Restricting Land Use: Covenants Flashcards
Covenants
are negative servictudes
Privity
bound by contract and entitled to enforce its benefits
real convenants
1 must be in writing
2 intended to be binding on future tenants
3 touched and concern the eland
4 privity of estate or mutual ownership
equitable servitudes
covenant that could be enforced by injunction despite lack of privity
notice
the owner of the burdended estate could be enjoined from violating the covenenat
Real covenants Damages
- writing complying with statute of frauds
- intent to run presumed if appurtenant
3 privity including both
4 horizontal privity; covenant was created during transfer of burden land and benefitted land, or parties are in lessor lessee relationship or own mutual easmenets
B. Vertical privity ; current owners obtained land by legal transfer from original covenenats
4 Touch and Concern direct use of the land
Both Burden an dbefit must touch and concern some land
Benefits in gross will not run against owners of servient estates unless held by governments or non profits
Equitable Servitude Injunctive Relief
- writing complying with statute of frauds
- intent to run presumed if appurtenant
3 Actual inquiry or constructive notice to owner of servient estate, enforcer must be intended beneficiary of covenant
4 Touch and concern, same as for real covenant- direct effect on use or value of land
Both Burden an dbefit must touch and concern some land
Benefits in gross will not run against owners of servient estates unless held by governments or non profits
Restatements 3rd
- writing complying with statute of frauds
- intent to run presumed if appurtenant
3 Actual inquiry or constructive notice to owner of servient estate, enforcer must be intended beneficiary - For affirmative obligations to pay homeowners association fees obligation to maintain lawn burden will only run to tenant if makes more sense for tenant to perform but benefit can be enforced by either landowner of tenant
- Enforceable unless unreasonable, covenant is not spiteful or arbitrary, does not unreasonable constitutional right, restrain alienation or restrain trade and doe snot otherwise violate public policy
- Benfits in gross can run so long as befit holder has legitimate interest in covenant and is identifiable
Neponsit P.O. Assn. v. Emigrant Ind. Sav. Bank
Facts
In Neponsit P.O. Assn. v. Emigrant Ind. Sav. Bank, the case revolves around a property in Queens county developed by Neponsit Realty Company into a residential community. The company conveyed lots to purchasers with covenants in the deeds for the maintenance of public spaces. In 1917, a deed with such a covenant was transferred to Robert Oldner Deyer and his wife. This covenant required the landowner to pay an annual charge for maintaining public areas like roads, parks, and sewers. The charges were to become a lien on the land until paid. This covenant was intended to be enforceable by a property owners’ association and was included in all subsequent deeds. Emigrant Industrial Savings Bank later purchased the land at a judicial sale, with the deeds indicating that the property was subject to the covenant. The Neponsit Property Owners Association, as the assignee of Neponsit Realty Company, sought to enforce the covenant against the Bank.
Issue
The primary issue is whether the covenant in the deed, requiring payment for the maintenance of public areas, constitutes a real covenant running with the land and is enforceable by the Neponsit Property Owners Association against the subsequent landowner (Emigrant Industrial Savings Bank).
Holding
The court held that the covenant did run with the land and was enforceable by the Neponsit Property Owners Association against the Bank. This decision affirmed the lower court’s ruling
actual notice
if was actually told about it or made aware
inquiry notice
if the condition of the premises would make reasonable purchaser inquire about the existence of a covenants
Constructive noti ce
if the restriction was recorded within the registry of the deeds and found via a reasonable search of the records prior to sale
horizontal privity and vertical privity
horizontal is one piece of property is burdened for the benefit of another
Vertical privity is these benefits and burdens run to succeeding owners of both parcels
strict vertical privity
grantor should not retain any future intrest in the land
relaxed vertical privity
allows the covenant to run will all to those assigned posession