- Tom and Martha live in a neighborhood where lawn ornaments are prohibited. They want to put up a nativity scene at Christmas and argue that the covenant doesn't apply to temporary decorations but only to permanent ones. Their homeowners association disagrees. Which entity enforces subdivision covenants?
- Marcus listed his property with Home Sweet Home Realty and one of its listing agents, Ron Savage. About a month later, Ron filed for bankruptcy. Which of the following statements about this situation is true?
- SP, but the community may be entitled to reimbursement if CP funds were used to pay for education or training and the education enhanced the spouse's earning capacity
- Latrell purchased an old warehouse with the intent to create shared studio space for artists. However, he didn't perform due diligence before the purchase, and it turns out that there are hazardous materials that need to be cleaned up first. Latrell took the prior owners to court, and the court ruled that Latrell is responsible for the costs of cleanup. What kind of liability is this?
- if the tortfeasor is acting for the benefit of the community, CP funds can be used
- Van Camp accounting is used when the increase in value of a business is primarily the result of the unique characteristics of the SP asset. Using Van Camp, determine the fair salary for the community labor. Multiply that by the years of marriage. Subtract any salary already received and any amounts paid for community expenses. The result is the CP share and the rest is SP.
- creditors can reach the CP for debts incurred by one spouse during marriage; cannot reach the SP of the non-debtor for premarital debt; can reach the SP of the non-debtor for necessaries
- spouses have the highest duty of good faith in the management or control of CP. Neither spouse may take unfair advantage of the other. A presumption of undue influence arises when one spouse gains an advantage over the other in a property transaction. The spouse who gains the advantage bears the burden of rebutting this presumption and must show that the disadvantaged party freely entered into the transaction
- A premarital agreement is presumed to be involuntary unless the proponent of the agreement shows that (i) the party against whom enforcement is sought was represented by independent legal counsel at the time of signing or waived this right ; (ii) the party more than seven days between the time the agreement was first presented and the time the agreement was signed; (iii) the party, if unrepresented by counsel, was fully informed of the terms of the agreement and the rights and obligations he was giving up; and (iv) the parties did not lack capacity to enter into the agreement and the agreement was not executed under duress, fraud, or undue influence.
- An individual is purchasing a small craft shop, including the underlying real estate. She applies for a commercial loan from her federally insured bank to complete the purchase. Is this transaction covered by the Real Estate Settlement Procedures Act?
- an agreement between spouses to change the character of an asset. Must be made in a written express declaration that is consented to or accepted by the spouse whose interest is adversely affected. The writing must expressly declare that a change in ownership of property is being made
- At divorce community assets will be equally divided in kind unless some special rule requires deviation from the equal division requirement
- the SP proponent must prove that CP funds in the account were already exhausted by the payment of family expenses at the time the asset was purchased
- applies at divorce and presumes that jointly held property is CP. Can be rebutted by clear and convincing written evidence that both spouses did not intend to hold the property as CP at divorce
- Pereira accounting is used when the increase in value of an SP business is primarily the result of community labor. Using Pereira, determine SP at the start of the business and give it a fair rate of return over the course of the marriage (10%) calculated annually. The SP is given the initial value plus the fair rate of return. The remainder is CP
- at death, the decedent can devise all of his SP and 1/2 the CP. If the decedent dies intestate, the surviving spouse is automatically entitled to the decedent's share of the CP and from 1/3 to all of the SP depending on whether the decedent left issue or parents surviving
- CP if cause of action arose during marriage; at divorce CP personal injury awards will be awarded entirely to the injured spouse unless the interests of justice require otherwise
- the SP proponent must prove there was sufficient SP funds available at the time the asset was purchased and that she intended to use SP funds to purchase the asset
- the marital economic community begins at marriage and ends at one spouse's death or on the date of separation. to terminate the MEC by separation, there must be a complete and final break in the marital relationship which requires a spouse to express intent to end the marriage to the other spouse and conduct consistent with that intent
- treated as SP or CP depending on when earned