Ch 6

What is title insurance?

-a contract that protects the policy holder from losses arising from defects in title

What is the difference between a deed and a title?

A deed is the legal instrument used to transfer title (or ownership) from the seller to the buyer.

What is a gift and its three elements?

A gift is a voluntary transfer of property ownership for which no consideration is given.For a gift to be effective, three elements must be satisfied :•Donative intent on the part of the donor (the one giving the gift) •Delivery •Acceptance by the donee (the one receiving the gift)

Is it an enforceable gift if I say I will give you $100 on your next birthday?

A gift is complete when I hand you a present for your birthday, and you accept it. "Language written or spoken, expressing an intention to give, does not constitute a gift, unless the intention is executed by a complete and unconditional delivery of the subject matter..." Delivery is required

What is gift inter vivos? Gift causa mortis?

A gift made during the donor's lifetime is called a gift inter vivos.A gift made during in contemplation of imminent death is called a gift causa mortis and does not become absolute until the donor dies as contemplated.

What is a lease contract?

A landlord-tenant relationship is established by a lease contract which gives the tenant the exclusive right to possess the landlord's property—typically for a price and for a specified term. In most states, statutes require leases for terms exceeding one year to be in writing.

What is a license?

A license is the revocable right of a person to come onto another person's land; a license grants a person the authority to enter the land of another and perform a specified act or series of acts without obtaining any permanent interest in the land.Example-A ticket to attend a movie at a theater is a license.

What is a life estate?

A life estate is an estate that lasts for the life of a specified individual and the life tenant's ownership interest terminates upon death.Life tenant has the right to use the land, provided that she commits no waste (injury to the land).

What is a profit?

A profit is the right to go onto land owned by another and take away some part of the land itself or some product of the land.Ex.- A gives B the right to go on A's land and remove all of the sand and gravel for B's cement business. B has a profit.

What is abandoned property? Does the finder have ownership? (Popov v. Hayashi)

Abandoned Property: Property that has been discarded by the true owner, who has no intention of reclaiming title, is abandoned property Someone who finds abandoned property acquires title to it, and that title is good against the whole world, including the original owner. Possession of abandoned property requires intent to possess in addition to an act that evidences an intention to acquire ownership.

What is an easement?

An easement is the right of a person to make limited use of another person's real property without taking anything from the property. A common easement is the granting of the right to a utility company to put a power line or phone line on your property.

What are documents of title:

Are used to prove ownership (e.g, title to a car, deed to a house, or bill of sale for goods.

Describe confusion and provide an example.

Confusion: If a person commingles fungible goods with those of another, the owners normally share ownership of the commingled goods in proportion to the amount each contributed. Example: If 5 farmers store corn in a silo that burns down, each farmer will bear 1/5 of the loss.If the goods are confused due to an intentional wrongful act, then the innocent party acquires title to the whole.

What is donative intent?

Courts will determine donative intent by looking at the language of the donor and the surrounding circumstances.

What is delivery/constructive delivery/dominion?

Delivery may be accomplished by means of a third-party who is the agent of either the donor or donee.Constructive delivery: When the physical object cannot be delivered, a symbolic or constructive delivery will be sufficient (e.g., keys to a safe-deposit box).An effective delivery requires the donor give up control and dominion (ownership rights).

What are Estray statutes?

Estray statutes apply to lost property, not mislaid property, and require the finder to advertise in some way that the property has been found.

What are exculpatory clauses? (Dean v. Gruber)

Exculpatory clauses, which provide that the landlord is not liable for injuries sustained upon the leased premises, whether due to negligence or some other cause, are not enforceable in residential leases as in violation of the public policy that people need a safe place to live. In commercial leases, exculpatory clauses may be enforceable if the tenant is aware of, and knowingly agrees to, the exculpatory clause.

Is this a breach of the warranty of habitability implied in a residential lease, and does that warranty allow for the collection of damages for personal injury?

Habitability means reasonably fit for occupation as a dwelling, and a landlord impliedly promises to convey to the tenant an apartment suitable for living, but injury is outside the scope of what is foreseeable. Court finds in favor of the defendant.

Describe seller defaults.

If the seller defaults, then the buyer can seek specific performance or ask to rescind the contract. With specific performance, the buyer is asking the court to force the seller to go through with the deal because land is unique.

What is periodic tenancy? example?

In a periodic tenancy, the lease does not specify how long it is to last but does specify that rent is to be paid at certain intervals.Example: Rent is due on the tenth day of every month.

What are the seller's duty to the buyer?

In most jurisdictions, courts impose on sellers a duty to disclose any known defect that materially impacts the value of the property and that the buyer could not reasonably discover. Failure to disclose gives the buyer a right to rescind the contract and to sue for damages based on fraud and misrepresentation. Pay for home inspection report and, in certain situations, also contact a structural engineer. The seller is obligated to transfer marketable title, or good title, to the buyer which means the title is free from encumbrances (not disclosed) and free from defects. (Haunted House)

What is the nemo dat rule?

Nemo dat quod non habet, which means "no one gives what he does not have. This denotes the legal rule that the purchase of a possession from someone who has no ownership right to it (no title) also denies the purchaser any ownership right.

Suppose a police officer finds a bag of money on the ground. Does he obtain ownership?

No. It is part of an officer's duties to guarantee the protection of lost property.

What is tenancy by the entirety?

One of the ways to own property by more than one person (concurrent ownership). - The co-owners must be husband and wife, both of whom own the whole property. - When one of the two dies, their interest goes to the surviving spouse

What is PTI? DTI?

PTI = Monthly Payments (PITI) / Gross Monthly Income < 0.30 DTI = Monthly Debt Payment / Gross Monthly Income < 0.44 Debt Payments include credit card payments, car payments, student loan payments, as well as mortgage payments.

What is personal property?

Personal property can be tangible(e.g., tv, car) or intangible (e.g., stocks, bonds, trademarks, copyrights and so forth)

What is mislaid property?

Property that has been voluntarily placed somewhere by the owner and then inadvertently forgotten is mislaid property.A person who finds mislaid property does not obtain title to the goods; instead the owner of the place where the property was mislaid becomes the caretaker of the property (because true owner is likely to return)

Suppose you lose a ring at the beach and someone else finds it. Who gets it?

Property that is involuntarily left in a place where the true owner likely did not intend to set it down and where it is not likely to be found by the true owner is lost property—a finder of lost property can claim title to the property against the world, except the true owner.If the true owner is identified and demands that the lost property be returned, the finder must return the lost property.

Describe the three types of recording statutes.

Race Statutes- , whoever records first wins. Example: O sells land to A and the next day sells land to B. If B is the first to record the conveyance, B will be the own even if he knew about the prior conveyance to A. Only exists in DE, NC & LA. Notice Statutes- a subsequent purchaser for value wins, if at the time of conveyance, she had no actual or constructive notice of prior conveyance. Example: O sells land to A and the next day sells land to B. B owns land if not aware of prior sale to A. If A records interest before B purchases, then this recordation is deemed to give B constructive notice. If B purchases without notice, and A then records before B records, B still owns land. Race/Notice Statutes- a subsequent purchaser for value wins, if at the time of conveyance, she had no actual or constructive notice of prior conveyance, and the subsequent purchaser records before the prior purchaser. Example: O sells land to A and the next day sells land to B. B owns land only if B was not aware of prior sale to A and if B actually records before A does.

What is possession?

Sometimes, a person can become the owner of personal property merely by possessing the property.Example: Wild animals killed by hunters, lost or abandoned property

What are special use permits?

Sometimes, zoning laws permit a use, but only if the property owner complies with specific requirements to ensure that the proposed use does not harm the immediate neighborhood; in such instances, the zoning board will issue special use permits.

What is spot zoning?

Spot zoning is the application of zoning to a specific parcel or parcels of land within a larger zoned area that is usually at odds with a city's master plan and may be ruled invalid as an "arbitrary, capricious, and unreasonable treatment" of a limited parcel of land by a local zoning ordinance. Spot zoning make unjustified exceptions for a parcel or parcels with in a zoned district.

What are buyer defaults? Explain and provide example.

The buyer will generally ask for a liquidated damage clause which is a sum of money that the parties agree to in advance as to what will be paid in the event of default. Example: It is common for the seller to retain the full deposit as full damages in the event of a default by the buyer.

What is landlord liability and the three exceptions?

The general rule is that a landlord does not owe a duty to his tenant, and is not liable for personal injuries received by a tenant (or a tenant's invitee), caused by dangerous conditions of the premises. There are 3 exceptions: When the landlord had knowledge of a dangerous condition, which is not discoverable by tenant, and the landlord fails to make disclosure When the injury occurs in a common area; and When a landlord is responsible for making repairs, but negligently fails to do so.

What is tenancy at sufferance?

The mere possession of land without right is called a tenancy at sufferance-this is not a true tenancy because it is created when a tenant wrongfully retains possession of property.

Describe the agreement for purchase and sale.

The parties sign an agreement for purchase and sale that specifies the terms and conditions of the sale. The contract fixes a date for performance, or closing, usually 4 to 12 weeks after the contract is signed; on this date, the seller conveys the property to the buyer by delivering the deed to the buyer in exchange for payment of the purchase price.

What is conveyance?

The term used for the processing and transferring of title between the owner of real estate and the buyer. This transfer generally occurs at a real estate settlement where the seller signs a deed conveying the appropriate interest in the property to a third-person.

Two friends, John and Mary, buy a property down the shore as an investment. What happens to the property if John dies under joint ownership? Wb if their is survivorship?

This form of ownership give the co-owner equal rights to the property where each owner gives up the right to exclude w.r.t. to the other owner.In a tenancy in common, if a co-owner dies, then her ownership share passes to her heirs.E.g., John's interest in the property will pass through to his estate, and Mary will retain a ½ interest in the property. Joint tenancy with right of survivorship differs from tenancy in common in that under a joint tenancy with the rights of survivorship, if a co-owner dies, then her share will pass to the surviving co-owner.E.g., John's interest in the property will pass to Mary who will now have a 100% interest in the property.

What happens with an existing property if new regulations are adopted that are in conflict with the current use of the property?

This is known as a nonconforming use. Often, the zoning code provides that if the nonconforming use ceases for a certain period of time, then the property owner loses that use.

Is a mini-market just an expanded use of a gas station that previously sold candy bars, cigarettes, and soda to its customers?

This station has been a traditional full-service station since its inception, and the sale of soda, cigarettes, and candy was merely incidental and offered as a convenience for motorists. NO mini-market.

What does property law deal with?

Those rights and duties that arise out of the ownership or possession of real and personal property.

Does a tenant have any further liability if the tenant moves out before the end of the lease and sends a note to the landlord saying he or she has moved out?

Thus, the tenant's liability for unpaid rent is restricted to the period of time that the landlord would reasonably need to lease the property to another tenant.

What is the difference between a treasure trove and mislaid property?

To be considered treasure trove, and not mislaid property, the property must have been deliberately hidden or concealed, and sufficiently long ago that the original owner can be considered dead or not discoverable.

What is Torrens Title?

Torrens title is a land registration and land transfer system in which a state creates and maintains a register of land holding, which serves as the conclusive evidence of title of the person recorded on the register as the owner. Ownership of land is transferred by registration of a transfer of title, instead of by the use of deeds; the Registrar provides a Certificate of Title to the new owner.

What are estates in land?

Traditionally, ownership interests in real property were referred to as estates in land and include fee simple estates, life estates, and leasehold estates.

What is the rule for joint tenancy in PA if nothing is said as to how the two owners have taken title to the property??

Under Pennsylvania statutory law, unless the owners clearly state that the co-tenancy is a joint tenancy with right of survivorship, the property will be considered a tenancy in common.

What are the three ownership rights?

Usus (use): the right to use or enjoy a thing possessed, directy and without altering it. Fructus (fruit): the right to derive profit from a thing possessed Abusus (abuse): the right to alienate the thing possessed, either by consuming or destroying it (e.g., for profit) or by transferring it to someone else (e.g., by sale, gift)

What are the types of deeds? Explain.

Warranty Deeds- includes a number of covenants (or promises) including that the grantor (seller) has the title to, and the power to convey, the property. The seller is liable for all defects of title by the seller and previous titleholders. Special Warranty Deeds- warrants only that the grantor (or seller) held good title during her ownership of the property. The grantor does not warrant that there were no defects of title when the property was held by previous owners. Quitclaim Deed- the grantee whatever interest the grantor had (which could be nothing). Buyer has no cause of action against seller for defective title.

What is variance and the three things it has to fulfil?

When a property owner wants to use land in a manner not permitted by zoning laws, she can request a variance-an exception to the rules. The property owner must show that the requested variance Is necessary for reasonable development Is the least intrusive solution to the problem Will not alter the essential character of the neighborhood

Is a gift causa mortis revocable prior to death?

YES.

What is action to quiet title?

a court is asked to determine who, among several contenders, has ownership rights to a given piece of land.

What is real property?

consists of land and everything permanently attached to the land (including plant life and vegetation).

Whats a fixed-term tenancy?

created by an express contract stating that the property is leased for a specified period of time

What do non possessory interests in land not include?

do not include the right to posses the property and include (1) easements, (2) profits, and (3) licenses.

What is tenancy at will?

either party can terminate the tenancy without notice. Example: If a landlord rents property to a tenant "for as long as both agree."

What is a fee simple absolute?

full ownership privileges in a property

What is the mortgage contingency clause?

if the buyer cannot secure financing, then the agreement of sale terminates. The agreement for sale and purchase will provide for remedies in the event of default.

What is gratuitous bailment?

meaning there is no consideration—basically, the bailee is caring for the bailor's property as a favor to the bailor.The bailee owes only a slight duty of care and will be liable only if she is grossly negligent.

What is production?

occurs when a person takes scraps of something and turns these scraps into something else through his or her labor

What is a leasehold estate?

reated when a real property owner (landlord) agrees to convey the right to possess and use the property to a lessee (tenant) for a certain period of time.The tenant has a qualified right to exclusive, though temporary, possession.

What is the covenant of quiet enjoyment?

seller promises seller will protect buyer against anyone who later shows up and claims title

What is mutual bailment? (Hadfield v. Gilcrest)

some form of compensation for storing items or holding property.The bailee must exercise ordinary care, which is the care that a reasonably prudent person would use under the circumstances.

What is adverse possession? What four elements must be satisfied?

the occupation of land to which another person has title with the intention of possessing it as one's own Adverse possession is a method of involuntary transfer of title from the true owner to the adverse possessor. Possession must be actual and exclusive Possession must be open, visible, and notorious, not secret and clandestine. Possession must be continuous and peaceable for the required period of time (21 years in PA). Possession must be hostile and adverse

What is eminent domain?

the right of a government or its agent to expropriate private property for public use, with payment of compensation. (fifth amendment taking clause)

What does title refer to?

the rights of ownership-a person who has title to property possesses all of the rights of ownership.

What is a purchase?

the transfer of title from one owner to another owner.

What are zoning laws?

when cities define areas of a city and designate what can be developed in these zones allowing the government to "control" the layout of a city As long as its zoning laws are rationally related to the health, safety, or welfare of the community, a municipal government has broad discretion to carry out zoning.

Is someone who finds mislaid property liable for that persons property?

yes

What are some methods of acquiring possession?

• Purchase • Possession • Production • Gift • Accession • Confusion

What are the types of ownership? explain.

• Sole Ownership- a form of title wherein one person enjoys the bundle or rights and liabilities that accompany property.A sole proprietorship is a form of sole ownership.Upon the owner's death, the property will pass to whomever the owner desires or by intestate succession if there is no will. •Concurrent Ownership- Tenancy in Common • Joint Tenancy with Rights of Survivorship • Tenancy by the Entireties

What are the three types if bailment?

•Bailment for the sole benefit of bailor •Bailment for the sole benefit of bailee •Bailment for the mutual benefit of bailee and bailor.