Property

inter vivos conveyance

a grant that is made during the life of the grantor

testamentary conveyance

if grant is in a will

devise

a testamentary conveyance of real property

bequest (sometimes a legacy)

a testamentary conveyance of personal property

testate

a person who dies with a valid will

intestate

a person who dies without a valid will

decedant

the dead person referred to

testator

male dead

testatrix

female dead

estate

the assets that a decedent owned at time of death

executor

person who carries out the instructions in a will

administrator

court-appointed; disposes of intestate estate

probate court

confers the authority of an administrator or executor to dispose of an estate’s assets

divisee

party receiving the devise

[the will’s] beneficiaries or legatees

party receiving the bequest or legacy

devisable property interest

a property interest that the decedent has the power to transfer by will

partial intestacy

what the unallocated assets of an incomplete will (will fails to provide instructions for all the assets owned at death)

residuary clause

added to avoid partial intestacy; disposes of all remaining assets into residue or residuary estate

intestate succession

when property not designated by will passes to any surviving relative (heirs)

issue

direct descendants of decedant (children, grandchildren, etc.)

ancestors

parents grandparents, etc

collaterals

relatives that aren’t direct ancestors or descendants

escheats

when person dies intestate w/o any heirs at law, their estate __ to the state

codicil

a writing that adds, removes, or changes one or more provisions of a previously made, valid will, but leaves other terms unchanged

lapse

situation where a specific devise or bequest in a will cannot be completed and is thus void

ademption

devised property no longer part of estate at time of death

intangible property

conversion

someone takes away or destroys ur stuff

right of publicity

mortgage

a form of property interest in real estate given as security for a loan; gives lender right to take value of mortgaged property; a kind of interest in land; a written instrument that grants the lender an interest in their newly purchased land

to foreclose

when lender of money for mortgage takes the value of the mortgaged property if loan not repaid

mortgagors

homebuyer

mortgagee

lender

equity

difference btwn what a home is worth and what the homeowners owe on their mortgage

amortization

the loan payments are the same throughout the period of the mortgage: at the beginning, most of the payments go to the interest on the loan, while over time more and more of the payments go to reduce the loan principal

promissory note

creates personal liability for the borrowers if they fail to pay, and also sets out the terms of the mortgage such as the repayment period and the interest rate

{transferee takes} subject to the mortgage

the original mortgagers still owe the debt and transferee is at risk of foreclosure if they don’t pay

assuming the mortgage

the new owner agrees to pay the mortgage debt directly; when purchaser assumes mortgage, seller still has duty to pay mortgage if the buyer doesn’t, but seller can pursue buyer for reimbursement

“due on sale” clause

full amt of mortgage comes due (or accelerates) when the mortgagor sells the property; enables lenders to reprice loans (acc to current interest rates)

Covenant of seisin

the grantor covenants that he owns the estate or interest that he purports to convey

Covenant of right to convey

the grantor covenants that he has the power to make the conveyance. this covenant is satisfied if the grantor has title and is under no disability, or if he is acting as trustee or agent for the owner.

Covenant against encumbrances

The grantor covenants that there are no easements, covenants, mortgages, liens, or other encumbrances on the property

Covenant of quiet enjoyment

The grantor covenants that the grantee will not be disturbed in possession or enjoyment of the property by a third party’s lawful assertion of superior title.

Covenant of general warranty

The grantor covenants that he will defend on behalf of the grantee any lawful claims existing at the date of conveyance, and will compensate the grantee for any loss sustained by the assertion of superior title. Note that for all practical purposes, this covenant abd the covenant of quiet enjoyment

remedies for breach of the sale contract

1) damages

2) rescission of the contract

3) retention (for sellers) or return (for buyers) of the deposit

4) specific performance of the contract

the majority rule

the vendee under a contract for the sale of land, being regarded as the equitable owner, assumes the risk of destruction of or injury to the property where he is in possession, and the destruction or loss is not proximately caused by the negligence of the vendor

covenant of further assurances

the grantor covenants to perform whatever acts are reasonably necessary to perfect the purchaser’s title if it turns out to be imperfect.

other functions of the deed

location, notice of encumbrances

foreclose

If the mortgagers default on the mortgage by failing to pay the appropriate amounts at appropriate times, the mortgagee can __

title-theory states (a minority)

the mortgage is conceived of as a transfer of legal __ to the mortgagee, with the mortgager retaining equitable __

lien-theory states (the majority)

the mortgage is treated as a security __: the mortgagor keeps formal title to the property, and the mortgagee ordinarily must foreclose to take the property.

non-recourse loan

the only way a lender can get its money back in case of default is by seizing the asset, and if there’s not enough money to satisfy the debt from the asset, too bad for the lender. the lender has no “__” against any of the borrower’s other assets.

recourse loans

in case of default, the lender can seize and sell the asset, and if there’s not enough money to satisfy the debt, the lender is now an unsecured creditor for the remaining balance (the deficiency) and can go after any of the borrower’s other assets, such as her bank account.

the deficiency

the remaining balance of a loan debt

redlining

the practice of lenders, insurers, and govt agencies of distinguishing city neighborhoods that were collectively deemed an unacceptable credit risk. “A” grade (green) deemed minimal risks for banks and other mortgage lenders. “D” grade (red) considered “hazardous”

Home Owners Loan Corporation

a federal agency created to help stem the tide of foreclosures generated by the Great Depression.

under race recording stute

a subsequent mortgagee of real property will prevail againt a prior mortgagee of said real property if the subsequent mortgage is recorded before the prior mortgage

under a notice recording statute

a subsequent mortgagee of real real property for value and without notice (actual and constructive) of a prior mortgage of the said real property will prevail against against the prior mortgagee

under a race-notice recording statute,

a subsequent mortgagee of real property for value and without notice (actual and constructive) of a prior mortgage of the said real property will prevail against the prior mortgagee if the subsequent mortgage is recorded before the prior mortgage

purchase money mortgage

a mortgage that secures a loan provided by the seller of the property to buyer as part of the same transaction in which the buyer acquires title.

present estate (or a possessory estate)

a legal interest that confers on its owner the right to present possession of some thing

future interest

a legal interest that exists in the present, but does not entitle the owner to possession until some point in the future

lease

a transaction in which the landlord gives the tenant a possessory estate (a leasehold estate) and retains a future interest—the right to retake possession after lease term ends

reversion

an unqualified right to future possession retained by the party who created the possessory interest that precedes it

fee simple absolute

an estate of indefinite duration; it is descendible, devisable, and alienable inter vivos, BUT it cannot be destroyed; “to A”

life estate

an estate that confers a right to possession for the life of its owner; obv not devisable or descendible, BUT can convey inter vivos/alienable inter vivos

life tenant

owner of a life estate

life estate pur autre vie

for another life - life estate for life of original life estate owner

retained interest

the residual interest left over when a grantor gives away less than they have

remainder

a type of future interest created in someone other than the grantor, sits and waits for natural termination of the preceding possessory estate

reversion and remainder

they cannot cut short or divest any possessory or vested estate (aka they cant touch the current possessory interest until that interest naturally expires)

holographic will

a will handwritten by the testator

fee simple

the fee simple absolute and the defeasible fees - full fee/interest or losable fee/interest

fee

property interest

defeasible fee

an estate that looks like a fee simple absolute, but can be divested (cut short and destroyed) by some future interest upon the occurance of some condition

types of defeasible fees

• fee simple determinable

• fee simple subject to condition subsequent

• fee simple subject to executory limitation

Fee simple absolute

an estate with no inherent limitation

Life estate

an estate that will terminate at the death of a person

Defeasible fee

an estate that can be divested or cut short by a future interest

Fee Simple Determinable

Possibility of Reverter

Fee Simple Subject to Condition Subsequent

Right of Entry

Fee Simple Subject to Executory Limitation (in a grantor)

Springing Executory Interest

Fee Simple Subject to Executory Limitation (in a grantee)

Shifting Executory Interest

grantee (in context of estates and future interests)

someone other than the grantor whose conveyance created the future interest

words of purchase

identify who the grantee is; “to A”

quantum of an estate

a measure of an estate’s size “to A for life”

what to do if grant includes no words of limitation?

a conveyance is presumed to convey the grantor’s entire interest

right of entry

a future interest in the grantor that is limited by words of condition; does not automatically become possessory by operation of law upon meeting condition; owner of this interest must take affirmative steps to assert right (ex: bringing an ejectment action). condition met => this right now may be exercised

words of condition

but if, provided that, however if, on condition that, etc

condition precedent

must be satisfied before you can have your interest - something that has not yet happened must happen in order for that interest to become possessory

condition subsequent

can arise after you get your interest and take it away (marry someone outside religion)

executory interest

a future interest created in a grantee that cuts short or divests a prior interest (grantee meaning someone other than grantor whose conveyance created the future interest)

springing executory interest

executory interest that divests or cuts short an estate held by the grantor of the executory interest

shifting executory interest

an executory interest that divests or cuts short an estate held by the grantee

right of entry & possibility of reverter

possible types of future interests created in grantor that cut short prior estate

fee simple determinable

a defeasible fee limited by words of duration; until, so long as, while

words of duration

until, so long as, while

possibility of reverter

future interest held by grantor that gives immediate right to possession if the condition on the continued existence of the fee simple determinable ever fails

right of entry

a future interest that cuts short/ divests a prior estate that is limited by words of condition; NOT automatically possessory, just presently exercisable

fee simple subject to a condition subsequent

limited by words of condition; but if, provided that, however if, on condition that