Fundamentals of Business Law

Business

Quiz 28 :

Real Property and Landlord-Tenant Law

Quiz 28 :

Real Property and Landlord-Tenant Law

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Property Ownership. Twenty-two years ago, Lorenz was a wanderer. At that time, he decided to settle down on an unoccupied, three-acre parcel of land that he did not own. People in the area told him that they had no idea who owned the property. Lorenz built a house on the land, got married, and raised three children while living there. He fenced in the land, installed a gate with a sign above it that read "Lorenz's Homestead," and removed trespassers. Lorenz is now confronted by Joe Reese, who has a deed in his name as owner of the property. Reese, claiming ownership of the land, orders Lorenz and his family off the property. Discuss who has the better "title" to the property. (See page 695.)
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Mr L has better "title" to the above land.
The land was unoccupied when Mr L first came there and after that he built up his home there without any protest from any person as the owner of that place was unavailable. He had freely set up his home and raised his children over there. Hence, he is better titled to that placed as he lived there openly for an extensive period without any protest from any quarters. Mr J came too late to make his claim over the property.
Hence, Mr L can hold his ownership of the place more highly than Mr J.

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Answers to the even-numbered questions in this For Review section can be found in Appendix F at the end of this text. What are the requirements for acquiring property by adverse possession?
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The requirements for acquiring property by adverse possession are as follows:
• Authentic, real and special.
• Built-up, noticeable and dishonorable.
• Constant and agreeable.
• Unfriendly and argumentative.

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The five Learning Objectives below are designed to help improve your understanding of the chapter. After reading this chapter, you should be able to answer the following questions: What are the requirements for acquiring property by adverse possession?
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Adverse Possession:
Adverse Possession occurs when the title of land is obtained without delivery of a deed. It refers to a doctrine under which if a person possesses property of any other person for a specific statutory period, that person acquires the possession of that property.
The original owner cannot remove former person after completion of that certain statutory period of time.
There are certain requirements to acquire a property by adverse possession. These requirements are stated below:
• The possession must be absolute, actual and exclusive.
• The possession must not be a secret or clandestine but visible, open and tarnished.
• The possession must be on continuous basis and must complete the certain statutory time period.
• The possession must be adverse and should be claimed against the whole world.
Thus, the aforementioned are the requirements for adverse possession.

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Case Problem with Sample Answer In 1974, Alana Mansell built a large shed, which she used as a three-car garage, on the back of her property. This building encroached on a neighbor's property by fourteen feet; however, the neighbor knew of the encroachment and informally approved it. But the neighbor did not transfer ownership of the property to Mansell. In 2001, Betty Hunter bought Mansell's neighbor's property. The survey done at that time indicated the encroachment. In 2003, Hunter's attorney notified Mansell about the encroachment, but nothing was done. In 2006, Mansell installed a concrete foundation under the garage, which had previously been dirt. Mansell also sought a declaratory judgment that she was the fee simple owner of the area under the garage that encroached on Hunter's property, arguing that the possession of the property from 1974 to 2001 gave her ownership by adverse possession. Hunter filed a counterclaim, demanding removal of the encroaching structure. The trial court held that the property belonged to Hunter, but did not order removal of the garage. Hunter and Mansell appealed. Would the open occupation of the property for nearly thirty years give Mansell title by adverse possession? Explain your answer. [ Hunter v Mansell, _____P.3d_______ (Colo.App. 2010)]
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Ownership in Fee Simple. Thomas and Teresa Cline built a house on a 76-acre parcel of real estate next to Roy Berg's home and property in Augusta County, Virginia. The homes were about 1,800 feet apart but in view of each other. After several disagreements between the parties, Berg equipped an 11-foot tripod with motion sensors and floodlights that intermittently illuminated the Clines' home. Berg also installed surveillance cameras that tracked some of the movement on the Clines' property. The cameras transmitted on an open frequency, which could be received by any television within range. The Clines asked Berg to turn off, or at least redirect, the lights. When he refused, they erected a fence for 200 feet along the parties' common property line. The 32-foot-high fence consisted of 20 utility poles spaced 10 feet apart with plastic wrap stretched between the poles. This effectively blocked the lights and cameras. Berg filed a suit against the Clines in a Virginia state court, complaining that the fence interfered unreasonably with his use and enjoyment of his property. He asked the court to order the Clines to take the fence down. What are the limits on an owner's use of property? How should the court rule in this case? Why? [ Cline v Berg , 273 Va. 142, 639 S.E.2d 231 (2007)]
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What can a person who holds property in fee simple absolute do with the property?
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Question of Ethics In 1999, Stephen and Linda Kailin bought the Monona Center, a mall in Madison, Wisconsin, from Perry Armstrong for $760,000. The contract provided, "Seller represents to Buyer that as of the date of acceptance Seller had no notice or knowledge of conditions affecting the Property or transaction" other than certain items disclosed at the time of the offer. Armstrong told the Kailins of the Center's eight tenants, their lease expiration dates, and the monthly and annual rent due under each lease. One of the lessees, Ring's All-American Karate, occupied about a third of the Center's space under a five-year lease. Because of Ring's financial difficulties, Armstrong had agreed to reduce its rent for nine months in 1997. By the time of the sale to the Kailins, Ring owed $13,910 in unpaid rent, but Armstrong did not tell the Kailins, who did not ask. Ring continued to fail to pay rent and finally vacated the Center. The Kailins filed a suit in a Wisconsin state court against Armstrong and others, alleging, among other things, misrepresentation. [Kailin v. Armstrong, 2002 WI App. 70, 252 Wis.2d 676, 643 N.W.2d 132 (2002)] 1. Did Armstrong have a duty to disclose Ring's delinquency and default to the Kailins? Explain. 2. What obligation, if any, did Ring have to the Kailins or Armstrong after failing to pay the rent and eventually defaulting on the lease? Why?
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What is the term for the right of Roche citizens to walk across Shoepke's land on the trail?
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The five Learning Objectives below are designed to help improve your understanding of the chapter. After reading this chapter, you should be able to answer the following questions: What are the respective duties of the landlord and the tenant concerning the use and maintenance of leased property?
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What can a person who holds property in fee simple absolute do with the property?
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ISSUE SPOTTERS Bernie sells his house to Consuela under a warranty deed. Later, Delmira appears, holding a better title to the house than Consuela has. Delmira wants Consuela off the property. What can Consuela do? (See page 694.)
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Grey owns a commercial building in fee simple. Grey transfers temporary possession of the building to Haven Corporation. Can Haven transfer possession for even less time to Idyll Company? Explain. (See Ownership Interests.)
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What are the respective duties of the landlord and the tenant concerning the use and maintenance of leased property?
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What limitations may be imposed on the rights of property owners?
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The five Learning Objectives below are designed to help improve your understanding of the chapter. After reading this chapter, you should be able to answer the following questions: What is a leasehold estate? What types of leasehold estates, or tenancies, can be created when real property is leased?
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Commercial Lease Terms. Gi Hwa Park entered into a lease with Landmark HHH, LLC, for retail space in the Plaza at Landmark, a shopping center in Virginia. The lease provided that the landlord would keep the roof "in good repair" and that the tenant would obtain insurance on her inventory and absolve the landlord from any losses to the extent of the insurance proceeds. Park opened a store-The Four Seasons-in the space, specializing in imported men's suits and accessories. Within a month of the store's opening and continuing for nearly eight years, water intermittently leaked through the roof, causing damage. Landmark eventually had a new roof installed, but water continued to leak into The Four Seasons. On a night of record rainfall, the store suffered substantial water damage, and Park was forced to close the store. On what basis might Park seek to recover from Landmark? What might Landmark assert in response? Which party's argument is more likely to succeed, and why? [ Landmark HHH, LLC v. Gi Hwa Park, 277 Va. 50, 671 S.E.2d 143 (2009)] (See Landlord-Tenant Relationships.)
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Question with Sample Answer-Deeds. Wiley and Gemma are neighbors. Wiley's lot is extremely large, and his present and future use of it will not involve the entire area. Gemma wants to build a single-car garage and driveway along the present lot boundary. Because the placement of her existing structures makes it impossible for her to comply with an ordinance requiring buildings to be set back fifteen feet from an adjoining property line, Gemma cannot build the garage. Gemma contracts to purchase ten feet of Wiley's property along their boundary line for $3,000. Wiley is willing to sell but will give Gemma only a quitclaim deed, whereas Gemma wants a warranty deed. Discuss the differences between these deeds as they would affect the rights of the parties if the title to this ten feet of land later proves to be defective. (See page 694.)
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What is a leasehold estate? What types of leasehold estates, or tenancies, can be created when real property is leased?
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What limitations may be imposed on the rights of property owners?
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Eviction. James owns a three-story building. He leases the ground floor to Juan's Mexican restaurant. The lease is to run for a five-year period and contains an express covenant of quiet enjoyment. One year later, James leases the top two stories to the Upbeat Club, a discotheque. The club's hours run from 5:00 p.m. to 1:00 a.m. The noise from the Upbeat Club is so loud that it is driving customers away from Juan's restaurant. Juan has notified James of the interference and has called the police on a number of occasions. James refuses to talk to the owners of the Upbeat Club or to do anything to remedy the situation. Juan abandons the premises. James files suit for breach of the lease agreement and for the rental payments still due under the lease. Juan claims that he was constructively evicted and files a countersuit for damages. Discuss who will be held liable.
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