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Property
MBE property principles
255
Law
Graduate
07/13/2010

Additional Law Flashcards

 


 

Cards

Term
What are the 3 interests in land?
Definition

Estate

Easement

Restrictive Covenant

Term
Fee Simple Absolute (FSA)
Definition

 

1. potentially infinite duration

2. Fully alienable

 

 

Term
What language creates a Fee Simple Absolute?
Definition
"To A and his Heirs," though modern law (and NV) presume a FSA unless the language shows a clear intent to do otherwise.
Term

Life Estate

(describe)

Definition

1. Estate exists for the duration of someone's life

2. Can be sold to others for the duration of one's life (though this would not be a good deal since the measuring life could end suddenly)

3. Modern law permits a provision that terminates the lfie estate if the life tenant attempts ot convey it to someone else

 

 

 

 

Term
What language creates a Life Estate?
Definition

"To A for life"

 

can also be implied: "to A after the death of Lady Bird"

Term
Life Esate Pur Autre Vie
Definition

"measured by the life of another"

 

e.g. "to Jane for the life of Tarzan"

Term
What is waste?
Definition

Life tenant has a responsibility to maintain his estate

 

maintain means to continue the normal use of the land

Term
There are three kinds of Waste.  What are they?
Definition

voluntary waste

permissive waste

ameliorative waste

Term
Voluntary Waste
Definition

any affirmative action that causes harm to the premises

 

depletion of natural resources is waste unless consumption of such resources constitutes the noraml use of the land, as in the case of a life estate in a coal mine or a granite quary

 

sale of harvestable crops is not waste

Term
Permissive Waste
Definition

If tenant fails to: 

 

1. complete ordinary repairs (not replacements)

 

2. pay all taxes on the property

 

3. pay interest on any mortgage indebtedness on the property (but not principal payments)

 

[all of these resonsibilities are limited to the amount of rents and profits received from the land; or reasonable rental value of land if the tenant is using the land]

Term
Ameliorative Waste
Definition

when the life tenant alters the property substantially but it increases the value of the land

 

If changed conditions have made the property relatively worthless, then the life tenant can alter the proeprty without incurring liability to the holder of future interest

Term
Seisin
Definition
holder of seisin is the taxpayer
Term
What is a future interest?
Definition
the interest exists now, but will not become possessory till some time later
Term
What are the future interests of the GRANTOR?
Definition

reversion

possibliity of reverter

right of entry

Term
What are the future interest of the GRANTEE?
Definition

reamainder

executory interest

Term
When does the grantor retain a reversion interest?
Definition

Whenever he conveys less than the full durational estate that he had. 

 

e.g. life estate

Term
When does the grantor retain a possibility of reverter?
Definition
Whenever he grants a Fee Simple Determinable
Term
What is a fee simple determinable? (FSD)
Definition

an FSD terminates automatically on the occurrence of some event

 

telltale language:

"so long as"

"while"

"during"

"until"

 

e.g. "to A and his heirs for so long as no liquor is consumed on the premises"

Term
What is the right of reentry?
Definition
When the grantor conveys a Fee Simple on Condition Subsequent which terminates, he has the option of doing something to retake the property (reentry)
Term
How do you create a fee simple on condition subsequent (FSCS)?
Definition

Magic words:

"provided, however . . . "

"but if"

"on condition that"

 

e.g. "to A and his heirs, provided, however, that if liquor is ever consumed ont he premises then O or O's heirs shall have the right to re-enter and take the premises"

 

*Grantor must expressly reserve the right to reenter and take the property

Term
Are future interests in the grantor vested?
Definition
Yes
Term
Are the grantor's future interests subject to the RAP?
Definition
No.
Term
Are the grantor's future interests freely transferrable on death?
Definition
Yes.
Term
Are the grantor's future interests freely transferrable inter vivos?
Definition
Reversion and the possibility of reverter are freely transferrable inter vivos; however, the right of reentry is not
Term
What is a remainder?
Definition
A future interest in a third party grantee that comes naturally and immediately on the termination of the preceding estate
Term
Is a remainder interest vested?
Definition

If nothing stands in the way of its becoming possessory on the natural expiration of the preceding estate

 

e.g. to A for life and then on A's death to B and heirs

(at the moment this conveyance is made, B takes a vested remainder in fee simple)

Term
What is a contingent remainder?
Definition

there is a condition that must be satisfied before the remainder interest will become possessory

 

e.g. "to A for life, then to B and his heirs if  B survives A"

Term

what is a vested remainder subject to open?

(also known as a class gift)

Definition

the remainder interest is conveyed to a class of unnamed persons whose members are not yet fully known

 

the class remains open to allow for future persons who qualify as class members by satisfying the class description (e.g. children of A)

 

Term
what is the rule of convenience?
Definition

a class closes for a class gift whenever any class member is entitled to a distribution

 

e.g. Testator's will devises Blackacre "to A's children"

 

children born after the testator dies will not be part of this class unless they were in gestation at the time of the death, since the living children will be entitled to distribution at the death of the testator

Term
"To A for life, then to A's children."  At the time the will is written, A has no children.  What interest do these hypothetical children (grantees) have?
Definition

contingent remainder

 

if the grantee is not in existence a the time the conveyance takes effect, then the remainder is contingent on the grantee being born and therefore ascertainable

Term
"To Harry for life then Harry's widow."  Harry is married to Sally.  What interest does Harry's widow have?
Definition

contingent remainder

 

the widow is not identifiable until Harry dies

Term
What is an executory interest?
Definition

It operates to cut short the estate that comes before it.

 

e.g. "To A so long as the property is used for residential purposes, and if the property is ever used for other than residential purposes, then to B and heirs"

 

Magic words: " but if, then to"

Term
Do holders of executory interests have standing to sue for waste?
Definition
No.
Term
Does the holder of a remainder have standing to sue for waste?
Definition
Yes. 
Term
What are the kinds of defeasible estates?
Definition

fee simple determinable

fee simple subject to condition subsequent

fee simple subject to executory interest

Term
State the rule against perpetuities.
Definition
No interest is good unless it must vest, if at all, not later than 21 years after the death of some life in being at the creation of the interest. 
Term
What happens to the interest that would vest 21 years after the death of some life in being at the moment the conveyance was made?
Definition

The interest is void.  Cross out any language related to that interest.

 

e.g. "To and A and his heirs so long as no liquor is consumed on the premises; and if liquor is ever consumed on the premises, title shall go to B and his heirs."

Term
If a transfer is made as part of a will, when do you apply the Rule Against Perpetuities?
Definition
When the will takes effect.
Term
If a transfer is made by a deed, when do you apply the terms of the Rule Against Perpetuities?
Definition
when the deed takes effect
Term
As an alternative to the Rule Against Perpetuities, Nevada law provides a vesting period of how many years?
Definition
365.
Term
Can a contingent interest in property, such as an option or right of first refusal, violate the RAP?
Definition
Yes, if it is exercisable outside the time period of the rule. 
Term
What is the charity to charity exception to the Rule Against Perpetuities?
Definition
If the transfer is from one charity to another, the RAP does not apply.
Term
"To A for life, then to such of A's children as reach age 30." A has no children at the time of the testator's death.  Does the RAP apply?
Definition

Yes. 

 

Would any interest vest 21 years after the death of some life in being  at the creation of the interest?

 

Use A.  Suppose she has a child then dies immediately.  The child's interest would vest more than 21 years after the death a life in being at the creation of the interest.

Term
"to A for life, then to such of A's children as reach age 21."  A has no children at the time of the testator's death.  Does the RAP apply?
Definition
No.  The child is born to A (a life in being at the time of the conveyance was made), and even if A dies as the child is born, his rights will vest within 21 years after the death of A.
Term
Fertile Octogenarian Rule
Definition

For the purposes of the Rule Against Perpetuities, you are presumed capable of bearing children until your death regardless of your age. 

 

e.g. "to Mary for life, then to such of Mary's children as reach age 30." Mary is now 87 and has three children all in their 60s.  --> They get nothing, since Mary could have a child whose interest would vest more than 21 years after the life of some being in existence at the time the interest was created.

Term
What are the 4 unities of Joint Tenancy?
Definition

TTIP

 

Unity of Time (all joint tenants must vest simultaneously)

Unity of Title (the same instrument)

Unity of Interest (same kind and amount of interest)

Unity of Possession (identical rights of possession)

Term
What are the magic words creating a joint tenancy under modern law?
Definition

"as joint tenants with right of survivorship,"

or

"in joint tenancy with right of survivorship"

Term
What will happen if the language of a conveyance is at all unclear about what concurrent estate in land is being created?
Definition
The modern rule presumes that a tenancy in common is created
Term
What is a right of survivorship in joint tenants?
Definition
The surviving tenants take automatically on the death of a joint tenant.
Term
How can a joint tenant be relieved of common ownership?
Definition
Ask that the property be partitioned either by voluntary agreement of the parties or through a judicial action seeking partition.  
Term
What happens when any of the four unties of Joint Tenancy is disturbed?
Definition

Severance aka involuntary termination of the joint tenancy

 

e.g. In 1971 Ringo conveys his 1/4 interest in the joint tenancy (shared with John Paul and George) to Zorro by deed.  Effect: the unities are disturbed and Zorro will be a tenant-in-common, though John Paul and George retain their status at joint tenants.  On the death of any one of them, the other two will have rights of survivorship.

Term
Can joint tenancy be severed by will?
Definition
No.
Term
Does a mortgage sever joint tenancy?
Definition

In a lien theory state (majority rule, NV), there is no severance because when a mortgage is executed, a lien attaches to the title, but title is not transferred.

 

In a title theory state (minority rule), title passes for mortgagor to mortgagee, even though title goes back to the mortgagor when the mortgage is satisfied.

Term
Does a contract for sale sever joint tenancy?
Definition

Yes.  On the day that contract for sale is entered into, not on closing day. 

 

e.g. Ringo enters a contract to sell on January 1, closing on April 1.  Joint tenancy is severed on January 1st.  (This is the doctrine of equitable conversion)

Term
Does a creditor's sale of interest sever joint tenancy?
Definition

Yes. 

 

e.g. Ringo has some business reversals and a creditor seeks to reach his interest in joint tenancy.  Severance occurs when the judicial sale actually takes place. 

 

BUT if Ringo dies before the sale, the title passes to the surviving joint tenants and the creditor has no recourse against them.

Term
What unity is required for tenancy in common?
Definition
Possession (each co-tenant is entitled to possess the whole of the property)
Term
Is a tenancy in common freely alienable?
Definition
Yes. 
Term
Can any tenant in common force a partition?
Definition
Yes.
Term
Is there a right of survivorship in tenancy in common?
Definition

No.

 

e.g.  John, Paul, George and Ringo each own 1/4 of a  property as tenants in common. At the moment John dies, John's estate now owns a 1/4 interest along with Paul, George and Ringo.

Term
How do you create tenancy by the entirety?
Definition

The 4 unities plus marriage.

 

 

Term
Is there a right of survivorship in tenancy in the entirety?
Definition
Yes.
Term
Is there a right of partition in tenancy in the entirety?
Definition
No.
Term
Is tenancy in the entirety severable by the unilateral act of one of the co-tenants?
Definition
No.
Term
What are the ways in which a tenancy in the entirety can be terminated?
Definition

1. death

2. mutual agreement in writing

3. divorce (making the parties tenants in common)

4. execution by a joint creditor

Term
What right of possession do co-tenants of any kind have?
Definition
Each co-tenant has the right to possess the whole of the property consistent with the same right in every other co-tenant
Term
Must a co-tenant share profits that he receives from the land?
Definition

No.

 

Four exceptions:

1. Ouster (if one co-tenant is keeping another off the property or claiming right of exclusive posession)

2. Agreement to share

3. Lease of the property by a co-tenant to a third party

4. depletion of natural resources

Term
What is contribution?
Definition
The right of one co-tenant to force the other co-tenants to pay their fair share of some expenditure made on the property. 
Term
Does the right of contribution apply to improvements?
Definition

No. 

 

But, any money expended for improvements (or any non-necessary repairs) may be recouped later at the time of sale of the property or on a partitioning of the property.

Term
does the right of contribution apply to necessary repairs?
Definition
Yes.
Term
does the right of contribution apply to paying a mortgage?
Definition
yes - it is required for any mortgage on the property that has been signed by all the co-tenants
Term
does the right of contribution apply to taxes?
Definition
yes.  contribution is required towards all governmentally imposed obligations such as property taxes or assessments for curbs, streets, sewers, etc.
Term
What are the Landlord-Tenant estates?
Definition

1. Estate for Years (or tenancy for years)

2. Periodic Tenancy

3. Tenancy at Will

4. Tenancy at Sufferance

Term
What is an estate for years (tenancy for years)?
Definition

Any estate measured by a fixed period of time -- no matter how short -- is a tenancy for years.

 

Has a definite beginning and end date.

Term
May a tenancy for years be created by an oral agreement?
Definition

Yes, but only a one year tenancy. 

 

Any tenancy for years over 1 year is subject to the statute of frauds and must be in writing. 

Term
What notice is required between landlord and tenant to terminate the tenancy for years?
Definition
None.  It has an end date.
Term
What is periodic tenancy?
Definition
It is a repeating tenancy with no agreement as to duration.
Term
How is a periodic tenancy created?
Definition

Express, Implied, or by Operation of Law

 

Implied:

If the lease does not specify how long the tenancy is to last, then it is presumed to be a periodic tenancy measured by the rent payment

 

e.g. month to month periodic tenancy arises if the rent is to be paid monthly

Term
How do you terminate a periodic tenancy?
Definition

Notice satisfying two criteria: 

 

Enough time: an amount of time equla to the length of the period except int eh case of a year-to-year tenancy, whcih generally requires only 6 months notice. 

 

Effective date: the effective date specified in the lease must be at the end of the period.

Term
When can a tenancy at will be terminated by the landlord or tenant?
Definition
Either party can terminate this tenancy at any time, without notice. 
Term
How can a landlord terminate a tenancy at sufferance?
Definition
Sue in trespass to evict and recover damages
Term
Aside from eviction, what options does a landlord have in dealing with a tenant at sufferance?
Definition

Impose a new periodic tenancy:

 

If the old, expired tenancy was for less than a year, the new tenancy will be measured by the period covered by the rent payment.

 

In a lease for commercial property, if the old expired tenancy was for a year or more, the new period tenancy the landlord may impose will be for year-to-year.

Term
What is a tenancy at sufference
Definition
Tenant wrongfully holds over and retains bare possession.
Term
How is a tenancy at will terminated by operation of law?
Definition

1. death of either party

2. waste by the tenant

3. assignment by the tenant

4. transer of title by the landlord

5. Lease by th landlord to a third party

Term
Before the end of your lease, landlord gives you notice that the rent will be doubled next year.  You hold over.  What result?
Definition
Landlord gets double rent where he gives the tenant notice of the increase before the expiration of the lease. 
Term
What are the duties of a tenant?
Definition

1. duty to pay rent

 

2. duty to maintain the premises

 

Term
What does a tenant's duty to maintain the premises include?
Definition

1. Must not commit waste, even if the lease is silent on the matter

[if the leased premises are destroyed without tenant's fault, the tenant generally will be given the option to terminate the lease]

 

2. Lease including covenant to repair:

An express covenant by a tenant to repair and maintain the leased property makes the tenant an absolute insurer of the property (common law -- not responsible for ordinary wear & tear; modern rule -- responsible for everything including ordinary wear & tear). 

 

Note that under the modern rule, if leased premises are destroyed without the tenant's fault, the tenant generally will not be required to rebuild the structure, unless the lease expressly includes this type of repair.

Term
If the tenant fails to pay rent, what are the landlord's options?
Definition

Common law: landlord can sue for damages, but is allowed to collect only the amount in arrears and can't terminate teh lease. 

 

Modern rule: landlord can ue for damages and terminate the lease, thereby evicting the tenant from the property.

Term
When a tenant unjustifiably abandons the property, what are the landlord's options?
Definition

1. Accept and retake the premises, thereby terminating the lease (tenant has no further rent obligations)

 

2. Relet premises, holding the tenant liable for deficiency:

 

common law, NV -- landlord is under no duty to mitigate tenant's damages (can leave the propoerty vacant and hold the tenant liable for rent)

 

modern rule -- landlord must make a reasonable effort to relet the property in order to mitigate the tenant's damages.  Tenant is liable for deficiency.

Term
If tenant breaches his duty to maintain, and landlord continues to accept rent payments, what is the effect?
Definition

Landlord has waived his right to terminate the lease.

 

Modern exception, NV: rent payment does not result in waiver so long as (1) the landlord clearly and timely expresses his intent to terminate the lease AND (2) the tenant continues to possess the leased land

Term
What are the landlord's duties?
Definition

1. Deliver possession of the leased premises.

 

2. Warranty of habitability (modern)

 

3. Implied covenant of quiet enjoyment

Term
Under common law, did the landlord have a duty to deliver leased premises in habitable condition?
Definition
No. 
Term
Under the modern rule, does the implied warranty of habitability apply to commerical property?
Definition

No - only residential property (majority rule)

 

 

 

 

Term
What does the implied warranty of habitability  provide?
Definition
Landlord must provide (and maintain) leased premises that are reasonably suited for residential use. 
Term
What are the tenant's remedies for the landlord's breach of the implied warranty of habitability?
Definition

1. move out and end the lease

2. stay on property and sue for damages

3. make reasonable repairs and deduct this cost from furture rent payments (residential only)

Term
What does the impiled covenant of quiet enjoyment provide?
Definition
not to interfere with the tenant's quiet enjoyment of the leased premises (applies to every lease -- residential, commerical)
Term
What are the three ways for landlord to breach the implied covenant of quiet enjoyment?
Definition

Total eviction

Partial eviction

Constructive eviction

Term
What is total eviction?
Definition
landlord enters tenant's apartment and throws him off the premises
Term
what is partial eviction?
Definition

landlord physically excludes tenant from only some portion of the leased property (tenant can stay for free)

 

OR

 

third party who holds paramount title retakes the property and physcially excludes the tenant from that portion of the leased premises (rent is reduced to reflect amount taken)

Term
What is constructive eviction?
Definition

1. landlord fails to provide some service (not 3rd party's failure)

 

2. there is a substantial interference with the tenant's quiet enjoyment of the property

 

3. tenant must abandon within a reasonable time

 

Term
What is an assignment?
Definition

Tenant transfers all of the remaining interest to another tenant. 

 

e.g. Tenant leases property for 1 year starting Jan. 1.  In April, he transfers the remaining interest (April - December) to another tenant.

Term
What is a sublease?
Definition

Tenant transfers part of his remaining interest to another tenant. 

 

e.g. tenant leases property for 1 year starting on Jan. 1.  In may, he transfers the three summer months (June, July, August) to tenant two.

Term
When is a tenant liable to the landlord for rent?
Definition
If there is either privity of estate or privity of contract. 
Term
Between whom does the privity of estate exist?
Definition
Present landlord and present tenant.
Term
Between whom does the privity of contract exist in a landlord-tenant relationship?
Definition
Between a landlord and a particular tenant who have an agreement. 
Term
An assignee is liable on other lease covenants when?
Definition
when the covenant runs with the land
Term
When does a covenant run with the land?
Definition

When it touches and concerns the land

 

 

Term
When does a covenant touch and concern land?
Definition

When performance of the covenant makes the land more valuable or more useful

 

e.g. promise to repair the fence

BUT NOT promise to pick up landlord's mail (personal to the grantee)

 

NB: covenant to pay rent always runs with the land

Term
When can a successive landlord be liable on a lease?
Definition

Whenever there is privity of contract (the landlord expressly assumes obligation by agreeing to be bound by the terms of the lease)

or

privity of estate and the lease covenant runs with the land

 

Term
In a sublease, does the sublessee have privity of estate with the landlord?
Definition
No.  The sublessor retains privity of estate.
Term
Are non-assignment and non-sublease clauses valid?
Definition

Yes, but they are strictly construed.

 

Non-assignment clauses will not prohibit a sublease and vice-versa.

Term
Can a non-assignment or non-sublease clause be waived by the landlord?
Definition
Yes.  Permission given once means that the clause is waived altogether unless the landlord states otherwise at the time of giving permission. 
Term
Does a landlord's acceptance of rent payment from an assignee approve the assignment?
Definition
Yes.  And it waives the no assignment clause permanently. 
Term
If the state partially condemns a leasehold interest (through the state's power of eminent domain), is the tenant's obligation to pay rent excused?
Definition

No.  Tenant must pay full rent. 

 

But, tenant will get an amount of the condemnation award equal to the rent that was to be paid over the remainder of the lease term for that portion of the property that was condemned.

Term
In a complete condemnation of a leasehold property, is the tenant obligated to continue paying rent?
Definition

No.  The tenant is excused. 

 

Tenant can only share in the condemnation award to the extent that the fair rental value of the property exceeds the amount of rent due under the lease.

 

e.g. the fair rental value for a comparable property is $3,000/month and the rent due under the parties' lease agreement was $1,000 per month.  Tenant's condemnation award = $2,000 x number of months remaining on lease.

Term
When is a landlord liable to the tenant (or the tenant's invitees) for inuries sustained on the premises during the period of lease?
Definition

Generally, the landlord is not liable.  Five exceptions:

 

1. Latent defects: landlord must disclose latent defects he knows of or has reason to know of, but has no duty to repair

 

2. Short term lese of a furnished dwelling - 3 months or less: landlord is liable for defects whether or not he knows of them or has reason to know of them

 

3. Common passageways under landlord's control/dominion: landlord is liable if he fails to exercise reasonable care

 

4. Negligent repairs undertaken by landlord

 

5. Public use: Landlord must know (or should know) of major defects, must know (or should know) tenant will not fix, must know (or should know) that the public will be using the premises

Term
When is a tenant liable to a third partee invitee for injuries sustained on the premises?
Definition
Whenever he fails to correct dangerous conditions, regardless of whether the landlord may be held liable as well.
Term
Can fixtures be removed from real property?
Definition
No - not by sellers, nor by tenants.
Term
When is an item of personal property to be treated as a fixture?
Definition

Express intent: there is an agreement between the parties that controls.

 

No Agreement? Four factors to determine the intent of the installer:

 

1. Degree of attachment.  The more that has to be done to attach the item, the more likely it is a fixture

 

2. General custom.  Is this the type of thing that sellers or tenants normally take with them when they leave?

 

3. Degree of harm to premises on removal.  If it can be removed without substantial damage to the prpoerty, then the inference is no intent for the item to become a fixture

 

4. Trade fixtures (used in a trade or business).  Not fixtures. E.g. power saw in a lumber mill.

 

 

Term
If an item of personal property is not a fixture, when can the item be removed?
Definition

Tenants must remove items before vacating at the end of the lease.

 

Seller must remove item before closing.

Term
What is an easement?
Definition
A non-possessory iterest in land involving a right to use the land. 
Term
What is an easement appurtenant?
Definition

directly benefits the use and enjoyment of a specific  parcel of land

 

(burdened property is the "servient estate," benefited property is the "dominant estate)

Term
What is an easement in gross?
Definition

one parcel of land is burdened by the easement (no dominant estate)

 

e.g. utility easement

Term
how do easements arise?
Definition

express grant

 implied easement

 easement by prescription

 

Term
how do you get an express grant of an easement?
Definition

1. owner of property expressly grants the easement to someone else

 

2. easement is expressly reserved when the land is sold

 

Requirements:

(a) must be in writing,*

(b) signed by the holder of the servient estate, and

(c) satisfy all deed formalities

 

*Easements of a year or leass do not have to be in writing.

Term
How is an implied easement created?
Definition

1. previous use by a common grantor

requirements: 

(a) continuous use

(b) apparent

(c) reasonably necessary

 

2. absolute right of access

no other way to reach property but across someone else's property (landlocked) - owner of servient estate chooses a reasonable location for easement

Term
How is an easement by prescription created?
Definition

1. Use must be adverse to the true owner (trespass on title)

 

2. Use must be continuous and must last for 20 years (5 years in NV) - can be satisfied by seasonal use if appropriate

 

3. Use is visible and notorious or made with the owner's knowledge

 

4. Use is without the owner's permission (oral permission is enough to destroy hostility)

Term
Can the benefits of a dominant estate be transferred?
Definition

Yes.  All who subsequently succeed to the title to the dominant estate become entitled to the benefit of the easement appurtenant. 

 

But can't be transferred separately from the dominant estate.

Term
Can an easement in gross be transferred?
Definition

Commercial easements --> Yes

(e.g. easement ot run railroad tracks across property)

 

Personal easements --> No

(e.g. owner's friend has an easement to fish in a lake on the property)

Term
Is an easement binding on the subsequent holders of servient estates?
Definition

Yes, provided the subsequent holder had notice of the easement, even if it is not specifically mentioned in the deed

 

Notice:

(1) actual knowledge, 

(2) contructive knowledge (document creating easement is duly recorded in the buyer's direct chain of title), or

(3) inquiry notice (buyer physically inspects the land and the visible appearance of the easement, or inspects public records contained in buyer's direct chain of title)

Term
What is the presumed duration of an easement?
Definition
forever (perpetual)
Term
what is the scope of an easement?
Definition

reasonable development of the dominant estate

 

that development which would likely have been contemplated by the parties at the time the easement was granted

 

NB: an easement can only be used to benefit the dominant estate (not third parties)

Term
what is the remedy for excessive use of an easement?
Definition
enjoin the excessive use, but do not terminate the easement
Term
who is responsible for making repairs to an easement?
Definition

the holder of the benefit of an easement (the dominant estate) is repsonsible for making any necessary repairs;

 

he can go on the servient estate to repair the easement, even if the terms of the easement do not so provide

 

he must make a reasonable restoration of the servient estate after making the repairs

Term
What are the six ways an easement can be terminated?
Definition

1. doctrine of merger (when dominant and servient estates come together in the same owner)

 

2. deed of release (must be in writing and comply with all deed formalities)

 

3. abandonment by action (intent to abandon must be manifested by the holder of the dominant estate by taking some physical action)

 

4. termination by estoppel (representation of reliquishment by holder of dominant estate  + servient estate makes a change in his position in reliance)

 

5. termination by prescription (owner of servient estate stops the use of the easement for a period of time required by the applicable statute)

 

6. termination of easements created by necessity (once the necessity that gave rise to an implied easement ceases to exist, then the implied easement automatically terminates)

Term
Are there implied easements for view or sunlight?
Definition
No.
Term
What is a license?
Definition

A contract conferring a limited privilege to use land in the possession of the licensor.

 

e.g. a ticket to Sea World

 

 

Term
Is a license revocable at will?
Definition
Yes.  But a wrongful revocation might result in contract damages. 
Term
Is a license a property interest?
Definition
No. 
Term
What is created if an easement is attempted but fails because it violates the statue of frauds?
Definition

a license

 

if money is spent on the property in furtherance of an oral license, then it becomes irrevocable under principles of estoppel

Term
What is a profit?
Definition

A profit gives the right to go on the land of another and take away a natural resource, e.g. timber, coal, etc.

 

A profit gives you an implied easement to go on land and remove the natural resource

Term
What are the requirements for the burden of a real covenant to run with the land?
Definition

1. The parties must intend that the successors in interest to the covenantor bound by the terms of the covenant

 

2. Subsequent purchaser for value must have had notice  of the arrangment at the time of purchase (actual, constructive - duly recorded in the buyer's direct chain of title, or inquiry)

 

3. Touch and concern the land (does the covenant make the land more valuable or more useful?)

 

4. Vertical and Horizontal Privity:

 

vertical privity: successor in interest must take the full estate held by predecessor

 

horizontal privity: conveyance of the property between the original parties

 

 

 

 

Term
How is an equitable servitude created?
Definition

Created by covenants contained in a writing that satisfies the statute of frauds.

 

Exception: negative equitable servitudes may be implied from a common scheme for development of a residential subdivision

 

Usually enforced by injunction.

Term
What are the requirements for the benefit of a real covenant to run with the land?
Definition

1. Intent that the successors in interest to the covenantee  be able to enforce the covenant

 

2. Touch and concern

 

3. Vertical privity

Term
What are the requirements for the burden of an equitable servitude to run with the land?
Definition

1. If the covenanting parties intended that the servitude be enforceable by and against assignees

 

2. the sucessor of the promisor has actual, constructive or inquiry notice of the servitude

 

3. The covenant touches and concerns the land

Term
What are the requirements for the benefit of an equitable servitude to run with the land?
Definition

1. the original parties so intended

 

2. the servitude touches and concerns the benefited property

Term
What defenses are available against enforcement of an equitable servitude?
Definition

Equitable defenses:

 

1. unclean hands

 

2. the benefited party acquiesced in a violation of the servitude by one burdened party

 

3. a benefitted party acted in such a way that a reasonable person would believe the covenant was abandoned (estoppel)

 

4. the benefited party fails to bring suit against the violator within a reasonable time (laches)

 

5. the neighborhood has changed so significantly that the enforcement would be inequitable (for subdivision, must show that all lots are affected)

Term
How may an equitable servitude be terminated?
Definition

1. written release from the benefit holders

2. merger of the benefitted and burdened estates

3. condemnation of the burdened property

Term
How do you establish a reciprocal negative servitude (subdivision restrictions)?
Definition

1. Intent to impose a servitude (restriction n use) on ALL land in the sudivision - reflected in the common building plan

 

2. Notice - just need constructive notice (record notice) or inquiry notice

 

Term
What is a dedication?
Definition
e.g. Recorded subdivision plan has land marked for use as a city park, which can be enforced by the city as a dedication. 
Term
What is adverse possession?
Definition
If an owner does not, within the statutory period, take action to eject a possessor who claims adversely to the owner, the title vests int he possessor.
Term
What are the requirements of adverse possession?
Definition

HELUVA

 

1. Hostile (X is on the land with no right to be there)

 

2. Exclusive (X must be excluding others from possessing the property)

 

3. Lasting (for the statutory period)

 

4. Uninterrupted (continuous use that the ordinary owner would make)

 

5. Visible (out of in the open)

 

6. Actual (actually have to possess the land)

 

 

Term
What is the doctrine of constructive adverse possession?
Definition

If all the requirements of adverse possion are met, but you possess only a portion of the property to which you claim title, constructive adverse possession will permit you to make claim to the full extent so long as:

 

(1) the amount of land that is actually possessed bears a reasonable relation to the whole

 

(2) the property must be unitary, whcih means the parcel o land must be one seamless whole

Term
Does leasing land to a third party constitute possession for the purposes of adverse possession?
Definition
Yes.
Term
Can you gain adverse possession against a co-tenant?
Definition
Yes, but only if you actually exclude the other co-tenants from possession and statutory period runs (measured from the time of exclusion).
Term
Can you adversely possess against an owner who has a life estate?
Definition

Yes, but once that life estate terminates, adverse possession is not effective against the remainder interest. 

 

The requirements of adverse possession would have to be met as to the remainderman as well to be effective against him.

Term
Can you have adverse possession in the case of a Fee Simple Determinable (possibility of reverter) where the condition trigerring reverter has occurred?
Definition
Yes.  The clock starts running for adverse possession when the conition is triggered. 
Term
If the right of reentry is triggered by a condition subsequent, does that start the clock running for purposes of adverse posssion?
Definition
No.  The clock will not start running until the right of reentry is exercised by the grantor. 
Term
Are you permitted to tack another person's adverse possession onto your own to satisfy the statutory period?
Definition
Yes.  You can tack successive periods of adverse possession.
Term
If a true owner is suffering from any of these three disabilities at the time adverse possession begins, the clock will not start to run until the true owner is free of the disability:
Definition

Infancy

Incarceration

Insanity

Term
Does an intervening disability during the time of adverse possession stop the clock from running?
Definition
No. Must be suffering from disability at the time adverse possession begins.
Term
Can you tack disabilities for the purpose of defending against adverse possession?
Definition

No. 

 

 

Term
Can you take adverse possession of government land?
Definition
No.
Term
Is title acquired by adverse possession marketable?
Definition
No.  You must gain title through a court action in to amke it marketable. 
Term
What is the statutory period for adverse possession against known claimants in NV?
Definition
5 years. 
Term
In NV, must taxes assessed against the land be paid during the statutory period for adverse posession?
Definition
Yes.  All taxes must be paid paid during the statutory period for adverse possession to ripen into title.
Term
What is the statutory period for adverse possession against all claimants, known and unknown, in NV?
Definition
15 years of actual possession and pay taxes for 5 years.
Term
What are the two steps in the conveyance process?
Definition

1. contract of sale (governed by contract principles)

2. closing (real property principles)

Term
What is the time period between signing of the contract of sale and transferrence of the deed?
Definition
Escrow period
Term
Does the statute of frauds apply to any contract for sale of any interest in real property?
Definition

Yes. 

 

1. Must be in writing

2. signed by the one party who is being sued

3. must include a description fo the property, names of the parties and price

 

Term
What is the doctrine of part performance in the sale of real property?
Definition

An exception to the statute of frauds.  Must meet two requirements:

 

1. The oral contract must be certain and clear; and

 

2. The acts of partial performance must clearly prove up the existence of a contract:

 

Look for buyer to take possession of the property AND 

(i) buyer paid full (or close to full) purchase price; or

(ii) buyer built improvements on the property; or

(iii) took some other further action that demonstrates that there was a contract

Term
Who bears the risk of loss during the escrow period?
Definition

Common law: the buyer bears the risk of loss because once the contract is signed, equity treats the land as his. 

 

Uniform Vendor and Purchaser Risk Act, NV: Seller bears the risk of loss till closing.

Term
Does the death of either party during escrow affect the deal?
Definition

Generally no.  If seller dies, seller's estate closes.  If buyer dies, buyer's estate closes. 

 

Seller's interest is in personal property, while buyer's interest is in real property.

Term
 What is marketable title?
Definition
Title that a reasonable prudent buyer would accept, which means minor defects do not matter (since they do not present significant threat of litigation)
Term
Does every land sale contract contain an implied wrranty that the seller will deliver marketable title to the buyer at the close of escrow?
Definition
Yes.
Term
How does the seller satisfy his warranty to deliver marketable title?
Definition

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

 

2. Title free of encumbrances - seller must give buyer title free of encumbrances (no easements, restrictive covenants, mortgages, options, that have not been previously disclosed)

 

 

Term
Is zoning treated as an encumbrance on title?
Definition
No.  But violations of a zoning ordinance do constitute an encumbrance on title
Term
Do violations of housing or building safety codes constitute encumbrances on title?
Definition
No.
Term
Are mortgages treated as encumbrances on title?
Definition
Yes, but not a mortgage that will be satisfied out of hte proceeds of the sale of the property. 
Term
If a buyer finds out the day before closing that the buyer does not have legal title to the property under contract can the buyer rescind?
Definition
No.  Seller has to give valid legal title on the day of closing.
Term
Can closing be postponed if the buyer discovers that the seller does not have title that is marketable?
Definition
Yes.  Buyer must notify the seller of any defect in title and allow the seller a reasonable time to cure the defect. 
Term
What are the buyer's remedies for the seller's failure to deliver marketable title?
Definition

Recission

Damages

Specific Peformance

Term
Is time of the essence in a land sale contract?
Definition

Generally no.  Performance rendered within a reasonable time (2 months) is acceptable. 

 

However, if a contract says that time is of the essence, failure to perform on time is a total breach.

Term
How are damages measured in the breach of contract for sale of real property?
Definition
the difference between contract price and the value of the property at the date of breach
Term
Are liquidated damages clauses permitted in a contract for the sale of real property?
Definition
Yes, provided that the amount is reasonable --> not exceeding 10% of the contract price
Term
I the remedy of specific performance available to the buyer and seller of land?
Definition
Yes because land is unique. 
Term
If there are defects on the property that render the property unfit for ordinary purposes, can the buyer rescind on the date of closing?
Definition

Common law: No.  Caveat Emptor. Though seller cannot actively conceal defects.

 

Modern Rule: Seller has a duty to disclose to a prospective buyer serious defects in the property that the seller knows of and which are not obvious to the buyer.

Term
In the sale of new residential housing, is there an implied warranty of fitness (merchantability)?
Definition
Yes - modern trend, NV
Term
What two requirements must be met for a deed to pass title?
Definition

1. execution

2. delivery

Term
Is a deed subject to the statute of frauds?
Definition

Yes.

 

Must be a writing signed by the seller, and

 

Must describe the land with sufficient accuracy

Term
Will minor discrepancies in describing the land make a deed void?
Definition
No. 
Term
Can parol evidence be used to clarify a deed description?
Definition
Yes
Term
Is physical transfer of a deed required to satisfy the delivery requirement for a deed to pass title?
Definition

No.  So long as the grantor had the necessary intent to pass title, physical transfer is unnecessary.

 

Parol evidence is permissible for this purpose, and recording a deed raises a presumption of delivery even if the grantee knows nothing of it.

Term
Deed language: "To A, but not until I die."  The deed is handed to the grantee.  What did the grantor deliver?
Definition
A future interest. 
Term
Are oral conditions valid in delivering a deed?
Definition
No. Ignore oral conditions and consider delivery complete.
Term
Is consideration required in order for a deed to be valid?
Definition
No. 
Term
Must a deed be accepted to make delivery valid?
Definition
Yes.  But acceptance will be implied unless the facts show otherwise.
Term
What is a quitclaim deed?
Definition
The grantor makes no promises regarding title.
Term
What is a covenant for title?
Definition
If grantor makes any promises regarding title, that is a covenant for title.
Term
What is a general warranty deed?
Definition

Deed that includes the six traditional forms of covenant for title. 

 

3 present covenants:

covenant of seisin

covenant of right to convey

covenant against encumbrances

 

3 future covenants:

covenant of quiet enjoyment

covenant of warranty

covenant of further assurances

Term
Can a future covenant of warranty be enforced by any subsequent purchaser?
Definition
yes - it runs with the land
Term
What are the damages where there is a breach of warranty?
Definition
Limited to the amount of the purchase price received by the warrantor plus incidental damages.
Term
What is ademption?
Definition
If a will purports to devise a specifc parcel of land, but the testator does not own the land at the time of her death, the gift fails and will not be replaced by other property.
Term
What is the estoppel by deed doctrine?
Definition
Grantor gives an implied covenant that title will be conveyed to the grantee, therefore the grantee can sue to compel the transfer of title from the grantor.
Term
What effect does sale to a subsequent BFP have on a grantee's right ot rely on the estoppel by deed doctrine?
Definition
Sale to a BFP cuts off the rights of an earlier grantee, and therefore will cut off the grantee's right to rely on the estoppel by deed doctrine. 
Term
Does ademption apply to a gift of property that is in escrow at the time of the testator's death?
Definition
No.  The devisee will receive the proceeds from the sale of property. 
Term
What is exoneration?
Definition

If a devised property is subject to a mortgage or other lien, the devisee is entitled to have the lien paid off from the testator's residuary estate. 

 

(the growing trend is to have this doctrine abolished, so that the devisee takes the property subject to the mortgage)

Term
What does it mean for a gift to lapse?
Definition

if the beneficiary dies before the testator, the gift is void (common law)

 

many states have adopted anti-lapse statutes so that the beneficiary's relatives are able to take the gift

Term
What is a trust?
Definition
A settlor transfers title to real property to a trustee who holds and manages the property subject to a fiduciary duty to use the highest care and skill for the benefit of the beneficiaries of the trust. 
Term
How is a trust created?
Definition

1. Intervivos by deed, or

2. By a will at death

Term
Is a trust subject to the rule against perpetuities?
Definition
Yes.  it operates the same way as with deeds.
Term
What is a charitable trust?
Definition
No named individuals as beneficiaries: they are either established charities or large groups of persons (e.g. the victims of huricane Katrina)
Term
What is the cy pres doctrine?
Definition
A court may alter the terms of a charitable trust in order to further the settlor's intent.
Term
What is the purpose of recording statutes?
Definition
To abolish the "first in time, first in right" principle of common law, and to protect the interest of subsequent purchasers in certain situations. 
Term
How does recording work?
Definition

2 steps:

 

1. court clear files a copy of the deed in a book (or on microfilm), then notes the volume and page number where the copy of this deed can be found

 

2. The clerk then indexes the information by grantor and by grantee

Term
What are the three different kinds of recording statutes?
Definition

1. notice

2. race

3. race-notice

Term
What is a bona fide purchaser?
Definition

A purchaser for value who takes without notice of any earlier transaction.

 

Value: any consideration that is out of pocket (i.e. more than a mere peppercorn) is enought to be considered value.

 

Notice: Actual, Record (deed must be recorded in the buyer's direct chain of title), or Inquiry (examine the land and make inquiry as to any unexplained uses or possessions)

 

NB: one who purports to take the property as an heir, devisee or donee cannot be a BFP

 

 

Term
In a notice jurisdiction, what must a subsequent purchaser show to be protected from an interest created by an earlier conveyance?
Definition
Subsequent purchaser must show that he did not have notice of the earlier conveyance.
Term
In a race jurisdiction, what must a subsequent purchaser show to be protected from an interest created by an earlier conveyance?
Definition
That he recorded first; notice is irrelevant.  In other words, the subsequent purchaser need not be a BFP.
Term
In a race-notice jurisdiction (NV), what must a subsequent purchaser show to be protected from an interest created by an earlier conveyance?
Definition
That he was a BFP and was first to record.
Term
What is the shelter rule of BFPs?
Definition
Any subsequent purchaser (or heir, donee, or devisee) can shelter under the rights of a BFP (even if he knew of an earlier conveyance)
Term
Are subsequent mortgagees usually protected by recording statutes?
Definition
Yes.
Term
How does one construct a chain of title?
Definition
Look up seller's name and find the name of seller's Grantor, then look up name of that person's Grantor, and so on (usually 30 years back)
Term
Are judgment creditors typically protected by recording statutes?
Definition
No.
Term
What is the concept of legal blinders?
Definition
A title searcher look only at the grantor's actions during his or her period of record ownership. 
Term
When a reading of the deeds on record discloses an unrecorded transaction, must the subsequent purchaser make an inquiry to take without notice and qualify as a BFP?
Definition

Yes.

 

Except:

 

You can qualify as a BFP without inquiry notice if, as subsequent purchaser, you make a physical inspection of the property and investigate any unexplained possessions or unexplained uses of the property

Term
What is a security interest in real property?
Definition

A device used to secure a loan on the property. 

 

The loan is reflected in a promissory note given by the borrower and the security interest is reflected in a separate written instrument. 

 

There are 3 types:

1. mortgage

2. deed of trust

3. land sale contract

Term
What is a mortgage?
Definition
A mortgage is given by the debtor (mortgagor) to the creditor (mortgagee); if the loan is not paid in full, the sheriff sells the land at a court ordered foreclosure sale.
Term
What is an equitable mortgage?
Definition

An absolute deed with separate promise of reconveyance.

 

Courts treat as a mortgage.

Term
What is a sale leaseback with option to repurchase?
Definition

Landowner sells his estate to the lender, leases it back with the option to repurchase it at the end of the lease.  The lease payments are about what you would expect mortgage payments to be in amount, and the repurchase price is nominal.

 

Courts treat this as a mortgage.

Term
What is a deed of trust?
Definition

Given by the debtor to a third party trustee, who holds the deed of trust until the loan is paid in full. 

 

If the loan is not paid, the trustee can do one of the following:

 

1. the trustee can obtain a court order for a foreclosure sale of the property; or

2. the trustee can sell the property by himself or herself at auction

Term
What is a land sale contract?
Definition
Debtor signs a contract promising to make payments to the seller/lender, but the seller keeps title to the property until the loan is paid in full. 
Term
When a debtor falls behind on his payments of a mortgage or deed of trust, can he redeem the property by paying the amount that is due and payable -- the amount in arrears (plus interest)?
Definition

Yes, the debtor may redeem at any time right up until the moment of the foreclosure sale. 

 

Unless, the mortgage includes an acceleration clause.

Term
What is an acceleration clause in a mortgage?
Definition
 The debtor must pay off the entire balance of the mortgage in order to redeem the property
Term
Can the right of redemption be wavied in the original mortgage or deed of trust?
Definition
No.  But it can be waived later if there is separate consideration for the waiver (e.g. as when the borrower later loses his job and so lender agrees to extend maturity date).
Term
An attempt to waive the right to redemption in the original mortgage or Deed of Trust is generally referred to as what?
Definition

clogging the quity of redemption

[this is prohibited]

Term
Today, many states have established a statutory right of redemption.  How does this operate?
Definition
Right to redeem the property for some fixed period after the foreclosure sale (typically 6 months to a year)
Term
How is foreclosure carried out on a mortgage or deed of trust?
Definition
Public Auction Sale
Term
Where there are multiple mortgages on a single property, what is the order of priority for payment?
Definition

First in time, first in right.  Unless,

 

1. the order is changed by the terms of the applicable recording statute (evaluate just like deeds -- race, race notice, notice)

 

2. priorities are changes by contract (voluntary subordination)

 

3. a purchase money mortgage receives priority over any other mortgages executed at about the same time, even if the other mortgages are recorded first. 

 

4. if a mortgagor dose anything to increase a senior mortgage, then that senior mortgage loses its priority over junior mortgages -- but only to the extent of the change

Term

Does foreclosure wipe out all junior interests?

 

(includes liens, easements, leases, junior mortgages)

Definition

Yes.  Although they will be paid off if there is enough money received in the foreclosure sale.

 

NB: Junior interests have the right to pay off any mortgage being foreclosed on in order to keep their interests from being wiped out.  Thus, junior interests are a necessary party to any foreclosure proceeding.

 

If they are not made party to any foreclosure, then their interests are not elminated by the foreclosure. 

Term
Does foreclosure wipe out senior interests?
Definition
No.  Senior interest continue in place; the buyer will take the property subject to the senior interest. 
Term
How are the proceeds from a foreclosure sale distributed?
Definition

1. pay the costs of the foreclosure

2. pay off the mortgage that was foreclosed on

3. pay off junior interests in order of priority

4. pay any remaining balance to the mortgagor

Term
What happens if the mortgage is foreclosed on, but the foreclosure sale does not raise sufficient funds to pay off the mortgage?
Definition
Allow the mortgagee/creditor to sue the debtor personally for the balance due on the note.
Term
What is Nevada's one action rule?
Definition

There may be only one action:

1. for the recovery of any debt; or

2. for the enforcement of any right secured by a mortgage or a deed of trust on real property

 

Generally, the holder of the secured note must proceed against the real estate first, by foreclosing on the security interest (before seeking to impose personal liability on the debtor)

Term
What is a forfeiture clause?
Definition

If a debtor misses a payment the seller can cancel the contract, keep all the money paid to date, and retake the property.

[for bar purposes, these are enforceable; it will limit seller to that remedy, however, and seller cannot also botain damages or specific performance]

Term
When a grantor transfers title to property, does the grantee take the property subject to the mortgage?
Definition

Yes. But the grantee will not be personally liable on the mortgage unless the grantee specifically assumed the mortgage. 

 

NB: any modification fo the obligation by the creditor/mortgagee and the grantee will release the original borrower/mortgagor of all liability.

Term
Can a mortgagee freely transfer the note?
Definition
yes, and the mortgage will always follow the note it secures
Term
What makes a mortgagee a holder in due course?
Definition

1. the note must be negotiable (which means that it must be either (a) payable to bearer or (b) payable to the order of a named payee)

2. the original note must be endorsed by the named payee

3. the original note must be dleivered to the transferee

4. the transferee must take the note in good faith and must pay value for it

Term
Will a holder in due course be bound by payments to a prior mortgagee even if the mortgagor knew nothing about the transfer of the note to the successor mortgagee, a holder in due course?
Definition
No. 
Term
What is a due on sale clause?
Definition

If the mortgagor transfers the property without the mortgagee's consent, the full amount of the loan becomes immediately due and payable. 

 

[these are enforceable]

Term
If a seller of a fixture who provides a purchase money security interest in chattel makes a UCC Article 9 fixture filing within 20 days of installment, what right does this give him? 
Definition

Seller may remove the fixture without regard to the priority of an earlier mortgage on the property. 

 

If seller is not timely with the filing, then his security interest in the fixture is subordinate to the earlier mortgage on the property.

Term
Does a landowner have the right to have her land supported by adjoining landlowners?
Definition

Yes.  Strict liabillity will result if the land is not supported.

 

Caveat: if improvements on the land collapse into unsupported land as a result of some action taken by adjoining landowner, adjoining landowner will only be liable for the damage to the improvements if the land would have collapsed anwyay even without the buidlings on it.  

Term

Do surface owners have a right to have their land supported from the bottom?

 

e.g. mineral rights have been legally severed from the surface rights.

Definition

Yes.  Strict liability will result if the land is not supported, and this right extends to the land and the improvements that were existing on the land as of the day the mineral rights were severed from the fee simple. 

 

NV: requires mine operators to undertake reclamation activity simultaneously with their mining operations to the extent practicable.

Term
What are riparian rights?
Definition

Rights belonging to owners of property bordering on a lake or stream:

 

Riparian owners may use all the water needed for domestic purposes, and limited to reasonable use for non-domestic purposes (commerical, industrial)

 

Minority rule (NV): The first person who makes beneficial use of water from a lake or stream has that right protected against those who come later so long as the use continues (forfeit after 5 years of non-use, but can be cured after th expiration as long as no claim or proceeding of forfeiture has been commenced). 

 

In these jurisdictions, water rights are freely alienable without regard to the land to which the water rights are appurtenant. 

 

NB: When holder of water rights trasnfers title to land, if the water rights are not expressly reserved by the seller at time conveyance is made, the water rights accompany the land.

 

 

 

 

Term
Is a landowner entitled to use of ground water?
Definition
Yes, he is entitled to reasonable use, and use it on the property (not export elsewhere)
Term
What are the two approaches to surface water rights?
Definition

1. natural flow: landowners may use reasonable means to deal with surface waters (despite the orthodox rule that landowner not make any changes at all int he flow of the flood water as it rushes across land)

 

2. common enemy: landowner can do anything he wants with floodwater, whether reasonable or not

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