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Flashcards in Competing Property Claims Deck (91)
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1
Q

What is adverse possession?

A

A legally sanctioned method of taking title to land by a hostile continuous possession of another’s land.

2
Q

What are the ways someone can establish a claim to property?

A
  1. Adverse possession
  2. Land sale contract
  3. Conveyance
3
Q

What are the elements of adverse possession?

A
  1. π’s possession of the land is physical and obvious
  2. The possession is against owner’s interest
  3. The possession occurs for the statutory period
4
Q

What is the physical element of adverse possession?

A

An adverse possessor must actually, opening, notoriously, and exclusively occupy the land. The adverse possessor’s use of the land would reasonably put the true owner on notice.

5
Q

What is the additional element of adverse possession that exists in a minority jurisdiction?

A

An adverse possessor must have paid taxes on the land.

6
Q

What is the mental element of adverse possession?

A

The possessor must have an intent to possess the land contrary to the owner’s interest.

7
Q

What is fatal to adverse possession?

A

An adverse possessor receiving permission to possess from the owner before the end of the statutory holding period.

8
Q

When can co-tenants adversely possess against another?

A

If one of the co-tenants ousts another for the statutory period.

9
Q

Will a mistaken encroachment satisfy the intent needed for adverse possession?

Majority v. Minority position?

A

Majority: A mistake is sufficient.

Minority: Possessor must show they would have intentionally encroached even if they had known of their hostile use.

10
Q

What is the time component of adverse possession?

A

A possessor has to hold the property continuously for the entire statutory period.

11
Q

What is the default time period for adverse possession if there is not a statute?

A

20 years

12
Q

What does holding a property continuously mean for adverse possession?

A

The property must be held when is it normally occupied.

Example: A beach home normally used exclusively in the summer would only have to be occupied during the summer.

13
Q

What is tacking?

A

It combines two adverse possession periods to meet the statutory period requirement.

14
Q

When does tacking occur?

A

When there has been a transfer of interest in property from one adverse possessor to another.

15
Q

What does the adverse possessor obtain if they are successful in their claim?

A

Gets the land interest they actually possessed. The scope of their claim is limited to their use of the property.

16
Q

What can an adverse possessor obtain if they possess through color of title?

A

If a possessor entered under color of title and occupies a significant portion of what is described in the deed, then the possessor is entitled to everything described in the title.

17
Q

What is color of title?

A

When someone believes their title is valid but it is not because of a flaw in the deed.

18
Q

What land rights does an adverse possessor get?

A

Whatever rights the owner has that he took them from. If the landowner only had a life estate then the possessor only receives the life estate. Any encumbrances on the land remain.

19
Q

What is a disability’s effect on to the statute of limitations for adverse possession?

A

It tolls the running of statute of limitations for adverse possession.

20
Q

When will a disability toll the running of a statute of limitations for adverse possession?

A

When the disability exists at the start of the adverse possession. A disability occurs when the owner is:

  1. An infant
  2. Mentally Incompetent

or

  1. A Prisoner.
21
Q

Up until the time the adverse possession period has run, what right does the true owner maintain?

A

The owner can have the adverse possessor ejected off the land and sue for damages.

22
Q

If an adverse possessor is successful, when did their legal possession begin?

A

The date of the entry onto the land. The true owner can longer sue for any damages because the possessor had a right to the land from the beginning.

23
Q

Once the adverse possession period has run, the adverse possessor becomes?

A

The true owner of the land

24
Q

What are the statute of frauds requirements for land transfers?

A
  1. A writing for a transfer of an interest in real property
  2. The writing must be signed by the party to be held against the contract

And

  1. The essential terms of the deal must be detailed:
    a. A description of the property
    b. A description of the parties
    c. The price
    d. Any conditions of price or payment if agreed on.
25
Q

When does ownership of the land transfer between the parties in a land sale contract?

A

When the deed to the property is exchanged at the date of closing.

26
Q

What is the doctrine of equitable conversion?

A

When a land sale contract is formed there is a bifurcation of title. Equitable title passes to the buyer and legal title remains with seller until it passes to the buyer at closing.

27
Q

Under the majority approach, risk of loss follows which title?

A

Equitable title: the holder of the equitable title risks any loss between the signing of the contract and closing. If anything happens before closing they still must go through with the closing.

28
Q

Who has equitable title before closing?

A

The buyer

29
Q

Under the Uniform Vendor and Purchaser Risk Act minority rule: the risk of loss follows which title?

A

The risk of loss remains with the seller until there is a transfer of:

  1. Possession

Or

  1. Legal title
30
Q

What is the covenant of marketable title?

A

A promise by the seller to deliver title to the property that is free from defects.

31
Q

What types of marketable title defects generally occur?

A
  1. Unpaid mortgage or lien
  2. Covenants and easements which restrict the use of the land
  3. Title acquired by adverse possession (needs a judicial decree declaring they are owner)

4. An existing zoning or ordinance violation of the property.

32
Q

How can a covenant of marketable title be contracted for?

A

It is implied, unless the contract says otherwise.

33
Q

When does the seller have to have marketable title?

A

On the date of closing.

34
Q

What happens if the seller has a defective title at date of closing?

A

Can make arrangements on the date of closing to earmark part of the purchase price to remedy the defect and make the title marketable.

35
Q

At the date of closing, what happens to the land-sale contract?

A

It merges into the deed.

36
Q

What is the merger doctrine?

A

On the date of closing, the land-sale contract merges into the deed?

37
Q

When is the only time a buyer can claim a defect in marketable title under the land-sale contract?

A

Only on the date of closing. Raising the claim later is too late because it becomes the deed and raising it earlier is too early because the claim does not manifest until closing.

38
Q

If the buyer finds a defect in the title after the date of closing, what are their options?

A

They can only sue on a warranty deed.

39
Q

What is a quitclaim deed?

A

The purchaser is taking the property as is: a purchaser cannot sue on quitclaim deed.

40
Q

What is a warranty deed?

A

A warranty deed contains the covenants of title.

41
Q

What is a general warranty deed?

A

A general warranty deed contains the covenants of title for all owners of the property in the past.

42
Q

What is a special warranty deed?

A

The warranty only contains the covenants of title for the period of the seller’s ownership of the land.

43
Q

What are the present covenants of title?

A
  1. Seisin
  2. Right to convey
  3. Against encumbrances
44
Q

What are the future covenants of title?

A
  1. Quiet enjoyment
  2. Warranty
  3. Further assurances
45
Q

What is the covenant of seisin?

A

Covenant that the grantor owns the property.

46
Q

What is the covenant of the right to convey?

A

A promise that the grantor can legally convey the property.

47
Q

What is the covenant against encumbrances?

A

The owner promises there are no encumbrances on the property (liens, easements, etc.).

48
Q

What is the covenant of quiet enjoyment?

A

A promise by the grantor that a third party will not assert a claim to the land.

49
Q

What is the covenant of warranty?

A

If a third party asserts a claim to the land, the grantor will indemnify the grantee.

50
Q

What is the covenant of further assurances?

A

The grantor will do anything reasonably necessary to perfect the grantee’s title.

51
Q

When must a breach of a present covenant occur?

A

Only can be breached at the time of closing.

52
Q

When must a breach of a future covenant occur?

A

Can occur at the closing or afterwards.

53
Q

What is seller’s duty of care to buyer?

A

The seller needs to disclose material latent defects: defects known to the seller but not readily observable or known to the buyer.

54
Q

If a landlord assigns his interest, who does the tenant pay rent to?

A

The original landlord until the tenant receives actual notice of the change.

55
Q

What are the only ways a tenancy by the entirety can be severed?

A
  1. Divorce

or

  1. If the couple both agree to sell their interest.
56
Q

Where one co-tenant is in sole possession of the co-tenancy property, what are the other tenants liable for?

A

Pro-rata share of taxes and insurance

(Minus)

The value of any benefit the sole tenant derived from the property

57
Q

If a member of a joint tenancy has a lien on their share of the property, what happens to their property interest at death?

A

The lien disappears when the joint tenants recover the interest through the right of survivorship.

58
Q

What has to be completed in selling a joint tenancy interest for the joint tenancy to terminate?

A

Equitable title must pass for the joint tenancy to terminate.

Legal title does not have to pass.

59
Q

When there is a life tenant and a remainderman, who is responsible for paying mortgage principal and interest?

A

Remainderman = principal

Life tenant = mortgage interest

60
Q

What are the elements for a valid conveyance of real property by deed?

A
  1. Deed is sufficient to satisfy the statute of frauds
  2. Deed is delivered
  3. Deed is accepted by the buyer.
61
Q

What are the four requirements of a valid deed writing?

A
  1. The deed sufficiently identifies the parties
  2. Words indicate an intent to transfer
  3. A sufficient description of the property
  4. Grantor’s signature
62
Q

What does not need to be included in a valid deed writing?

A
  1. Signature of grantee
  2. Consideration
  3. Notarization
  4. Does not have to be recorded
63
Q

When does the delivery of a deed exists?

A

The grantor presently intends for the property to transfer to the grantee.

64
Q

What are the ways a deed can be delivered?

A
  1. Grantor may give the deed to the grantee
  2. Grantor may retain the deed
  3. Grantor may give the deed to third party and let them carry out conveyance
65
Q

If a grantor physically gives a deed to the grantee, is there a delivery?

A

There is a rebuttable presumption that the grantor presently intends that the property transfer to the grantee. Can be rebutted by extrinsic evidence that shows that under no circumstances did they intend the transfer.

66
Q

If the grantor retains the deed after writing the deed, is there a delivery?

A

There is a rebuttable presumption that the grantor presently intends not to transfer the property to the grantee. Can be rebutted by extrinsic evidence that shows that the grantor intended to transfer.

67
Q

If the grantor gives the deed to a third party after deeding property to another, is there delivery?

A

When the grantee gets the deed from the third party the delivery date relates back to when deed was first given to the third party.

68
Q

What is the effect of a grantor handing the deed to the third party and placing conditions on the delivery?

A

Generally, one condition will not defeat the relation back doctrine. If > 1 condition placed on delivery, the relation back doctrine will be defeated and delivery date will be when the grantee received the deed from the third party.

69
Q

What is the relation-back doctrine?

A

When a deed is given to the third party and tells them to give it to the grantee, when the grantee gets the deed from the third party the delivery date relates back to when deed was first given to the third party

70
Q

What is created when a grantor instructs a third party to give a deed to grantee when the grantor dies?

A

Interpreted as giving the grantor a life estate and conveying a remainder to the grantee. It is interpreted as a present delivery prior to death.

71
Q

What are the exceptions to the relation-back doctrine?

A
  1. There are multiple conditions on delivery by third party

Or

  1. If the grantor expressly retains the right to reclaim the deed from the third party:
72
Q

How can a deed be accepted by a buyer?

A

If the transfer of property to the grantee is beneficial, then acceptance is presumed.

73
Q

What happens if the grantee refuses to accept the conveyance of property?

A

There will be no valid conveyance of property.

74
Q

If a homebuyer signed a purchase and sale agreement and then dies, what is the legal status of the land sale?

A

The right to receive land under an enforceable contract passes to the deceased’s heirs.

75
Q

There is a strong presumption that first person to record a property interest is?

A

The first person with a right to the property.

76
Q

Whose interest is superior in a race recording statute?

A

The person who records first wins.

77
Q

Whose interest is superior in a notice recording statute?

A

A bona fide purchaser.

78
Q

Whose interest is superior in a race-notice recording statute?

A

The first bona fide purchaser to record.

79
Q

Who is a bona fide purchaser?

A
  1. A property purchaser who takes without notice of any other claims

And

  1. Pays value.
80
Q

What are the types of notice?

A
  1. Actual notice
  2. Constructive notice
  3. Inquiry notice
81
Q

What is actual notice?

A

When a person has actual knowledge of a competing claim.

82
Q

What is constructive notice?

A

Notice is implied to all persons when a property interest is properly recorded.

83
Q

What is inquiry notice?

A

A person knows enough facts to reasonably prompt an inquiry into the status of a property.

84
Q

What are the methods for recording conveyances?

A
  1. Tract index: minority
  2. Grantor/Grantee Index: majority.
85
Q

What is the recording process of a tract index?

A

Records for each parcel within the county have a chronological listing of each conveyance of the property.

86
Q

What is the recording process of the grantor/grantee index?

A

There are 2 sets of books.

Grantor Books: show all conveyances under the grantor’s name.

Grantee Books: shows all conveyance under the grantee’s name.

Step 1. In the grantee books find when the grantor received the property

Step 2. In the grantor books to see if grantor transferred property between receiving and now selling it

Step 3. Go to grantor books and find the grantor to the grantor.

87
Q

In a recording statute analysis, when is notice measured?

A

At the date of conveyance to the purchaser.

88
Q

What is a wild deed?

A

A deed recorded outside of the chain of title.

89
Q

What is estoppel by deed?

Minority v. Majority

A

Applies when a grantor transfers title to property that they do not currently own; however, subsequently, they acquire the title.

Minority: the title automatically passes to previous grantee

Majority: the previous grantee must go to court and assert a claim to the title.

90
Q

What is the shelter rule?

A

If a grantor has a good claim, then future purchasers can shelter under their good title if there are competing claims.

91
Q

Are bona fide purchasers persons who inherit by will?

A

No, they have to pay value.