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154 Cards in this Set

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Real Privity in Interest Rule
The person who is suing must:
1. Use her own name as Plaintiff
2. Have a legal right to enforce claim under applicable substantive law

Exception - Fictitious name to protect against SERIOUS HARM

P has burden of proof that she is real party in interest
CAVEAT LESSEE
"Let the lessee beware"
Retaliatory Eviction
(Burden of Proof)
Burden of proving retaliatory motive is on the tenant. Tenant must show the landlord:
1. Was discriminatory against the Defendant; AND
2. followed the tenants reporting of violations at the 1st opportunity

The burden THEN shifts to the Landlord to prove PRIMARY motivation is NOT retaliatory

Applies also to retaliatory rent increases
Factors to Weight In Determining Unconsciuonability or Public Policy
- The extent to which the waiver interferes w/ housing code
- Type of property leased
- Whether the waiver serves a reasonable business purpose and is a result of conscious negotiations
-Whether the waiver is party of a boilerplate leased document
-Whether the waiver imposes unreasonable burdens on a tenant who is poor and has unequal bargaining powers
-Whether the parties were represented by counsel
Tenants Remedies for Breach Implied Warranty of Habitability
Remedies:
1. Terminate Lease and receive damages
2. Continue lease and recover damages
3. Continue lease and use rent to repair (2x/yr)
4. Continue lease and withhold Rent
5. Use as defense against landlord action for Rent
Constructive Eviction
Substantial interference with use and enjoyment of premises

Remedy - Eviction by Landlord - Tenant MUST VACATE in order to stop paying rent or receive damages

Remedies of Eviction by others
No remedy unless Landlord had duty not to permit nuisance or control common areas
Types of Eviction
ACTUAL EVICTION - Total PHYSICAL EXPULSION or exclusion from possession of ENTIRE PREMISES

PARTIAL - PHYSICAL EXPULSION or exclusion from possession of PART of premises

CONSTRUCTIVE EVICTION - Substantial Interference w/ USE AND ENJOYMENT or premises
SUBLET
When a tenant transfer less that the entire remaining term of the leasehold
- Tenant becomes the landlord of the sublease
- Sublesse is NOT in PRIVITY OF ESTATE or CONTRACT w/ Landlord and thus cannot sue Landlord or be sued by Landlord

Tenant retains a REVERSION in property after transfer
ASSIGNMENT
When a tenant transfer the entire remaining term of the leashold, he has made an assignment.

Puts T2 in Privity of Estate

Compare to Sublet where T transfer less than the entire remaining term
Impossibility of Performance
PERFORMANCE must be literally impossible or extremely difficult or illegal

Compare to FRUSTRATION OF PURPOSE where the purposes are frustrated but performance is still possible
Fixture
Fixtures belong to Landlord

The fact question as to whether something is a fixture is one on the INTENT OF THE TENANT
Objective Criteria:
- Nature of Article
- The manner in which it is attached
- The amount of damage that would be caused by its removal

EXCEPTION - Trade fixtures those installed for carrying on a trade or business (T liable for damage)
Rights and Duties Related to Fixtures
COMMON LAW
Fixtures cannot be removed from the premises by the tenant. Fixtures become party of the realty and therefore the property of the Landlord

Exception trade fixtures must be removed before ending of the lease

MODERN TREND - Must be removed by end of term. Be very liberal in permitting the tenant to remove any chattel he installs on the leased premises, whether or not used in trade or business as long as substantial damage not caused
Privity of Estate
Gives the landlord the right to sue the assignee of the tenant on the covenants in the lease, and to give the assignee the right to sue the landlord on her covenants

Compare to Privity of CONTRACTS - only binds T1 NOT T2
Frustration of Purpose
The tenant may terminate the lease in case of EXTREME HARDSHIP if the purpose of lease is frustrated

Requirements:
1. Frustated use must have been contemplated by the Landlord and Tenant as the use for which the premises were let
2. Frustration must be TOTAL or NEAR TOTAL imposing EXTREME HARDSHIP on the tenant
3. Frustating event must not have been foreseen or forseeable by the parties (of foreseeable risk on Tenant)
Actual TOTAL Eviction
Physical Expulsion or exclusion from possession of entire premises

REMEDY
Tenant may TERMINATE lease, pay no more rent and collect damages

Remedy if eviction by others - if by person with paramount title - same
Actual Partial Eviction
Physical expulsion or exclusion from possession of PART of premises

Remedies - Eviction by Landlord
Tenant may stay in POSSESSION and PAY NO RENT until POSSESSION IS RESTORED

If by a person w/ paramount title tenant may terminate lease and seek damages, or stay in possession and pay proportionate amount of rent
Vertical Privity
The party suing or being sue succeeded to the estate of the original parties

First Restatement -
BURDEN - run to an ESTATE OF THE SAME DURATION as owned by the original promisor
BENEFIT - will run to assigns or ANY interest in the land

Restatement of Servitude View
Burdens and benefits or affirmative covenants run to persons who succeed to an estate of the same duration as owned by original parties. Special rules for lesser estates
Horizontal Privity
A specified relationship existing between the ORIGINAL promisor and promise

Spencer's Case - Found privity where:
1. That they were landlord and tenant
2. They both had interests in the land
3. Promise was in conveyance of a term of years

Restatement View - Privity satisfied by either a mutual relationship or a successive relationship

Minority View - Horizontal Privity not required

At COMMON LAW benefit of covenant could run without the covenanting parties being in PRIVITY OF ESTATE
Covenants Intention of Parties
Intent usually expressed in the language of a deed at Common Law if the covenant PERTAINS TO A THING NOT IN BEING at the time the convenant is made will not bind assigns unless they are EXPRESSLY MENTIONED
REAL COVENANT
A convenant (promise) that runs with the land AT LAW
-Enforceable by successor owner of the promisee's land and
-Enforceable AGAINST a successor to the promisor's land
- Can get legal ($$) or Equitable (injunction or declaratory)
- Gives rise to personal liability only (only $$ damages)

Writing is required (at common law writing and seal) Covenant can not be implied or by prescription
COMPARE
Covenant - Condition - Equitable Servitude
Real Covenant: ENFORCEABLE BY AWARD OF $$ DAMAGES

EQUITABLE SERVITUDE: ENFORCEABLE IN EQUITY by injunction or specific performance

Condition: FORFEITURE by breach
EQUITABLE SERVITUDE
A covenant (promise) enforceable in EQUITY by or against successors to the land of the original parties to the contract
NOTE - If the plaintiff wants Equitable Relief the Plaintiff must show that the Covenant qualifies as equitable servitude
Condition
Provides for forfeiture of the land upon breach of the condition
Ex - Fee Simple Determinable or Subject to Condition Subsequent
Easement
An easement is a grant of a nonpossessory interest in land that entitles a person to USE the land.

AFFIRMATIVE (POSITIVE) EASEMENT - Owner has right to go onto the land of another (the servient land) and do some act on the land

NEGATIVE EASEMENT - Owner can PREVENT the owner of the servient land from doing some act on the servient land
Negative Easements
Grants the easement holder the right to PREVENT the servient owner from using the land in some way
Limited to Easements for light, air, subjacent or lateral support, and flow of artificial stream at Common Law

New decisions may expand the list; solar, scenic, and conservation easements.

Negative Easements CANNOT arise by prescription as prescription bars A CAUSE OF ACTION. Where Owner has no cause of action prescription does not apply
Creation of Easements
EXPRESS GRANT - Easement granted to another CREATION BY PRESCRIPTION

EASEMENT BY RESERVATION - Reserved by grantor over the land granted

CREATION BY IMPLICATION - Created by OPERATION OF LAW not by a written instrument (exception to state of frauds)
Reservation
The regrant of a NEW EASEMENT not previously existing

Common Law
Reservation cannot be made in favor or a 3rd party only for the true grantor. To reserve an easement for anyone else likely to be held void solved by 2 pieces of paper

Modernly - (Minority) Easement for 3rd party - OK
Exception
A provision in a deed that excludes from the grant some pre-existing right
Profit
(Real Property)
AKA - "Profit a Prende"

Right to take something off another person's land that is part of the land or a product of the land.

Example - Crops, timber, minerals, wild game, and fish

Easement to go on the land and remove subject matter implied
License
PERMISSION - to go on land belonging to the licensor

Plumber, delivery guy and party guests

license revocable by licensor
"One - Stock" Rule
When 2 or more person's own a profit in gross they must use the profit as one stock. Neither may operate independently of the other.

One owner can veto use by the other because consent of all is required. Example - Agree upon a rate of extraction of sand

Applied when overuse of the easement may result in destroying the resource
Creation by Prescription
Elements of Prescription (same as adverse possession)

- Open and notorious use; adverse and under a claim of right, continuous and uninterrupted throughout the requisite period
Termination of Easement
by
CHANGE OF CONDITIONS
Not applicable to Easements
Termination of Easement
by
Act of Servient Owner
1. DESTRUCTION OF SERVIENT TENEMENT
An easement in a structure is terminated if the building is destroyed without fault if the owner of the servient tenant (1 state extinguishes Easement due to intentional destruction)

2. PRESCRIPTION - Interference with Easement in an adverse manner (such as blocking) elements of adverse possession apply owner of Easement must have an opportunity to demand easement and be refused
Termination of Easements
1. Unity of Title
2. Act of Dominant Owner
3. Act by Subservient Owner
4. Change of Conditions
5. In accordance with its Express Terms
Termination of Easement
by
Act of Dominant Owner
1. RELEASE - by written instrument (subject to Statute of Frauds). Reliance on oral release in which owner expends money estops owner from claiming Statute of Frauds
2. NON USE - Does not extinguish easement alone
3. ABANDONMENT - Owner of easement ACTS in manner as to indicate an UNEQUIVOCAL INTENT TO ABANDON
Ex. Oral release or non use coupled w/ failure to maintain, blockage, or establishing, other Easements.
4. ALTERATION OF DOMINANT TENEMENT - If easement is granted for a PARTICULAR PURPOSE on an alteration of Dominant T makes it impossible to achieve purpose easement is extinguished
5 End of NECESSITY - Easement by NECESSITY - NECESSITY ends
Easement by Prescription
1. OPEN & NOTORIOUS - w/out every attempted at concealment
2. UNDER CLAIM OF RIGHT and not with permission of landowner
3. Continuous - not necessity constant: just normal use
4. Uninterrrupted by owner's entry upon land, bring suit, or in some PROTEST

PUBLIC EASEMENT BY PRESCRIPTION
MAJORITY VIEW - if members of the public use the private land in a manner meeting the requirements for prescription
MINORITY VIEW - Public cannot not acquire prescriptive rights in private property
Easement Creation by Implication
Creation by OPERATION OF LAW not by a written instrument (exception to Statute of Frauds)

Very narrowly defined circumstances:
1. Intended easement based on APPARENT USE EXISTING at the time the servient tenement is separated from the Dominant tenemant; and
2. As easement by NECESSITY
Must benefit a dominant tenement created by dividing a tract into 2 or more lots
Easement in Gross
If the easement does not benefit the owner in the use and enjoyment of his land but merely GIVES HIM THE RIGHT TO USE THE SERVIENT LAND

Examples - Railroads right of way, gas pipe lines, and utility easements

Commerical Easements: Primarily ECONOMIC BENEFIT rather than personal satisfaction
"TOUCH AND CONCERN"
The covenant directly affects the party in the use and enjoyment of the property
Requirements for Burden and Benefit to Run at Law
(Covenants)
BURDEN:
1. INTENT - Of contracting parties for successors to be bound
2. Must be (in some states) PRIVITY OF ESTATE between the original promisor and promissee, and assignee
3. Covenant must TOUCH & CONCERN the land
4. Subsequent purchases of Promises land must have NOTICE

BENEFIT
1. INTENT of parties
2. Some form of PRIVITY OF ESTATE may be required
3. Benefit must TOUGH & CONCERN land owned by the promisee
Equitable Servitudes
A covenant - whether or not running with the land at law - that EQUITY will enforce against assignees of the burdened land who have NOTICE of the covenant

Usually an INJUNCTION against violation of Covenant

Equitable Servitude will be IMPLIED no writing required

In most states no PRIVITY OF ESTATE is required

Must TOUCH & CONCERN land and have NOTICE (BFP)
Prima Facie Case for
Violation of Fair Housing Act
1. P is a member of a STATUTORILY PROTECTED CLASS
2. She applied for and was QUALIFIED to rent the designated dwellings
3. Was denied the opportunity to inspect or rent dwelling; and
4. Housing opportunity remained available for others

Shifts burden to Defendant to produce evidence that refusal to rent was by legitimate considerations
Types of Tenancies
1. TENANCY FOR YEARS - Fixed period with beginning and ending date (may be less that 1 yr)

2. PERIODIC TENANCY - Period to period (ie month to month) until notice of termination is given

3. TENANCY AT WILL - No state duration, continues until landlord or tenant desire an end

4. HOLD OVER TENANCY (OR TENANCY AT SUFFERANCE) Tenant remains after end of tenancy
Landlord Liability for Torts
Landlord not generally held liable for torts unless the tort is;
-Related to a CONCEALED DANGEROUS condition
-Common Areas
-Public Use; or
-Landlord has statutory or contracting duty to repair
Tenant's Duties
1. Tenant MUST PAY RENT
2. Tenant has a duty to NOT DAMAGE premises beyond FAIR, WEAR AND TEAR
3. Not to disturb other tenants

Tenant's duties may be INDEPENDENT of Landlord's duty
Differences between leases, licenses, and easements
Most likely a lease if:
1. Lease can be oral where an easement is subject to the statute of frauds and requires WRITTEN instrument
2. Only a tenant has POSSESSORY INTEREST in land and can thus bring a possessory action such as ejectment, trespass, or nuisance.

Holder of easement or license must bring a different kind of action
Landlord's Duties
In most Jurisdictions Landlord has a duty to;
-Deliver possession at beginning of the lease;
-Not to interfere with tenants QUITE AND ENJOYMENT
-To provide HABITABLE PREMISES (no duty at common law) modernly found via an express warranty, implied covenant, or statutory duty
RAP
Exception Class Gift
A gift to a class is NOT VESTED in a any member of the class until the interests of all its members are identified (Ascertained) and ALL CONDITION PRECENDENT have been satisfied
RAP
Validating Life
AKA - Measuring Life
Person in being when the future interest is created who enable you to prove the interest will vest or fail during that person's life, or at that person's death, or within 21 years after that person's death

Must be a person who can affect vesting of the interest (relevant life)
Remote Possibilities
under RAP
FERTILE OCTOGENARIAN - Law conclusively presumes that a person can have children so long as the person is alive. Evidence of age or that they have has a hysterectomy or vasectomy irrelevant.

UNBORN WIDOW - The law assumed that a person's surviving spouse may turn out to be a person not yet alive

SLOTHFUL EXECUTOR - Bequest to vest "when my estate is settled" or "my executor appointed" violates RAP because it may not happen for decades
Rule Against Perpetuities
(RAP)
No interest is good, unless it must vest, if at all, not later than 21 years after some life in being at the creation of the interest

Applies to FUTURE INTERESTS including both CONTINGENT REMAINDERS and EXECUTORY INTERESTS but NOT to vested remainders or future interests of grantor (ex- Reversion, right of reentry, possibility of reverter)

Whatever is left after striking out words is given affect as written

RELEVANT LIVES IN BEING - persons who can AFFECT VESTING of interest

An interest is VOID under RAP if by ANY POSSIBILITY, however remote, the interest might vest BEYOND PERPETUITIES PERIOD
RAP
Pre-Emptive Options
Gives the optionee the RIGHT OF FIRST REFUSAL if the owner desires to sell

If pre-emptive option can be exercised beyong the perpetuities period most courts hold it voidOption in tenant to renew lease or purchase property not subject to RAP because encourages improvement and increases marketability
CONDOMINIUM EXCEPTION - Association right to buy
RAP
Option Contracts
An option is void if it is possible to exercise the option more than 21 years after some life in being at its creation

Is comparable to a CONTINGENT FUTURE INTEREST

Reasoning: Options make land unimprovable and inalienable
Uniform Statutory Rule Against Perpetuities
(Options)
Adopted in about 1/2 of all states exempts OPTIONS form RAP

Options may endure forever unless subject to RULES AGAINST UNREASONABLE RESTRAINT ON ALIENATION
RAP
Cy Pres Doctrine
Cy Pres - French for "as near as possible"

Adopted in a handful of states

An invalid interest in REFORMED withing the limits of the rule, to approximate, most closely, the intention of the creator of the interest

Court can change contingencies or make other appropriate change to reform valid interest
RAP
Wait - and - See Doctrine
The validity of interests is judged by ACTUAL EVENTS as they happen, and not by possible events that might happen. Validity not determined at the time the interest is created

-Some state wait out the Common Law Perpetuities period
-Uniform Statutor RAP calls for waiting 90 years. If the contingent interest satisifes the what might happen test or actually vests it is valid

Competent Lawyer should draft doc that meets common law rule
Possibility of Reverter
(RE: RAP)
A possibility of reverter cannot be created in any transferee - neither a grantee in a deed nor devisee in a will
RAP
Charity to Charity
If there is a gift to charity A followed by a gift to Charity B of a specified event happens, the Executory Interest in Charity B is EXEMPT from RAP

Exception applies ONLY if both the possessory estate and the future interest are in charitable organizations

"Charities are favorites of the law"
RAP
Executory Interests
An Executory Interest following a determinable fee or divesting a fee simple vests only when the condition happens and it becomes a posessory estate
RAP
Marketable
Able to be SOLD
RAP
ALL OR NOTHING RULE
(Class Members)
If the gift tyo one member of a class might vest TOO REMOTELY the WHOLE CLASS gift is VOID
Short - Term Lease Exception
Common law - all leases must be in writing except a lease for THREE (3) YEARS OR LESS

MODERNLY BY STATUE - Reduces short term leases exception to 1 year

An oral lease for more than one year create only a tenancy at will

Some state have NO short term lease exception
Shifting Executory Interest
A future interest in a grantee that divests a preceding estate in another grantee prior to its natural termination

Shifts from 1 GRANTEE to another GRANTEE
Springing Executory Interest
A future interest in a grantee that SPRINGS OUT of the GRANTOR as a date subsequent to the granting of the interest, divesting the grantor

Springs for GRANTOR
Vested Remainder
A remainder that is both created in an ASCERTAINABLE person AND is NOT SUBJECT TO ANY CONDITION PRECEDENT
Contingent Remainder
A remainder that is EITHER created in an UNASCERTAINED person OR is SUBJECT to a CONDITION PRECEDENT
Vested Remainder Subject to Open
Vested in a CLASS or persons

"Open" - more people can be added to class. Shares not yet fixed

For purposes or RAP- grantees are considered unascertained and thus unvested until ALL possible members of class has been ascertained
Indefeasibly Vested Remainder
Holder of the remainder is CERTAIN TO ACQUIRE a possessory estate at some time in the future and entitled to retain permanently thereafter
Indefeasible
Cannot be canceled or made void
Vested Remainder
(Grady Definition)
A remainder is vested in A, when throughout its continuance, A or A and his heirs, have the right to immediate possession, whenever and however the preceding freehold estate may determine
Remainder
A future interest created in a grantee that is capable of becoming a present possessory estate on the expiration of a prior possessory estate created in the same conveyance which the remainder is created
Vested Remainder Subject to Divestment
Either:
1. Vested subject to being divested by the operation of a CONDITION SUBSEQUENT

2. Vested subject to divestment by an INHERENT LIMITATION of the estate in remainder
3 Types of Vested Remainders
1. Indefeasible Vested Remainder

2. Vested Remainder Subject to Open

3. Vested Remainder Subject to Divestment (Complete Defeasement)
Remainders Contingent vs Vested
CONTINGENT
- Created in an UNASCERTAINED person; or
- Subject to CONDITION PRECEDENT expressed in the instrument

VESTED
- Created in an ASCERTAINED person; AND
- NOT SUBJECT to CONDITION PRECEDENT
Surplusage
Language that merely refers to the termination of the preceding estate (does not create a condition precedent)
Destruction of Contingent Remainders
Contingent Remainders are destroyed is not vester at time of termination of preceding estate
Example - "To A for life, remainder to A's children who reach 21" Result - Property reverts back to grantor is A has no children who are at least 21 at time of her death

MODERN RESULT
Property reverts to GRANTOR; A's children have indestructible contingent remainder or an Executory Interest

Abolished in most states
Rules Restricting Remainders
Destructability of Contingent Remainders
- Rule in SHELLEY'S CASE
- Doctrine of WORTHIER TITLE
Have been abolished in most states
PRIMOGENITURE
Doctrine that "heir" refers to the FIRST BORN thus can only have 1 heir No such thing as "HEIRS"
Doctrine of Merger
A life estate in A or a remainder in A will merge unless:
1 There is an intervening estate; OR
2. The remainder in A is subject to condition precedent to which his life estate is not subject
Rule in Shelley's Case
If ONE INSTRUMENT CREATES A FREEHOLD in land in A, and PURPORTS TO CREATE A REMAINDER in A's heirs and THE ESTATES ARE BOTH legal or BOTH equitable then the remainder becomes a remainders in fee simple in A

Rule has been abolished in most states
Co-Tenant Duties
Natural Resources
A co-tenant is accountable for profits derived from a use of land that permanently reduces its value
MINERALS - Co-tenant must pay a proportionate part of the net amount received to her co-tenants

FARMING - Fair rental value not profits

TIMBER - Some courts can only cut own share. Other courts must have consent to cut at all
Tenancy in Common
No right of survivorship - upon death to heirs and devisees

A form of concurrent ownership wherein each co-tenant is the owner of a separate and distinct shar eof the property. Each owner has a separate and undivided interest in the whole

Same type of estate not necessary

Fully Inalienable
Each tenant has the common right to possess and enjoy the entire property

Equal Shares not necessary
Presumption of Tenancy in Common
MODERNLY: Whenever a conveyance is made to 2 or more person who are not spouses, they are PRESUMED to take as tenants in common and not as joint tenants

Presumption can be overcome by evidence that a joint tenancy was intended
Approach to Concurrent Ownership
Types of concurrent Interest
Rights and duties of co-tenants
Forms of Concurrent Ownership
Tenancy in Common - 2 or more persons own the property with NO right of survivorship between then; when 1 tenant in common dies, her interest passes to heirs or devisees

JOINT TENANCY - 2 or more person own the property with a right of survivorship. When 1 joint tenant dies the survivor(s) takes all 4 Unities (PITT)

TENANCY BY ENTIRETY - Exists only between spouses with right of survivorship that cant be severed without consent of both spouses
4 Unities
POSSESSION - Each joint tenant must have right to possession of whole

INTERESTS - Must be equal in an estate of one duration

TITLE - All joint tenants must acquire title by same deed or will or by joint adverse possession

TIME - Interest of each joint tenant must vest at the same time
Joint Tenancy
A form of concurrent ownership where in each co-tenant owns an undivided share or property and the surviving co-tenant has the right to the whole world (Real or Personal)

Can be created by deed or will or joint adverse possession (not by intestate succession)

4 Unities - Possession, Interest, Time, and Title
Creation of Joint Tenancy
COMMON LAW - PRESUMED that any conveyance or devise to 2 or more persons (other than husband and wife) created Joint Tenancy

Husband and wife presumes to take as tenants by entirety

MODERNLY - Common Law abolised new Tenants in COmmon as to Husband and wife

EXECUTORS AND TRUSTEES - Joint Tenants
MESNE PROFITS
Reasonable value of the USE of the land, not the profits actually made

An ousted co-tenant can sue for Mesnes Profits
Ouster
In a jurisdiction following the majority rule: if 1 co-tenant ousts another co-tenant, she must PAY the ousted co-tenant his share of the reasonable rental value of the property

Ouster - an act by 1 co-tenant that deprives another co-tenant of the right to POSSESSION
Possession by 1 Co-Tenant
1 Parties may agree among themselves
2. Accounting for reasonable rental value by possessor may:
Majority = If not ousted by A, A is entitled to use and occupy every part of the property without paying any amount to B. Recovery by B is ousted A agreed to pay B or fiduciary relationship to B A must bear the ordinary expenses of upkeep

Min: A must account to B for B's share of proper net reaSonable rental value minus expense or upkeep
Accounting for rents received from 3rd party
Any rents or other income collected by a co-tenant from a 3rd party must be shared equally with the other co-tenant if the income exceeds the collecting co-tenants proportionate share

Collecting Co-tenant must account for the net amount received not for the reasonable rental value of property bring suit for accounting or wait and demand in partition act
Spendthift Trusts
Trust in which settlor imposes a valid restraint on alienation, providing that the beneficiary cannot transfer his interest voluntarily and that his creditors cannot reach it for satisfaction of their claims (Applies to equitable interests)

(Most states) - may be reached by spouse and children in some states

Cannot make a self settled spendthrift trust
Constructive Trusts
In property cases a court may impose a constructive trust on party to hold property to which he has legal title for the benefit of another person

Judicial remedy to prevent fraude or unjust enrichment
Undivided Loyalty (Trusts)
Trustee owes beneficiaries UNDIVIDED LOYALTY

Trustee must reap NO personal advantage and must not put himself in a possible conflict of interest

Cannot BORROW trust funds or buy trust assets

Self Dealing in any form is absolutely prohibited (Good faith or actual benefit irrelevant
Prudent Investor Rule
(Trusts)
Duty of making trust property PRODUCTIVE
-Duty to invest in prudent fashion
-Receive a reasonable return of income

Investing trust assets, trustee must exercise that degree of care, skill, and prudence as would be exercised by a reasonably prudent person in managing her own property

In most states MUST DIVERSIFY ("Imprudent to keep all eggs in one basket")
RAP
What -Might- Happen- Is Test
If there is ANY POSSIBILITY that a contingent interest will vest too remotely the contingent interest if void for the outset
(Common Law)
Trustee
Any person w/legal capacity (Settlor, Beneficiary, or 3rd party) - entitled to fees for managing property (fee can be waived)

POWERS - To manage property in same manners as an intelligent person would manage her own property

DUTIES - Highest standards of conduct If breached personally liable
- PRUDENT INVESTOR RULE - applicable
- UNDIVIDED LOYALTY - owed to beneficiary
Trust
A fiduciary relationship with respect to property in which one person, the trustee, holds the LEGAL TITLE to property subject to EQUITABLE RIGHTS in BENEFICIARIES

Created by written instrument, naming the trustee, specifying rights of the life beneficiaries and the remaindermen, setting forth powers of trustee.

Must also deliver property for trustee to manage

Settlor - one who makes the trust
Easement Appurtenant
Involves 2 adjacent lands where one is being used to the benefit of the other

Compare to easements in GROSS
USE Variance
Permits a use prohibuted in the district if considered destructive of the master plan than BULK variance

In some state use variance cannot be granted by BOARD OF ADJUSTMENT of is held to higher standard of proof of no reasonable harm
Trespass
Actionable invasion of a possessors interest in EXCLUSIVE POSSESSION OF LAND

Standard for Relief
An INTENTIONAL or NEGLIGENT unprivileged PHYSICAL INTRUSION

Remedy
Damages for past conduct and injunction against future trespass
Nuisance
Actionable invasion of possessors interest in the USE AND ENJOYMENT of land

Standard for Relief
INTENTIONAL, RECKLESS, NEGLIGENT, OR ABNORMALLY DANGEROUS CONDUCT: Unreasoable interference and substantial injury

Remedy
Damages for past conduct or permanent damages for future conduct or injunction
Intentional Nuisance
Any intentional invasion of an interest in the priate use and enjoyment of land is UNREASONABLE and there fore a nuisance if the GRAVITY OF THE HARM outweighs the UTILITY OF THE ACTOR'S CONDUCT. (If harm is not serious and D can AFFORD TO PAY may still be a nuisance)

Must continue over time and BE KNOWN to interfere w/enjoyment of land
Nuisance
Gravity of Harm - Factors to be considered
1. Extent of Harm
2. Character of Harm
3. Social Value of Use and Enjoyment
4. Suitability to locality
5. Burden of avoiding harm
Nuisance
Utility of Conduct
1. Social Value of Conduct
2. Suitability for locality
3 Impracticability of avoiding
Nuisance Damages
Damages for past conduct, permanent damages for future conduct or injunction
Nuisance
Types of Unreasonable Interference
1. Character of the Harm: Depreciation, discomfort, or fear of harm
2. Character of the neighborhood
3.Social Value of conflicting uses
4 Priority in Time - "Come to the nuisance"
Public Nuisance
Widespread in its range or indiscriminate in its effects

SUBSTANTIAL HARM caused by INTENTIONAL and UNREASONABLE conduct or by condct that is negliglent or abnormally dangerous

Usuaul enforced by Attorney General

Private individual may sue for Public Nuisance if:
1. Nuisance is SPECIFICALLY INJURIOUS to her and
2. Damage is of a DIFFERENT KIND
Special Injury gives STANDING to suit
Condomuniums
INDIVIDUAL OWNERSHIP (in feed simple) of individual unites organized w/common areas (tenants in common) w/ mutual rights and obligation

Easement - For support and entrance. No right to partition

Covenant - To pay fee to Association equivalent to Proportionate Interest in Common Areas

Tort Liability equal to proportional interest

Created by declaration of Condominum or Master Deed
-All owners are member of association
-Managed by members or professional manager
Rules of conduct must be REASONABLE original rules presumptively valid

Restraint on alienation must be REASONABLE means of accomplishing valid objective
Right to Support of Land
Lateral Support - from adjacent land
Subajacent Support - From underlying strata

Lateral Support - STRICTLY LIABLE if one changes his land so as to withdraw support from her neighboer and cause neighbor's land to slip or fall

SUBJACENT SUPPORT - when mineral rights are severed
1. Mineral owners must support the land with buildings existing when rights are severed
2. Damages to SPRINGS AND WELL but not water sources of neighbors
Right to Lateral Support
Support land recieves from adjacent land

Landowner is STRICTLY LIABLE if change land use so as to withdraw lateral support from neighbor and cause neighbors land to slip or fall

No defense that acted with utmost care and not negligently

Retaining Walls - If builds a retaining wall to support the adjoining parcel, she and her successors in interest have the duty thereafter to MAINTAIN THE WALL

Support of buildings
Majority - Land only
Minority View - Buildings and land
Water - liable to damages to springs and wells but not neighbors
Inverse Condemnation
An action brought by an owner against a governmental body having the power of eminent domain

Purpose is to receive the value of property that in effect has been taken by government, although no formal exercise of the power of Eminent Domain has occurred

Can apply only to government unites may be an EASEMENT
AIRSPACE NUISANCE
SUBSTANTIAL INTERFERENCE that is unreasonable as measured by the sensibilities of an average person

- If overflights interfere with an uncommon or ultrasensitive use of land (e.g. Milk farming) they might not be actionable
Solar Enjoyment
(Nuisance)
Courts Split

Solar Panels Upheld

Swimming Pool and garden not upheld
Private Nuisance
Conduct that causes SUBSTANTIAL INTERFERENCE with the private use of land and it either:
1. INTENTIONAL AND UNREASONABLE; OR
2. UNINTENTIONAL BUT NEGLIGENT (reckless or resulting from an abnormally dangerous activity)

- Must have a PROPERTY INTEREST that is affected; or
- Allege bodily harm as a result of activities complained of


ECONOMIC ANALYSIS key consideration of Nuisance
Reciprocal Negatives Servitudes
Not applicable in CA

Similar to a reciprocal negative easement

Reciprocal - similar convenant binds other lots
Negative (Restrictive) - Forbidding some use of land easement - an interest in land
Profit
Right to take part of the land or a PRODUCT of the land of another (Examples: Timber, sand, rocks, water, fruit)

WRITING REQUIRED
Termination: (Same as easement)
-Express Terms
-Unity of Title
-Release
-Abandonment
-Alteration of Dominant Tenemant
-Prescription
-Change of Condition
License
PERMISSION to go on another's land

Examples: Electrician, Party Guest, Plumber

Writing NOT REQUIRED
Note: An INVALID ORAL EASEMENT is a license

Termination - Usually revocable at will. May be irrevocable if couple with an interest or if lisensor estopped by licensee expenditures
Real Covenant
Promise to do or not do something on the land or related to the land

Example: D convery as adjoining parcel to A, A promises not to build a swimming pool on the property

Writing required: Exception Implied from General Plan

Termination
-Merger
-Estoppel
-Hardship
-Change of Conditions
-Abandonment
-Eminent Domain

May be entitled to damages at law (Legal)
Termination of Covenants and Servitudes
1 Merger - when title to land benefited and title to land burdened come into hands of same person - Merge to Fee Simple

2. Equitable Defenses to Enforcement - Estoppel, Change of Condition in neighborhood, relative hardship (May still be entitled to damages by law (legal))

3. Abandonment
4. Eminent Domain - Gov Must pay for lost benefit as well. Generally calculated as value with benefits minus value without benefit
Unintentional Act Giving RIse to Nuisance
When the conduct in question is reckless or negligent or involves or involves ABNORMALLY DANGEROUS activities

Very uncommon - Example Storage of Dangerous
Nuisance Per Se
An activity that is a nuisance no matter how reasonable the D's conduct
Nuisance in Fact
An activity that in unreasonable under particular facts
Rights in Airspace
Noisy flights as INVERSE CONDEMNATION
- Gov body must be sued
- Neighboring Landowners may not have right few courts have permitted that NOISE constitutes a PHYSICAL INVASION (Maybe an Easement)

Noisy Flight as a NUISANCE
1. Injunction not availabnle
2. Neighbor landowner may receive
3. Nongovernmental D permitted
About ENJOYMENT AND USE
Cooperatives
A corporation holds legal title to an apartment building. Shares of stock are sold to the persons who will occupy the apartments; the amount of stick required to live in the building depends on the value of the unit.

Occupants recieve leases long term or short, renewable terms, both tenants and owners of the corporation.

Occupants liable for mortgage payments
Preemptive options often upheal
May term lease if tenant fails to pay or violates rules of conduct
Equitable Servitude
A convenant - whether or not it runs with the land at law - that EQUITY will enforce against assignees of the burdened who have notice of Covenant.
Negative Covenant - Not to do something (Burden)
Affirmative Covenant - To do something
1. Must be in writing (Except Negative Servitude implied from general plan)
2. Assignee must have NOTICE of covenant
3. Must TOUCH AND CONCERN (modernly REASONABLESNESS)
If an affirmative convenant imposes a substantial burden on property which recieves no benefit from it and fetters the land in perpetuity. A court may find it does not TOUCH AND CONCERN
Equiatble Servitudes
Burdens Rationale
(Covenant w/ Benefit in Gross)
Rationale:
1. Where a burden DEVALUES land, public policy requires an accompany benefit to other land, resulting in a net increase in land value
2. Where the benefit is in gross, finding the owner or owners to but them out is more difficult than when the benefit is in the owner of the neighboring land
Easement
A grant of an intent in land that allows someone to use another's land

Writing generally required except by: Implication, Necessity, and Prescription

Termination by
-Express terms
-Unity of Title (merger)
-Release
Abandonment
-Altercation of Dominant Tenemant
-Prescription
-Change of Conditions
Challenges to Zoning Ordinance
Ultra Vies - Ordinance is beyond the authority of zoning body and therefore void. Look enabling act

Federal Due Process
-Procedural - Notice and Opportunity to be heard
-Substantive - Rational Relationship to permissable state objective

State Due Process (Substantantive) - more than Fed Law
Fed Equal Protection - Zoning has purpose or inent to discern
Fed Takings Clause - Property taken without JUST COMPENSATION
Federal Due Process (Procedural)
Federal Due Process
(Procedural)
An argument that the zoning ordinadance was improperly adopted. If the zoning action was administrative affecting only one, or in some states a few parcels of land, the landowner must be NOTIFIED and given an OPPORTUNITY to BE HEARD
Ultra Vires
An argument that the zoning ordinances if beyond the authority of the zoning body and therefore void.

Must look to ENABLING ACTY adopted by state: states may delegate this aspect of their police power
Fed Due Process
(Substantive)
An argument that the ordinance is not reasonable and so is invalid

Unless a fundamental right is involved (an it seldom is) the zoning action need only bear a RATIONAL RELATIONSHIP TO A PERMISSIBLE STATE OBJECTIVE, such as health, safety, and welfare concerns

Almost every zoning action will ass this standard
State Due Process
(substantive)
Similar to Fed Due Process, but may states required MORE than is required under Federal Law and might find a rational ordinance unreasonabnle
Federal Equal Protection
An argument that the zoning action has the purpose or intent to DISCIMINATE

Most zoning actions will be tested under the reational relationship test and will be upheld

Discriminatory RESULT not enough
Federal Takings Clause
An argument that the zoning action has TAKEN property without JUST COMPENSATION

Most zoning actions will not constitue a taking

1. It has no RATIONAL RELATIONSHIP to a permissable state objective
2. Operates by reference to a SUSPECT CLASS and cannot be justified by a COMPELLING STATE INTEREST
Zoning Hierarchy of Uses
Single Fam Housing
2 fam housing
Multi Fam Housing
Commercial Use
Light Industrial Use
Heavy Industrial Use
Source of Zoning Power
ENABLING ACT
Zoning ordainances usually enacted by a city of a county to apply to land within its total jurisdiction - state legislature is SOVERIEGN.
All zoning ordinances must confirm to ENABLING ACT unless its ULTRA VIRES and therefore is VOID
Legislature may delegate poer to an administrative body only if it lay down standards to govern the exercise of power.

Delegation without standards is improper
Ultra Vires
Beyond the authority of the governing body
Variance
Enabling act provides for a BOARD OF ADJUSTMENT:
1 Must prove that restrictions cause the owner PRACTICAL DIFFICULTY or UNECESSARY HARDSHIP
2 Runs with the land to successive owners
3 Applicant may need to meet certain condition

Distinguish BULK for USE variance
Bulk more likely to be approved
Administration of Zoning Ordinance
ENABLING ACT requires that zoning ordinance be made in accordance with a COMPREHENSIVE PLAN
Plan does not become legal untuil made an ordinance
Zoning ordinances without plans usually ok
AMENDMENTS to plan generally presumed VALID
-Most show strong evidence of MISTAKE or SUBSTANTIAL CHANGE in condition
-Show Public NEED best served by chaning this parcal not that
Variances - Enabling acts provide for a BOARD of ADJUSTMENT
-Restrictions cause owner PRACTICAL DIFFICULTY or UNNECESSARY HARDSHIP
-Distinguish BULK from USE
Zoning Ordinance Special Exception
Allowable where certain condictions are met

Theory that certain uses can peacefully coexist

Ex - Zoning ordinance specifies that a nursery school is permitted in a residential district is adequate off street parking is product and no more than 30 students are enrolled
Non Euclidean Zoning
Contract Zoning
Density Zoning
Floating Zones
Planned Unit Development
By Referendum
Contract Zoning
(Non Euclidean Zoning)
City agrees to zone a particular tract of owner CONTRACTS to restrict the use in a certain way

Eg City will rezone for light industrial if owner erects a buffer zone
Density Zoning
(Non Euclidean Zoning)
Ordinance focuses on overall density of an area rather than having lot size restrictions

Eg - Small lots permitted, but more land is set aside for parks
Floating Zones
(Non Euclidean Zoning)
Zoning ordinance establishes a zone (eg light industrial) but does not assign it to a particular location intil a landowner requests reclassification to the zone
Planned Unit Development
Owner of a large tract of land is allowed to mix uses as long as overall density limits are not exceeded
By Referendum
Rejoining (usually for multifamily dwellings) IS ALLOWED only by public referendum (vote)
Adult Entertainment
(Zoning)
Upheal as serving a SUBSTANTIAL GOVERNMENT INTEREST (abatement of Crime) while allowing REASONABLE ALTERNATIVES for places of adult entertainment (OUTSKIRTS)

Some content of speech issues may arise
Zoning of Religious Establishments
Religious land use and Institutional Persons Act (RLUIPA)
Prohibits the following:
1 Land use regs that impose substantial burdens on religions exercise unless government demonstrates a COMPELLING state interest through LEAST RESTRICTIVE MEANS
2UNEQUAL treatment relative to non religious institutions
3. Total exclusing of religious instritution from Jx

No decisive determination tyo date
Zoning for Advertising Signs
May be prohinited in residential areas where they might be harful to the quiet and tranquility sought

POLITICAL ADS - Enjoy substantial 1st amendment freedon but still relatively undecided

CONTENT NUETRAL issues may arise
Zoning for Aesthetics
Old Doctrine - Zoning scheme dealt w/ NUISANCE (Sight not actionable be not substantial or tangible
NEW DOCTRINE - Prohibited use offends the sensibilities of the AVERAGE PERSON and tehnds to DEPRESS PROPERTY VALUES

Architectural Review Boards to determined if new buildings "comforn to the existing character of th eneighborhood and not cause a substantial depreciation in neighboring property valies" even when not necessarily UNIFORM neighborhood
Purposes of Zoning
1. Aethetics
2 Advertising Signs - Political Ok Commercial More Scrutiny
3 ADULT ENTERTAINAINMENT - Affords 1st amenment protetion by susbtsantial gov interest and reasonanle alternatives to mitigate crime
4 Religious Establishments - 1st amendment protection
5 PRESERVATION - Historic Districts Ok Individual Landmarks - taking Open Space - Ok Not total taking though of little Economic Value