Light & Air, Covenenants Terms

Question 1

Covenants

Answer 1

1. Regulate enforceability of land use restrictions (easier for markets to lend on land transactions)
2. Whether successors are bound
3. Benefitted and burdened parties

Question 2

Covenant elements

Answer 2

1. In writing
2. Notice
3. Intent to run with land
4. Privity of estate
   - horizonal (OG parties)
   - vertical (has to concern land); need same duration (ex: fee simple absolute cannot have vertical privity with life estate tenant)
   - but many have relaxed vertical privity
5. Touch and concern land = direct effect of use/value on land
   - bottleneck that gives judges discretion to decide whether to bind future parties

Remedy
- typically damages
- could be a reversion; mutual privity rules = if recipient disobeys rules, ownership goes back to OG owner

Question 3

Equitable servitudes

Answer 3

Same elements as real covenants, but no privity required; purchased with notice of restriction (applies when injunction sought)

Tulk v. Moxhay: enforced covenant despite lack of privity
- covenant was not to build on central square in London

• benefits all people and can get from successors
  2. Transaction costs preventing buying out high rises (assembly, free riders, bilateral monopoly)
  3. Irreparable injury problem: high rise will forever change community