Terms in this set (158)

"To A for life, and on her death to such of her children as attain the age of 35." A is 60 and has two children age 30 and 25. Under common law rule, here is what might happen: A might give birth to a child Then A's other two children might die before attaining age 35l then A might die before the afterborn attained his 14th bday (35-21). THEN, the afterborn's interest would vest remotely (more than 21 years).

"To A for life, then to such of A's children as attain the age of 21." Here, the relevant measuring life is A. All of A's children are going to attain the age of 21, if at all, within 21 years after A's death.

T's will devises her residuary estate "to such of my nephews and nieces as attain the age of 21." At the time of T's death, she has two brothers and six nephews and nieces, all of who are under age 21. Is the gift valid under the rule? It depends. Specifically, it depends on whether T's parents are living. The relevant measuring lives are T's brother and sisters, bc all of T's nephews and nieces will attain age 21, if at all, within 21 years after their parents death. If T's parents are dead, her two brothers are all the brothers she is ever going to have; and T's nephews and nieces will be the children of these brothers. The disposition is valid. But if T's parents are alive, they might have another child, a brother or sister of T not alive at T's death. Then T's two brothers and six nephews and nieces who were alive at Ts death might die. Then the newborn brother might have a child who lives to attain 21-more than 21 years after any life in being. Bc this might happen, the disposition is invalid under the Rule.
Every land sale K contains an implied warranty that the seller will delivery marketable title to the buyer AT THE CLOSE of escrow.

Marketable title is title that a reasonably prudent buyer would accept, which means minor defects do not matter since they do not present a significant threat of litigation. Ex: Can encroach 1/4 inch but not 6 ft.

To satisfy this warranty, seller must provide buyer with three things:

1) Proof of title - give buyer some tangible evidence of title.

2) Title free of Encumbrance - Seller must give buyer title free of encumbrances - that is, no easements, no restrictive covenants, no mortgages, no options, etc. other than those that have been previously disclosed to the buyer. Zoning is NOT treated as an encumbrance on title; however, violations of a zoning ordinance DO constitute an encumbrance on title. Generally speaking, violations of housing or building safety do NOT constitute an encumbrance. Generally speaking, mortgages are treated as encumbrances, however, a mortgage that will be satisfied out of the proceeds of the sale of the property is NOT an encumbrance.

3) Valide Legal Title as of DATE of closing: Seller must give buyer valid legal title on the day of closing. If the day before closing the buyer finds out that the seller dos not have legal title to the property under the K, the buyer cannot rescind.

If buyer determines that seller's title is not marketable, the buyer must notify the seller of any defect in title AND allow the seller a reasonable time to cure the defect, even if that means postponing the day of closing.
General Rule: A BFP is a purchaser for value who takes without notice.

Purchaser for value:

-Unless there is an explicit claim of fraud, ANY consideration that is out of pocket (ie. more than a mere peppercorn") is enough to be considered value.
-Bargain Basement Sale: if the purchaser pays way below FMV, the purchaser still qualifies as purchaser "for value."
-One who purports to take property as an heir, devisee, or donee cannot be a BFP (since they give no value) and therefore cannot prevail over the claim of an earlier grantee.
- HOWEVER, they can take under the shelter rule exception. Anyone (even heirs, donees or devisees) can shelter under the rights of BFP. Ex: C can shelter under the rights of B, who is a true BFP bc B paid value and took without notice of the earlier conveyance to A.

Three Kinds of Notice:

1) Actual Notice: If the subsequent purchaser had actual notice of the prior unrecorded conveyance, then the subsequent purchaser is not a BFP. There is the shelter rule exception however and therefore anyone (even those who actually knew of the earlier conveyance) can shelter under rights of BFP.
2) Record Notice: Record notice is constructive notice arising from the record. In order to impart record notice, a deed must be recorded in the buyer's direct chain of title- so that a subsequent purchaser can find it.
3) Inquiry Notice: In order to be a BFP who takes without notice, the subsequent purchaser must examine the land and make inquiry as to any unexplained uses or possessions. The subsequent purchaser will be charged with notice of whatever such a physical inspection would reveal.
1. Construct a Chain of Title Using GRANTEE Index: Look up seller's name and find name of seller's grantor; then look up name of that person's grantor, and so on, going backwards in time for whatever period of time is required by the marketable title statute. FLs marketable title statute requires title searchers to go back 30 years.

2. Adverse each link - using GRANTOR index. Look up the name of the last grantor found in the chain of title just constructed and see if that person recorded any interest on the property, starting from the time they got the property until the time they passed title onto the next link in the chain of title. Specifically, look to see if Grantor placed any encumbrances (e.g. easements, mortgages, etc) on the property. Alternatively, look to see if Grantor conveyed the property to someone else before passing the property onto the next link in the chain. Repeat this search for each Grantor in the chain of title leading down to prospective seller.

3. Concept of legal blinders: This concept is key to understanding what is disclosed during the course of a title search. Legal blinders means that the title searcher examines only the actions taken by the grantor during the period of record ownership by that grantor. The title searcher looks only at the grantor's actions during his or her period of record ownership. Soo there are too possible ways that a deed may be filed at the courthouse but not be recorded in the chain of title: if the deed is recorded TOO LATE or TOO EARLY. See page 104 for good example.