PROPERTY BAR EXAM

If the government condemns all of the leased land, the tenant’s liability for rent:

Is extinguished, and the tenant may be entitled to compensation for the taking

installment land contract

security interest in land by which the debtor agrees to make regular installment payments until the full contract price (including interest) has been paid.

If a grantor transfers a deed in exchange for cash, and the grantee promises to return the land when the cash is repaid, a court will likely treat the transaction as:

An equitable mortgage

deed of trust

security interest in land by which the debtor transfers title to the land to a third party as trustee for the lender

springing executory interest

future interest that follows a gap in possession or divests the estate of the transferor.

vested remainder subject to total divestment

a remainder created in an ascertained person in being whose interest is not subject to a condition precedent but is subject to being defeated by the happening of some condition subsequent.

shifting executory interest

future interest that divests the interest of another transferee

Statutory redemption

right of a mortgagor to recover the land by paying the foreclosure sale price after the foreclosure sale has occurred.

Equitable redemption

the right of a mortgagor to recover the land by paying the amount overdue, plus interest, at any time before the foreclosure sale