2.6. Situations.

Task 1. Read the following situations, act them out and answer the questions.

I. A builder was selling 20 vacant lots, four of which had sand piled on them for construction use. The builder sold one of the lots containing sand without reference to ownership of the sand. The buyer started making use of the sand, and the builder charged the buyer with conversion (civil theft). Did the builder have a very strong case against the buyer? What, in your opinion, was the court’s decision?

II.A state law imposed a lien on all lands and tenements owned by a judgment debtor. The debtor contended (stated) there was no lien on her rights to the rents from certain land as these rents were not real property. What, in your opinion, was the court’s decision?

III.Jane and John are married. They purchase a house and open a joint savings account. The house deed reads "Jane and John, wife and husband," as does the savings account. Neither spouse can sever (part) the land from such ownership, but under banking rules, each can draw out the entire savings account. Could John's creditors seize either property?

IV. A prominent citizen conveyed by deed 10 acres of land to a religious society "so long as the land is used for hospital purposes"; her townhouse to her son, Biff; and her residence to her husband during his lifetime and then to Biff. What estate do the religious society, Biff and her husband have? What can happen to the land given to the religious society should it no longer be used for hospital purposes?

V. A father conveyed a farm to his son "with a life estate to mother." The mother has a life estate with exclusive possession during her life. She cannot misuse the property (i.e., commit waste), must keep it in repair, and must pay any existing liens or mortgages or else lose the property. The mother wishes to move to town. A neighbor wants to buy her interest in the property. May she sell her life interest to the neighbor? What duties does the neighbor have? What will happen to the farm when the neighbor dies? Does the son have the right of possession?

VI. Royal owns 200 acres of wilderness. Thomas wants to remove muck from it. Royal writes a letter to Thomas granting such a right for a payment of $2 per ton and a maximum of 5,000 tons. Royal conveys the southwest quarter of this land to his neighbor, but in the deed "reserves the right to one-half of all the mineral and oil rights in said property." Royal's other neighbor has for years hunted on Royal's land without objection by Royal and with Royal's knowledge. What right of use do the all three have?

VII. Two promoters, Aaron and Baldor, own lots on which they plan to develop a hotel complex and a pedestrian shopping mall, respectively. Aaron's planned hotel swimming pool faces the west, and he wants the afternoon sun. Promoter Baldor is cut off from access to a fashionable street fronting Aaron's land. The parties agree that Baldor will not build so high as to cut off the sunlight on Aaron's pool, and Aaron agrees to give Baldor and her tenants the right to cross a designated strip of land on Aaron's property to reach the thoroughfare. What does the Aaron’s and Baldor’s agreement describe?

VIII. Yardley didn't like trouble with her neighbors and said nothing as year after year those living west of downtown would cut across her land as a shortcut. What does this example describe?

IX. Thane sold his back 40 acres to a city dweller, who only then learned that the 40 acres were landlocked. Thane's land surrounded the 40 acres, and so the buyer could not reach his property without trespassing on Thane's property. How can this problem be solved?

X. The owner of 20 acres of land sold 5 acres to a buyer, named his son as beneficiary to another 5 acres in his will, and deeded 5 acres to his daughter. The remaining 5 acres have not been used by the owner for years, but squatters have been using the land for planting crops. In what different ways was the title to realty transferred?

Task 2. Solve the following situations.

1. Franklin engaged in extensive negotiations with Harlow in connection with the proposed purchase of Harlow's factory building. Which of the following must Franklin satisfy to establish a binding contract for the purchase of the property in question?

(a) Franklin must obtain an agreement signed by both parties.

(b) Franklin must obtain a formal, detailed, all-inclusive document.

(c) Franklin must pay some earnest money at the time of final agreement.

(d) Franklin must have a writing signed by Harlow which states the essential terms of the understanding.

2. Which of the following is true with respect to an easement created by an express grant?

(a) The easement will be extinguished upon the death of the grantee.

(b) The easement cannot be sold or transferred by the owner of the easement.

(c) The easement gives the owner of the easement the right to the physical possession of the property subject to the easement.

(d) The easement must be in writing to be valid.

3. Abrams owned a fee simple absolute interest in certain real property. Abrams conveyed it to Fox for Fox's lifetime with the remainder interest upon Fox's death to Charles. What are the rights of Fox and Charles in the real property?

(a) Charles may not sell his interest in the property until the death of Fox.

(b) Fox has a possessory interest in the land, and Charles has a future interest.

(c) Charles must outlive Fox in order to obtain any interest in the real property.

(d) Any conveyance by either Fox or Charles must be joined in by the other party in order to be valid.

4. The failure to record a deed will

(a) not affect the rights between the parties to the deed.

(b) constitute a fraud upon the creditors of the seller.

(c) defeat the rights of the buyer if the seller subsequently conveys the property to a third party who has actual knowledge of the prior conveyance.

(d) be disregarded in respect to the rights of subsequent third parties if the deed is a mere quitclaim.

5. The town of Arbondale puts on an annual festival at the town fairground, which is noted for its meager access. Three farms surround most of the fairground, and the town council asked for and received signed documents from each of the farm owners providing that "for the period of July 12 through July 15 for a period of 10 years from date the undersigned owners do grant to the town of Arbondale the use of each of their main farm roads for fairground festival purposes." Under these circumstances,

(a) the farm owners have transferred the roads to Arbondale in fee simple for the stated

term.

(b) the fairground is the dominant tenement and the farms are the servient tenement.

(c) an easement was created by reservation.

(d) a mere license was created.

6. A grandfather deeded his farm to Tommy, his grandson, and Tommy's wife, Thelma, using the following language, "unto my grandson Tommy and his wife Thelma for and during the term of their natural lives and after their death to the children of Tommy and Thelma that shall be born to their marriage as shall survive them and to their heirs and assigns in fee simple forever." Five children, four sons and one daughter, Cherry, were born of this marriage. All had grown up by the time Thelma, their mother, died. Two years after Thelma's death the daughter, Cherry, died leaving one son. Tommy passed away the next year. Issue then arose about who owned the farm in the light of the language in the deed from the grandfather.

What type of realty interests were created in the deed? What interest did Tommy and Thelma possess? What interest did Cherry possess? Who owns the farm?

7. The Warners contracted for the purchase of a residence next to an apartment complex which had an attractive and large swimming pool. Register Corporation, the seller, also owned the apartment complex and included in the contract the language, "the use of the apartment swimming pool to be available to the purchaser and his family." However, at the settlement of the purchase the deed given to the Warners made no mention of the use of the swimming pool. Later the Warners hired a realtor to sell their property, and such agent told prospective buyers that the use of the pool next door went with 'the property. Tedder entered into a purchase contract with the Warners, but neither the contract nor the later deed mentioned the swimming pool. After the closing Tedder demanded of Register the use of the swimming pool. Register refused permission. Both the Warners and Tedder are willing to testify that the use of the pool was an inducing cause for the purchase of the property. The court stated that the law of real property would govern this question.

What type of property right was granted the Warners from Register upon the first purchase? What success would Tedder have in this case?