Property Outline 1. Concept of Property a. Res = a thing or object, a piece of property b. 6 theories used to Justify the private property system i. The Economic Theory 1. Private rights arise in property based on external cost factors seeking to maximize societal efficiency ii. The Occupation Theory 2. Occupation or Possession of a thing justifies legal protection iii. The Labor Theory 3. Moral right to ownership or control over things produced from one’s labor iv. The Contract Theory 4. Private property is a result of contracts between individuals and the community v. The Natural Rights Theory 5. “natural law” dictates the recognition of private property vi. The Social Utility Theory 6. The law should promote the maximum fulfillment of human needs and aspirations, and private property is on of those needs c. The Bundle of Rights (D.U.P.E.D) vii. Property consists of the following rights in regards to a “res” or thing 7. Right to Dispose of property (alienate/transfer) 8. Right to Use how you want 9. Right to Possess how you want 10. Right to Exclude others from your property 11. Right to Damages from others who violate your bundle viii. The more of the above rights that one has in regards to a res, the greater the significance of their ownership d. Different Kinds of Property ix. Property in land 12. Real Property, Real Estate, Realty a. Immovable property x. Property in Chattles and intangibles 13. Personal property (personality) b. Moveable property (moveables) e. Economic Theory analysis methods xi. Dynamic 14. If there is always someone to exclude, one will always endeavor to maximize value xii. Static 15. If the land is shared, no one will calculate the cost of the land and there will be lost efficiency from its missuse 2. Possession and Ownership f. Possession xiii. Actual (physical) 16. Actually exercising dominion and control over a res xiv. Constructive 17. Not necessarily in possession, but have proof enough to establish title for a court to decide you have better title (legally recognized absent actual possession) g. Title xv. Legal Document of ownership h. Popov v Hayashi (abandoned property) xvi. Issue 18. Did Mr. Popov have control and possession of the homerun ball? xvii. Holding 19. The ball would be sold, and the profits would undergo Equitable Division and split between the two parties. xviii. Relevant Facts 20. Homerun ball hit into the stands c. Mr. Popov attempts to catch the ball and was mobbed by a crowd of people d. Ball slips out before clear possession can be observed i. Mr. Hayashi picks the ball up as it rolls out of the mob, places it in his pocket until the camera focuses on him 1. Takes the ball out to establish possession xix. Reasoning 21. Possession requires e. Physical control of an object AND intent to control it or exclude it from others 22. Court devises a rule f. When someone takes steps to take possession of abandoned personal property, and these steps are interrupted by unlawful acts of others, the actor has a pre possessory interest in that property 23. Since it can not be determined that Mr. Popov would have caught or dropped the ball had he not been mobbed, and since he supposedly dropped the ball due to the unlawful tortious acts of others g. Mr. Popov established a pre-possessory interest in the homerun ball 24. In order to prevent future tortious interference with establishing possession, and Mr. Hayashi’s unquestionable possession, the ball must be sold and money received divided between the parties 3. Finders law i. Finder takes against all except the true owner or a prior peaceful possessor j. There are 4 kinds of found property xx. Abandoned 25. Property that is intentionally placed somewhere with the intention of relinquishing present and future rights to that property 26. There must be proof that the owner intends to abandon the property h. Becomes owned by the finder of the property ii. Finder has better title over all, even prior peaceful possessors xxi. Lost 27. Owner unintentionally and involuntarily parts with its possession and does not know where it is i. Becomes owned by the finder except against the true owner xxii. Mislaid 28. Owner Voluntarily puts property somewhere and forgets where it is j. Becomes owned by the person whose property the item is found upon xxiii. Treasure Trove 29. Coins or currency concealed by the owner k. Must have an element of antiquity l. Owner must be likely dead or undiscoverable m. Becomes owned by the finder except against true owner or prior peaceful possessor k. Ganter v. Kapiloff (lost property) xxiv. Issue 30. Are the Kapiloffs the true owners of the found stamps? xxv. Holding 31. The Kapiloffs are the true owners of the lost stamps xxvi. Relevant Facts 32. Some expensive stamps were found in an envelope inside a piece of furniture that was purchased 33. Ganter had the stamps appraised and was trying to sell them n. Kapiloffs come forward claiming they are the true owner which would grant them title over anyone who had found them iii. True owner has better title than all others iv. Brought in a specialist who claimed that they were the exact same stamps that the Kapiloffs had o. Ganter had a specialist that claimed that there were thousands of these stamps out there v. Not refuting the other specialist that the could possibly be the same ones xxvii. Reasoning 34. Since the true owner has better title than anyone who may find their property, the true owner must be able to exercise his title over the found property in order to protect the true owners rights p. Since the court found the stamps to belong to the Kapiloffs, the stamps were ordered to be returned l. Benjamin V. Linder Aviation, Inc. (Mislaid Property) xxviii. Issue 35. Who should the $19k that was found in the wing of the plane belong to? xxix. Holding 36. Since the property is mislaid property, and the bank owns the plane, the money belongs to the bank. xxx. Relevant Facts 37. Benjamin was doing routine maintenance on a plane that a bank had repossessed and was housing at his employers hangar q. When checking a hatch that looked to have not been opened in some while, he came across foil wrapped stacks of dollar bills, totaling $19k vi. He asked his supervisor if he wanted to split it, but the money was reported and a notice posted to find the owner 2. Both Benjamin’s employer, Linder Aviation, and the bank who repossessed the plane made a claim to the money xxxi. Reasoning 38. The court found the money that was found to be categorized as Mislaid property r. It was intentionally wrapped up and placed in the panel 39. Since the property is mislaid, it belongs to the owner of the property where it was found since the true owner never came forward to claim it 40. The money was found in the plane, which belonged to the bank, and even though the plane was inside Linder Aviations hangar, the property in which the money was found was the plane s. Therefore the bank is entitled to the full $19k m. In Re Seisure of $82,000 more or less (agent finder) xxxii. Issue 41. Who does the 82,000 belong to? xxxiii. Holding 42. Since the Chappells were innocent owners, and the 82,000 was found in their property, they are the rightful owners of the money xxxiv. Relevant Facts 43. A VW was seized by the US government crossing the boarder t. Found $14k in the battery compartment smelling of meth u. Vehicle was impounded and declared abandoned 44. The car was then auctioned off, where the Chappells bought it v. The vehicle had a known fuel problem and was taken to get checked out vii. While working on the fuel problem, the mechanic found $82,000 in the fuel tank xxxv. Reasoning 45. Once the US declared the vehicle abandoned, the money that was within the gas tank was declared abandoned as well 46. If the US gov. had done their job, they would have found the money and would have been entitled to it 47. Since the Chappells were innocent owners, and bought the vehicle after it and its contents had been declared abandoned w. When the Waldo mechanic found the money while he was working within the scope of his employment, the Chappells became the rightful owners of the 82,000 dollars since it was found inside their property 4. Possessory Interest n. Payne v. TK Auto Wholesalers xxxvi. Issue 48. Does the fake Paul Payne have a greater interest in the deposit money than TK Auto? xxxvii. Holding 49. The fake Paul Payne has better title over TK Auto, because he had a Possessory interest in the deposit money. Although the money may belong to the real Paul Payne, the real Paul Payne is not part of this litigation, so better title goes to the imposter due to the established possessory interest and the previous peaceful possessor. xxxviii. Relevant Facts 50. Fake Paul Payne goes to a car dealership and places a down payment on a vehicle x. Dealer takes the money, calls the number for Paul Payne that was given, and it was not the same guy viii. Said that it was a fraud, so the police were called 51. Fake Paul Payne was called to come back to the dealership where he was arrested y. Bringing suit for emotional damages, which will never go through, and the return of the down payment money. xxxix. Reasoning 52. A Thief in possession has better title to all but the true owner or one with better title (prior peaceful possessor) 53. Owner means person with absolute right to chattel, but also person in possession or control of chattel z. Since the imposter Paul Payne brought the money to the dealer, obviously exercising his possession over the money physically, he has a possessory interest in that money 54. Since the bank or the real Paul Payne were not in court, the defense that the money belonged to either of the others can not stand {. Imposter Paul Payne has better title between him and TK Auto, so a decision can be made only over title between the two present parties ix. Imposter Paul Payne has better title and is entitled to the money 5. Bailment o. The lawful delivery of personal property to another for a particular purpose that is either defined by a written, express contract or an implied contract based on the circumstances p. Bailor = the person transferring the property q. Bailee = the recipient of the property (for the contracted purpose) r. Is a matter of contract xl. Must have mutual assent 55. Expressed by conduct or words s. Must contain an element of possession xli. To be returned or follow other instructions t. The elements of Bailment are xlii. Contract of Mutual assent xliii. Involving the possession of property xliv. For the purpose of some form of later delivery u. Liability is only imposed if bailee acts below a standard of a reasonable bailee in the profession xlv. The majority view is to evaluate the relationship between the parties, which gives you the standard of care, which you then apply to the situation xlvi. Minority view is a uniform standard of negligence (reasonable person standard) v. Three types of bailments xlvii. Solely for the benefit of the bailor (service/favor) 56. Gross negligence creates bailee liability xlviii. Mutual benefit of the parties (for hire) 57. Ordinary negligence creates bailee liability xlix. Sole benefit of the bailee (borrowing) 58. Slight negligence creates bailee liability w. Peet v. Roth Hotel Co. (minority approach) l. Ring left with hotel to be given to another guest 59. Lost |. Trial court awarded 2,140.66 li. Issue 60. Can Peet recover from the hotel as a bailee of the ring? lii. Holding 61. Yes, the hotel was acting as a bailee when it took the ring to deliver it to another guest liii. Relevant Facts 62. Ring was dropped off and accepted by the hotel front desk }. Placed in an envelope with recipients name x. Lost immediately liv. Reasoning 63. When the hotel accepted the ring to deliver to another guest, that shows their mutual assent to the bailment contract 64. Underestimating the value of an object in bailment does not remove liability 65. The bailee must use reasonable care in regards to the item being held ~. Loss of the item cannot be a result of negligence x. Allen v. Hyatt Regency-Nashville Hotel (majority approach) lv. Issue 66. What is the extent of liability of a commercial garage owner for theft during vehicle owners absence lvi. Holding 67. Ruling in favor of plaintiff, owner of the garage was liable. lvii. Relevant Facts 68. Parking garage attached to hotel . Has gate attendant, and patrolling security guards . Car left by plaintiff was stolen lviii. Reasoning 69. A bailment is created when the owner parks and locks his car in the parking garage . When paying for a parking space, one expects that their car will be protected by the operating staff xi. When the car is stolen and the owner returns to find it missing, this is essentially a non delivery of goods 3. Owner of garage is liable 6. Adverse Possession (A.N. E.C.H.O.) y. “legalized thievery” lix. The nonpermissive occupation of land that if carried on for the period described in the states statute, grants title to the land z. Two statutes that must be looked at lx. State statute of limitations lxi. Judicial doctrine of adverse possession {. Elements to satisfy possession lxii. Actual 70. Entry into another’s land lxiii. Notorious 71. Occupation lxiv. Exclusive 72. Consistent with the character of the land as the owner would act lxv. Continuous 73. For the period prescribed by the statute lxvi. Hostile 74. Occupation without owner’s consent lxvii. Open 75. Occupation in a manner that gives notice to others of the presence of the adverse posessor |. The adverse possessor is called a disseisor lxviii. The displaced owner is called the disseisee }. Once the disseisor gains title, the original owner’s title is extinguished lxix. Can only obtain the estate that the owner actually has (life estate, FSA, etc) ~. Tacking lxx. Occurs when an adverse possessor is in privity with another party and adds their time together to achieve the statutory period 76. Must have a legally recognized relationship . Inverse Tacking lxxi. Once an A.P. begins attempting possession, the fact that the property is sold to new owners during that time does not force the A.P. to have to start their time over 77. If the new owners take a different interest (life to FSA) the A.P. must start over to obtain their interest . Tolling lxxii. Statute of limitation does not run against the property owner in favor of the A.P. lxxiii. Occurs when the owner suffers a disability according to statutory definition (timer starts when the disability is removed) 78. Underage, not of sound mind, imprisonment . Can not add disability times together . Color of title (constructive adverse possession) lxxiv. Acts against land in a flawed written document, possession works towards all the land described regardless of where the A.P. actually fulfills the requirements . Munroe v. Rawlings lxxv. Issue 79. Did defendant successfully achieve adverse possession? lxxvi. Holding 80. Yes, adverse possession was achieved. Judgment for defendant lxxvii. Relevant Facts 81. Defendants bought the tax deed to the land . Had been paying the taxes continuously 82. Built a cabin on the land . Burned down, rebuilt cabin and cleared brush 83. Hunt there every year 84. Sold pulp wood that was on the land . Cut lumber for 5 years lxxviii. Reasoning 85. No one challenged or questioned the defendants use of the land 86. The original owner never entered the land, asserted title, or offered to pay the taxes . Indicates abandonment by the owner 87. The defendant had been using the land as if he were the rightful owner for a substantial period of time . Long enough to exceed the states statute of limitations . Nome 2000 v. Fagerstrom . Chaplin v Sanders . Wright v. Wright 7. Ownership of Property . Autocephalous v. Goldberg 8. Estates . I.D.A. is a key component in evaluating state of title lxxix. Inheritability lxxx. Divisibility lxxxi. Alienability . Words of Purchase lxxxii. Indicate the grantee 88. Grantee = the person receiving the property interest . Words of limitation lxxxiii. Indicate the type of estate being transferred . Fee Simple Absolute lxxxiv. Full ownership of property 89. Full IDA lxxxv. Unless indicated otherwise, law presumes FSA is being transferred . Defeasible Estates lxxxvi. Fee Simple Subject to Condition Subsequent (FSSCS) (Right of Re-entry) 90. Estate that may last forever, or can terminate early if a certain condition is breached . Once breached, the owner may exercise their right of re-entry and take the property back lxxxvii. Fee Simple Determinable (FSD) (Reverter) 91. Estate may last forever, but will terminate early if a certain condition is breached . Once breached the owner automatically has the estate revert back to their possession xii. This is known as a Reverter lxxxviii. Fee Tail (FT)(Reverter) 92. Estate that could potentially last forever as long as the designated blood line never runs out . Designated to C and the “heirs of their body” 93. Contains little IDA 94. Common Recovery . Loop hole action that allows holder of Fee Tail estate to transfer a FSA title to someone else and destroy the FT restrictions lxxxix. Fee Simple Subject to Executory Limitation (FSSEL) 95. Estate can last forever unless a condition is breached . Once condition is breached, the property is transferred to another designated party, not the original owner xiii. Shifting Executory Interest 4. Potential future interest in a third party that will take over the estate if a condition is breached xiv. Springing Executory Interest 5. Future interest in third party that will take over the estate once a condition is breached, but the estate first reverts back to the original owner for a period of time xc. Life Estate 96. Estate designated to last for the life of the grantee . Can be Pur Autra Vie xv. Estate that is given to one grantee but lasts the duration of another persons life . Non-freehold estates (leasehold estates) xci. Term of Years (TOY) 97. Estate that lasts for a specified calendar period . Terminates automatically at the end of the period xcii. Periodic Tenancy (PT) 98. Automatically renews for a certain time unless property terminated xciii. Tenancy at Will (TAW) 99. Tenancy with no specific time period . Can be terminated by either party without notice xciv. Tenancy at Sufferance (TAS) (holdover tenant) 100. Tenancy without a specific time period . Occurs when one of the other tenancies has expired and the tenant still remains on the premesis . Concurrent Estates xcv. Require certain unities of Title (T.T.I.P.M.) 101. Time 102. Title 103. Interest 104. Possession 105. Marriage xcvi. Tenancy with rights of survivorship (TIE) 106. ONLY for married couples, no IDA 107. Must have all 5 Unities 108. No unilateral action by either spouse can affect the estate xcvii. Joint Tenancy with Right of Survivorship (JTROS) 109. Requires first 4 Unities 110. When a cotenant dies, their interest is divided among the surviving holders 111. Alienability can take place unilaterally by any cotenant and it destroys that tenants joint estate with the others xcviii. Tenancy In Common (TIC) 112. Only requires Unity of Possession 113. Complete IDA 9. Future Interests in Estates . Vested Remainder xcix. Grantee alive AND no condition precedent 114. 3 types of Vested Remainders . Indefeasibly vested remainder xvi. Remainderman will absolutely receive and keep the interest . Vested remainder subject to Open or Partial Divestment (gift to a class) xvii. Remainderman will receive the interest but will share with others . Vested remainder subject to complete divestment xviii. Remainderman will receive the interest but MAY lose it upon the occurance of a certain proscribed event . Contingent Remainder c. Grantee not alive OR alive but must meet condition precedent . Executory Interest ci. Grantee must wait for condition subsequent or gap in time 115. Two types of Executory Interests . Shifting xix. Divest, or take away, a prior grantee’s vested interest . Springing xx. Divests, or takes away, the grantor’s vested interest after it has reverted back to the grantor for a period of time 10. The Destructibility Doctrine . Any contingent remainder that does not vest before the termination of the preceding estate is destroyed . The Merger Doctrine cii. When a grantee holds a life estate and the next vested estate in fee simple absolute, the grantee can merge the estates into a fee simple absolute . Doctrine of Worthier Title (a reversion) ciii. Transfer by a grantor to a grantee for life with the remainder to the grantor’s heirs will be construed as granting no future interest to the grantor’s heirs and instead will be deemed a future interest in the grantor . Rule against Perpetuities (RAP) civ. No interest is good unless it must vest, if at all, not later than 21 years after some life in being at the creation of the interest cv. Three step approach 116. Estate must vest, if at all within the perpetuities period . Life of original parties (validating life) +21 years xxi. Validating Life 6. Anyone who can affect vesting 117. Step ONE . Recognize the affected interest xxii. RAP ONLY applies to 7. Executory Interests 8. Contingent Remainders 9. Class Gifts 118. Step TWO . Assemble the validating lives xxiii. Life estate holder xxiv. Holder of conditional interest xxv. Party affecting the identity of the parties indicated in the conditional interest 119. Step THREE . Prove within time period xxvi. During lifetime of a validating life xxvii. At the death of the validating life xxviii. Within 21 years after the death the validating life 11. Direct Restraint against Alienation . 3 types cvi. Disabling Restraint 120. Preclude transfer of estate without grantors consent . Void cvii. Forfeiture Restraint 121. Attempted sale is invalid and reverts interest back to grantor . Generally held Void, allowed for Life estates and Non-freehold interests cviii. Promissory Restraints 122. Grantee agrees the property can be sold only with grantor’s consent . Can be valid on estates if they are reasonable in type and time 12. Waste . Holder of present estate actively or passively allows the estate to be damaged or otherwise devalued to the detriment of the future interest holder . 3 types of waste (2 studied) cix. Voluntary Waste 123. Occurs when the present estate holder takes actions on the estate that cause harm to the land or premises cx. Permissive Waste 124. Occurs when the present estate holder fails to properly maintain the land or premises, negligent about upkeep and allows premises to lose value 13. Landlord Tenant Law . Implied warranty of Suitability cxi. Generally used in commercial context cxii. Covenant by landlord premises will be suitable for the commercial enterprise they were leased 125. Latent physical or structural defects 126. Serious or material defects in sewage or drainage 127. Persistent leaks in walls, ceilings, windows, etc 128. Faulty electrical service or HVAC deficiencies . Implied Warranty of Habitability cxiii. Exists in every residential lease 129. Non-waivable cxiv. The leased premises will be fit for human habitation 130. Meet the bare minimum requirements of living designated by municipal authority . Covenant of Quiet Enjoyment cxv. Implied in every lease situation cxvi. Promise the landlord or their agents will interfere with a tenant’s use and enjoyment of the premises . Constructive Eviction cxvii. Landlords actions equate to effectively putting the tenant out in the same manner as an actual eviction 131. Tenant must notify landlord of problem, if not addressed, tenant must abandon premises in full or part . Must be deprived of something tenant is entitled to in the lease . Actual evictions SUSPEND obligation for rent . Constructive eviction does NOT suspend rent cxviii. Should be paid into an escrow account until dispute settled . Exceptions to non-liability for landlords cxix. Failure to mention latent defects cxx. Dangerous conditions outside premises cxxi. When leased for general public admission cxxii. Responsibility for common areas cxxiii. If contracted to repair premises cxxiv. Negligently repair the premises . Sublease cxxv. If a tenant transfers the entirety of their remaining lease . Assignment cxxvi. Tenant transfers a portion of their lease, but takes back possession before their contracted lease ends . Termination of Lease cxxvii. Month to month 132. 30 day notice cxxviii. Week to week 133. 7 day notice cxxix. Year to year 134. Six or nine months cxxx. Landlord, in order to terminate, must give notice for the next period of rent 14. Real Estate Transactions . Title Assurance cxxxi. Being aware of all relative interests of all the parties involved from the outset of the transaction all the way through its closing . Real Estate Broker Contracts cxxxii. Nonexclusive, Open Listing Agreement 135. Entitles broker to a commission of property sale if the broker is the one who facilitates the sale . If owner sells by own means, broker gets nothing . Owner can hire multiple brokers cxxxiii. Exclusive listing or Agency Agreement 136. Owner gives a particular agency (broker firm) the right to sell the property . Any broker at the firm can make the sale . Broker only gets commission if they facilitate the sale cxxxiv. Exclusive right to sell agreement 137. Broker is the only one other than the owner who can make the sale transaction . Broker entitled to commission even if the owner sells it themselves . Types of Real Estate Contracts cxxxv. Standard sales/Earnest Money Contract 138. For purpose of relatively short executor period which is the time between contract signing and closing date where deed is exchanged and title transferred cxxxvi. Installment Sales/contract for deed 139. Buyer signs document at initial closing . Agrees to pay portions of the purchase price over an extended period of time until all or most of the purchase amount is paid xxix. Then a second closing takes place where title and property is transferred cxxxvii. The essential terms of a Real Estate Contract 140. PARTIES of the transaction 141. Adequate description of the PLACE or property at issue 142. The PRICE or consideration being paid 143. The PROMISSOR’S signature cxxxviii. Part Performance Doctrine (enforcement of Oral Contract) 144. Buyer must show TWO out of the THREE requirements . Paid all or a substantial portion of the consideration they can establish was agreed upon as the sales price . There was possession of the premises . There was some permanent or significant valuable improvements made to the premises . Title Quality cxxxix. Marketable Title 145. Title is reasonably free from threat of litigation 146. The law implies a covenant of marketable title 147. A break in the chain of title or some type of encumbrance may render title unmarketable . Title obtained through AP is unmarketable unless if has gone through quiet title action cxl. Insurable Title 148. Title insurance is willing to issue a binder at property relative to the defects present on it cxli. Merger Doctrine 149. Contract flows into the deed and merger prevents purchaser from raising any contract actions against the seller . Occurs at closing cxlii. Caveat Emptor 150. Let the buyer beware cxliii. Doctrine of Equitable Conversion 151. Equitable title transfers to the buyer as soon as the purchaser signs the contract even though the seller maintains legal title . Allows for the contract to be carried out in the event that a party dies xxx. Purchaser’s heirs receive the land xxxi. Seller’s heirs receive purchase price . Property will not be prevented from being subject to judgment simply by transferring an equitable title to a third party . Warranties cxliv. Implied warranty of quality or good workmanship 152. Builder warrants that the premises have been built in accordance with the best practices of construction and development . Property Descriptions cxlv. Government Survey 153. Made up of base lines and principle meridian . Ranges run parallel to PM 154. Divided into townships . Divided into 36 sections cxlvi. Metes and Bounds 155. Uses series of Calls . Each call begins by referencing a Monument cxlvii. Subdivision Plat 156. Map prepared by a surveyor or engineer 157. Lots with attached government survey language . Types of Deeds cxlviii. Special Warranty Deed 158. Limits coverage of grantor to those whose claims arise by, through, or under them . Only cover covenants occurring during grantor’s ownership cxlix. General Warranty Deed 159. Covenant against the problems that arose both during the seller’s ownership and the prior ownership cl. Quitclaim Deed 160. A deed with no covenants at all . If the seller doesn’t even have good title, that is what the buyer will get cli. Defective Deed 161. Forged Deed . Generally VOID and can pass no title to the grantee 162. Fraudulent Deed . VIODABLE and will be VALID in the hands of a subsequent bona fide purchaser (SBFP) . The grantor is responsible in part of full for the ultimate wrongdoing . Delivery of Deed clii. Delivery of the deed will transfer title between the parties regardless of consideration paid or not 163. Delivery can be actual, constructive, or symbolic . Actual must eventually take place 164. For Delivery to be valid, must have the required intent at the time of delivery . Intent to immediately transfer rights, title, and interest in the property described cliii. At closing, when title passes, the delivery date will relate back to the initial delivery to the agent as opposed to the actually delivery to the grantee . Deed Covenants cliv. General Warranty Deeds contain 6 covenants (R.E.S. Q.U.A.) 165. Present Covenants (R.E.S.) . Broken at the time the deed is delivered xxxii. Statute of limitations runs right away . Right to convey xxxiii. The grantor is the owner and has the authority to transfer the interest . Covenant against Encumbrances xxxiv. Assertion that property is free from adverse interest of others (liens, mortgages, easements) . Covenant of Seisin xxxv. Grantor actually owns the land 166. Future Covenants (Q.W.A.) . Not broken until there is an actual or constructive eviction xxxvi. Statute of limitations starts running once that occurs . Run with the land . Warranty and Quiet Enjoyment xxxvii. Grantor will compensate grantee whose title is subject to an encumbrance or grantee whose enjoyment of the premises is disrupted . Covenant of Further Assurances xxxviii. Promise to furnish any additional documents in order to perfect the transfer of title to the grantee . Title Recording clv. Chain of Title 167. Recorded documents that show land ownership over time clvi. 3 types of recording acts 168. Race . First party to record wins 169. Notice . Subsequent bona fide purchaser (buyer without notice) who records takes title xxxix. Last party to take without notice 170. Race-Notice . Subsequent bona fide purchaser who records first xl. Last party to take without notice that records first clvii. Purchasers are deemed to have notice of whatever information would be acquired through a reasonable investigation 171. Recording is deemed to be constructive notice to all clviii. Tract Index 172. Lists property according to legal description clix. Grantor/grantee index 173. Lists land by name of grantor/grantee as title passes . 5 step process for checking xli. look for deed to your grantor xlii. continue checking each deed back to the beginning or acceptable point xliii. check grantor index from original grantor forward to your grantor xliv. inspect all relevant documents xlv. inspect property for any claims that may not be recorded clx. Typical recording problems 174. Wild Deed . Deeds recorded in the name index in a fashion that is outside the chain of title 175. Deed Recorded too late . Occurs when a prior grantee records after a subsequent purchaser has taken an interest in the property 176. Deed recorded too early/estoppel by deed . Recording of a deed before the transfer actually takes place clxi. Florida Marketable Title Act (MRTA) 177. 30 year stat of limit 178. anyone who can show they have held property from an effective root of title for an uninterrupted period of 30 years will be able to wipe out all adverse claims arising from transfers prior to their root of title clxii. Title Insurance 179. Policy promising that if title is not in the condition described by the policy, the insurance company will indemnify for any losses that arise as a result of future claims . Real Covenants clxiii. Externalities 180. When neighbors use their properties, this will affect the other neighbors properties whether they want it to or not clxiv. Covenants Running with the Land 181. Only Real Covenants can run with the land 182. Negative/Burdened covenant (servient estate) . Require someone not do certain things with their property 183. Positive/affirmative covenant (dominant estate) . Require payment for certain benefits 184. Enforcing the benefit arises from the Dominant Estate 185. Burdened parcel is the Servient estate 186. When only one land parcel is benefitted or burdened it is called a covenant In Gross clxv. In order to Run, covenant must have P.I.N.T. 187. Privity . Legally recognized legal relationship to the land 188. Intent . Successors were meant to be bound 189. Notice . Usually a recorded deed (a writing) 190. Touch and Concern . Covenant affects the land clxvi. To enforce a burden 191. Must show Horizontal Privity . Lateral relationship between parties to the original promise 192. Vertical Privity . Concerns interests transferred between the parties clxvii. To enforce a benefit 193. Only need to show Strict Vertical Privity . Successor has taken the same legal interest held by their predecessor