Chapter 12: Servitudes: Real Covenants and Equitable Servitudes Flashcards

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1
Q

Implied Reciprocal Negative Easement
-Can Baker filed suit against Abel for Abel’s hanging the flag upside down, in violation of the restriction in the first ten parcel, because an implied reciprocal negative easement was created that binds Baker?

A

-An implied reciprocal negative easement arises when a common grantor conveys a parcel with restrictions and, by so conveying, the remaining lots retained by the common grantor are similarly and reciprocally bound.

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2
Q

Burden of the Covenant Running at Law
-Does the burden of the covenant run with the land at law (money damages are sought; a traditional remedy at law) to Abel?

A

-For the burden of the covenant to run with the land at law, the Statute of Frauds generally must be satisfied between the original parties; the original parties must have intended successors to the promisor to be bound; the promise must touch and concern the burdened land; horizontal privity must be satisfied; and vertical privity must be satisfied.

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3
Q

Burden of the Covenant Running at Law: Statute of Frauds
Were the original parties bound when Otto conveyed the first lot to the first purchaser (Mr. 1) with a restriction in Mr. 1’s deed but no express restriction in the lots retained by Otto?

A

-For the original parties (Otto and Mr. 1) to be bound, there must be compliance with the Statute of Frauds. For successors to be bound, there also must be compliance with the Statute of Frauds where applicable, and the implied reciprocal negative easement satisfied this requirement where recognized.

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4
Q

Burden of the Covenant Running at Law: Intent
-Assuming that the original parties were bound, did the original parties intend successors to be bound by the promise in Mr. 1’s deed and the lots remaining in Otto?

A

-For the parties to have intended successors to the promisor to be bound, no magic words such as “heirs and assigns” are necessary; rather, we look to the totality of the circumstances.

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5
Q

Burden of the Covenant Running at Law: Touch and Concern

-Did the covenant to not engage in unpatriotic acts touch and concern Abel’s land?

A

-A promise touches and concerns the land when it relates to the land. A promise relates to the land when it either reduces the landowner’s rights to the land or reduces the value of the land.

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6
Q

Burden of the Covenant Running at law: Horizontal Privity
Assuming that the covenant touched and concerned Abel’s land, does horizontal privity exist when Otto conveyed originally to Mr 1?

A

-Horizontal privity is either a landlord-tenant relationship; a simultaneous relationship; or a grantor-grantee relationship.

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7
Q

Notice: Record
-In this notice jurisdiction, is Abel bound by the covenant because he has record notice of the deed with the express restriction to Mr. 1, which was delivered from a common grantor, Otto?

A

-In a notice statute, the subsequent purchaser takes without being burdened by the restriction if he does not have notice. Notice can be actual or constructive: record or inquiry. Record notice is a type of constructive notice and is the notice obtained from the public records. In some jurisdictions, a deed out from a common grantor imparts notice.

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8
Q

Notice: Inquiry

-Did Abel have inquiry notice of the restriction when no one else in the subdivision engaged in anti-patriotic conduct?

A

-Inquiry notice arises when one is apprised of facts that would lead a reasonable person to investigate further; the investigation can include an interrogation of those in possession of the property.

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9
Q

Violation of Public Policy
-Is the covenant that prohibits unpatriotic acts unenforceable because it is in violation of public policy or a fundamental right?

A

-Restrictions in a subdivision are valid unless unreasonable. Restrictions are unreasonable when they are arbitrary, violate public policy, or impose a burden on the land that outweighs any benefits.

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10
Q

Burden of the Covenant Running at Law
-Does the burden of the promise by Ted to pay $100 per month health club fee run with the land to TJ, who took over Ted’s lease?

A

-For the burden of the covenant to run with the land at law, the Statute of Frauds generally must be satisfied between the original parties; the original parties must have intended successors to the promisor to be bound; the promise must touch and concern the land; horizontal privity must be satisfied; and vertical privity must be satisfied.

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11
Q

Burden of the Covenant Running at Law: Statute of Frauds: Signature Requirement
-Did Ted’s signing his first name only satisfy the signature requirement of the Statute of Frauds?

A

-For the burden of the covenant to run, the original promise must be bound, pursuant to the Statute of Frauds. The statute requires, among other matters, that the writing be signed by the party to be charged. The element in dispute is “signed.”

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12
Q

Burden of the Covenant Running at Law: Statute of Frauds: Part Performance
-Assuming that Ted’s signing only his first name did not comport with the signature requirements of the Statute of Frauds, could part performance be used to take the lease out of the Statute of Frauds?

A

-Even in the absence of compliance with the Statute of Frauds, the doctrine of part performance will satisfy the evidentiary requirements of the statute. Part performance requires possession + payment.

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13
Q

Burden of the Covenant Running at Law: Statute of Frauds: Applicability to Real Covenants
-Assuming there was no compliance with the statute of frauds and part performance is not available, is the statute even applicable because what is involved here is a real covenant?

A

-According to some authorities, the Statute of Frauds is not applicable to real covenants because a real covenant is not an interest in land.

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14
Q

Burden of the Covenant Running at Law: Intent
-Did Ted and Larry intend the burden to run to successors to Ted when the lease provided, “Tenant shall pay $100 per month to maintain the health club?”

A

-For the parties to have intended successors to the promisor to be bound, no magic words (such as “heirs and assigns”) are necessary; rather, we look to the totality of the circumstances.

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15
Q

Burden of the Covenant Running at Law: Touch and Concern

-Does the promise to pay a monthly fee to maintain a health club for use by tenants touch and concern the land?

A

-A promise touches and concerns the land when it relates to the land. A promise relates to the land when it either reduces the landowner’s rights to the land or reduces the value of the land.

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16
Q

Burden of the Covenant Running at Law: Horizontal Privity
-Does horizontal privity exist when the landlord operated the apartment house illegally for the past five years because he failed to pay the city annual business license fee of $250 per year?

A

-Horizontal privity is traditionally established by a landlord-tenant relationship; the Restatement, however, does away with the requirement.

17
Q

Burden of the Covenant Running at Law: Vertical Privity (Assignment v. Sublease)
-Did vertical privity exist between Ted and TJ when Ted transferred the balance of his term to TJ but Ted retained the right to borrow the key to the health club when Ted is in town?

A

-Vertical privity exists on the burden side of a real covenant when the promisor transfers all of his interest to the successor, leaving nothing in himself; in such case, this is an assignment. The Restatement abolishes the vertical privity requirement.

18
Q

Negative Easement: Implied Reciprocal Negative Easement
-Can Otto succeed in his suit against Abel for damages stemming from Abel’s refusal to purchase Otto’s water on the theory that an IRNE burdens Abel’s land?

A

-An implied reciprocal negative easement arises when a common grantor conveys a parcel with restrictions and, by so conveying, the remaining lots retained by the common grantor are similarly and reciprocally bound. An implied reciprocal negative easement, where recognized, may be either a new type of negative easement, or merely a theory to sustain several elements of a running covenant (discussed below)

19
Q

Burden of the Covenant at Law
-Assuming the court does not recognize a new negative easement, does the burden of the covenant run with the land at law so that Abel must pay Otto damages for not buying Otto’s water?

A

-For the burden of the covenant to run with the land at law, these elements must be satisfied under the common law: Statute of Frauds (form), intent, touch and concern, and horizontal privity.

20
Q

Statute of Frauds
-Is the SOF satisfied when the original Grantee (Mr. 1) had the provision regarding the water in his deed but he did not sign any agreement and there were no express provisions in the lots retained by Otto?

A

-For the original parties (Otto and Mr. 1) to be bound, there must be compliance with the SOF, although for real covenants, some jurisdictions do not require satisfaction of the SOF; these jurisdictions do not recognize a real covenant as an interest in land. For successors to be bound, there also must be compliance with the SOF where applicable, and the implied reciprocal negative easement satisfies this requirement, where recognized.

21
Q

Intent
-Assuming that the original parties were bound, did the original parties (Otto and Mr. 1), intend to be bound by the promise in Mr. 1’s deed and the lots remaining in Otto?

A

-For the parties to have intended successors to the promisor to be bound, no magic words (such as “heirs and assigns”) are necessary; rather, we look to the totality of the circumstances

22
Q

Touch and Concern: Traditional View

-Did the covenant to buy Otto’s water touch and concern Abel’s land?

A

-A promise touches and concerns the land when it relates to the land. A promise relates to the land on the burden side of the covenant when it either reduces the landowner’s rights to the land or reduces the value of the land.

23
Q

Touch and Concern: Restatement View

-Is the promise unenforceable because it violates public policy?

A

-The Restatement (Third) replaces touch and concern with a public policy consideration: if the promise is unconscionable or violates public policy, it is unenforceable.

24
Q

Horizontal Privity
-Assuming that the covenant touches and concerned Abel’s land, does horizontal privity exist when Otto conveyed originally to Mr. 1?

A

-Horizontal privity is either a landlord-tenant relationship; a simultaneous relationship; or a grantor-grantee relationship. The Restatement (Third) does not require horizontal privity.

25
Q

Constructive Notice: Inquiry Notice
-If the jurisdiction has a notice or race-notice statute, did Abel have inquiry notice of the covenant to buy Otto’s water?

A

-Inquiry notice arises when one is apprised of facts that would lease a reasonable person to investigate further; the investigation can include an interrogation of those in possession of the property

26
Q

Constructive Notice: Record Notice

-Did Abel have record notice of the covenant when the deeds for lots 1-10 were recorded?

A

-In some jurisdictions, a deed out from a common grantor imparts notice. If we are in such a jurisdiction, Abel would be charged with notice. Otherwise, he would not be so charged

27
Q

Benefit in Gross

-Will the burden run if the benefit to Otto is in gross because Whiteacre is not near Orangeacre?

A

-In some jurisdictions, if the benefit is in gross, the burden will not run. In such a jurisdiction, Otto cannot enforce the covenant against Abel.

28
Q

Implied Reciprocal Negative Easement
-Can AAA prevail against Zev and prevent him from putting up his “End World Hunger” sign when some people in the development had a restriction in their deeds against all signs and Zev, a later purchaser, did not?

A

-An implied reciprocal negative easement arises when a common grantor conveys a parcel with restrictions and, by so conveying, the remaining lots retained by the common grantor are similarly and reciprocally bound. An implied reciprocal negative easement, where recognized, may be either a new type of negative easement, or merely a theory to sustain several elements of a running covenant (discussed below)

29
Q

Burden of the Covenant in Equity
-As an alternative theory, does the burden of the covenant run with the land in equity (AAA seeks an injunction, traditionally, an equitable remedy) so as to bind Zev?

A

-For the burden of the covenant to run with the land in equity, the original parties must be bound (Statute of Frauds), they must have intended the successor to the original promisor to be bound, the promise must touch and concern the burdened land, and the successor must have had notice.

30
Q

Statute of Frauds
-Were Opel and Mr. 1 (the purchaser of the first lot) bound when there was a restriction in Mr. 1’s deed but no express restriction in the lots retained by Otto?

A

-For the original parties to be bound, there must be compliance with the SOF because an equitable servitude is an interest in land. For successors to be bound, there also must be compliance with the SOF. The implied reciprocal negative easement, where recognized, satisfies the requirement of binding both the original parties and the successors.

31
Q

Intent
-Assuming that the original parties were bound, did the original parties (Otto and Mr. 1), intend successors to be bound by the promise in Mr. 1’s deed and the lots remaining in Otto?

A

-For the parties to have intended successors to the promisor to be bound, no magic words, such as “heirs and assigns”, are necessary; rather, we look to the totality of the circumstances.

32
Q

Touch and Concern: Common Law View

-Did the covenant to not have any signs in the community touch and concern the land, as common law understood the term?

A

-A promise touches and concerns the land when it relates to the land. A promise relates to the land when it either reduces the landowner’s rights to the land or reduces the value of the land.

33
Q

Touch and Concern: Restatement View

-Does the covenant in question touch and concern under the Restatement view?

A

-Under the Restatement, the touch and concern requirement is abolished. Under the Restatement, a covenant will be upheld unless it is unconscionable or if the covenant violates public policy.

34
Q

Notice: Common Grantor

-Did Zev have notice of the restriction because there is a common grantor?

A

-Notice may be actual, record, or inquiry. In some jurisdictions, a deed out from a common grantor imparts record notice: notice from the public records; in other jurisdictions, it does not impart notice.

35
Q

Notice Inquiry Notice

-Was Zev put on inquiry notice when no one else had signs on their property?

A

-Inquiry notice arises when one is apprised of facts that would lead a reasonable person to investigate further; the investigation can include an interrogation of those in possession of the property.

36
Q

Benefit of the Covenant: Vertical Privity

-Is AAA in vertical privity- that is, does it have standing to sue- when it owns no property in the subdivision?

A

-Vertical privity typically is not required for the benefit of the covenant to run (AAA is not an original promisee), but standing is nonetheless an issue