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86 Cards in this Set

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Restrictive Covenants: Types

(1) covenant at law




(2) equitable Servitude

Distinction--Covenants at Law vs. Equitable Servitudes

Exact same, except how to enforce:




(1) CAL = enforced at law (allows money damages)




(2) ES = enforced in equity (allows injunction)

Mnemonic--4 Requirements to Enforce Covenant at Law




(i.e., for covenant to run with land)

INTP

INTP (Covenant at Law)

I: Intent that covenant run with land




N: Notice to party to be charged *




T: Covenant must touch and concern land




P: Privity






*DANE: Notice only required for burden to run

Privity Requirement for Covenant to Run

always need vertical privity, but only need horizontal privity in order for burden to run against successor-in-interest.

Horizontal Privity--Definition

at time of creation, original parties to covenant shared some mutual interest in land



Vertical Privity--Definition

successor-in-interest must take entire estate from original party

Privity Summary

Depends which party successor-in-interest is:




(1) plaintiff = benefit must run (only need vertical privity)




(2) defendant = burden must run (need both horizontal and vertical privity)

Mnemonic--4 Requirements to Enforce an Equitable Servitude

INT...no P

INT...no P




(equitable servitudes)

Intent, notice, touch and concern...no privity

Three Types of Notice

A: Actual




I: Inquiry




R: Record

Actual Notice

Literal knowledge

Inquiry Notice

constructive notice as to what reasonable inspection of property would have revealed

Record Notice

constructive notice as to what is revealed in direct chain of title

Equitable Servitudes: Defenses to Enforcement




Mnemonic:

A-CLUE

Equitable Servitudes: Defenses to Enforcement (A-CLUE)

A: acquiescence in violation of servitude by another burdened party;




C: changed conditions: neighborhood changed so significantly that enforcement inequitable.




L: laches: failure to sue in reasonable time




U: unclean hands: person seeking enforcement is violating similar restriction on own land;




E: estoppel: party acted such that reasonable person thinks covenant abandoned or waived;



Covenant at Law: Definition

written promise to do (or not do) something on land, which runs with land at law

Covenants at Law: Termination

(1) written release




(2) merger of benefitted and burdened estates




(3) condemnation of burdened property

Equitable Servitudes: Definition

promise, usually in written, to do or not do something on land, which equity will enforce

Equitable Servitudes: Creation

writing generally required to satisfy SOF, except negative equitable servitudes may be implied from common scheme for development of residential subdivision

Equitable Servitudes: Termination

(1) written release




(2) merger of benefitted and burdened estates




(3) condemnation of burdened property

Mnemonic--6 Elements of Adverse Possession

CHEASO

CHEASO (6 elements of adverse possession)

C: Continuous (uninterrupted)




H: Hostile (adverse)




E: Exclusive




A: Actual




S: Statutory period




O: Open and notorious (visible)

Continuous Possession

Uninterrupted possession such that usual owner would make throughout statutory period




EXCEPTION: Tacking

Hostile (Adverse) Possession

Being on property with no right to be there.

Exclusive Possession

Not sharing property with true owner or public.

Actual Possession--Definition

generally, must actually possess land




*two exceptions

Open and Notorious (visible) Possession

Kind of use that usual owner would make AND sufficiently apparent to put true owner on notice.

Actual Possession--Two Exceptions

(1) Constructive AP




(2) Leasing land to someone else qualifies as possession for AP purposes

Adverse Possession--Statutory Period

Common law = 20 years




Michigan = 15 years

Constructive Adverse Possession

Adverse possessor who (i) actually occupies part of parcel (ii) under color of title to entire parcel gets title to entire parcel IF:




(1) amount actually possessed bears reasonable relation to whole (not just small part); and




(2) parcel is unitary--i.e., seamless whole



Color of Title--Definition

document that purports to give title but does not actually do so.




(aka "bad title")

Is adverse possession against co-tenants possible?

Yes, but only if possessor excludes other co-tenant(s) from possession.




(e.g., ouster or explicit declaration of exclusive dominion)

Is adverse possession against future interest holder possible?

Yes, but not until interest becomes possessory




(e.g., FI possessory when life estate ends (life tenant dies))

Adverse Possession--When does clock start to run?




(1) Co-tenant (concurrent owners):




(2) Life estate FI holder:




(3) FSD FI holder:




(4) FSSCS FI holder:



(1) at time of exclusion--not mere absence of co-tenant




(2) when life estate ends--i.e., life tenant dies




(3) when condition occurs--reversion to grantor automatic




(4) when grantor exercises right of entry--not merely when condition occurs

Does clock stop if true owner is disabled?

Yes, BUT:




(1) Only if disability existed when AP starts, AND




(2) Only until owner free of that disability--i.e., no tacking of later disabilities

Is adverse possession of government land possible?

No

Is "tacking" of periods permissible?




(1) Periods of adverse possession:




(2) Periods of true ownership:

(1) Yes, but periods must pass directly from one adverse possessor to another--no gaps.




(2) Yes.

Right to Support of Land--Definition

Landowner has right to: (1) lateral and (2) subjacent support of land.

Lateral Support--COA

adjoining landowner strictly liable for failure to support adjoining land,




*including damage to buildings on land if land would have collapsed in natural state (i.e., without buildings on land)

Subjacent Support--COA

Subjacent (underground) estate (e.g., mineral rights holder) strictly liable for failure to support surface of land,




...including damage to buildings on surface if existed when subjacent estate created

Water Rights: Streams, Rivers, and Lakes




Two separate legal systems:

(1) riparian doctrine (majority)




(2) prior appropriation doctrine (minority)

Riparian Doctrine

(1) water belongs to those who own land bordering watercourse (riparians)




(2) riparians share right of reasonable use of water--e.g., must not be unduly exploitive or commit waste

Prior Appropriation Doctrine

Initially, water belongs to state, but anyone can acquire right to use water by putting to some beneficial or productive use




Right to use based on priority--first in time, first in right--and is protected from those who come later, as long use continues

Statute of Frauds: K for Sale of Land




Requirements:

(1) in writing;




(2) signed by party to be charged; and




(3) contains essential terms: parties, description of land, price.

Easements: Creation (Methods)

(1) express grant or reservation




(2) implication




(3) prescription

Easements: Statute of Frauds

express easements typically subject to SOF (must be in writing and signed by holder of servient tenement), whereas easements by implication and prescription do not

Easements: Implication




Two types:

(1) easement implied from existing use




(2) easement by necessity

Easements: Implied from Existing Use (elements)

(1) apparent and continuous use;




(2) occurred prior to division of single tract;




(3) reasonably necessary for enjoyment; and




(4) parties intended use to continue after division of land.

Easements: Termination (Ways)

(1) stated conditions




(2) unity of ownership (merger)




(3) written release




(4) abandonment (=intent + physical action)




(5) estoppel




(6) prescription (=interrupt use for stat'y period)




(7) end of necessity




(8) condemnation

Profits: Termination (Ways)

(1) same as easements; AND


(2) surcharge

Profits: Surcharge

misuse that overly burdens servient estate

Deeds: Formalities

(1) in writing




(2) signed by grantor




(3) reasonably identifies parties and land

General Warranty Deed: Covenants

(1) covenant of seisin




(2) covenant of right to convey




(3) covenant against encumbrances




(4) covenant for quiet enjoyment




(5) covenant of warranty




(6) covenant for further assurances

covenant of seisin

grantor covenants that he has estate he purports to convey




*requires title and possession at time of grant

covenant of right to convey

grantor covenants that he has authority to make grant




*requires title

covenant against encumbrances

grantor covenants against existence of physical or title encumbrances

covenant of quiet enjoyment

grantor covenants that grantee will not be disturbed in possession by third party's lawful claim of title

covenant of warranty

grantor agrees to:




(1) defend against reasonable claims of title by third party; and




(2) compensate grantee for any loss sustained by claim of superior title.

covenant for further assurances

grantor promises to perform acts reasonably necessary to perfect title conveyed.

Statutory Special Warranty Deed: Definition

arises if type of deed not specified, and creates two limited assurances by implication:




(1) grantor has not conveyed same estate or any interest therein to anyone else; and




(2) estate free from encumbrances made by grantor

quitclaim deed

gives whatever interest grantor has

Foreclosure: Redemption in Equity

at any time prior to foreclosure sale, mortgagor may redeem property by paying amount due

Riparian Doctrine

water belongs to those who own land bordering watercourse

Prior Appropriation Doctrine

individuals acquire rights by priority of actual beneficial use

Surface Waters: Capture

landowner can use for any purpose

Surface Waters: Diversion




Natural Flow Theory:

owners cannot alter natural drainage patterns

Surface Waters: Diversion




Common Enemy Theory:

owners can take protective measures to get rid of surface water

Surface Waters: Diversion




Reasonable Use Theory:

balances utility of use vs. gravity of harm

Takings Clause: Zoning Regulations




General rule:

(1) if results in deprivation of all economically viable use of land, regulation amounts to taking




(2) if results in deprivation of nearly all economic value, court applies balancing test to determine whether taking occurred

Takings Clause: Zoning Regulations




Denial of nearly all economic value--Balancing Test:

To determine if there was a taking, court will balance:




(1) social goals of regulation;




(2) diminution in value of property; and




(3) whether regulation substantially interferes with distinct, investment-backed expectations of owner.

Exactions: Definition

gov't demands something from landowner in exchange for zoning approval for new project

Exactions: Constitutionality

unconstitutional unless gov't proves:




(1) essential nexus--i.e., rationally connected to additional burden project will place on public facilities or rights




(2) rough proportionality--reasonably related in nature and extent to impact of proposed development

Lien Theory vs. Title Theory: Which does Michigan follow?

lien theory

MI Statute of Limitations Periods




(1) easement by prescription:




(2) adverse possession:

(1) adverse use for 15 years




(2) adverse possession for 15 years*




*Exceptions: if entered under color of title by:


(1) tax deed = 10 years


(2) court decree = 5 years

MI Doctrine of Equitable Conversion: Risk of Loss

MI has adopted the Uniform Vendor and Purchaser Risk Act:




--> risk of loss on seller

Deeds: Formalities




Michigan:

(1) executed in presence of two witnesses, who both sign deed; and




(2) acknowledged before any judge, clerk, or notary public.

Estoppel by Deed




Michigan refers to doctrine as:

doctrine of after acquired title

Michigan Recording Act (Type)

race-notice

MI Marketable Title Act: Search Cut-off Date

40-year unbroken chain of title of record to interest in land = deemed to have marketable record title




Exception: not applicable if land in hostile possession of another

MI Inquiry Notice (Constructive Notice)




Test:

whether person has knowledge of such facts that would lead any honest man, using ordinary care, to make further inquiries regarding possible rights of another in real estate

MI Transfer of Mortgage Without Note

transfer of mortgage without accompanying note = void

Foreclosure: Michigan




Michigan provides for foreclosure by:

(1) advertisement; and




(2) action of circuit court.

MI Statutory Redemption: Time

(1) foreclosure by action = 6 months from time of sale




(2) foreclosure by advertisement = 1-12 months, depending on type of property mortgaged

MI Foreclosure: Deficiency Judgments (Procedure)




(1) foreclosure by action:




(2) foreclosure by advertisement:

(1) issued by court clerk on application of P's attorney, without notice to D or D's attorney




(2) requires subsequent adjudication to determine personal liability on debt

MI Equity of Redemption: Installment Land Contracts

foreclosure action dismissed if D pays principal and interest, with costs, before judgment of sale