Since 1958, Ray and Barbara Mensen have leased on a month-to-month basis a house
owned by Helen and Clarence Haines (Clarence died in 1984). In 1963, discussions
began between the two couples about the possibility of a purchase of the home. The
Haineses had hoped the Mensens would look after them in their old age, since the
Haineses had no known relatives.
Several drafts of the deed were produced, along with discussions that the property was
being deeded to the Mensens in exchange for care and assistance for the Haineses. The
deed giving the Mensens ‘the farm’ was transferred to them sometime in December
1980 or January 1981 and recorded on January 13, 1981. The deed also included the
following language:
Part of the Northeast Quarter of the Northeast Quarter of Section 9 Township 16 North
Range 13 East all in Douglas County Nebraska as recorded in the Douglas County
Register of Deeds office.
The Mensens did not deliver the promised care, and Helen Haines brought suit to have
the deed declared void for failure of consideration and inadequacy of the description. Is
the description adequate?
Rent increases can be incorporated into the original lease.
The Economic Development Corporation of Bramblewood has proposed giving tax
breaks to the Bass Pro Shop in order to lure it, as it were, to Bramblewood for the
construction of one of its largest stores. Bo Radley, a devoted fisherman, but low-tax
advocate, objects to the tax break. Also, Bo notes, the area for the proposed facility has
industrial, not commercial zoning. Provide a list of the areas of law Bo should check to
determine authority and rights in this situation.
The Rule Against Perpetuities is applicable only to contingent remainders and
executory interests.
Explain the differences between a negative amortization mortgage and a reverse
mortgage.
John Blackburn sold his property to Wilma Snyder for $95,000. Wilma paid $25,000
cash and assumed Blackburn’s $70,000 mortgage. Six months after moving in, Wilma
defaulted. What is John’s liability?
In determining assessed value of a property, appraisers tend to favor inclusion of items
as fixtures.
Jackson paid Brady $700 for a 90’‘day option to purchase Brady’s 160’‘acre farm for
$132,000. The option agreement was in writing and signed by both parties. The
agreement referred only to the option, its period, a legal description of the farm, and the
purchase price. Thirty days later, Jackson wrote Brady, “I hereby exercise my option to
purchase your farm for $132,000, subject to your replacing the well pump and related
plumbing fixtures.” Is there a contract? Is the option still valid?
A tenancy at sufferance exists after the termination of a prior lease but before
acceptance of rent by the landlord.