
Action to remedy to recover the asset itself and monetary damages (the damage to the asset).
Action available to true owner and not the present person. |
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Term
Life Estate Doctrines of Marketability |
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Definition
- Destructibility of Contingent Remainder
- Doctrine of Worthier Title
- Doctrine of Merger
- Rule of Shelly's Case
- Rule Against Perpetuities |
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Term
Future Interest Doctrines of Marketability |
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Definition
Rule against perpetuities |
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Term
Shifting Executory Interest |
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Definition
Legal estate in someone other than the grantor that cuts short a prior legal interest. |
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Term
Elements of an Inter Vivos gift |
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Definition
1. Donor's intent of present transfer
2. Delivery
3. Acceptance |
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Term
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Definition
Inter vivos - between 2 persons
Gift Causa Mortis - made on account of donor's imminent death |
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Term
Elements of Voluntary Bailment |
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Definition
1. Intent to transfer (express or constructive)
2. Delivery (actual, constructive, symbolic)
3. Acceptance by Bailee (actual or constructive)
4. Redelivery from baliee to transferor |
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Term
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Definition
Large, very old, long forgotten fortune, usually buried.
Goes to finder unless other rules triggered or the court deems it's not a treasure trove |
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Term
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Definition
Finder is best place to keep item because possession is relinquished |
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Term
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Definition
Placed and forgotten
Owner of property may be a better person to maintain the item until the prior possessor is found. |
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Term
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Definition
Falls out of possession without the intent of the possessor
Finder takes care of the item and possesses until prior possessor is found |
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Term
Doctrine of Worthier Title |
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Definition
Promotes inheritance over purchase
Conveyance that gives a remainder (3rd party interest for Life Estate, term of years) to one's heirs. |
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Term
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Definition
Remainder to heirs of the grantee - rather than receiving Life Estate or term of years, the grantee essentially winds up with a fee simple. |
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Term
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Definition
Essentially an exception to the Doctrine of Merger - if there is an intervening Life Estate that intervening Life Estate is negated, granting fee simple inheritable by the heirs of the initial holder of the Life Estate. |
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Term
To A for life, then to B for life, then to the heirs of A.
What is the result under the Doctrine of Merger? Under the Rule in Shelly's Case? |
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Definition
Doctrine of Merger - no change.
Rule of Shelly's Case - changes to fee simple in A. |
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Term
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Definition
Life mentioned in conveyance used to measure the 21 year rule regarding perpetuities. |
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Term
Destructibility of Contingent Remainders |
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Definition
Contingent remainders are destroyed if not vested by the termination of a Life Estate. |
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Term
When is the buyer preferred? |
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Definition
Executory Period (between contract and closing) |
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Term
When is the seller preferred? |
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Definition
Post closing/after the contract and the deed are merged. |
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Term
Covenant of Further Assurances |
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Definition
Grantor promises that they will execute any other documents required that will perfect the title conveyed
"Catch-all" future covenant |
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Term
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Definition
When a deed is conveyed without good title, title will automatically pass to the grantee the moment it is obtained by the grantor
(often triggered when the land to be inherited is transferred prior to receipt of the title by person inheriting) |
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Term
Covenant of General Warranty |
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Definition
Grantor warrants that they will defend against any lawful challenge to grantee's title
Unsuccessful title challenges by 3rd party are not considered lawful
Grantor is only liable if grantee loses superior lawful claim
(future covenant) |
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Term
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Definition
Grantor warrants that they own the estate that they purport to convey
(present covenant) |
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Term
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Definition
A present covenant is broken if at the time the deed is delivered the grantor does not own the property or there are encumberances.
SOL begins to run on the date the deed is delivered.
Present covenants run with the land. |
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Term
Covenant of the right to convey |
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Definition
Grantor warrants that they have the right to convey the property
Generally the same as seisin, but a person may have possession without the right to convey, for example, a trustee
(present covenant) |
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Term
Covenant against encumberances |
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Definition
The grantor warrants that there are no encumberances on the property.
(present covenant) |
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Term
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Definition
Promise that the grantor will do some future act (defend against 3rd parties or compensate grantee for losss of title)
Future covenants are not breached until grantee/successor is evicted or otherwise damaged.
SOL starts to run at the time of the breach. |
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Term
Covenant of Quiet Enjoyment |
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Definition
Grantor warrants that the grantee will not be disturbed in possession and enjoyment of the property by any assertion of superior title.
Often omitted because it's identical to the warranty of general warranty
(future covenant) |
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Term
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Definition
Grantor intends to transfer title when all conditions are met
Escrow agent is agent for both grantor and grantee with enforceable contract of sale
Delivery relates back to time of transfer from grantor to escrow agent |
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Term
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Definition
Deed must be delivered with the intent to be immediately operative.
Grantor hands deed directly to grantee or to an escrow agent with no intention of recall. |
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Term
Oral conditions of coveyance are generally... |
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Definition
- Looked at with suspicion
- Not valid because of fear of fraud |
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Term
Fraud (define and effect on deeds) |
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Definition
Participation by original possessor of deceit in conveyance
Person who could have prevented fraud is less protected
BFP is protected over original victim because the original victim should have been more careful |
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Term
Forgery (define and effect on deeds) |
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Definition
Theft with no participation or action by victim
Deed rendered void by subsequent BFP |
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Term
Types of notice/Recording Statutes |
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Definition
Actual - observation, conversation, documents in record
Constructive - Could have learned through search of deed records (regardless of whether search was conducted)
Inquiry - hears or observes something an ordinary, prudent person would inquire about. |
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Term
Pure Notice Recording Statute |
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Definition
Subsequent bona fide purchaser prevails when they have obtained the property without notice of prior claim.
Prevails immediately upon closing over all prior unrecorded interests
Does not prevail over future interests if they do not record |
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Term
Race Notice Recording Statute |
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Definition
First to record prevails as long as knowledge of previous unrecorded conveyance did not exist at the time of purchase (time of recording - knowledge is OK) |
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Term
Race Recording (Pure race statute) Pros and Cons |
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Definition
First person to record prevails
Pro: Certainty
Con: Unfair - first person wins even with knowledge of previous unrecorded conveyance |
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Term
Is a recorded deed a valid deed? |
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Definition
Not necessarily, but recording does alleviate potential complications. |
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Term
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Definition
Allows for the search of all interests related to a tract and the attached property. |
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Term
Grantor/Grantee Recording |
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Definition
In order to verify title search
- Grantor's tracking present to remote
- Grantee's tracking remote to present
(to determine chain of title) |
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Term
Two types of Recording Systems |
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Definition
Grantor/Grantee Index
Tract Index |
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Term
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Definition
Agreement between the buyer and the seller
Periodic payments with deed transferred upon payment in full
No mortgage or bank involved
Seen in low income housing, vacation lots, when the buyer does not have the cash for a down payment or has poor credit |
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Term
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Definition
When a subsequent purchaser becomes primarily liable for the note |
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Term
Deficiency suits/Anti-deficiency statutes |
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Definition
Mortgagee's ability to reach into Mortgagor's personal assets if foreclosure sum is not enough to cover the debt.
Statutes in some states protect the debtor from such suits regarding the purchase of residence without specific procedure and limitations |
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Term
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Definition
The Mortgagor's interest in the property
Protects the borrower from overreaching money lenders |
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Term
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Definition
Document given to lender by the borrower.
Passes title to lender until full payment or places a lein on the property to secure the mortgage. |
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Term
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Definition
Promissory document given to lender by borrower promising to pay borrowed sum
Creates personal liability in the mortgage |
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Term
3 options for persons protected under recording systems (when both parties are innocent)` |
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Definition
1. Land to prior claimant, reimbursement of subsequent purchaser
2. Subsequent purchaser gets fractional interest (does not happen often)
3. Land to subsequent purchaser, remainging payments made to prior claimant. |
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Term
When a court is deciding between two innocent parties, who should suffer liability? |
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Definition
The party who could have prevented the fraud should suffer liability. |
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Term
Hierarchy of Lien Holders |
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Definition
First to record mortgage is the superior lienholder
All others are junior lien holders (only reimbursed upon fulfillment of borrower's debt to the superior lienholder) |
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Term
Equitable Right of Redemption |
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Definition
Usually not included in modern contracts
Borrower's right to raise money and try to get property back |
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Term
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Definition
Allows lender to avoid a deficiency suit (court action)
There is still a judicially required process.
Any additional money beyond what is owed goes to the borrower if no other lenders need to be satisfied |
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Term
Taking subject to a mortgage |
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Definition
Subsequent purchaser liabilty is limited:
In the event of a default, the lender is limited to taking the proceeds from the sale of the property
Lender cannot go after subsequent purchasers other assets. |
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Term
Exemptions to the Fair Housing Act |
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Definition
- single family home rented by owner (who has less than 3 single family homes simulataneously)
- property rented without the use of a real estate agent
- done without publication or advertisement
- if owner lives in part of the premises |
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Term
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Definition
1968 with subsequent amendments
Prohibits discrimination on
- Race
- Religion
- Color
- Family status
- National Origin |
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Term
Types of Leaseholds/Tenancies |
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Definition
1. Term of years
2. Periodic Tenancy
3. Tenancy at will
4. Hold over tenancy
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Term
Obligations of the Landlord under the common law |
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Definition
1. Maintain common areas
2. Repairs undertaken are done adequately
3. Secure quiet enjoyment of the premises |
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Term
Leasehold - Term of Years
define |
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Definition
An agreement to lease property for a fixed term (day, week, month, year, many years) |
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Term
Leashold - Term of Years
What happens when a party dies? |
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Definition
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Term
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Definition
Lease that lasts from one period to another.
An ongoing relationship that can last indefinitely.
Termination is possible with sufficient notice |
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Term
Periodic Tenancy
What happens when a party dies? |
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Definition
Death of a party does not automatically terminate the agreement |
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Term
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Definition
Can be terminated at will by either party
Rule of reciprocity applies |
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Term
Tenancy at Will
What happens when a party dies? |
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Definition
This tenancy is terminated at the death of one of the parties. |
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Term
Tenancy at Will
Rule of Reciprocity |
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Definition
In tenancy at will, if one party has the power to terminate at any time they both have that power.
Landlord and tenant are on equal footing |
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Term
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Definition
Tenant remains in possession of property after expiration of a lease term. |
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Term
Holdover tenancy
What's a landlord to do? |
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Definition
Landlord has two options:
1. Have tenant vacate
2. Renew tenancy period, not to exceed one year) |
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Term
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Definition
Transfer of all remaining interest in a lease
Landlord to leasor (tenant) to Assignee (subtenant) |
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Term
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Definition
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Term
Primary tenant responsibilities |
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Definition
Tenant of record on a lease
Remains in privity of contract (lease)
Remains in privity of estate (occupation) |
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Term
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Definition
Transfer of part of an interest in a lease
Landlord to Primary tenant to Subtenant |
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Term
Subleasing
Who is liable? |
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Definition
Landlord can only seek recovery for breach from Primary Tenant |
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Term
Assignee Responsibilities |
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Definition
Assignee is in privity of estate with the Landlord
Assignee is in privity of contract with the primary tenant
Assumption of responsibilities such as paying rent must be expressly stated.
Novation relinquishes responsibility to Landlord |
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Term
Theory of Privity of Contract |
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Definition
Responsibilities/liability regarding the proximity of parties in a lease contract where there is a sublease or assignment
Sublease: Primary tenant and Landlord
Assignment: Primary tenant and Assignee |
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Term
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Definition
Responsibilities/liabilities regarding the proximity of parties in an assignment or sublease
Sublease: Primary tenant and Landlord
Assignment:
Primary tenant and Landlord AND
Assignee and Landlord |
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Term
Refusal of Sublease by Landlord |
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Definition
When lease gives the Landlord the right to refuse a sublease, refusal must be reasonable
Residential leases have more latitude because they are viewed as more personal |
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Term
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Definition
Once a landlord gives permission/consent to an assignment, landlord cannot withhold consent to future assignments. This only applies to assignments, not subleases. |
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Term
Factors for good faith and commercial reasonableness in landlord's refusal of assignment |
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Definition
- financial responsibility of the proposed assignee
- suitability of proposed use of particular property
- legality of proposed use
- need for alterations
- nature of occupancy |
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Term
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Definition
A landlord's remedy
Allowed as long as the lease includes a right to reentry and reentry was done peacefully
If tenant has abandoned, there is no issue |
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Term
Landlord's duty to mitigate |
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Definition
Landlord must seek another tenant
Burden is on landlord to prove effort to mitigate damages for breaking lease |
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Term
Tenants options when Landlord violates the Doctrine of Quiet Enjoyment |
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Definition
1. Stay and sue for damages - value differential of lease with and without interruption
2. Constructive eviction - calculate the actions and determine if they imply de facto eviction |
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Term
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Definition
1. Intentional and actual/inferred act by landlord that breaches a duty owed by the landlord
2. Acts must be substantial inference
3. Tenant must vacate
4. Vacating must take place in a reasonable amount of time from the landlord's acts |
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Term
Doctrine of Quiet Enjoyment (leases) |
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Definition
Landlord has a duty to deliver and maintain premises without interference by Landlord or others
Duty is implied in all leases
Commercial and Residential (more lenient with a savvy commercial tenant)
Cannot be waived
Independent of tenant's duties |
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Term
Implied Warranty of Habitability
define |
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Definition
Premises must be up to code and livable
Does not apply to commercial leases |
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Term
Implied Warranty of Habitability
What are the elements of violation? |
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Definition
1. Tenant must give notice of defect
2. Defect must be substantial
3. Must allow reasonable time to repair |
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Term
Implied Warranty of Habitability
Remedies available to tenant |
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Definition
Withhold rent until repairs are made (requires opportunity to repair, notice of withholding, and money held in escrow)
Sue and collect damages
Repair premises and sue for reimbursement |
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Term
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Definition
Landlord cannot evict tenant for reporting a building code violation. |
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Term
Retaliatory Eviction/Attempted Eviction
What are the elements? |
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Definition
1. Enactment of housing code statute or ordinance insuring safe and decent housing conditions
2. Landlord's business is leasing residential housing
3. Tenant at the time of reporting is not otherwise in material defect of the lease
4. Landlord's primary motive for eviction was tenant's reporting of a violation
5. Tenant's reporting was in good faith and with cause
* No notice is required
* BOP on tenant |
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Term
Characteristics of an Easement |
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Definition
1. limited use or enjoyment of land in which interest exists
2. entitles them to protection as against 3rd party inference in such use and enjoyment
3. Is not subject to will of possessor of land
4. is not a normal incident of possession of any land possessed by owner of the interest.
5. Is capable of creation by conveyance |
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Term
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Definition
Easement in Gross
Easement in Appurtenant
Profit a Prendre |
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Term
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Definition
A person benefitting to the burden of the servient property
Given to a person, not a home
Person carries it with them, and it dies when they die |
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Term
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Definition
Dominant tenement benefits from burden on servient tenement
Given to property for use by another property
For use by anyone occupying property |
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Term
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Definition
Right to enter another person's land without liability in order to remove minerals, timber, wild animals, fish, or soil |
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