Estates
What are the four types of freehold estates
1. Fee simple absolute
-absolute/full ownership rights in property (not subject to condition)
2. Fee simple Defeasible
-limitation on interest bc of condition
3. Life Estates
-interest measured by the timespan of a life
4. Trust
-assets that have been placed into a fiduciary relationship between a trustor and trustee for a designated beneficiary
-any type of asset, including cash, securities, real estate, or life insurance policies.
What type of estate is this?
"I convey this property to John, but if he attempts to sell it, it will automatically revert to Sarah."
Fee simple subject to executory interest
What are the types of land uses
1 Easement= right on someone else’s land
2. Covenants= requirement to do something on own land
3. Equitable servitudes= restrictions/prohibition from doing something on you own land
When does the burden of an easement run? the benefit?
Burden:
- On servient estate always runs with property to bind subsequent owners
Benefit:
a. Appurtenant
-Passes with transfer of the dominant land
b. In gross
- Not transferable
- Exception: Commercial easements if intention
What is an executory contract?
-Title is not transferred upon signing of contract
-Buyers and sellers must do things btw contract and closing
What are the three types of fee simple defeasibles, and how do they differ (examples: O to A...)?
1. Fee simple determinable
- Once the condition is fulfilled, interest will
automatically return to the original owner
- O to A so long as A does not do x
2. Fee simple subject to condition subsequent
-Grantor can chose to re-enter once condition met
-O to A but if x occurs then O reserves right to re-enter and retake/has the power of termination
3. Fee simple subject to executory interest
-Instead of reverting to owner, automatically is a remainder to 3rd party
-O to A, but if x occurs then to B
What type of estate is this:
I convey this property to Bob, as long as it is used for educational purposes. If it ceases to be used for educational purposes, it automatically reverts to me."
Fee simple determinable
What are the types of easements?
1. In gross
- a right to use another person's land for a specific purpose, and it is typically not tied to the ownership of any particular parcel of land
-Company A has an easement in gross to access a water well on the property of Neighbor B. The right to access the well is not tied to ownership of any specific land owned by Company A.
2. Appurtenant
-An appurtenant easement is associated with the ownership of a particular parcel of land.
-The easement benefits the owner of the dominant estate (the parcel that benefits from the easement) and burdens the servient estate (the parcel over which the easement runs).
-A property owner (Dominant Tenement) has an appurtenant easement to use a private road that runs across the neighboring property (Servient Tenement) to access their land. If the Dominant Tenement is sold, the new owner inherits the easement rights.
3. Profits
-Right to take natural resources from the land of another
- Fruit trees
How does vertical privity differ from horizontal?
Vertical: New people are getting burden/benefit through contract
Horizontal: It was between the burdened land and dominate land (OG parties)
What is the statue of fraud and land sales?
- Applies to all contracts for land sale
What is a life estate? What are the two main types of future interests?
- Estate interest that is measured in explicit life time terms (To A for life)
- Interest
1. Reversion
-O to A for life (O has reversion interest)
2. Remainder
-O to A for life then to B (B has remainder intersest
How is contingent remainder different from vested remainder?
Contingent
-some uncertainty b/c person to whom it will go is not yet ascertainable (known) or if the condition attached to remainder is not yet met
-From O to A for life, then to A's heirs
Vested
-given to person who is known and is not subject to condition
How are easements created and destroyed?
Created:
1. Prescription
-One party allows some use and lets it go too long and allows other party to invest and rely on the investments.
-OCEAN-H
2. Estoppel
- Owner stood by and acquiesced in the change of use and permitted the expense to be made
-is now relied on
3. Implied
-Assume with conveyance (prior use)
4. Express
-In contract or oral agreement
5. Necessity
- Easement strictly necessary due to severance
Destroyed:
1. Abandonment
-intention +manifestation of intention
2. Express
-In writing
3. Merger
- owner of the dominant tenement acquires ownership of the servient tenement, the two estates may merge. - easement is essentially extinguished because the same person now owns both the property that benefits from the easement and the property burdened by the easement.
What are the big three for running with the land
1. Writing
-original agreement must be in writing
2. OG Parties intention
-to run with land (more than personal)
3. promise touches and concerns use of land
-Subject matter must touch and concern use of land; Use that impacts land
What is equitable ownership
- Signing of contract (before closing) = equitable conversion of ownership interest (buyer becomes equitable owner)
What is the waste doctrine? What are the types of waste?
-Life tenant is entitled to all reasonable uses and profits of land
-Life tenant must not commit waste (damage future interest holders)
Three types of waste
1.Voluntary/affirmative=willful destruction
2.Permissive waste = neglect/disregard
3.Ameliorative waste = tenant may not engage in unilateral transformation of estate unless all future interest holders are known and consent
Which one is vested and which is contingent
1. G conveys the property to A for A's life, and upon A's death, the property goes to B's children.
2. G conveys the property to A for A's life, and upon A's death, to C, but if C is not yet 25 years old at the time of A's death, the property goes to D.
1. Vested
2. Contingent
How does the burden and benefit run with equitable servitudes?
Burden:
-Must have big 3 + active notice when land tranfers
Benefit:
-Just big three
What are affirmative and negative servitudes?
Affirmative:
-means that you have the right to do something on someone else's land.
-EX. Right of way, the right to go over someone’s land
Negative:
-something where you are restricted from doing something on your land.
-Ex. lateral support/erosion/light/water
Marketable title
- Seller must provide marketable title= implied promise in a contract when a seller is selling land to a buyer
What are the three types of vested remainders?
1. subject to open
- One member of class known but others may join in future
- To A's children and their heirs, A has one child, B. We already know that B will take a partial share, but if A has other children, B would share with those children
2. subject to divestment
-One person known but something could take away(divest) interest
-To A for life, then to B and her heirs, but if B does not survive A, then to C and his heirs
3. indefeasibly
-Cannot be taken away
-To A for life, then to B and B's heirs
What type of estate is this
"I convey this property to Mary, but if she uses it for commercial purposes, I reserve the right to reclaim it"
Fee simple subject to Condition subsequent
How does the burden and benefit run with covenants?
Burden:
-Big three + horizontal and burden vertical privity + actual/constructive notice
Benefit:
- Big three + benefit vertical privity
What are the easement of air and light, and conservation easements?
Air and light:
-Modern US approach: no right of access to air, light, and view over adjoining property
-Exceptions
a. Express agreements
b. Not by prescription or implication
c. Gov’t created---Ex: solar shade control act/building codes
Conservation:
- Land owners voluntarily agree to limit the use and development of their property in perpetuity
- Agreement usually with gov’t agency or land trust organization
Types of deeds
1. General Warranty
-The seller warrants to the buyer that:
a. Seller owns the property she is conveying in fee simple
b. She has a right to convey it
c. It is free from encumbrances
d. The buyer will enjoy quiet title to the property
e. Seller will defend the buyer from all LAWFUL claims of others
2. Special/limited warranty
- Seller warrants to the buyer that during the term of the seller’s ownership of the property no on other that the seller developed any lawful claims to title to the property
-Does not warrant that no such claims arose prior to the seller’s ownership of the property
3. Quitclaim
- Warrant nothing
- States that to the extent the seller has any interest in the property, she conveys it to the buyer
- Often used when minor boundary disputes or uncertainties btw properties