Property Law Flashcards

A seller contracts to convey "marketable title." A title search reveals the property violates a zoning ordinance due to an existing structure built too close to the lot line. Is title marketable?

Answer: No, because an existing zoning violation renders title unmarketable

The mere existence of zoning laws does not impair marketability, but an actual existing violation exposes the buyer to litigation and makes title unmarketable.

A property owner grants an easement to a utility company "and its successors" to run lines across the land. The owner later sells the parcel. Is the new owner bound by the easement?

Answer: Yes, an easement in gross for utilities is enforceable against successors with notice

Commercial easements in gross are transferable and burden the servient estate against subsequent owners who have record or other notice.

A father hands his son a signed deed saying, "This is yours when I die," and keeps the deed in his own safe until death. Is the deed effective to pass title?

Answer: No, because there was no effective delivery during the father's life

A deed requires delivery with present intent to pass an interest, and retaining control with instructions effective only at death shows no present transfer.

A commercial tenant installs bolted-down display shelving for its business. At lease end, the tenant wants to remove the shelving. What is the general rule for such trade fixtures?

Answer: The tenant may remove them before the lease ends, repairing any damage

Trade fixtures installed for a tenant's business may be removed before the tenancy ends provided the tenant repairs resulting damage.

A grantor delivers a deed to an escrow agent with instructions to give it to the buyer upon full payment. The grantor dies before final payment, and the buyer then pays in full. What is the result?

Answer: Title passes; delivery relates back to the deposit in escrow

Under the relation-back doctrine, when conditions of a true escrow are met, delivery is deemed effective as of the original deposit, surviving the grantor's death.

A cotenant in sole possession of jointly owned land pays all property taxes and makes necessary repairs. Absent ouster, what may that cotenant recover from the others?

Answer: Contribution for taxes and necessary repairs, offset by the value of sole occupancy in some courts

Cotenants may generally seek contribution for carrying costs like taxes and necessary repairs, though courts may offset the rental value of exclusive possession.

An owner borrows from Bank A, which records its mortgage, then borrows from Bank B, which also records. Bank A forecloses and gives proper notice to all parties. What happens to Bank B's junior mortgage?

Answer: It is extinguished as to the land, leaving Bank B to the surplus proceeds or a personal claim

A valid foreclosure by a senior mortgagee eliminates properly joined junior liens on the property, relegating junior lienors to any surplus sale proceeds.