Restrictive Covenants Flashcards
Restrictive Covenant Definition
A restrictive covenant is a promise to refrain from doing something related to land.
Affirmative Covenant Definition
An affirmative covenant is a promise to do something related to land.
When to analyze as a Covenant vs. Equitable Servitude
If plaintiff wants MONEY damages: the promise is a covenant.
If plaintiff wants an INJUNCTION: the promise is an equitable servitude.
Requirements for the “Burden” of a covenant to run with the land
Any successor in interest to the burdened estate will be bound by the covenant if (W I T H N):
Writing
Intent for the covenant to run
Touch and concern the burdened land
Horizontal and vertical privity
Notice of the covenant when took
Horizontal Privity
Nexus between the original promising parties (A and B)
Vertical Privity
Nexus between the successor in interest (A-1) and the originally covenanting party (A).
Requirements for the “Benefit” of a covenant to run with the land
Promisee’s successor may enforce the covenant if:
* Writing
* Intent
* Touch and concern
* Vertical privity
Equitable Sevitudes Definition
An equitable servitude is a covenant that equity will enforce against the assignees of the burdened land who have notice of it.
The usual remedy is an injunction against violation of the covenant.
Creation of an Equitable Servitude
Created by promises contained in a writing that satisfies the Statute of Frauds.
To create an equitable servitude (TWIN):
Touch and concern
Writing
Intent (for promise to be enforceable against successors)
Notice (of burdened land)
NOTE: No privity of estate is required for an ES to be enforceable.
Implied Equitable Servitude/ “Common Scheme” Doctrine
An exception to the general requirement that the original promise be in writing- it can be contained in predecessor deeds
Elements of the Common Scheme Doctrine:
o Scheme of development (including D’s lot) when sales began
o D had notice of promise when they took possession
Defenses to Enforcement of an Equitable Servitude
A court will not enforce an equitable servitude if:
- Neighborhood conditions have significantly changed to make enforcement inequitable.
- The person seeking enforcement is violating a similar restriction on his own land (unclean hands);
- A benefited party acquiesced in a violation of the servitude by a burdened party;
- A benefited party acted in such a way that a reasonable person would believe the covenant was abandoned or waived (estoppel), or
- The benefited party fails to bring suit against the violator within a reasonable time (laches).
Terminating an Equitable Servitude
An equitable servitude may be terminated by:
(1) written release from the benefit holders,
(2) merger of the benefited and burdened estates, or
(3) condemnation of the burdened property.