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Bar Exam - property Questions and Correct Answers

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Bar Exam - property Questions and Correct Answers

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Bar Exam - property Questions and Correct
Answers
Sublease Ans: Tenant transfers a portion of the time remaining
on the lease to a third party.

Assignment Ans: Tenant transfers ALL of the time remaining on a
lease to a third party.

Rule in Dumpor's Case Ans: If there's an assignment prohibition
and the prohibition is waived once by the landlord, it is deemed to
have been waived for the duration of the lease, unless the landlord
expressly states otherwise.

General rule of the transferability of interest in a lease Ans: Any
interest in a tenancy is freely transferrable.

Prohibitions by landlord on transfers of a tenant's interest in a
lease Ans: Will be upheld, but narrowly construed. To prohibit
both an assignment and a sublease, landlord must specifically
mention both.

Duty to pay rent Ans: Covenant included in the lease. Landlord
can always enforce against original tenant b/c of the privity of
contract (even if interest has been transferred via assignment or
sublease).


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Assignee's duty to pay rent Ans: Because has vertical privity with
landlord, is bound by the covenant to pay rent to the landlord.
Liable only for unpaid rents arising during the time he holds the
interest in the leased property.

Sublessee's duty to pay rent Ans: No vertical privity between
sublessee and landlord, therefore covenant to pay rent can't be
enforced against sublessee. Landlord must sue original tenant to
collect any unpaid rent.

Landlord's transfer of interest Ans: Whichever landlord holds the
interest on the day rent is due gets the rent.

Fee simple determinable Ans: Terminates automatically at
happening of named future event. Magic words: for so long as,
during, while, until

Possibility of reverter Ans: Future interest in grantor following
FSD. Created automatically.

Fee simple subject to condition subsequent Ans: Interest in
property that may be cut short by grantor or third party at
happening of named future event. Magic words: provided however,
however if, but if, on condition that, in the event that




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Right of entry Ans: Future interest in grantor following FSSCS.
Does not retake automatically, right must be exercised. Can only
be created by express reservation or necessary implication.

Fee simple subject to executory interest Ans: Estate that is
automatically divested in favor of third party on happening of
named event.

Executory interest Ans: Future interest in third party that cuts
short previous estate before its natural termination. Any interest
in third party following a fee estate.

Interests subject to RAP Ans: Executory interest

Contingent remainder

Class gift/Vested remainder subject to open

Right of first refusal

Power of appointment

Land purchase option

Remedies for seller's breach of sale of real property Ans:
Expectation damages

Restitution of down payment



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