What is a Bona Fide Purchaser (BFP)?

One who purchases real property without notice (record, inquiry, or actual).

What is inquiry notice?

Any condition or fact concerning a property that would have been revealed if the property was inspected.

What is a single sentence explanation of the shelter rule?

A person, even if they are on notice, who takes from a BFP, will prevail against any interest the BFP would have prevailed against.

When is the covenant against encumbrances breached?

It can only be breached at the time of conveyance.

What are the three present covenants?

(1) Covenant of Seisin

(2) Covenant of the Right to Convey

(3) Covenant Against Encumbrances

What is the covenant of Seisin?

Ensures that the grantor actually has legal title / possession of the property s/he will convey.

What is the covenant of the right to convey?

Ensures that the grantor has the legal right to sell the property.

What is the Covenant Against Encumbrances?

Ensures that the grantor provides notices to the grantee about ANY encumbrances.

Do present covenants run with the land? Can present covenants be enforced by "remote" grantees.

No and No.

What are the future covenants?

(1) Covenant of Warranty

(2) Covenant of Quiet Enjoyment

(3) Covenant of Further Assurances

What is the Covenant of Warranty?

Grantor ensures that s/he will help protect against claims of title on the property by a 3rd party.

What is the Covenant of Quiet Enjoyment?

Grantor guarantees that grantee will possess the property and enjoy it without substantial interference.

What is the Covenant of Further Assurances

Grantor ensures that they will assist in remedying encumbrances on the grantor's title.

What happens when a tenant takes possession under an oral lease for a term longer than 1 year?

The tenancy creates is "at-will"

How is a tenancy at will terminated?

(1) PERIOD: Either party can terminate at any time, but a one-period notices is needed? (if the period is one month, the renter needs to give 1 month's notice)

(2) WRITING: Termination must be in writing (SOF)

(3) DELIVERY: Termination writing must be delivered

What is the required notice for a tenancy less than a year?

Usually 1 month

After an assignment, what is the relationship between the former tenant and the landlord?

Original tenant is no longer in privity of estate, but is still in privity of contract. If assignee fails to pay, the original tenant is liable.

Does a life tenant have to pay interest and principle of a mortgage on the land?

Nope. They only need to . . .

(1) pay taxes

(2) continue to maintain the property in good repair

(3) pay any interest on the mortgage

(4) and NOT destroy the property (can't commit "waste")

What is the doctrine of worthier title? Define it. How does it apply.

(1) The doctrine of worthier title is a PRESUMPTION (2) that applies when a grantor TRANSFERS A FUTURE INTEREST to grantees (3) and those grantees also happen to be the grantor's OWN HEIRS And in such instances . . . (4) Its is PRESUMED (5) that the grantor intended to maintain the future interest for themselves.