covenants Flashcards
covenants are always binding on the
original parties
covenants are usually not
implied, rather are written
what does it mean for a covenant to run with the land
go beyond the use of the original party
elements for covenant to run with the land 5
HIT NV
- horizontal privity
- intent
- touches and concerns
- notice
- vertical privity
intent
usually shown by contract language, typically inferred (heirs and assigns)
touches and concerns
must affect the lan itself or property valued
- can be relate to what is to be done on the land or the value
(can be restrictions, additions, homeowner associations)
- must benefit the people who are providing money
notice
party to be bound must be on notice
- can be actual or constructive
- like it the area has a common scheme development
horizontal privity
must be connected by something more than the covenant (i.e, buyer/seler, landlord/tenant)
vertical privity
the new party must have the same interest as the original owner (FSA to FSA)
termination of covenants can be either
due to changed circumstances or due to public policy
termination of covenants due to changes circumstances
- only when violations are so pervasive that the area covered by the covenant has changed
- changes must have been so radical as to have destroyed the covenants essential purpose
- even if a covenant leads to an inequitable/disfavored outcome, it is still enforceable
termination due to public policy
a covenant can be found invalid if public policy changes and makes the covenant invalid
condos, hoas are created by common interest communities, courts do not consider..
individual hardships
- generally these covenants are valid so long as they are reasonable and rational