Nailing the Bar Property

NAILING

THE BAR

Simple REAL REAL PROPE PROPER RTY

Outline Tim Tyler, Tyler, Ph.D., Attorney at Law L aw

NINETY PERCENT of the LAW in NINETY PAGES®

Table of Contents

Table of Contents CHAPTER 1: OVERVIEW OF REAL PROPERTY LAW ..................................................................... 1 1. THERE ARE O NLY TWO TYPES OF PROPERTY ......................................................................................... EAL PROPERTY I NTERESTS ........................................................................................................ 2. SEVEN R EAL 3. TWO TYPES OF ESTATES ......................................................................................................................... ESTRAINTS ON ALIENATION ARE GENERALLY DISFAVORED ................................................................ 4. R ESTRAINTS 5 DIFFERENT I NTERESTS IN LAND ARE CONVEYED IN DIFFERENT WAYS ...................................................

1 1 2 2 2

CHAPTER 2: FREEHOLD ESTATES ...................................................................................................... 3 1. CURRENT FREEHOLD ESTATES ............................................................................................................... 3 A. Fee Simple Estates............................................................................................................................ 3 1) Fee Simple Modernly Presumed ............................................................................................. ................................................................................................................... ...................... 3 2) Alienability and Passage o f Title to Heirs.......................................... Heirs............................................................................................ .......................................................... ........ . 4 3) Fee Simple Absolute is the Largest Estate ................................................................. .................................................................................................... ................................... 4

B. Life Estates ....................................................................................................................................... 4 1) The Life Tenant, Measuring Life, and Remaindermen ............................................... ................................................................................. .................................. 4 2) Life Estates Create Reversions and Remainders ............................................................... ............................................................................... ................ ............ 4 3) Life Estates Generally Alienable for Measuring Life ................................................................................... ................................................................................... 5 4) Duties of Life Tenants to Remaindermen ..................................................................................................... ..................................................................................................... 5 5) Waste Means Unreasonable Property Changes ......................................... ............................................................................................. .................................................... 5

C. Fee Tail Estates ................................................................................................................................ 6 D. Types of Defeasible Estates and Doctrine of Equitable Waste ........................................................ 6 2. CONDITIONS PRECEDENT AND SUBSEQUENT .......................................................................................... 7 A. Conditions Subsequent ..................................................................................................................... 7 B. Conditions Precedent ....................................................................................................................... 7 C. Conditions Precedent Automatically Terminate Estates .................................................................. 8 D. Failure of a Condition Subsequent Requires Prompt Action ........................................................... 8 3. FUTURE FREEHOLD ESTATES .................................................................................................................. 9 A. Eight Possible Future Estates........................................................................................................... 9 B. Reversions ........................................................................................................................................ 9 C. Indefeasible Remainders .................................................................................................................. 9 D. Vested Remainders Subject to Conditions Subsequent................................................................... 10 E. Vested Remainders Subject to Open ............................................................................................... 10 F. Contingent Remainders .................................................................................................................. 11 G. Conditional Remainders versus Continuing Conditions ................................................................ 11 ter .................................................................................................................... 12 H. Possibility of Rever ter I. Right of Entry .................................................................................................................................. 12 J. Executory Interests .......................................................................................................................... 13 ULES AND TERMS ........................................................................... 13 4. MISCELLANEOUS COMMON LAW R ULES

CHAPTER 3: VESTING OF CLASS GIFTS AND FUTURE ESTATES ............................................ 14 ULES FOR GIFTS ................................................................................................................. 1. GENERAL R ULES ULE OF CONVENIENCE .................................................................................... 2. CLASS GIFTS AND THE R ULE 3. VESTING OF CLASS GIFTS ..................................................................................................................... ULE FOR VESTING OF FUTURE ESTATES ......................................................................... 4. THE SIMPLE R ULE A. Future Estates Retained by Grantor are Always Vested ................................................................ B. All Remainders are Vested Except Contingent Remainders ........................................................... C. Contingent Remainders and Executory Interests are Always Unvested ......................................... D. Gifts to Future Members of a Class are Unvested .........................................................................

14 14 15 16 16 16 16 17

CHAPTER 4: THE RULE AGAINST PERPETUITIES.......... PERPETUITIES............................... ........................................... ......................................... ................... 18 1. THE MEASURING LIFE .......................................................................................................................... 18 2. COMMON SITUATIONS WHEN THE RAP IS VIOLATED........................................................................... 19 A. Gifts Conditioned to Over 21 Years Almost Always Violate the RAP............................................. 19

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Nailing the Bar – Bar – Simple Simple REAL PROPERTY Outli ne

B. Uncertain Conditions Without Time Limit Usually Violate RAP ................................................... 19 C. Future Gifts to ―Third ―Third Generation‖ Generation‖ Children Ofte n Violate the RAP ........................................... 20 D. Future Gifts to ―Widows‖ Often Violate the Rap .......................................................................... 20 3. CLASS GIFTS VOID TO ALL IF GIFT IS VOID AS TO A NY MEMBER ........................................................ 20

CHAPTER 5: CONCURRENT ESTATES AND MARITAL PROPERTY ......................................... 21 1. THE THREE FORMS OF CONCURRENT OWNERSHIP ................................................................................ 21 A. The Four Unities............................................................................................................................ 21 B. Each Co-Tenant has the Right to Free Use of All of the Land ...................................................... 21 C. The Right of Survivorship ............ ............. .............. ............... .............. ............. ............... .............. 22 D. The Abandoned Abandoned Use Use of the the Straw Man .......................................................................................... 22 E. All Concurrent Estates can be Partitioned .................................................................................... 23 F. Tenancy by the Entireties ......................... ............... ................. ................. ................. ................ ... 23 1) Tenancy by Entireties Still Presumed in Many States......................................................................... States......................................................................... ........ 23 2) No Termination Without Consent ..................................................... ............................................................................................................... .......................................................... 23 3) Modernly Conveyance b y One Spouse Generally Prohibited .................................................................. ..................................................................... ... 24 4) Joint Partial Conveyance to Tenant-in-Common ........................................................................................ ........................................................................................ 24 5) Attachment by Creditors of One Spou se Generally Prohibited.................................................................. Prohibited.................................................................. . 24

G. TenancyTenancy-in-Common ..................................................................................................................... 24 1) Modern P resumption Opposite of Common Law ........................................................................ .................................................................................. .......... ..... 25 2) Exception: Interests Held by Fiduciaries .................................................................................................... .................................................................................................... 25 3) No Right of Survivorship and Shares Freely Alienable .............................................................................. .............................................................................. 25

H. Joint Tenancy Tenancy ................................................................................................................................ 25 1) Joint Tenancy Not Presumed Modernly ............................................ .............................................................................................. ......................................................... ....... . 26 2) Freely Alienable Creating a Tenancy-in-Common ..................................................................................... 26 3) Modernly Conveyance to Self Allowed ............................................. ........................................................................................ ........................................................ ............. . 27 4) States Split on Effect of Mortgage on Joint Tenancy........................................................ Tenancy.................................................................................. .......................... 27 5) States Split on Effect of Death on Mortgages in Lien Theory States ............................................ .......................................................... .............. 27 6) States Split on Effect of Leases on Jo int Tenancy ...................................................................................... ...................................................................................... 27 7) Other Acts May Terminate Right of Survivorship ...................................................................................... ...................................................................................... 28 IGHTS AND DUTIES OF CO-TENANTS ........................................................................................... 28 2. THE R IGHTS A. Fiduciary Duties Between Co-Tenants Co-Tenants .......................................................................................... 28 B. Right of Reimbursement for Ouster ............................................................................................... 28 C. Right to Rents and Reimbursement f or Depletion ......................................................................... 29 D. No Right to Profits or Benefits or Benefits Absent Ouster or Depletion ......................................................... 29 E. Right to Reimbursement for Necessary Expenses Only ................................................................. 29 F. No Right to Reimbursement for Im provements .............................................................................. 30 3. DISTRIBUTION OF PROPERTY UPON TERMINATION OF MARRIAGE ........................................................ 30 A. The Minority Community Property Approach ............................................................................... 30 B. The Majority Common Law View .................................................................................................. 30

1) Common Law Rules of Dower and Curtesy Near Abandoned ................................................................... 31 2) Modernly Elective Shares Protect Surviving Spouse .................................................................................. 31 3) Equitable Distribution in Divorce ............................................................ ........................................................................................................... .................................................. ... . 32 4) Abandon ed Common Law Rules ............................................................................................ ............................................................................................................... ................... . 32

NON-FREE HOLD ESTATES .......................................................................................... 33 CHAPTER 6: NON-FREEHOLD 1. THE CREATION AND CHARACTER OF LEASEHOLDS .............................................................................. A. The Tenancy at Will........................................................................................................................ Will ........................................................................................................................ B. The Tenancy for Year s .................................................................................................................... C. The Periodic Tenancy.....................................................................................................................

33 33 33 34

1) Proper Notice is Needed to Terminate Periodic Tenancy ........................................................................... ........................................................................... 34 2) Most States Allow Tardy Notice to Apply to Next Period .......................................................................... 35

D. The Tenancy at Suffer ance ance ............................................................................................................. 35 1) Notice Needed if Rent Not Paid.................................................................................................................. Paid.................................................................................................................. 35 2) Holdovers Usually Bound to Periodic Tenancy ................................................................ ................................................................................ ................ .......... 35 3) Negotiating Landlords Waive Right to Bind.................................................................................. Bind.................................................................................. ............. 36 IGHTS AND DUTIES ................................................................................................ 36 2. THE LANDLORD‘S R IGHTS A. The Implied Warranty of Quiet Enjoyment..................................................................................... 36

1) Interference by Paramount Title Claim ........................................... ................................................................................... ........................................... ... ................. 36

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2) Interference by Landlord and Landlor d‘s d‘s Agents .......................................... ....................................................................................... ............................................. 37 3) Interference by Tenants and People in Common Areas ............................................................... .............................................................................. ............... 37 4) Tenant‘s Tenant‘s Remedies for Eviction ................................................................ .................................................................................................................. .................................................. 38 5) Tenant‘s Tenant‘s Remedies when Not Evicted ..................................................... ........................................................................................................ ................................................... 3 8

B. Implied Warranty of Habitability for Dwellings............................................................................. 38 1) Not When Catastrophic Events Events Beyond Landlord‘s Landlord‘s Control Control ...................................................................... 39 2) Courts Split When Defects Exist at Beginning of Lease.............................................. Lease............................................................................. ............................... 39 3) Remedies of Tenants When Dwellings Uninhabitable................................................................................ Uninhabitable................................................................................ 39

C. Landlord‘s Landlord‘s Duty of Due Care Based on Premises Liability Theory Theory ............................................... 41 D. Landlord Duties Based on Privity of Contract............................................................................... 41 1) Lease Agreements for Kn own Illegal Purposes are Void...................................... Void............................................................................ ...................................... 41 2) Leases Subsequently Illegal Not Generally Voided .................................................................................... .................................................................................... 42 3) Leases Generally Not Voided by Frustration of Purpose ............................................................................ ............................................................................ 42 4) Contractual Duties Are Not Escaped by P roperty Sale .............................................. ............................................................................... ................................. 42 5) New Landlords Takes Po ssession Subject to Lease ............................................. .................................................................................... ....................................... 42

E. Landlord‘s Landlord‘s Remedies Remedies ...................................................................................................................... 43 1) Eviction....................................................................................................................................................... 43 2) Exception: No Retaliatory Eviction ........................................................................... ........................................................................................................... ................................ . 43 3) Exception: Eviction From Low-Income Housin g ....................................................................................... ....................................................................................... 43 4) Self-Help and Forcible Eviction Usually Illegal ............................................................... ......................................................................................... .......................... 44 5) Surrender and Abandonment by Tenant ..................................................................................................... ..................................................................................................... 44 IGHTS AND DUTIES .................................................................................................... 45 3. THE TENANT‘S R IGHTS A. Tenant‘ Tenant‘s Duty to Pay Rent.............................................................................................................. 45 B. Tenant‘ Tenant‘s Duty to Repair and Avoid Waste...................................................................................... 46 C. Tenant‘s Tenant‘s Duty to Use Property Reasonably ................................................................................... 46 D. Tenant‘s Rights and Duties Regarding Fixtures ............................................................................ 46 4. SUBLETTING AND ASSIGNMENT OF LEASES .......................................................................................... 47 A. Subleases ........................................................................................................................................ 47 B. Lease Assignments.......................................................................................................................... 48 C. Only Express Provision Can Prevent Assignment or Sublease ...................................................... 48 D. Lease Provisions Requiring Landlor d‘s d‘s Consent to Assignment ................................................... 49 5. EMINENT DOMAIN AND CONDEMNATION OF LEASED LAND ................................................................. 49 A. Compensation for Total Condemnation.......................................................................................... 49 B. Compensation Compensation for Partial Taking of Land ...................................................................................... 50

1) Common Law View: No Termination or Rent Abatement ......................................................................... ......................................................................... 50 2) Alternative View: Termination or Rent Abatement ......................................................... .................................................................................... ........................... 51

C. Use of Eminent Domain to Facilitate Private Development .......................................................... 52 ENT CONTROL .................................................................................................................................... 52 6. R ENT 7. ABANDONED COMMON LAW CONCEPTS ............................................................................................... 52

CHAPTER 7: DEEDS AND LAND SALES ............................................................................................ 53 1. METHODS OF LAND DESCRIPTION ........................................................................................................ 53 A. Metes and Bounds Method ............ .............. ............... .............. ............. ............... .............. ........... 53 B. Government Survey Method ........................................................................................................... 53 C. Plat or Map Method ....................................................................................................................... 53 D. Incorporation of Other Land Descriptions by Reference ............................................................... 54 E. Land Boundaries Described by Streams......................................................................................... 54 F. Rules for Resolving Land Description Errors ................................................................................ 54 2. APPLICATION OF THE STATUTE OF FRAUDS .......................................................................................... 55 A. Statute of Frauds Requirements for Land Sale Contracts ...................... ................. ................. ...... 55 1) Written Memorandum May or May Not Prove Oral Contract .............................................................. .................................................................... ...... 55 2) Part P erformance Doctrine May Allow Enforcement in Equity.................................................................. 55 3) Written Modification and Rescission Usually Required ............................................................................. 56

B. Equal Dignity Rule for for Contractor with Real Real Estate Brok er er .......................................................... 56 C. Statute of Frauds Requirements for Real Estate Leases......... ............. .............. ............. ................ 56 1) Writing Needed If Option to Renew Beyond Year ......................................................... ..................................................................................... ............................ 57 2) Void Lease Creates Periodic Tenancy .................................................................................... ....................................................................................................... ................... . 57

3. LAND SALE CONTRACTS....................................................................................................................... 57 A. Installment Sales Contracts ............................................................................................................ 57

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B. Options to Purchase La nd .............................................................................................................. 58 C. Lump Sum Land Sales Contracts.................................................................................................... 58 D. Effect of Failure to Perform by Settlement Date ............................................................................ 59 E. Failure to Deliver Marketable Title Generally Major Breach .......... ............. .............. ............. ..... 60 1) Reasonable Businessperson Standard ......................................................................................................... ......................................................................................................... 60 2) Failure to Deliver Title Free of Defects is Major Breach ....................................... ............................................................................ ..................................... 60 3) Failure to Deliver Title to all Land Promised is Major Breach .......................................... ................................................................... ......................... 60 4) No Marketable Title Promised with Quitclaim Deed............................................................................ Deed............................................................................ ...... 61 5) Other Failures to Deliver as Promised Generally Minor Breaches ............................................................. 61

F. Doctrine of Equitable Conversion .................................................................................................. 61 1) Distribution When Seller Dies Intestate........................................................................................ Intestate..................................................................................................... ............. . 61 2) Distribution When Seller Dies Testate................................................................................... Testate...................................................................................... ... .................. 62 3) Distribution When Pro perty is Destroyed ................................................................................................... ................................................................................................... 62 4) Distribution of Insurance When Property Destroyed .................................................................................. .................................................................................. 62 62

G. Assignment of Land Sales Contracts .............................................................................................. 63 H. Broker‘s Broker‘s Right to Commission When Sale Fails ............................................................................ 63 I. Requirements for Breach of Land Sales Contracts .......................................................................... 63 J. Remedies f or Breach ....................................................................................................................... 63 1) Damages When Sale Fails .......................................................................................................................... .......................................................................................................................... 64 2) Damages When Property Sold with Hidd en Title Defects ........................................... .......................................................................... ............................... 64 3) Specific Performance ......................................................... .................................................................................................................................. ......................................................................... 64

4. PROTECTIONS FOR BONE FIDE PURCHASERS FOR VALUE ..................................................................... 5. DELIVERY OF THE DEED ....................................................................................................................... A. Intent to Convey Implied by Deed Delivery .................................................................................... B. When NO When NO Intent to Convey is Presumed......................................................................................... C. Events Causing Title to Irrevocably Pass.......................................................................................

65 65 65 66 67

1) Title Conveyance by Token Chose ............................................................................ ............................................................................................................. ................................. 6 7 2) The Relation Back Doctrine................................. Doctrine................................................................................ ................................................................ ................. ....................... 67 3) Bone Fide Purchaser Gets Title if Grantor Delivers ................................................................................... ................................................................................... 68 4) States Split if BFPVW Gets Title by Escrow Agent Error ............................................... .......................................................................... ........................... 68

D. Acceptance of Deed Generally Presumed ...................................................................................... 68 E. Deed Discharges Contract Under Common Law Merger Doctrine ............................................... 68 F. Two Basic Deed Types: Warranty and Quitclaim Deeds ............................................................... 69 1) Present Covenants Apply to Sale and Don‘t on‘t Run .................................................. ........................................................................................ ...................................... 69 2) Future Covenants Apply to Future and Do Run ...................................................................... .......................................................................................... .................... 70 3) Money D amages Limited..................................................................................... Limited...................................................................................................... ................. ...................... 70

G. Special Warranty Deeds................................................................................................................. 70 H. Grantee Taking with Knowledge Does Not Waive Express Covenants.......................................... 70 I. Estoppel by Deed ............................................................................................................................. 71 J. Modernly Home Builders Subject to Implied Warranty .................................................................. 71 K. Seller‘s Duty to Disclose Known Concealed Defects ..................................................................... 71 L. Formalities of Seal, Attestation and Acknowledgment ................................................................... 72 6. SALES OF CONDOMINIUMS AND COOPERATIVES ................................................................................... 72

CHAPTER 8: MORTGAGES AND FORECLOSURE .......................................................................... 73 1. MORTGAGE AS DEED SUBJECT TO CONDITION SUBSEQUENT ............................................................... 73 2. PRIORITY OF MORTGAGE CLAIMS......................................................................................................... 73 3. FORECLOSURE PROCESS ....................................................................................................................... 73 A. Strict Foreclosure ........................................................................................................................... 74 B. Foreclosure Sales .......... ............. ................ ............. ............... .............. .............. .............. .............. 74 C. Doctrine of Equity of Redemption .................................................................................................. 74 D. Priority of Claims in Foreclosure .................................................................................................. 74 4. SALE OF MORTGAGED LAND ................................................................................................................ 74 A. New Mortgage or Novation of Old Mortgage ................................................................................ 75 B. Assumption of Mortgage................................................................................................................. 75 C. Taking Property ―Subject to Mortgage‖ Mortgage‖ ........................................................................................ 75 5. ASSIGNMENT OF MORTGAGES BY MORTGAGEE.................................................................................... 76

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CHAPTER 9: RECORDING STATUTES AND TITLE SEARCH ........... .............. ............. ................ 77 ULES................................................................................... 1. THE COMMON LAW PRIORITY OF CLAIM R ULES ACE R ECORDING ECORDING STATUTES ............................................................................................................... 2. R ACE ECORDING STATUTES ............................................................................................................ 3. NOTICE R ECORDING ACE A CE OTICE 4. R -N STATUTES ...................................................................................................................... 5. BFPVW MUST BUY FOR ADEQUATE CONSIDERATION......................................................................... 6. SITUATIONS WITH CIRCULAR PRIORITIES ............................................................................................. 7. OTHER TITLE DEFECTS MAY ALWAYS BE CHALLENGED...................................................................... ECORDING OF OTHER I NTERESTS ........................................................................................................ 8. R ECORDING 9. THE GRANTOR -G -GRANTEE I NDEX AND T ITLE SEARCH ...........................................................................

77 78 78 78 79 79 79 79 80

CHAPTER 10: ADVERSE POSSESSION............................................................................................... 81 EASONS FOR ADVERSE POSSESSION STATUTES ......................................................... 81 1. PUBLIC POLICY R EASONS 2. ELEMENTS OF ADVERSE POSSESSION ................................................................................................... 81 A. Hostile Possession .......................................................................................................................... 82

1) No Hostile Possession Against Easements or Future Interests.......................................... Interests.................................................................... .......................... 82 2) Generally No Hostile Possession by Tenants .......................................... .............................................................................................. .................................................... 82 3) Hostile Possession by Co-Tenant Requires Ouster ..................................................................................... 83 4) Purchase of Another‘s Another‘s Land Begins Ho stile Possession ............................................................................. 83 5) Possession in Violation of Statute of Frauds is Hostile............................................................................... Hostile............................................................................... 83 6) Boundary Disputes and Agr eements ......................................... ..................................................................................... ................................................................. ..................... . 83

B. Exclusive Possession ...................................................................................................................... 84 C. Open, Actual, Visible Possession ................................................................................................... 84 D. Continuous, Uninterrupted Possession .......................................................................................... 84 1) Interruption of Possession Terminates Running of Statute ......................................................................... ......................................................................... 84 2) Ouster b y Third Party Terminates Unless Land Retaken ............................................ ............................................................................ ................................ 85

3. LENGTH OF POSSESSION ....................................................................................................................... 85 A. Owner ‘s ‘s Disability May Extend Statute of Limitations Period....................................................... 85 B. Tacking Aggregates Sequential Adverse Possessors ...................................................................... 86 THE LAND ................................................ 86 4. EFFECT OF ADVERSE POSSESSION ON OTHER I NTERESTS IN THE IGHTS AND LIABILITIES CREATED BY ADVERSE POSSESSION ............................................................. 86 5. R IGHTS ECORDED OR SUBJECT TO T ITLE SEARCH .................................. 87 6. ADVERSE POSSESSION CLAIMS NOT R ECORDED

CHAPTER 11: EASEMENTS................................................................................................................... 88 1. EASEMENTS APPURTENANT, IN GROSS AND PROFITS ........................................................................... 88 2. FIVE W AYS EASEMENTS ARE CREATED ................................................................................................ 89 A. Easements by Reservation .............................................................................................................. 89 B. Easements by I m plication ......... .............. ............... ............... ............ ................ ............. .............. ... 89 C. Prescriptive Easements .................................................................................................................. 90 D. Easements by Express Grant.......................................................................................................... 90 E. Easements by Necessity .................................................................................................................. 90 3. LOCATION AND USE OF EASEMENT ...................................................................................................... 91 4. HOW EASEMENTS TERMINATE.............................................................................................................. 91 A. Termination by Estoppel................................................................................................................. 92 Necessity ................................................................... 92 B. Termination Based on Necessity on Necessity or Lack of Necessity C. Termination by Abandonment But Not Lack of Use ....................................................................... 92 D. Termination by Prescription .......................................................................................................... 93 E. Miscellaneous Situations Causing Easement Ter mination ............................................................. 93 F. Invalid Easement Becomes License ................................................................................................ 93

CHAPTER 12: RESTRICTIVE COVENANTS AND SERVITUDES .................................................. 94 EQUIREMENTS FOR A COVENANT TO R UN UN WITH LAND ...................................................................... 1. R EQUIREMENTS 2. COVENANTS MUST TOUCH AND CONCERN LAND ................................................................................. A. Non-Competition and Trading Agreements Concern the Land ...................................................... B. Benefit of Covenants Affecting Promisee‘s Land Always Run........................................................ C. Burdens of Covenant Do Not Run in Two Situations .....................................................................

9

95 95 96 96 96


FOR COVENANT TO R UN UN IS MAY BE EXPRESS OR IMPLIED ....................................................... 97 3. I NTENT FOR EQUIRED FOR COVENANTS TO R UN UN .............................................................. 97 4. TWO TYPES OF PRIVITY R EQUIRED A. Horizontal Privity Always Required Between Original Parties ..................................................... 97

1) English V iew: Only Landlord-Tenant Covenants Run ............................................................................... 97 2) Modern American View: Covenants During Land Conveyance Run ......................................................... 98

B. Vertical Privity Needed to all Successors in Interest...................................................................... 98 1) Burdens Run Only if Assignee Gets Entire Estate ...................................................................................... ...................................................................................... 98 2) Benefits Run if Landholder Gets Any P art of Estate .................................................................................. .................................................................................. 99

5. ORIGINAL PROMISOR USUALLY FREE OF LIABILITY FOR COVENANT ................................................... 99 EQUIREMENTS FOR EQUITABLE SERVITUDES ..................................................................................... 99 6: R EQUIREMENTS 7. EQUITABLE SERVITUDES MUST TOUCH AND CONCERN LAND............................................................ 100 un ....................................................... 101 A. Promises That Concern Land Enough for Servitudes to R un B. Equitable Servitude May Not Run if Pr omisee‘s omisee‘s Land Not Benefited .......................................... 101 EQUIRED FOR SERVITUDE BENEFIT TO R UN UN ........................................... 102 8. I NTENT TO BENEFIT LAND R EQUIRED EQUIREMENT FOR EQUITABLE SERVITUDES.................................................................. 102 9. NO PRIVITY R EQUIREMENT UN TO THOSE W ITH NOTICE ........................................ 102 10. THE BURDEN OF EQUITABLE SERVITUDES R UN A. Actual Notice. ............................................................................................................................... 103 B. Constructive (Record) Notice ....................................................................................................... 103 C. Inquiry Notice............................................................................................................................... 104 ECIPROCAL EQUITABLE SERVITUDES ............................................................................... 104 11. IMPLIED R ECIPROCAL A. Standing to Enforce Equitable Servitudes .................................................................................... 104 B. Architectural Review Requirements Generally Valid Servitudes ................................................. 105 EQUIREMENT OF HOMEOWNER ASSOCIATION APPROVAL OF SALE GENERALLY I NVALID ............. 106 12. R EQUIREMENT 13. EVENTS THAT TERMINATE EQUITABLE SERVITUDES ........................................................................ 106

CHAPTER 13: ZONING AND LAND LAND USE RESTRICTIONS........... RESTRICTIONS.................................. .......................................... .......................... ....... 107 1. PERMANENT PHYSICAL OCCUPATION OR PUBLIC EASEMENT IS A TAKING PER SE .............................. 107 ELATIONSHIP R EQUIRED EQUIRED TO LEGITIMATE PUBLIC NEEDS ................................................... 107 2. CLOSER R ELATIONSHIP ESTRICTIONS ARE NOT A TAKING IF LAND R ETAINS ETAINS USEFUL VALUE ........................................ 107 3. USE R ESTRICTIONS ESTRICTIONS NEEDED TO PROTECT PUBLIC ARE NOT A TAKING ...................................................... 108 4. R ESTRICTIONS 5. EVEN TEMPORARY TAKING DESERVES COMPENSATION .................................................................... 108 ESTRICTIONS MAY V IOLATE OTHER CONSTITUTIONAL PROTECTIONS ........................... 108 6. LAND USE R ESTRICTIONS A. Due Process.................................................................................................................................. 109 B. Equal Protection........................................................................................................................... 109 C. Spot Zoning Constitutionally Invalid............................................................................................ 109 D. Some Variance Process is Required............................................................................................. 110 E. Other Freedom of Expression Issues ............................................................................................ 110

CHAPTER 14: INCIDENTAL LAND RIGHTS AND DUTIES ............... ................. ................. ......... 111 1. GROUND WATER ................................................................................................................................ 111 2. SURFACE WATER ................................................................................................................................. ............................................................................................................................... 111 A. Common Law Riparian Rights ..................................................................................................... 111 B. Prior Appropriation A p pr o oach ach ..................................................................................................... 111 IGHTS ......................................................................................................................... 112 3. AIR AND SUN R IGHTS IGHTS AND DUTIES .......................................................................... 112 4. MISCELLANEOUS TORT BASED R IGHTS A. Removal of Lateral Support.......................................................................................................... 112 B. Diversion of Surface Water: Common Enemy Doctrine ............................................................... 113

CHAPTER 15: CONCLUSION .............................................................................................................. 114 INDEX ....................................................................................................................................................... 115

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Chapter 1: Overview of Real Property Law Real property law is less uniform than most other areas of law. States are more often split on issues, and often are split several different ways! It is often not clear what the ―majority‖ and ―m ―minority‖ views are on some some issues. And the history of real property law involves many arcane terms. Knowing a little about them is of some value. But law schools and an d bar exams usually test your knowledge kn owledge of what the common law and broadly adopted modern rules are NOW and not ancient history that has been abandoned. And MBE (Multi-State Bar Exam) answers that cite arcane terms are almost always wrong answers. So, the main focus here is current real propert y law, and not the historical development. develop ment.

1. There are Only Two Types of Pr opert operty There are two types of ―property.‖ Real propert prop erty y is the surface of the earth and pro perty ty . everything attached to it, and every other type of property is personal proper

prev ent The term ―property‖ means something can be ―owned‖ so that the ―own ―owner‖ can prevent 1 others from possessing, using or enjoying it. That is what gives property value. Property can also be either tangible (physical things) or intangible (rights), but that distinction has little importance in the case of real property where the v alue of the land (the thing) springs only from the right (the intangible aspect) to occu py and use the land, now or in the future.

2. Seven Real Property Int In terests An ―interest‖ is a legally enforceable right. Desires that are unenforceable at law or equity are not interests but only ―ex pectations‖ that convey no legal rights. There are seven distinct interests in land relevant to the study of real property: 1. ESTATES: The right right to OCCUPY land (including life estates, remainders, possibility of reverter, right right of entry and executory interests). 2. EASEMENTS: The right to CONTROL land for a LIMITED LIMITED PURPOSE. 3. COVENANTS: LEGAL RIGHTS arising from land ownership. 4. SERVITUDES: EQUITABLE RIGHTS arising from land ownership. 5. SECURITY INTERESTS: A pledge of land as SECURITY for a DEBT. 6. OPTIONS: An intangible RIGHT TO BUY land. 7. WATER RIGHTS: The right to USE WATER WATER on or adjacent to land.

1

For example, air is valuable but is not property because one cannot feasibly stop others from using it.

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Chapter 1: Overview

Chapter 4: The Rule Against Perpetuities The Rule Against Perpetuities (hereinafter (hereinafter ―R ―R AP‖) AP‖) is important important to three areas of law, wills, trusts and real property. For real property law it voids any future estate that might not vest until far in the future. Modernly it has bee n modified, but it is still a very important concept to understand. The common law Rule Against Perpetuities is ―No ―No interest is good unless it must vest, if at all, within twenty-one years of a life in being at its creation.‖ To cover the possibility of a child being conceived but not born at the creation of an interest, the 21 year period of the RAP was extended by common law for an additional gestation period (e.g. nine months.) The time period for the RAP is measured by b y the life of a person who was clearly cl early alive at the time the future estate was created, and they are called a measuring life. The RAP effectively means every future estate is void from the be ginning unless it necessarily must either fail or vest within 21 years after the death of all the people alive when it was was created, and anyone alive at the creation of an interest could immediately die. The RAP can only void an unvested future estate so it only has application to 1) contingent remainders, 2) executory interests, and 3) class gifts to future future members of open classes. And the RAP can NEVER be violated if the grantee of a future estate is identified by name, because their life becomes the measuring life, and the gift must vest in their lifetime or else fail upon their death. So the RAP can only be violated v iolated when the grantee is identified only by a description such as ―wid ―widow‖, ―child‖, ―grandchild‖, ―niece‖, etc.

1. The Measuring Lif e The measuring life for application of the the RAP is a person who must must be alive when a future estate is conveyed, and that will gen erally be: 1. The grantor to an unidentified grantee; 2. Some life life tenant tenant after whose whose death the unidentified unidentified grantee can take take possession, or 3. A person who necessarily necessarily must give birth to the unidentified grantee.

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Chapter 5: Concurrent Estates and Marital Property Freehold estates are frequently concurrent estates held jointly by two or more people who may be called concurrent owners or co-tenants. co-tenants. This is always the case with marital property held in joint title by a couple during marriage.

1. The Three Forms of Concurrent Ownership Under the common law and broadly adopted modern rules two or more people can have concurrent ownership of property in ―joint title‖ in three forms: tenancy by the entireties, joint tenancy or as tenants-in-common. These are referred to as concurrent estates or ― or ― joint title for ms.‖

prop erty.. But students In some States a married couple can also hold ho ld title as community property are generally supposed to use only common law and broadly adopted modern rules to answer ―real property‖ questions on Bar Exam Exams. So when answering ―real property‖ questions, including the MBE (Multi-State Bar Exam) questions concerning real property, students should usually just discuss the three three joint title forms explained here. — o0o — o0o — —

A. The Four Unities Two of the three types of concurrent estates, estates, tenancy by the entireties and joint tenancy, can only be created if four criteria criteria are met. These are called the four unities (mnemonic=PITT): 10

1) Unity of Possession: The joint owners must must have undivided interests . 2) Unity of Interest: The joint owners owners must have equal interests or shares in the property. 3) Unity of Title: The owners must obtain title by the same instrument (deed or will.) 4) Unity of Time: The interests interests of the joint owners must vest at the same time. The third joint title form, tenancy-in-common, only has to satisfy one of these requirements – requirements – unity unity of possession – and – and does not have to satisfy the other three requirements. — o0o — o0o — —

B. Each Co-Tenant has the Right to Free Use of All of the Land Concurrent owners (i.e. co-tenants) may partition the land by agreement. Otherwise they each have an undivided interest and right to freely use all of the land, regardless of their their

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―Undivided ―Undivided‖‖ means that the land is not partitioned and each owner has a right to use the entirety of it.

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Chapter 5: Concurrent Concurrent Estates and Marital Pr operty operty Chapter 6: Non-Freehold Estates

Chapter 6: Non-Free Non -Freehold hold Estates A non-freehold estate is a leasehold, an estate for a period of time granted to a leaseholder or tenant (―lessee‖) by (―lessee‖) by the landlord (―lessor‖.) Leaseholds are usually landlord-tenant relationship relationship and granted in exchange for rent. But leaseholds create a landlord-tenant give tenants rights of exclusive occupation that are protected by eviction statutes. That is what distinguishes them from ―licenses‖ (e.g. (e.g. rental of a motel room) that only onl y create a tem porary ―innkeeper -guest‖ relationship. There are four basic types of leaseholds: 1. A tenancy at will: A tenancy that can be terminated by either party at any time; 2. A tenancy for years: Any leasehold for one set time period (even less than a year); 3. A periodic tenancy: tenanc y: A tenancy for repeated time periods (e.g. ―month-to―month-tomonth‖); and 4. A tenancy at sufferance: A tenancy until the landlord decides to evict or renew.

1. The Creation and Character of Leaseholds The main differences among the various types o f non-freehold estates (leaseholds) are the notice requirements for terminating or renewing the leasehold for another period of time. — o0o — o0o — —

A. The Tenancy at Will A lease that can, by its terms, te rms, be terminated at any time by both parties is a tenancy at will. Some courts hold that any lease that can be terminated terminated by even one party at will is a tenancy at will. But some courts hold that tenancies at will must be for an indefinite period perio d of time. There is no notice requirement for terminating a tenancy at will, and they terminate automatically if the the lease is assigned or either party dies. Most courts hold that subleases do not terminate tenancies at will. Assignment Assignment and subleasing will be explained below. — o0o — o0o — —

B. The Tenancy for Years A tenancy tenancy for years or estate for years, despite its name, name, is a lease lease for any fixed or computable period of time, whether more or less than a year. It does not matter if the the 21


Chapter 10: Adverse Possession The law of adverse possession is statutory so it varies from one State to the other. Adverse possession means that a person may gain legal title to land by occupying it long enough statutes of limitation bar the owners of record from bringing an ejectment action. The most common application of this is in boundar boun dary y disputes. Once a person has established a right to land by adverse action they can deed it to anyone else with impunity, and valid title will be conveyed. In some cases this starts a new title chain.

1. Public Policy Reasons for Adverse Possession Statutes State laws allow adverse possession possession for several public policy reasons. The courts don‘t want to litigate stale stale claims, and having statutes of limitation on land claims helps clear prop erty y values. It also simplifies title sear ches by land titles and improves propert eliminating the need to look at early records. Adverse possession is entirely statutory, and statutes usually exempt government land and utility utility company land from being taken by adverse possession. Likewise, a spouse cannot seize marital property or the separate property of the other spouse by a claim of ‗adverse possession‘.

2. Elements of Adverse Possession A claim of title by adverse possession requires that the claimant take open, actual, visible and exclusive possession po ssession of the land in a manner that is hostile hostile to the rights of the ―true‖ owners, and keep it continuously that way for the length of time required by statute. The elements of this rule can be remembered b y the mnemonic HELUVA: 1. Hostile Possession: Holding the land in opposition to or defiance of the rights of the owner of record; 2. Exclusive Possession: Holding the land alone, not sharing it with the owner of record; 3. Lengthy Possession: Holding the land for the length length of time required required by statute; 4. Uninterrupted Possession: Continuous possession without interruption; 5. Visible Possession: Holding the land openly, visible for the owner of record to see; and 6. Actual Possession: Holding the the land physically and not just claiming possession. — o0o — o0o — —

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Chapter 10: Adverse Possession

Chapter 12: Restrictive Covenants and Servitudes Chapter 7 explained three covenants that may may ―run with the land‖ when it is conveyed with a ―warranty deed‖: the covenants of quiet of quiet enjoyment, warranty and further 36 assurances. Other restrictive covenants covenants and ―equi ―equitable‖ table‖ servitudes servitudes are possible as well. Restrictive covenants and equitable servitudes are both p romises by one landowner (the ―promi ―promisor‖) sor‖) to another landowner landowner (the (the ―promi ―promisee‖.) see‖.) Due to historical development and differences between the English and American co urts, there is confusion and inconsistency in the recognized differences between between covenants and servitudes. servitudes. English courts held that covenants were enforceable in a court of law while servitudes were only onl y negative promises (i.e. not to do something) that could be enforced in a court of equity. The distinction is now muddled and you must be aware the terminology is often inconsistent in case law. Nevertheless, the better distinction remains that: Covenants are required acts the landholder has a legal duty to DO; and Servitudes are forbidden uses of the land the landholder has an equitable duty to NOT DO. The basic difference between covenants, servitudes and other contract promises is that covenants and servitudes run with the promisor‘s promisor‘s land, binding future owners of the same land to the same promise, and the original promisor is usually released from all 37 further liability. This is very different from contract law where contract duties must be expressly assumed by a delagatee and the party that delegates the contract duties d uties usually has continuing liability based on privity of contract. Further, the benefits of a covenant or servitude run with the promisee‘s the promisee‘s land to new owners, and this is different from contract law where contract benefits are only transferred to assignees by express assignment and delivery of notice of the assignment to the promisor. But covenants and servitudes will NEVER burden a bone fide purchas purc haser er for value without notice (BFPVW), and they will almost never apply to adverse possessors, either. Below covenants will be explained first followed by equitable servitudes.

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Covenants and restrictive servitudes (along with zoning codes) are often are referred modernly to as being the ―Codes, ―Codes, Covenants and Restrictions‖ or ―CC&R s‖ that control land use. 37 The original promisor who sells is generally released from all further liability because privity of estate is terminated and courts often ignore liability based on privity of contract. This is inconsistent with the usual approach when landlords sell property subject to an ongoing lease or when tenants assign a lease.

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Index

Index Dominant Estates, 88, 89, 90, 91 Dower, 31

1 14th Amendment, 49, 107, 108 1st Amendment, 108

E Easements, 2, 55, 60, 63, 69, 77, 80, 82, 84, 86, 88, 89, 90, 91, 92, 93, 98, 107, 112 Easements in Gross, 88, 93 Eminent Domain, 49, 52 Equal Dignity Rule, 56 Equitable Conversion, 62 Equitable Servitude, 88, 94, 97, 99, 100, 101, 102, 103, 104, 105, 106 Equity, 1, 13, 14, 54, 55, 74, 94, 99 Estates, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 13, 14, 16, 19, 20, 21, 23, 26, 28, 30, 33, 37, 46, 82, 86, 88, 89, 91, 92, 96 Estates Subject to Conditions, 6 Estoppel, 14, 55, 71, 77, 91, 92 Estoppel by Deed, 71 Executory Interest, 1, 6, 13, 16, 17, 18 Express conditions, 4, 6, 48

5 5th Amendment, 108

A Accretion, 54 Adverse possession, 2, 60, 80, 81, 82, 83, 84, 85, 86, 87, 90, 92 Affirmative waste, 5 Alimony, 32 Ameliorative waste, 5 Appurtenant, easements, 2, 88, 90, 91, 93, 111 Assignment of leases, 33, 47, 48, 49, 63, 76, 94 Avulsion, 54

B

F

Bone Fide Purchaser for Value, 3, 58, 65, 67, 68, 77, 82, 94, 96, 102

Failure of Conditions, 13 Fee Simple, 3, 4, 6, 9, 13, 17, 26, 31, 55, 65, 98 Fee Tail, 3, 6, 31 Fixtures, 46, 47 Foreclosure, 28, 57, 73, 74, 96 Four Unities, 21, 22, 23, 24, 25, 26 Fraud, 42, 79, 96 Freehold Estates, 3, 9, 21, 33, 65, 69, 96, 98, 99 Future Estates, 2, 3, 4, 7, 8, 9, 10, 11, 12, 13, 14, 16, 17, 18, 19, 20, 37, 46, 86

C Class Gifts, 14, 17, 18, 20 Common law Merger Doctrine, 68, 72 Community Property, 30, 114, 118, 119 Concealed defects, 39 Concurrent Estates, 21, 23 Condemnation, 49, 106 Condition Precedent, 6, 8, 9, 10, 11, 12, 13, 16 Condition Subsequent, 6, 7, 8, 10, 12, 13, 17, 73 Condominiums, 52, 72, 106 Contingent Remainders, 10, 11, 13, 16, 18 Continuing Conditions, 11 Covenant of Further Assurances, 69, 70 Covenant of Quiet Enjoyment, 38, 69, 70, 99 Covenant of Right to Convey, 69 Covenant of Seisin, 69 Covenant of Warranty, 70 Covenants Running with the Land, 42, 96, 98, 99 Coverture, 32 Curtesy, 31

G Grant Deed, 60 Grantor-Grantee Index, 80

H Habitability, Habitability, implied covenant of, 36, 38, 39, 43, 46, 71 Holdover Tenants, 34, 35, 36, 43, 82, 83 Homeowner Associations, 106 Horizontal Privity, 97, 98 Hostile Possession, 82, 83, 84, 85, 86, 87

D

I

Damages, 5, 6, 28, 38, 40, 43, 47, 48, 49, 50, 51, 54, 58, 59, 61, 63, 64, 68, 70, 86, 95, 100 Defeasible, 6, 7, 9, 11, 15, 37, 46, 66 Destructibility of Contingent Remainders, 13 Detrimental Reliance, Reliance, 55, 77, 92 Doctrine of Equitable Conversion, 61, 62 Doctrine of Equitable Waste, 7

Implied Covenant of Habitability, 36, 38, 39, 43, 46, 71 Implied Covenants, 38, 99 Implied Reciprocal Servitudes, 104, 105 Independent Covenants, 52 Installment Sales, 57, 73

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Interests in Land, 2, 58, 73, 78

Q Quiet enjoyment, implied covenant of, 36, 37, 38, 43, 45, 69, 70, 94, 99 Quitclaim Deeds, 58, 60, 61, 65, 69, 7 0, 96

J Joint Tenancy, 21, 22, 23, 25, 26, 27, 28, 73 Jure Uxoris, 32

R

K

Real Property, 1, 2, 13, 18, 21, 30, 31, 32, 41, 42, 46, 52, 56, 71, 119 Rebuttable presumption, 23, 65, 66 Recording statutes, 77, 78, 79, 103 Reimbursement, 28, 29, 30, 40 Relation Back Doctrine, 67, 68 Reliction, 54 Remainder, 4, 6, 9, 10, 11, 12, 16, 20, 26, 83, 99 Remaindermen, 4, 5, 6, 9, 46 Remainders Subject to Open, 10 Remedies, 29, 37, 38, 39, 43, 45, 63, 118, 119 Rent Control, 52 Reversion, 4, 9, 99 Reversions, 4, 9, 13, 16 Reverter, possibility of, 1, 11, 12, 16, 60 Right of Entry, 1, 10, 12 Right of Survivorship, 22, 23, 24, 25, 26, 27, 28, 32 Riparian, 111, 112 Rule Against Perpetuities, 10, 11, 13, 14, 15 , 18 Rule of Convenience, 14, 15 Running with the land, 2, 42, 69, 70, 91, 94, 95, 96, 97, 98, 99, 100, 101, 102, 103, 105

Known Trespassers, 112

L Lateral Support, 88, 112 Lease Assignments, 48 Lien Theory States, 27, 73 Life Estates, 1, 4, 5, 13, 26, 37 Life Tenants, 4, 5, 6, 7, 9, 18, 46 Livery of Seisin, 13 Lump Sum Land Sales, 57, 58

M Major Breach, 59, 60, 61 Marital Property, 21, 23, 30, 32, 81 Marketable Title, Title, 58, 60, 61 , 64, 87 Measuring Life, 4, 5, 18, 19, 20 Merger Doctrine, 13, 68, 72 Metes and Bounds, 53 Mistake, iv, 42 Moore, 109 Mortgages, 5, 27, 29, 58, 59, 60, 69, 72, 73, 74, 75, 76, 79, 104

S Sales Broker Commissions, iv, 63 Security Interests, 27 Seisin, 13, 69 Semantics, 7 Servient Estates, 88, 89, 90, 91, 92, 93 Servitudes running with the land, 60, 88, 94, 97, 99, 100, 101, 102, 103, 104, 105, 106 Settlement Settlement Date, 59, 60, 6 3 Special Warranty Deeds, 70 Specific Performance, 55, 56, 61, 63, 64 Statute of Frauds, 34, 55, 56, 57, 58, 83, 89, 93, 95, 100, 102 Statute of Uses, 13 Strict Liability, 112 Surface Water, 111, 113 Surrender and Acceptance, 5, 44, 45

N Non-Freehold Estates, 3, 33

O Options, 58 Ouster, 28, 29, 83, 85

P Part Performance Doctrine, 55, 56 Partitioning land, 21, 23, 29, 30 Per Autre Vie, Life Estate, 4, 5 Periodic Tenancy, 33, 35, 57, 82 Permissive Waste, 5 Personal Property, 1, 31, 32, 46, 52, 62, 111 Possessory estates, 2, 3, 9, 82 Possibility of Reverter, 1, 11, 12 Premises Liability, 41 Prescription, 2, 89, 92, 93 Prescriptive Easements, 90 Privity of Contract, 42, 47, 94, 99 Privity of Estate, 42, 47, 90, 94, 97, 99 Privity, horizontal, 97, 98 Privity, vertical, 98, 102

T Tacking, 86, 90 Tenancy at Sufferance, 33, 34 Tenancy by the Entireties, 21, 22, 23, 24, 25, 30, 32 Tenancy for Years, 33, 34, 35, 57 Tenants-in-Common, 21, 23, 26, 30, 72 Third Party Beneficiary, 47 Title Defects, 60, 65, 67, 70 Title Search, 59, 71, 80, 81, 87 Title Theory States, 27, 73 Titleholder, 2, 14

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Index

Token Chose, 14, 66, 67 Touch and Concern the Land, 95, 96, 99, 100, 101

Vesting of Class Gifts, 14, 15 Vesting of Future Estates, 16

U

W

Under Color of Title, 83, 87

Warranty Deeds, 69, 70, 71, 94, 96 Waste, 5, 6, 7, 45, 46 Water Rights, 111 Worthier Title, Doctrine of, 13

V Vertical Privity, 98, 102 Vested, 2, 10, 11, 14, 15, 16, 17, 26 Vested Remainders, 10, 11 Vesting, 14, 15, 16

Z Zoning, 23, 60, 94, 107, 109, 110, 112

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