Tenancy in Common (Concurrent Ownership): Default, separate but undivided interest; no right of survivorship; shares need not be equal

Partition: equitable action to transform concurrent ownership interests into separate ownership interest (In Kind: default, physically divide
land, In Sale: land sold and profits distributed) Joint Tenancy (Concurrent Ownership): Concurrent estate where joint tenancy have equal
and undivided interest with rights of survivorship, Right of Survivorship: upon death, JT automatically goes to surviving joint tenants; cannot
be devised 4 Unities of JT: 1) Time: must be created at same time 2) Title: must be created in same instrument 3) Interest: Must be same
interest (estate, amount) 4) Possession: Tenants must have right to possess the whole…Losing a unity severs joint tenancy as to that interest
and becomes TIC. Tenancies (Landlord/Tenant): Term of Years: Lease for fixed amount of time; terminated automatically at end of term
Periodic Tenancy: Continues for successive periods until a party terminates (usually not in middle of period) Tenancy at Will: Lease based on
affirmative agreement that can be terminated by either party at any time Tenancy at Sufferance: Leasehold in name only, resulting when
tenant “holds over” after a lease ends; landlord must either re-rent to tenant or evict Transfers (Landlord/Tenant): Assignment: Tenant
transfers entire interest; Landlord can collect rent from tenant (privity of contract) or transferee (privity of estate) Sublease: Tenant transfers
less than entire interest; Landlord can only collect rent from tenant (if lease silent, can transfer without permission; if lease requires
permission, LL can only refuse for commercially reasonable purpose under majority rule) Ernst v. Conditt: Parties called agreement sublease
but court held assignment because it transferred entire leasehold Conditions of Leasehold (LL/T): Covenant of Quiet Enjoyment: Every
lease includes covenant that landlord will not disrupt tenant’s possession; may take form of actual or constructive eviction Actual: wrongful
eviction Constructive: Conditions are so bad they are akin to eviction Breached if conditions substantially interfere with tenant’s ability to
make proper use of premises. Constructive Eviction Remedy: Upon breach, tenant can give notice, give LL reasonably opportunity to fix it,
stop paying rent, and vacate leasehold Warranty of Habitability: (Residential only) LL must provide healthy and safe living conditions;
similar to constructive eviction, but need not leave to recover Land Transactions: Two stages 1) contract: parties negotiate terms; liability
based on contract 2) deed: seller transfer’s property; liability based on deed Statute of Frauds: Essential terms of transfer must be in writing
signed by party against whom agreement will be enforced unless 1) Part performance: is evidence that contract existed (payment of all/part
purchase price, buyer taking possession, or improvement by buyer) 2) Detrimental Reliance: party reasonably relied on contract and will
suffer hardship if not enforced Seller’s Duties at Contract Stage: Implied Covenant of Marketable Title (title free from unreasonable risk of
litigation Remedy: Seller of a residence has duty to disclose all material defects (substantially effect value, health, safety, or desirability of
home) Deeds: must contain identity of parties, reasonable description of property, granting clause showing intent to make transfer, and
signature of grantor 3 Types of Deeds: 1) Quitclaim: seller makes no warranties about title 2) Special Warranty: seller warrants that seller has
not caused defects to title 3) General Warranty: seller warranties against all defects Deed must be: delivered and accepted Delivery: requires
grantor’s intent to convey the land; does not require physical delivery; cannot be speculative; can be made to agent Acceptance: presumed if
transfer has value Wild deed: if a document recorded cannot be found in a standard title search. Deed recorded too late. Deed recorded too
early Covenants: Present Covenants (regarding condition of land/title at time of conveyance) Seisin: deed describes land in question Right to
Convey: seller has power to transfer land Against Encumbrances: No undisclosed strains on title Future Covenants (regarding future
conditions or conduct) Quiet Enjoyment: Buyer’s possession will not be disturbed Warranty: Seller will defend buyer against future claims of
3d party Further Assurances: Grantor will fix future problems that arise Common Law Recording: Recording (puts others on notice of an
ownership claim to property): helps assure title, does not affect validity of deed, only its enforceability against subsequent purchasers CL
dictates: when no party can claim protection of recording statute, CL controls (first in time, first in right) Race Statutes: First to record wins;
“No conveyance or mortgage shall be good against subsequent purchasers for value unless the same be first recorded according to law”
Notice Statutes: Subsequent purchaser wins if she takes without notice of a prior unrecorded conveyance; look for “in good faith” or
“without notice” 3 Types of Notice: 1) Actual: real, personal knowledge of prior transfer 2) Constructive: Prior interest is property recorded
(record notice) 3) Inquiry: should have been on notice had they looked at land or documentation (someone occupying land or deed mentions
another interest) Race/Notice Statutes: Subsequent purchaser wins if she takes without notice of prior unrecorded conveyance, and records
first; combines requirements of other statutes Easements: Non-possessory right to use land 1) Affirmative: right to do something on
another’s land 2) Negative: right to prevent someone else from doing something on their own land 3) Dominant Estate: land benefitted by
easement Servient Estate: Land burdened by easement 2 Classifications of Easements: 1) Appurtenant: easement benefits holder in use of a
particular piece of property 2) In Gross: Easement benefits the holder personally, regardless of where they live Express Easement: Created by
express grant; must satisfy SOF because it creates an interest in land Easement by Estoppel: License (use permission) that become
irrevocable because of detrimental reliance Easement by Prescription: Effectively created by adverse possession for statutory period; does not
require exclusive use Easement by Necessity: Arise after a larger parcel is subdivided to grant a landlocked parcel necessary access to public
roads Implied Easement (prior use): Landowner uses one side of property to benefit another, severs and sells the burdened portion, and
continues the prior use Termination of Easements: 1) Release: Holder executes formal written release 2) Expiration: Terminates naturally
under the terms of the easement 3) Merger: Ends if the dominant and servient estates come under same owner 4) Abandonment: Holder
affirmatively relinquishes the easement, and servient owner relies on it 5) Prescription: Terminated by adverse possession Real Covenants:
(promise re: use of land that is enforced against successors in interest at law by an award of damages Requirements: 1) needs to be in writing
to satisfy SOF 2) OG parties must intend for promise to bind successors in interest (run with the land) 3) promise must touch and concern
the land 4) successors must have notice 5) real covenants require privity Horizontal: btwn. OG parties making promise (only required for
burden to run w/ land) Vertical: btwn. Previous holder and successor in interest (req’d for benefits and burdens) Equitable Servitudes:
(promise re: use of land that is enforced against successors in interest at equity by injunctions) Requirements: Writing, Intent to run with land,
touch and concern land, and notice Reciprocal Negative Easement: Negative covenant implied when a seller intends to create a servitude on
all plots in accordance w/ a common scheme; party against whom enforcement is sought must have notice Zoning: (local gov’t power to
regulate property use in its jurisdiction to segregate incompatible land users): Power comes from state police powers and municipality
enabling statutes Euclid: Proves that separation of uses is desirable Foundation of modern land use regulation in the US Rational Basis Test: a
law is unconstitutional only if it is “clearly arbitrary and unreasonable, no substantial relation to the public health, safety, morals, or general
welfare” Strict Scrutiny Test: if someone is being discriminated against for race or religion Facial challenge: challenge all zoning laws (harder
to achieve) As-Applied challenge: challenging zoning laws as applied to a specific parcel (Easier to achieve) Nonconforming Uses: New
zoning ordinance will provide that it does not apply to lawful uses that already exist, Prior, nonconforming uses are allowed to continue,
Zoning effects FUTURE development, Attacking existing uses might be unconstitutional, Taking under 5th amendment without
compensation, A nonconforming use is defined as any lawfully existing use of a structure or of land that does not conform to the applicable
use regulations of the district which it is located, Cannot EXTEND, but CAN INTENSIFY. Nonconforming use can be terminated by:
Abandonment/discontinuance, Abandonment: owner must BOTH intend to relinquish his right to use AND voluntarily ceases use for set
period of time (anywhere from 30 days to 2 years), Discontinuance: some jurisdictions say this is sufficient compared to abandonment 2)
Amortization: required termination over reasonable period of time 3) Termination: By destruction of structure housing the use, If use is a
nuisance, Eminent domain, Vested Rights, Landowner has vested rights and is protected under nonconforming use doctrine if she has already
1) Acquired permits (some jurisdictions don’t require this) 2) Spent a substantial amount of money in good faith reliance Rigid Zoning or
Flexible Zoning: Standard State Zoning Enabling Act says there are 3 ways for owner to escape a zoning ordinance: Amendment, Variance,
Conditional use/special exception. Zoning Amendment- Most Jurisdictions: Constitutionality of Zoning applied, Rezoning decision is valid
unless it is “clearly, arbitrarily, and unreasonable, having no substantial relation to public health, safety, morals, and general welfare”,
Handful of Jurisdictions: (change or mistake approach), Rezoning is Only valid if... 1) If conditions in the zone have significantly changed or
2) A mistake was made in the original ordinance. Spot Zoning: 1) Singles out a small parcel of land for different treatment 2) Primarily for
the benefit of the private owner, rather than the public 3) In a manner inconsistent with the general plan for the community Reverse spot
zoning: 1st and 3rd elements are met, but amendment changes the zone to a less intensive use, thus harming the owner. Variances- The board
may grant a variance if there are unique physical circumstances and unnecessary hardship is due to such conditions that are not created by the
applicant and variance will not alter the character of the neighborhood. Common Interest Communities: planned residential development
where: 1) all properties are subject to comprehensive private land use restrictions and 2) regulated by HOA Created by a Declaration which
has 4 parts 1) HOA: association will administer CIC, specifies association powers, and provides an elected board of directors. 2) CC&Rs
imposes these on all land in CIC; May be enforced by real covenants or equitable servitudes. 3) Assessment: requires all unit owners to pay
monetary assessments which finance the operation of the association. 4)Ownership Rights: each owner holds FSA in his unit, an undivided
interest in common area of CIC a membership interest in assoc. (Title to common area may be held assoc. on behalf of unit owner).
Enforcing Restrictions Law makes it simple for a developer to create legally binding CC&Rs. 4 defenses for enforcing: 1. Unreasonableness
2. Abandonment 3. Changed conditions. Can also be terminated by condemnation, estoppel, merger, prescription, or release: Nahrstedt Case:
(Unreasonableness) R3d: A servitude is valid unless it is “illegal or unconstitutional or violates public policy.” A servitude violates public
policy if: 1) Is arbitrary, spiteful, capricious; 2) Unreasonably burdens a fundamental constitutional right. 3) Imposes an unreasonable restraint
on alienation. 4) Imposes an unreasonable restraint on trade or competition. 5) Is unconscionable. Real Property Finance: Title insurance-
protect buyer from unknown risks, a duty to defend and indemnify. 4 key parts of real property finance- obligation- borrowers duty to repay
the loan evidenced by a written promissory note. Security- borrower will provide security to the lender through a mortgage, deed of trust, or a
similar encumbrance on the property. Foreclosure- if borrower defaults, the lender will have property sold at a judicial foreclosure or a
nonjudicial foreclosure (majority) and use the sale proceeds to satisfy the loan. Rights after foreclosure: the borrower and lender may have
additional rights after the foreclosure sale occurs. Secured loan- lender requires collateral. Unsecured loan: may never be repaid because no
security against the owner. Mortgage theory: Title theory- some states--follow the common law view that the mortgage is a transfer of title
from the borrower to the lender (can take possession before default). Intermediate theory- lender holds title but does not hold right to
possession until the borrower defaults. Lien theory – majority theory where mortgage is seen as creating a lien or security interest, not
conveying title. It is the buyer’s house; lender does not have a right to possession until foreclosure occurs. Fully amortized loan- equal
installment payments the borrower makes will completely repay all principal and interest by end of loan term (opposite is a balloon clause).
Acceleration clause: lender can demand payment of the entire loan if the borrower misses even one monthly payment. Subprime lending:
risky loans made to borrowers with poor credit, uncertain income prospects, and often little or no down payment. Adjustable-Rate Mortgages:
begins with a low, fixed rate for the first few years (teaser rate) and then would reset to an adjustable rate for the duration of the loan. Deed of
trust: most common mortgage substitute, borrower (trustor) conveys real property in trust to a third party (trustee) for the benefit of the lender
(beneficiary). Installment land contracts: buyer takes possession and makes payments to seller who retains title. Equitable mortgage: a land
conveyance only intended as a mortgage, not a sale of real property. Mortgage Priority: the lender whose mortgage was created first has
priority under the first-in-time rule unless a subsequent purchaser or lender is protected under the state’s recording act. A) SBFP or
encumbrancer may be protected against prior interests and B) the shelter rule may also protect a subsequent party Principle 1: Foreclosure
eliminates or “wipes out” the mortgage being foreclosed and all junior interests but does NOT affect senior interests. Color of title: One may
possess property under a written instrument purporting to give title even if it is invalid. Interests: Freehold: fee simple, life, fee tail Non-
freehold: leasing (not seisin) Seisin- Possession and ownership of the property. Fee simple- A and his heirs. Fee simple determinable-
automatically reverts to grantor when a stated event occurs or fails to occur with a possibility of reverter (as long as, while, until, during). Fee
simple subject to condition subsequent: subject to a condition but possession does not automatically end, right to re-entry by grantor (on
condition that, but if, provided that) Fee simple subject to executory limitation- Estate passes to a 3rd party upon the happening of the stated
event (words of duration {so long as} or condition) Life estate: grantor has reversion. Life estate per autre vie: life estate measured by the life
of someone other than the grantee like a tenant. Fee tail: lineal heirs of grantee. Remainder- future interest in someone other than the grantor
or the grantee of a possessory interest. Vested remainder: certain to become possessory when prior estate ends and ascertainable. Contingent
remainder: not certain to become possessory because of a condition precedent or is unascertained Indefeasibly vested Remainder: certain to
become possessory at some future time (O to A 4 Life then to B and his heirs) Whoever acquires B’s interest will take possession if B is not
living Vested remainder subject to open: When one or more people are certain to have future interest, but it remains open that they may share.
Vested remainder subject to divestment: remainder may fail to become possessory because it naturally expires (but if -- then to--). Rule in
Shelley’s case: if the remainder is with the grantees heirs then it is a fee simple and it does not apply with an executory interest Doctrine of
worthier title: grantor cannot give a remainder to their own heirs and therefore keeps a reversion. Springing executory interest: One that is to
take effect at some point after the date of the conveyance must divest another interest. Shifting executory interest: Cut short a prior interest
that had not yet naturally terminated. Doctrine of waste: If present interest holder acts to 1) Substantially reduce the value of the future
interest and 2) Are unreasonable under the circumstances future interest holder has a cause of action (voluntary, permissive, equitable). Joint
Tenancy- same Time, Title, Interest, and equal right to Possession which includes a right of survivorship (strawman loophole with lawyers)
(lease severs joint). Marital property, separate system- during marriage property is separate owned by spouse who acquires it and creditors
can only attach to that spouse, 1) Divorce equitable distribution where court divides property acquired during marriage in a just and fair
manner 3) Death the surviving spouse can get a forced share. Community property system- all assets are owned by both, in a divorce property
is divided equally, death decedent may devise ½ and the rest stays with surviving spouse (no forced share) Fair housing act: π establishes
they are a member of protected class (race, color, religion, sex, handicap, familial status or national origin) 2) burden is on ∆ to prove non-
descriminatory reason for conduct 3) If ∆ meets burden, then π must show that the reason was not mere pretext. Exceptions to FHA: 1)
rooms or unit dwellings when the owner also occupies residence 2) Single family house sold or rented by owner themselves. Can
discriminate with roommates but not in the advertisement.