AL Bar Property 2 — Questions and Answers
Question 1: O conveys 'to A, but if A sells alcohol on the premises, then to B.' What future interest does B hold?
- Right of entry (power of termination)
- Possibility of reverter
- Executory interest (Correct answer)
- Vested remainder subject to divestment
Correct answer: Executory interest
B holds a shifting executory interest because if the condition occurs, title shifts from A to a third party (B) rather than reverting to the grantor.
Question 2: Under the Rule Against Perpetuities, which interest is void if it might not vest within a life in being plus 21 years?
- Vested remainder
- Possibility of reverter
- Contingent remainder (Correct answer)
- Right of entry
Correct answer: Contingent remainder
The Rule Against Perpetuities applies to contingent remainders, executory interests, and options in gross; vested remainders and reversionary interests in the grantor are exempt.
Question 3: A tenant in common may do all of the following EXCEPT:
- Convey her undivided interest to a third party
- Encumber her share with a mortgage
- Unilaterally partition the property without court action (Correct answer)
- Bring a partition action in court
Correct answer: Unilaterally partition the property without court action
A tenant in common cannot physically partition jointly held property without either the agreement of all co-tenants or a court-ordered partition; the right to partition requires court action if not agreed upon.
Question 4: An easement appurtenant runs with the land. When the dominant estate is sold, what happens to the easement?
- It is extinguished unless re-recorded
- It automatically passes with the dominant estate (Correct answer)
- It must be separately assigned in the deed
- It converts to a license
Correct answer: It automatically passes with the dominant estate
An easement appurtenant is tied to the dominant estate and automatically transfers to the new owner without requiring separate assignment.
Question 5: Under Alabama law, which of the following is the proper way to terminate a periodic tenancy?
- No notice required; tenant simply vacates
- Notice equal to one full period, given prior to the end of a period (Correct answer)
- 90-day notice regardless of the period length
- Written notice filed with the probate court
Correct answer: Notice equal to one full period, given prior to the end of a period
To terminate a periodic tenancy, the terminating party must give notice equal to the length of one period (e.g., one month for a month-to-month tenancy), effective at the end of a period.
Question 6: A seller enters a contract to sell real property. Before closing, the house is destroyed by fire. Under the equitable conversion doctrine, who bears the risk of loss?
- The seller, who still holds legal title
- The buyer, who holds equitable title under the contract (Correct answer)
- The loss is split equally between buyer and seller
- Neither party; the contract is void
Correct answer: The buyer, who holds equitable title under the contract
Under equitable conversion, once a binding contract is signed, the buyer holds equitable title and bears the risk of loss unless the contract provides otherwise.
Question 7: Which covenant in a general warranty deed warrants that the grantor has not previously conveyed the same estate to anyone other than the grantee?
- Covenant of seisin (Correct answer)
- Covenant against encumbrances
- Covenant of further assurances
- Covenant of warranty
Correct answer: Covenant of seisin
The covenant of seisin warrants that the grantor owns and has the right to convey the estate described in the deed, meaning no prior conflicting conveyance has been made.
AL Bar Property 2
O conveys 'to A, but if A sells alcohol on the premises, then to B.' What future interest does B hold?