10/02/2014

PROPERTYOUTLINE
I.POSSESSION
Havingorholdingdominionoverproperty,andtherighttoexcludeothersfromproperty
A.Discovery
Theactoffindingpropertypreviouslyunknownentitlesthediscoverertopossessionof
theproperty
Johnson
LandsconveyedfromIndiantribetoA;thesamelandswereconveyedto
BfromtheU.S.government.Whoultimatelyhastherighttotheland?B
becauseDiscoveryentitledtheU.S.totheland.
B.Capture
Possessionviacaptureisacquiredbyoccupancyonlyanddoesnottakepursuitinto
account.
Piersonv.Post
Achasesafterafox,Bkillsfox.CourtultimatelyawardstoBunder
doctrineofcapture;whatmattersisthekillingandtakingofthefox,and
notthepursuit.
C.Find
Whenapersonfindsachattel,heorsheisentitledtopossessionofthatchattelaboveall
exceptthetrueowner.
Armoryv.Delamirie
Chimneysweepfindsajewelandisentitledtopossessionofitovera
goldsmith.
(Policy:preventstheft)
Clark
ChattelsaresecuredbyAanddriftdownstreamandarefoundbyB;
courtfindsAtobeinpossessionbecausemerelossofchattelsdoesnot
transfertitle,abandonmentwillsuffice.
PlaceofFindasDeterminingFactor
PublicPropertyfoundpropertygoestothefinder
PrivatePropertyfoundpropertygoestotheownerofthelocus
Hannahv.Peel

WhenAfindsachattelunknowntoBonBsproperty,doesApossess
chattel?No.Butinthiscase,Bspropertyisapublicplace,soyes.
Constructivepossessionactualcontrol,butnotphysicalcontrol
NatureofthePropertyasDeterminingFactor
Mislaid,LostandAbandonedProperty
McAvoy
Pocketbookfoundinabarbershop,belongstofinder,ortobarbershop?
Barbershopbecausethepropertywasmislaid,i.e.intentionallyputdown
andlaterforgottenabout.Mislaidpropertygoestoowneroflocusforsafe
keeping.
Michael
Afinderofmislaidpropertyisnotentitledtoanyrights,afinderoflost
property(i.e.unintentionalseparation)isentitledtoownershipoverall
othersexcepttrueowner,andisentitledtokeepabandonedproperty(i.e.
voluntaryrelinquishmentwithoutintenttoreturn).
Herron
Abandonmentrequiresintent+anact.
D.Bailment
Deliveryofpropertybyoneperson(Bailor)toanother(Bailee)whotakescustodyofthe
propertyforsomepurpose.Bailmentdoesnotconstituteatransferofpossession,justthe
propertyitself.(Delivery:formalactoftransferringsomething)
Broaddus
Demonstrationthatbailmentexistsonlyintheeventofexclusionfrom
thepropertythatissubjectofthebailmentagreement.Ifthereisaccess,
nobailmentexists.
ClassificationsofaBailment(Differentdegreesofcare)
i)
Solebenefitofbailor(Baileeonlyliableforgrossnegligence)
a. Useneighborsgarage.
ii)
Solebenefitofbailee(Baileeliableforslightnegligence)
a. Usefriendscar.
iii)
Mutualbenefit(Baileeliableforordinarynegligence)
a. Useneighborsgarage.Neighborusescar.(excludingmoney)
iv)
BenefitforHire(Baileeliableforordinarynegligence)
a. Useneighborsgarage.Payhimforit.
Godfrey
Didbailmentagreementexist?Yes.Mutualbenefitbailment.Thus,city
wasliablefornegligence.
E.Gifts

Voluntarytransferofpropertywithoutconsideration.Donormusthaveintent,delivery,
anddoneemusthaveacceptance.
Typesofdelivery:
i)Actual(ifitcanbedone,itmustbedone)
ii)Symbolic(writingevidencingownership,i.e.pinkslip)
iii)Constructive(unabletoprovideactualdeliverybecauseofbulk,i.e.keyto
car)
InterVivosGifts
Giftstransferredduringthedonorslifetime
Johnson
Donorpartswithallpresentandfuturedominion
Mustbedeliverytodonee
Giftmustbeabsoluteandirrevocable,hastotakeplacepresently
Ray
Ifactualdeliverycannotbemade,Symbolicdeliverywillsuffice
Carlson
Wherethingsintendedtobegivenarenotpresent,orcannotbegiven
duetosizeorweight,akeysufficesasaconstructivedelivery.
Hill
Courtruledgiftwasconstructivelydelivered.(Asasidenote,
constructivedeliverycouldnotbepossiblebecausecashinsafewasnot
toobulky,butrathertherulingreflectedapolicyrulingbasedonthe
donorsobviousintentandthedoneesactions)
CausaMortisGifts
Giftstransferredincontemplationofimminentdeath,inadditionto3other
elementsrequiredforgifts.
Scherer
DidAsgiftconstituteaconstructivedelivery?Doessuicidesatisfy
causamortisrequirements?Courtfoundnoissueoffraudandintentclear
enoughtojustifyaruling.(Moderninterpretationofconstructivedelivery
forbenefitofpolicy)
II.ADVERSEPOSSESSION
Meansofpossessioninwhichapossessorcanwresttitlefromthetrueownerofland.Must
satisfytheelementsof:actual,openandnotorious,exclusive,continuous,hostileandunder
claimofright.AOE.CHC.
Policyinfavorofproductiveuseoftheland

BurdenofProofMustproveadversepossessionbeyondreasonabledoubt,andnotmerely
byapreponderanceoftheevidence
A.ActualEntry
Substantialoccupationoflandenoughtocarveoutboundariesofthelandandbeginthe
clockoncontinuouspossession.
Fencingisastrongindicator
Cultivationofland
Useoflandasanordinaryownerwouldandtotheextentthelandiscapableof
beingused
B.OpenandNotorious
Openimpliesthatthepossessionisvisiblewithoutanyattempttohideit
Notoriousrequiresthatthepossessionbesufficientthatneighboringpartieswould,or
couldreasonablygivetrueownernoticeofpossession.
Mannillo
Actualnotice>mustbeinformedofthefacts,whateverthesource
Encroachment>interferenceorintrusionontoanothersproperty
Doestrueownerhaveactualknowledgeofencroachment?Possessionis
openandnotoriousonlyiftrueownerhasactualknowledgeof
encroachment.
Actualnoticeisirrelevantunlesstheencroachmentissmall
C.Exclusive
Useanddominionoverpropertymustbesolelywiththepossessor,barringothersfrom
use,especiallythetrueowner.
Rick
Trueownercontinuedtoallowotherstouseland:1)Advertisement2)
Highway3)Militaryexercises
Therefore,noexclusivityofusebypossessor
D.Hostile
Possessionmustbemadeagainstthewillofthetrueownerandagainsttheworldin
ordertobedeemedhostile.
E.ClaimofRight
Entrymustbewithclearintenttopossesslandasonesown.
Claimofrightingoodfaith

Carpenter
Somejurisdictionsrequireanadversepossessiontobeingoodfaith>
musthavethetruebeliefthatnobodyelseownstheland
Policy>otherwisecourtwouldbesanctioningsquatting
Claimofrightinbadfaith
Mannillo
Precedentshowsthatthemistakeelementhasnoplaceinthisjurisdiction
andessentiallyrewardsthosewithpremeditateddesiretopossesslands
thatthepossessorknowsbelongtosomebodyelse,i.e.badfaith.
Inthiscase,courtrulesthatneitherintentionnormistakehasaplace
becauseofthelackofactualknowledgeonthepartofthetrueownerwith
regardtothesmallencroachment.
Objectivestandard
ITTRayonier
Notconcernedwithintentofpossessor,whatmattersisthephysicalact,
i.e.claimofrightisnotanecessaryelement.
F.Continuity
Possessionmustbecontinuous,i.e.withoutbreak,fortheentiretyofthestatutory
period(variesperjurisdiction).
Kash
Ifpropertyisabandonedduringpossessionperiod,howeverbrief,
statutoryperiodstartsoveruponreturn.
Anneberg
Adversepossessoronlyneedstodemonstratepossessionanduseofland
duringtheperiodwherethelandcanreasonablybeused,i.e.,irrigation
ditchduringcroppingseason.Ifso,continuityofstatutoryperiodis
preserved.
Kay
Occupationsatisfiescontinuouselementifpropertyisbeingusedas
wouldanordinaryuserofland,ortheoriginalowner.
Tacking
AP2tacksonthetimeofhispossessionontotimeofAP1.
Worm
Providedtheadversepossessionsatisfiesallotherelements,the
possessionisacontinuationofthepriorpossessor,andthepossessor
claimstitlefromthepreviouspossessor,thanthecontinuityofpossession
ismaintained.

Waller
Privityrelationshipwithrespecttoland
Withregardtoprivity,thereneednotbeawrittenagreementofatransfer
ofpossession,verbalagreementissufficient,becausethereisnoactual
ownershipoftheland.
G.ColorofTitle
Personcomesintopossessionoflandviaadeedorotherinstrumentthatisdefective.
Green
Doesavoidtaxdeedsatisfyatransferofpossession?Yes.
Intent
SplitofAuthority:
Karvonen
Knowingadeedisvoiddoesnotsatisfyadversepossessionunder
coloroftitle,i.e.BadFaith.
Duncan
Goodfaithinaclaimisirrelevantwithregardtocoloroftitle.
Policycourtsdonotwanttochangethestatutesandthereisno
mentionofgoodfaithbeingnecessarywithinthestatutes.
AdvantagesofColorofTitle
1)Statutoryperiodforcontinuitycanbeshortened
Harper
Coloroftitlepossessionstatutoryperiod10yrs.,A.P.by
prescriptionrequired20years.
2)Neednotestablishhostility
Territory
3)Coloroftitlecanextendactualpossessionofpartofland,toconstructive
possessionofalloftheland.
Birchfield
Hypo1acrefarmedon100acreslandissuedunderfakedeed
forall100acreswillgiveuptheentire100acres.
F.PaymentofTaxes
Scott

Somejurisdictionsrequirepropertytaxpaymentsonadverselypossessedland.
Policy>preventsquatters.
G.Disabilities
Disabilitieswillextendstatuteoflimitations
However,AdversePossessormustmakeactualentryduringdisability
Abel(Noadversepossessionbecausetrueownerwasinamentalinstitutionat
thetimeofactualentry)
CommercialBank(Yesadversepossessionbecauseactualentrywasmade
duringthelifetimeofthetrueowner,withhisknowledge,doesnotmatterthat
daughterswereminors)
H.BoundaryLineDisputes
King

Waystosolveboundarydisputeinabsenceofaninstrumentinwriting:
1)Adversepossession
2)Boundarybyagreement
i)Uncertaintyordisputeonthetrueboundaries
ii)Anagreementastowhattheboundarywillbe
iii)Subsequentoccupationwithinconfinesofagreement
3)Boundarybyacquiescence
i)Bothpartiesareindoubtastotheboundary
ii)Continuedoccupationoutsideoftrueboundaryforaperiodof
morethanthestatuteoflimitations.

III.COTENANCY
A.TenancyInCommon
Eachcotenantownsseparateandundividedshareinproperty.TenancyinCommon
differsfromJointTenancyinthatthereisnorightofsurvivorship.Theseparatenatureofthe
cotenancyenablesthecotenantto1)conveytitlebydeed(inhislifetime)and2)devisetitleby
will(indeath).
Onlyrequiresunityofpossession
B.JointTenancy
Eachcotenantownsanundividedfractionalshareofthewholeproperty,i.e.unityof
possession.Thereare4Unities(Simonich)necessaryatCLtocreateJointTenancy:
i)TIMEcotenantsmustacquireinterestatthesametime
ii)TITLEcotenantsmustacquireownershipinthesamedeed
iii)INTERESTcotenantsmustacquiresamesharesininterest50/5033/33/33
iv)POSESSIONeachcotenantmusthaverighttopossessthewhole
CotenantsinaJointTenancyareentitledtoarightofsurvivorshiponecotenantdies,
theothercotenantwasandremainstheownerofthewhole(legalfiction)(savesacourttrip)
(affidavitjustneedstobefiled)
AtCL,4UnitiesnecessaryModernly,justpossessionwithamanifestedintentis
necessarytodoawaywithstrawmantransfersthroughintervivosgift(Taylor)
C.TenancyBytheEntirety
TenancybytheEntiretyisessentiallyidenticaltoJointTenancyexceptthatitrequiresa
marriagebetweenthetwocotenants,inadditiontothe4unities.Eachtenantownsthewhole,
andnotashare.(notransfercantconveytoselforstrawmanunlessbothconsentingkey
difference)
ifonlyhusbandowesadebt,acreditorcantattachthedebttotheproperty.
BealBank
Modernly,ifahusbandandwifetakepropertytogether,thecotenancyispresumptively
atenancybytheentiretyevenintheabsenceofexplicitlabelingassuch.(emphasisonintent
modernly)
CommunityProperty(Onlycertainjurisdictions)
Smith
Assetsacquiredduringamarriagewillbepresumedtobelongtoeachcotenantasa
tenancybytheentiretyandtheburdenofproofotherwisewillbelongtothecotenantclaiming
separateownershipoftheproperty.

D.RightsandLiabilitiesofCotenancy
ContributionforExpenditure
(MortgageRepairsRentsInsurancePropertytax)(MRRIP)
Meckler
WhenApaysmorethanhisproratashareofamortgage,isheentitledto
contribution/reimbursementfromcotenantB?Yes.
Policyfacilitatespaymentofmortgages,peopledontlosetheirhomes
Janik
Propertytaxandinsurancearealsosubjecttoreimbursementofcontribution.Policy
ifsomebodyfallsonyourpropertyandnoinsurance,couldloseyourhouse.
Lewis
CotenantAisentitledtocontributionfromcotenantBwhenAmakesnecessaryrepairs
toaproperty,butnotwhentherepairsareimprovements,i.e.whentheyraisethepropertyvalue
oraddlifetoit.
Hermance
Whilenecessaryrepairsentitleacotenanttocontributionfromanothercotenant,a
cotenantmaybeentitledtoreimbursementuponpartitionforexpenditurethataddedvaluetothe
property(notforcostofimprovement,andcapiscostyoucantmakeaprofitwhenyousell).
Faust
IfcotenantArentsoutpropertytoX(thirdparty),AmustaccounttocotenantBfor
rentscollected.
OneTenantinExclusivePossession
FriendlyAnotliabletoBforAssolepossession(Fundaburk)
Hostile(Ouster)Awillbeliabletooustedpartyfordamagesforordinaryshareof
valueduringtheperiodoftheouster(Brunscher)
Waste
Permanentdamagetorealpropertybyoneinrightfulpossession.Nonconsenting
cotenantswillbeentitledtodamages/injunctionforwaste.
Affirmativewasteintentionalact.Likecuttingtree.
Passivewastefailingtoacttofix.

OpenMinesDoctrineIfusingpropertyforitsintendedpurpose,itisnotwaste,
unlesspropertyhasneverbeenusedforthatpurposebefore(Chosar)
Partition
Ifpartiescannotagreeonuseofproperty,eachhasarightofpartition,whichisthe
endingofacotenancy.Righttopartitionisabsoluteexceptwithtenancybytheentirety.
1)PartitioninKind
Divisionoflandintotwoequalshares
Courtsfavor
DoctrineofOweltyintheeventofunevenshares,ApaysdifferenceinvaluetoB
2)SaleofLandandDivisionofProceeds
Ouster
Repudiationofanothercotenantstitlebyonecotenant,bydeclarationoract.
WhenT1&T2arecotenants,T1oustsT2canT1acquiresoleownership?YES
throughadversepossession.
1)OusterbyAdversePossession
mustbehostileagainstcotenant/denyoneoftheirownershipright.
2)ConstructiveOuster
propertynotfitfordoubleoccupancy(i.e.dangertocotenant/domestic
violenceORacourtorder!)
ConstructiveOusterisenoughtonegateliabilityforoustedparty

Partition
Tenantsincommon/JointTenantshaveabsoluterighttopartition.
o 2IssuesforCourt.
1.PartitioninKind(favoredbycourt)(SPLITTHELAND)
2.Soldandsplitproceeds.
DoctrineofOweltysplittingmaydevaluetheproperty,therefore,ifonesidegets
themorevaluedthepersonwhogetsmorevaluepaysthecashawardtotheother
tenant(s)

IV.SIMULTANEOUSOWNERSHIPESTATESANDFUTUREINTERESTS
A.TheMeaningofEstates

Anestateistherighttoimmediatelypossesstheunderlyingrealtyinproperty;anestate
mayendureforlife,amatterofyearsoratwill.TIME.DealswithTIME.
RIGHTStolandaredeterminedbyTIME.
Youhaveapossessoryrightintheland.
B.TheMeaningofFutureInterest
Aownsestateinland,therewillalwaysbeaconcomitantfutureinterest(exc.InFee
SimpleAbsolute)
arighttopossessionatsometimeinthefuturebutnotguaranteed.
Expectancyisnotafutureinterest
Robinson
Expectancy:Contingencyastopossessionthatisexpectedorhopedfor
Expectancycountsforzero,itisnotapropertyinterest
CACivilCode700Heirapparentisnotdeemedaninterestofanykind
C.FreeholdEstates
Anestateforlife,orinfee;theoppositeofanonfreehold,i.e.leasehold
PacificSouthwestRealtyCo.
Seisinowneroffreeholdorownerofreverterfromleaseholder
1)FeeSimple(Asbolute)
Absoluteownership/allrightstolandwithoutendorlimitation
Nofutureinterestinanotherperson
Largestestatethatapersoncanhave(withregardtoTIME)
Ownerobtainsallrightsandprivilegeswithrespecttoland
CreationofFeeSimple
Penienskice
AncientCLandhisheirsnecessarytoconveyfeesimplebyinstrument(magical
wordsmustbeused)toAdoesntwork.MustbeToAandhisheirs(magicwords)heirs
tooknothingjustwordsneededinthepastforAncientCL.
Modernlookonlytointentoftheownerandhisheirsnolongerneeded.
CourtsstartbyassumingOlookstoconveyafeesimpleabsolute
DefeasibleFees

FeesthatMAYterminate.

1)FeeSimpleDeterminable Fee(couldgoonforever)Determinable(mayendifevent
occurs)

Denotedbywordsofduration(aslongas,until,etc.)
Uponsatisfactionofcondition,feeautomaticallyends
nototalownership.Someoneelsemayhaveafutureinterest.
Riggs

Merestatementofpurposecannotdebaseafeesimpleabsoluteor
transformitintoadefeasiblefee.
ConcomitantFutureInterest(forF.S.D.)
Reverter
IfOconveysestatetoAinfeesimpledeterminable,Omaintainspossibilityofreverter
(Estatecomesbackonsatisfactionofcondition)
TransferredbyDevise
1)Noteffectiveuntiltestatorsdeath
PossibilityofrevertertransferredtoOsheirsatthetimeofconditionaleventwould
occur
2)FeeSimpleonConditionSubsequent(courtsfavorthisoverFSD)
Denotedbywordsofcondition(provided,uponcondition,etc.)
Personalcovenantsarenotconsideredconditionsforterminationofafee
i.e.,Ontheconditionthatnobuildingbebuiltontheproperty
ConcomitantFutureInterest
RightofEntry(RightofReEntry)
Musthavereentrybyoriginalowner
ExpresslanguageofarightofentryisnotnecessarytothecreationofaFSCS
TransferRightofReEntrysplitofauthority
CL:Notransferoftherightofreentry
Modern:Cantransferrightofreentryinmostjurisdictions
DirectRestraintRuleforFSDandFSCS
Directrestrainonalienationmakesthefeeinvalid.
OconveystoAbutAcanneverselltheproperty
o (LodgeCase)lookedatthewhole,andtheintentoftheparty.Hadbotha
conditionsubsequentandadirectrestrainonalienation.

3)FeeSimpleSubjecttoExecutoryLimitation(OconveystoA,butifliquorissold,
thenB)
Conveyancerequiresconditionallanguage
Requiresdivestmentofprecedinginterestinoneotherthanthegrantor
ConcomitantFutureInterest
ExecutoryInterest(vestsintoaFeeSimpleAbsolute.)
OconveystoA,ifsomethinghappens,thenBhasa(Shifting
Interest3actors)
OconveystoAifLakerswintheNBAfinals(SpringingInterest
2actors)
4)FeeSimpleDeterminableSubjecttoExecutoryLimitation(OconveystoAuntil
liquorissold,thentoB)
Conveyancerequiresdurationallanguage
ConcomitantFutureInterest
ExecutoryInterest
Nottechnicallycorrect,butcannotbecalledremainderbasedonprecedent.
OconveystoA,whensomethinghappens,thenBhasa(ShiftingInterestTHREE
ACTORS)
OconveystoAsolongasLakerswintheNBAfinals(SpringingInterest
TWOACTORS)
DIFFERENCEbetweenFSDSELandFSSEL
o Violationofruleagainstperpetuities,thentherewillbeadramaticdifference.

F.FeeTail(inheritable)
OconveystoAandtheheirsofhisbody,itcanendureforeversolongasAcontinues
tohavelinealdescendents.
RobinsIsland
Intheabolishmentofafeetail,Oendsupwithfeesimple
ConcomitantFutureInterest:Reversion(toAandtheheirsofhisbody)
Estateofalesserquantumistransferred(ownerofafeetailhasfewerrightsthanFSA
&FSD)

O can sue A for waste. (Cant do it in FSD)

Reversionisaretainedinterest
ConcomitantFutureInterest:Reverter
Reverteriswhentheestatetransferredisofthesamequantum

ConcomitantFutureInterest:RemaindertoAandtheheirsofhisbody,thento
B

Must be IMMEDIATE. No gap in-between.

Remainderisacreatedinterestinathirdperson,conveyedbysamedeedthattakes
effectimmediatelyafterthe(mustbe)naturalexpirationofthepriorestate
OconveysafeetailtoA,andupondeathofAtoBBhasaremainder
BrattleSquare
ToAforlifethentoB(Bhasremainder,same
instrument)
ToAforlifeandonedayafterAsdeathtoB(InterestreversionbacktoOfor24hours,
OhasFSSEL,Bhasshiftingexecutoryinterest)onedaygapmakesitnotaremainder
Remainders:Contingentvs.Vested
a)Contingent:(1)Unidentifiableperson,or(2)Subjecttoaconditionsubsequent
Owillalwayshavereversion(unlessunidentifiablepersonbecomesidentifiable)
(1)OtoAthentoAsheirs
(2)OtoAthentoBifDodgerswinthe2020WorldSeries
Owillalwayshavereversioninfeesimple
Remainderrights(bothcontingentandvested)arealienable
DifferencebetweenConditionSubsequentandConditionPrecedent
1)Precedent:Giftmustbepartofthesameclause
ToAforlife,thentoBifDodgerswinetccontingentremainder(eithertoan
unascertainablepersonorconditionprecedent(somethingneedstohappen)(notyet
bornchildren)whenborntheyhavevestedremainderPage144.
2)Subsequent:Conditionmustbeseparatefromgift
clause

ToAforlife,thentoB,butifDodgerswinthentoC(vestedremaindersubjectto
completedefeasance)Conditionfollowsthegift.Ahaslifeestate,Bhasvestedremainderinfee
simplesubjecttototaldivestment,andChasashiftingexecutoryinterestinFeesimple.
Contingentremainderscanbedestroyed
b)Vested:(1)Identifiablepersons,or(2)Notsubjecttoaconditionprecedent.
uponwhoitisvestedtobecomesfeesimpleabsolute
ThreeTypesofVestedRemainders
1)Indefeasiblyvested(OconveystoAforlife,then
toB)(ifBdieshecangivetoB1orinwillgivetoanyonehechooses)guaranteed
2)Vestedsubjecttoopen(OconveystoAforlife,
thentothechildrenofAandAhasachildopenbecausehecanhavemorekids)A1hasvested
remainderinFeesimplesubjecttopartialdivestment.
3)Vestedsubjecttototaldivestment(condition
subsequent)(OconveystoAforlife,thentoB,butifCreturnstoNYthentoC)Ahaslife
estate,Bhasvestedremainderinfeesimplesubjecttototaldivestment,Chasshiftingexecutory
interest.IfShiftstoC,thenhehasavestedremainder.

whenindoubt,itsvested
(forexam)
RegardingWaste
Vestedremaindermancansue,contingentcannot.
Acceleration(onlyforvested)
WhenTconveystoAforlifethenB,andAdiesbeforeB,Bsimmediatepossessionis
acceleration.

G.LifeEstate
Estateislimitedtolifeofthepartyholdingit;possessionandusetotheexclusionofthe
remainderman;entitledtorents,profits,andissuesgenerated;mayunderleaseproperty;power
totransferlimitedbylifeestateholderslife;cansometimesconsumeordepleteestate;cannot
commitorpermitwaste.IflifeestateofAisgiventoX.XhasitforallofAslife.Canttransfer
morethanyouhave.
Grantor,orsuccessorsininterestofatestator,alwaysretainsRemaindertoaccountfor
fullfeesimple.

V.RULESTHATIMPEDETHEFURTHERMARKETABILITYOFPROPERTY
A.Trusts(morecommon)(equitableestates)

Fiduciaryrelationshipwithrespecttoproperty,wherethetrusteeisrequiredtoperform
dutiesforthebenefitofabeneficiary(highestdegreeofcarerecognizedinlaw.
Trustee/beneficiaryrelationship)Trusteeownslegaltitle,forthebenefitofanother(the
beneficiary),whicharisesoutofamanifestationofintenttocreateitforalegalpurpose.Trustee
getsmoney.Beneficiarygetsallthebenefits.
Example:OconveystoXforuseofAforlife,thentouseofB;XisthetrusteeandA
andBarebeneficiaries
CLTrusteeisentitledtolegaltitleandallburdensofownership(LegalFeeSimple)
Beneficiaryisentitledtobenefits(EquitableFeeSimple)
ExpressTrust
(1)Createdeitherbydeclarationoftrust,bywhichownerdeclareshimselftrusteefor
benefitofanotherparty;or
(2)TransferofTrustinwhichownertransferstoanotherastrusteeforsomebeneficiary
eitherbydeedorsomeothertransferintervivos,orbywill
SpendthriftTrust(hindersalienation)(mustbeexpresslystated)
Beneficiarycannottransferinterest(Aforlife)AcanttransferandgotoVegas.
Creditorscannotattachbeneficiarysinterest
Sherman
Necessarymedicaltreatment,trusteerequiredtopayDr.directlyinspiteofspendthrift
trust.Exceptiontospendthrifttrustsomeonewhoprovidesthenecessitiesoflifethenthey
canattachinterest.
B.DestructibilityofContingentRemainders
Tomywifeforlife,thentomyheirsofmyson.(wifedied,andsonwasstillalive)
contingentremainderdies.Whenacontingentremainderwillnotvest,immediatelyupon
theterminationofprecedingestate,thecontingentremainderisdestroyed.Ohas
reversion?(onlyappliestolegalfees.Notequitable)
Contingentremainderdoesnotvest,remainderisdestroyed
CLdestroyed
Modernlytransformedintoafeesimplesubjecttoexecutoryinterestandhissons
heirshavespringinginterest.
Ryan
Doctrineofdestructibilityappliesonlytolegalcontingentremaindersofrealproperty,
thedoctrinedoesnotapplytoequitableinterests
Johnson
Destructibilityisbutarelicofthefeudalpast
Modernly,contingentremainderbecomesspringingexecutoryinterest
C.TheRuleInShelleysCase

OconveystoAforlife,thentoAsheirs(CL)
Asheirstakenothing
Aisentitledtoaremainderinfeesimpleabsolute(theDoctrineof
Merger)
MODERNLY the grantees heirs take a contingent remainder.

CityBank
TheRuleInShelleysCasetakesholdwhen(regardlessofintent)
1)Freeholdestateisgrantedtoancestors
2)Remaindermustbelimitedtohisheirs
3)Thetwoestates,freeholdandremainder,mustbeofthesamequality,eitherlegalor
equitable
Ruleoflaw,notofconstruction
MODERNLYthegranteesheirstakeacontingentremainder.
D.TheDoctrineofWorthierTitle(CL)
OconveystoAforlife,thentoOsheirs
Osheirsgetnothing,ratherOreceivesareversioninfeesimpleabsolute
Allthreedoctrinesarenotverycommontoday.

Bixby

VI.THERULEAGAINSTPERPETUITIES
Nointerestisgoodunlessitmustvest,ifatall,notlaterthan21yearsAFTERsome
lifeinbeingatthecreationoftheinterest
Afterthepersonsdeath+21years.
OconveystoAforlife,ThentoBifthedodgerswintheworldseriesnolaterthan
21yearsafterBsdeath.OKAY
OconveystoAforlife,thentoBifthedodgerswintheworldseriesnolaterthan22
YEARSafterBsdeath.VIOLATIONOFRULE.
ContingentremaindersandexecutorinterestsaretheONLYintereststhataresubjectto
theruleagainstperpetuities.
Policy:Toeliminateintereststhatvesttooremotely
OconveystoAwhenApassestheCAbarexam.(doesntviolate,becauseitswithinhis
life)
OislifeinbeingandAisthemeasuringlife.

OconveystoAforlife,thentoBifBfindsthecureformalaria.(no)
OconveystoAforlife,thentoBifsomeonefindsthecureformalaria.(yesviolation)
OconveystoAsolongasliquorisneversold,thentoB.(yesBgetscutoff)
TdevisestoMarryHallandtheissueofherbody,andindefaultofsuchissuetothe
daughtersofJohnandElizabeth.(yesviolation)(Maryhallhasafeesimplesubjecttoexecutory
limitationthedaughtersofjohnandElizabethhaveanexecutoryinterest)
BecauseMarrysbloodlinemightnotrunoutfora1000years,thiswouldbeavesting
wellbeyondthelifeof21.
courtisconcernedwithlegalpossibilities,notfactualprobabilities
onelegalpossibilitythateveryoneispresumedcapableofprocreatingperiod.No
exceptions.
A.TransferbyWillandtheMeasuringLife
Whoisalivewhenthewilliscreated,i.e.atthedeathofthetestator?Lifeinbeing
Joyner
B.TransferByDeedandtheMeasuringLife
Whoisalivewhenthedeedisdeliveredfromthegrantortothegrantee?Lifein
Being
C.LegalPossibilities
Jee
OconveystoAandtheissueofherbody,andindefaultofissue,todaughtersofJand
E.IfAismeasuringlife,noviolationofRAP,butifissueeverrunsout,thenviolationofRAP.
CourtappliedWhatMightHappenTest:
Notinterestedinfactualprobabilities,butlegalpossibilities
Foresightapproach,nothindsightapproach
whatmighthappen.IfMarydieswithnoissuestillaviolationbecauseforesight
approachnothindsight.(notsureifthisisright)
EveryoneiscapableofprocreatingIrrebuttablePresumption
AllorNothingRule
Withregardtoclassgifts(i.e.membershipofagroup),allpartiesmustbevalidorgift
isstricken
Example:OtoAforlifethentochildrenofAwhoreach25years.A1isalready25
(vestedremainder)butthen,A2bornayearafterAsdeath(thereforewholeclassisinvalid)
(A2isnotalifebeing,becausehewasbornayearafterthewill)A2isinvalid.A1isalso
invalid.Astillhaslifeestate.
OconveystoAforlife,thentothechildrenofAwhoreachage25(violation)soyou
strikeitout.AhaslifeestateOhasreversioninfeesimple.

OtoAsolongasliquorisneversold,thentoB.AhasFSD.(strikeoutthentoB)
OtoAbutifliquoriseversold,toB.leftwithFSA.(strikeoutbutifliquorisever
soldtoB)
Tdevises,tomyexecutorastrusteewhentheprobateofmywilliscompleted.Trustee
hasaspringinginterest.
D.EffectofViolationofRAP
Wedel
Ifthereisevenapossibilityaninterestwillnotvest,itisstrickenfromitsinception.
Example:OconveystoAsolongasliquorisneversold,thentoB
AhasFSDSEL,Bhasexecutoryinterest.
CourtwouldstrikeBsexecutoryinterestandleaveAwithFSD
Example:OconveystoAontheconditionthatliquorisneversold,butifitisthentoB
AhasFSSEL,Bhasexecutoryinterest
StrikeBsinterest,leavesAFSA.
Brown
FSDSEL,giftisstrickenfromRAP,reverterstillexists,Townsfeesimpleattimeof
death,transferredaFSDatdeath,revertergoesbacktoTsheirs
E.OptionstoPurchasePropertyandRAP
SymphonySpace
OptionKstopurchasepropertyaresubjecttoRAP
F.Amelioration
NYLaw
(1)Presumethatgrantorintendedestatetobevalid
(2)Anyonealiveatthetimeoftransferpresumedtobelifeinbeing
(3)Presumecontingencywilloccurwithin21yr.period
(4)Malesarecapableofprocreating14andup,Women1255
(5)Nochildrenbyadoption
CAlawmaintainscommonlawpresumptionoflifetimefertility
G.Construction?

TdevisestoAforlife,thentothechildrenofAwhoreachage25.Attimeofconveyace
Ahad3children.UnderclassicalapplicationofRAP.(howeverifinterpretedreasonably,Ais
50,TwasveryclosewithAandthechildrenofAperhapsareasonableinterpretationisthatT
intendedtheclassgifttoincludeonlyA1,A2,andA3.)thereforenoruleagainstperpetuities.
(Ifwecloseoftheclasstopreventanafterborn)

Under classical application there is violation of RAP.

Singer
Unreasonabletoassumethatabuildingwouldbecompletedafterthe21yr.period;
constructionintheinterestofbusiness,thereforenoviolationofRAP.
WaitandSeeDoctrine
Hindsightapproachasopposedtoaforesightapproach
Waitandseeifinterestvestsbeforedecidingthatitpotentiallywillnotvestwithinthe
period
Hansen
optioncontractwithnolimitations.
Hindsight approach.
Wait and see doctrine was applied.
o Classically it (RAP) was violated.
Policy:toavoidputtingapremiumonaskilleddraftsman
H.CyPres(changingtermsofinstrumenttoavoidperpetuitiesproblem)
Allowscourttomodifyagiftascloselyaspossibletotheintentofthegrantorinorder
tocircumnavigatetheRAP.
Changes hospital to free hospital. Charity to charity isnt subject to
RAP.
ChunQuan
Insteadof30yrs.,courtchangeslanguageto21yearstoavoidRAP(illustration
ofCypres)
21 from 30 is okay. But 21 from 55 not really reasonable.
Constructionvs.CyPres
Constructionisinterpretsthegift(tryingtoguesstheintentoftestatorwhen
dead)
CyPreschangestheterms
I.UniformStatutoryRuleAgainstPerpetuities
CAProbateCodeNonvestedproperty(contingent)interestisinvalidunless:

a)itvests/terminateswithin21yearsofalifeinbeingORifthatsviolatedlookat
B.
b)itvests/terminateswithin90yearsafteritscreation(waitandseehindsight

approach)
c) they can change it.
90yearsisaboutaslongasatrustcanendure
Toodifficulttofigureoutameasuringlife
CAcodealsocodifiesCyPres
J.Abolition

Manystates(i.e.Delaware)haveabolishedRAP,meaningatrustinsuchajurisdiction
mayendureforever
K.PerpetuitiesSavingsClause
Construction,WaitandSee,andCyPresareallwaystoalleviatetheadversetraitsof
theRAP.Theperpetuitiessavingsclauseisaprophylacticmeasurethatalawyercantaketo
eliminateproblemsarisingunderRAP.

This trust shall end, and assets distributed to those beneficiaries

L.LawyerLiability(CA)
Lucasv.Hamm
LawyerisnotresponsibleforviolationoftheRAPwhenabeneficiaryisstrickenof
benefitsfromaninstrument.

VII.ACQUISITIONOFREALPROPERTYBYGIFTORPURCHASE
A.ContractsandtheStatuteofFraudsRequirement
1)Needawriting
2)Signedbythepartytobecharged
3)MaterialTermsParties,PriceandLocusofProperty
ABC
Doesntneedtobeaformaldocument(Backofcheck)
Justneedstobeinwriting,signedbythepartytobecharged
Parties,Price&LocusofProperty
B.ExceptionstotheStatuteofFraudsRequirement

PartPerformance
Bradshaw
CanyoumodifyanoralKbypartperformance?
Yes,butmustshowsubstantialperformance
1)Improvements(substantial,permanent)
2)Possession
3)Payment(thoughpaymentalonewillnotsuffice)

Burns
Changingonesmindisnotactionable
SellingonesbusinessnotunequivocallyreferabletoK
EquitableEstoppel

Reliancebycontractor,wrongfulconductbyseller
EquitableEstoppelpreventssellerfrommakinganargumentwiththestatuteoffrauds,
basedonhiswrongfulconductthatinducedcontractortoactonhisseveredetriment
C.MarketableTitle
Unlessotherwisespecified,everycontractforsaleofrealpropertycontainstheimplied
covenantofmarketabletitle
Marketabletitlemustbefreefromreasonabledoubt(hazardsoflitigation)
1)Selleractuallymustownwhathepurportstosell
2)Noencumbrancesontheproperty(i.e.charges,outstandingliens,covenants)
3)Noviolationsoflaw
TimetoDeliverMarketableTitle
Mustbedeliveredbeforeescrowcloses
Kimball
IfsellerhasoutstandinglienwithIRS,butsettleswithIRSafterescrowcloses,buyer
notentitledtorescission,couldgetanydamagesresulted
TimeisoftheEssenceClause
Preventsextensionofescrowperiod;canalsoputinadefinitivelawday
D.RiskofLoss
Whoisliablewhendamageoccurstopropertyinescrow?
Ross

SplitofAuthority
RiskonSellerbecausesellerwouldlikelyhaveinsurance
RiskonBuyerdoctrineofequitableconversion
Vendorsinteresthasbeenconvertedbythecontractfromrealtyintopersonalty
E.Deeds
Essentialelementsofavaliddeed:(IPADDS)
1)Identifytheparties
2)Describeproperty
3)Signedbythegrantor
4)Deliverytograntee
5)Acceptancebygrantee
StatuteofFrauds:DescriptionoftheProperty
Snyder
allpropertyinthiscountyissufficientasadescriptionofthepropertyforstatuteof
frauds(i.e.MotherHubbardClause)
StatuteofFrauds:SignatureofGrantor
McAbee
TheLawrecognizesthatsomeonecansignonbehalfofagrantor
Courtlookstotheintentofthegrantor,notechnicalitystandingintheway
Delivery
Johnsonv.Ramsey
Deliveryrequiresamanifestationofintenttotransferpropertyinterests
Nodeliverywithoutintent
Hypo
OA,doesnttellA,buttellsacquaintances
Yes,sufficientevidenceofintenttoconstitutedelivery
OA,executesdeed,doesnttellanyone,tellsonlyB,itsasecret
Arguablynodelivery,nosufficientintent
Delivery:RevocableDeeds
Huber
Ifitwasarevocabledeed,thenthereisnotransferofownership
Oralagreementsdonotsatisfystatuteoffrauds

RevocableEscrows
Nojdx.recognizesarevocableescrow
Rosengart
Aleavesdeedwithbanker(escrowagent)revocableescrow
But,deedisagift,escrowrequiresbusinesstransaction
OralConditionalDelivery
Oralconditiongenerallywillnotsatisfydeliveryasaviolationofthestatuteoffrauds
Sweeney
MauriceJohn,thenJohnMaurice(Secretly)
Oralcondition,thatJohndiefirst,butMauricediedfirst
Courtdoesnotrecognizeoralconditionaldeliverybecauseitisinviolationofthe
statuteoffrauds
Acceptance
GenerallyitispresumedthatthegranteeacceptsadeedunlessdeedisaWhite
Elephant,i.e.,propertythatnobodywants.

F.WarrantyDeeds
Thereare6covenantsoftitlenecessaryforgeneralwarrantydeedsandspecialwarranty
deeds:

PresentCovenants
1)GrantormustbeinSeisinGrantorownstheestate
2)Grantormusthavearighttoconvey
3)CovenantagainstencumbrancesNooutstandingrightsthatdiminishthevalue

FutureCovenants

4)QuietenjoymentGranteesenjoymentandpossessionnotinterferedwith
5)GeneralWarrantydefendtitleagainstthelawfulclaimsofallothers
6)FurtherAssurancesobligatesgrantortoexecuteanydocumentsnecessaryforthe
granteetoperfecthistitle
GeneralWarrantyDeed
Assuresthatneithergrantor
noranybodyelsehasviolated

vs.

SpecialWarrantyDeed
Onlygrantorwarrants

anyofthecovenants
TimingofBreach
Presentcovenantsarebreached,ifatall,beforeescrowcloses
Futurecovenantsarebreachedwheneverthereisabreach
Brownv.Lober
Sellertransferredrightsbygeneralwarrantydeed
Breachofonepresentcovenant,butPwaitstoolongtoremedy
Triestosueforviolationofquietenjoymentfuturecovenant
Noviolationbecausethereisnoactualorconstructiveeviction
SuitByRemoteGrantee
Presentcovenantsgenerallydonotrunwiththeland
Schofield
OAfeesimplebygeneralwarrantydeed
Owasnotinseisinatthetimeofdelivery
ABbyspecialwarrantydeed
BcannotsueAbecauseofspecialwarrantydeed,andAdidnotcreatetheproblem
SplitofAuthority
BcansueO,AtransferredallofhisrightstoBincludingrighttosueOforbreachof
covenantofseisin(Modern)
BcannotsueObecausecovenantofseisinisapresentcovenant(CL)
NatureofEncumbrances
Forcovenantsoftitle,violationsoflawregardingpropertyarenotconsidered
encumbrances.
Merger
Adeeddeliveredandacceptedascompleteperformanceofacontractforthesaleof
landmergesallpriornegotiationsandagreementsintothedeed.
GeneralandSpecialWarrantyDeeds
Adeedcanspeciallywarrantcertainprovisionsandgenerallywarrantotherprovisions
withinthesamedeed.
QuitclaimDeeds
Quitclaimdeedscontainnocovenantoftitle.IgiveyouallthatIhave,andImayhave
nothing

Prevalentwithregardtogifts
EstoppelbyDeed
IfOAbutdoesnotowntheland,thenOsubsequentlycomesintopossessionof
land,doctrineofestoppelbydeedpreventsOfromclaimingrighttothelandwhichhe
previouslyconveyedbydeed
Estoppelbydeedtypicallynotapplicablewithrespecttoquitclaimdeeds

VIII.RECORDINGSTATUTES
OA,thenlaterOBwhoownstheproperty?AorB
CLFirstintimeisfirstinright
ButModernly
ThreeTypesofStatutes
1)RaceStatuteJdx.(Typicallymoreefficient)
2)NoticeStatuteJdx.(Typicallymorefair)
3)RaceNoticeStatuteJdx.
A.RaceStatute
Whoeverrecordsfirstprevails,butBmustbeaPurchaserForValue
Schuman
EvenifBknowsofpriorconveyance,inracestatutejdx.,doesntmatter
B.NoticeStatute
BwilltrumpAifBissubsequentPurchaserForValueandBhasnonoticeofprior
conveyance.IfArecordsfirst,constructivenotice,andAprevails.Policy:torelyonpublic
records.
C.RaceNotice
InorderforBtoprevail,Bmustbesubsequentpurchaserforvalue,musthaveno
notice,andmustrecordfirst.
ZimmersRule
OA(R)(1/10);OB(R)(1/11);BC(R)(1/9)
Cmustrecordfirst,andeveryoneelseinthechainmusthaverecorded

CwillbeprotectedinRaceNoticestatute
D.ActualNotice
ABonaFidePurchaserforValuecannothaveactualphysicalknowledgeofprior
conveyance.
E.ConstructiveNotice
RecordNoticeArecordsfirst,Bhasconstructivenotice(Policy,makepeoplevigilant
abouttheirpropertyinterests.
InquiryNoticeBhasactualknowledgethatwouldputareasonablepersononinquiry
Harper
OAforlifethentoAschildren
Deedislost,OsheirsAinfeesimpleinreplacementdeed
Recordeddeedreferencesoriginaldeed,thusAonInquiryNotice
F.LatentDefects
Leeds
Faultydeednotapparentfrom4corners
Notarizedanywayandrecorded,servesasconstructivenoticeeventhoughfaulty
G.NotRecordedorImproperlyIndexedDeeds
Throckmorton
Deedgiventorecorder,recorderfailstorecordaccidentally,whowins?
Authoritysplit:
NotAsfault,Awins
Ashouldhavecheckedtomakesureitwasrecorded,Bwins
Compiano
BwinsbecausedeedwasindexedimproperlyandBhadnoconstructivenotice
AuthoritySplit:
SomeJdxs,indexisnotpartofstatutoryscheme
IdemSonans
Miltonvale
OJohnson,deedrecordedasJohnston
OX,XdoestitlesearchunderJohnson,cantfinddeed
Hasconstructivenoticebecausetitlesearcherhasadutytofindsoundalikes
ForgedDeeds

Diimel
IfWelchhadforged,defeatsdeedandsubsequentdeeds
butWelchhadengagedinFraudintheInducement
CancanceldeedbetweenDiimelandWelch,butBonaFidePurchaseforValuewins
H.TheConsiderationRequirement
Tobeprotectedunderastatesrecordingstatute,Bmustbeasubsequentpurchaser,not
adonee
Valencia
Bmustbeasubsequentpurchaser
Bmustinvestmoney,ormoneysworthofconsideration
Howmuchisvaluableconsideration?
Anderson
Whatisconsideredvalidconsideration?
Peppercorntheorydoesnotapply,$10andothervaluableconsiderationnotsignificant
forpurchaseofproperty
Policy:Courtdoesnotwanttoencouragepeoplespropertybeingtakenaway
Danielsv.Anderson
OAthenOB,Bcontinuestomakepayments,laterknowingaboutA
3PotentialRemedies
1)AwardlandtoA,Bhasrighttorecoverpayments(priortonotice),protanto
2)AwardBfractionalpartofland(createtenancyincommon)
3)BtocompletepurchasebutpayremainingpaymentstoA
I.TitleSearchesandIndexes
WildDeed(StrayDeed)
Adeedoutsidethechainoftitle
Doesnotimpartnoticeonasubsequentpurchaser(notinRaceJdx.,andnotinNotice
Jdx.)
GrantorGranteeIndex
Organizedbynameofgranteeandgrantor
TractIndex
Organizedbylegaldescriptionofpropertyandalltransactionsassociated
Blakev.Graham
ExecutorstoKitnerdeedisawilddeed,nonotice,thusBprevails

J.DeedRecordedBeforeGrantorSecuredTitle
Richardson
OA,whenOdoesnotowntheproperty,BO,thenOB
BisrightfulownerofthepropertybecausehewasaBFP
Thedeedrecordedin1899wasnotconstructivenoticebecauseBdidnothavetodoa
titlesearchbefore1904.
Splitofauthority,someJdxsrequiresubsequentpurchasertocheckbackinchainof
titlebeforeanygrantorintitleacquiredtheproperty.
K.PriorDeedRecordedLate
RollingR.Constr.
Priordeedrecordedlateisconsideredawilddeed
Splitofauthority,someJdxssaythatapriordeedrecordedlateiswithinsubsequent
purchaserschainoftitle
L.DeedOutFromCommonGrantor
Moorev.Center
ClauseinthedeedgaveBnotice,thusBisnotaBFPandwillnotbeentitledtothe
property.
Splitofauthority,deedoutfromacommongrantordoesnotimpartnoticetoa
subsequentpurchaseroftheretainedservientestate
M.ShelterRule
Shulte
IfgrantorisaBFP,granteeinheritsperfecttitle,preventsstagnationoftitle

IX.SECURITYINTERESTSINREALPROPERTYTRANSACTIONS
A.Mortgages
Securityinterestinpropertytoinsuremortgageeagainstdefaultbymortgager,after
default,mortgageemustusethejudicialprocesstorecover
Mortgagor=Borrower,Mortgagee=Lender
CLEquitableRedemption:Buyerusedtobeabletoremaininpossessionafterthe
lawdaybypayingoffthedifferencebeforeahomeissoldoffbutitleadtoinjustices

ModernlyForeclosure:Barsmortgagorfromexercisingrightofredemption,
mortgagorisallowedtobuybackthepropertyafteritissoldinforeclosure
B.DeedsofTrust

Threepartiesinvolved:Mortgagor,MortgageeandTrustee(whoholdstitle)
Nolegalproceedingsaftermortgagordefaults,trusteecanjustselltheproperty
Trusteemustnotifymortgagor,ifnoremedywithincertaintimesale
Murphy
PowerofSaleMortgage(similartodeedoftrust)
Trusteehasfiduciaryrelationshipwithmortgagorandhasaresponsibilitytogetthe
highestpricepossibleforthepropertyinsale
C.InstallmentLandSaleContracts
CLrule,nodeeduntiltotalpaymentcompleted,justacontract
Nobuildupofequity
Defaultimmediatelyterminatesagreement
Vendor=Legaltitleintrust;Vendee=Equitabletitle
SplitofAuthority
1)Treatlandsalecontractsastheyare(Burgess)
2)Intheinterestofequityhavetotreatitlikeamortgagebecauseofthevendeesequity
buildup;vendorhastoenactajudicialforeclosureandgetafairpricebasedonsale(Bean)
D.PriorityofCreditors
Withaforeclosureonajuniormortgage,thebuyertakestotheseniormortgage.
Withaforeclosureonaseniormortgage,thejuniormortgageiswipedoutbecauseof
risk
E.MattersofPersonalLiability
AntDeficiencyStatutes
Inantideficiencystatutejdx.s,bankscannotgoafterborrowerfordeficiencyinloan
repaymentaftersaleofproperty
BankofSonoma
Deficiencyjudgmentagainstbuyer(traditionally),nownoway
AssumptionofMortgage
Burbank

OA(encumberedbymortgage)
AsellstoB(Bassumespropertyandpaymentsonmortgage)
Bdefaults?
IfBassumesmortgage,theBisliabletothebank
IfBtakessubjecttomortgage,Bisnotliableandbankeatsit

X.LANDLORDTENANTRELATIONS
A.InGeneral
Kramarsky
Landlordmaynotdiscriminateonrace,creed,color,nationalorigin,disabilityor
maritalstatus
Anythingelse,however,iswithinlandlordsdiscretion
FairHousingActof1968
U.S.v.StarrettCity
Alandlordcannotdiscriminateevenwithoutanillmotive
SanFernandoValley
GovernmentcannotimposeFairHousingActonroommateselection
ViolationofintimateassociationrightoftheConstitution
CivilRightsActof1866
ShaareTefila
JewsareconsideredadistinctraceforthepurposeoftheCivilRightsActof1866
1982
B.TypesofTenancies
TermforYears
1)Definitebeginningandendtolease(doesnothavetobeforyears)
2)Fixedinadvance
TenancyatSufferance
Tenantholdsoverafteraleaseexpires,continuingtopayrentandlandlordaccepts
SplitofAuthority:TermsofLease
CraigWreckingCo.
TenancyatSufferanceistemporary,termsfromoldleasecarryoverunlessotherwise
stated

Note:aninformalleaseforlongerthanayearisaviolationofthestatuteoffrauds
Crechale
Tenancyatsufferance,termscouldbeonmonthtomonthperiodictenancycreated
TenancyatWill(ExpressorImplied)
1)NoDefiniteTerm
2)Rightofeitherpartytoterminateitbypropernotice
PeriodicTenancyNodefinitetime,fixedprice,terminableatexpiration
1)Termination
a)CLNoticesuppliedmustbethesameastheperiodofthetenancy,butnottoexceed
6months
b)Modernly30days
c)SplitofauthorityforuntimelynoticeEithernullityorcarriesovertonextperiod
C.TenantDuties
Mustpayrent,mustnotcommitwaste
1)Waste
3TypesofWaste
VoluntaryWastevoluntarydestructionofproperty
InvoluntaryWastefailuretoactresultsindestructionofproperty
AmeliatoryWastetenantdestroysproperty,resultsinappreciationofproperty(Lhas
nocauseofaction)
Insomejurisdictionswastewillforfeittenancy
LawofFixtures
IfTfixesachatteltoproperty(likeabathtub)duringalease,becomestherealproperty
ofL.Twillbeliableforanydamageinattempttoremovefixture.
Howeverifchattelisremovable(AC),butLstillclaimsownershipoffixture,Twillbe
liabletoLforthevalueofthefixture
2)PayRent
CLruleTdutytopayrentisabsolute
a)RelieftoTsfromCLRule
FrustrationofPurpose
LTrelationshipiscontractual,Tisrelievedofdutytopayrentbecauseofimpossibility
todeliverperformanceofK

Ifonlyaportionofthebuildingisleased,totaldestructionofthepropertyrelievesTof
obligationtopayrent
D.LandlordRemedies
CLLcanresorttoreasonableforceforremedieswithTsdefault
Modernly?SplitofAuthority
MajorityNoselfhelpforlandlords;mustusejudicialprocess
MinorityYesselfhelp,butbypeaceablemeans,withoutanyforeseeabilityof
violence
E.MitigationRequirement
IfTdefaultsonduties,doesLhaveadutytomitigate(i.e.findareplacementtenant),or
canhesimplysueT?Split:
Majority:whenTsurrenderslease(implicitorexplicit),Lhasadutytomitigate.
DamageswillbereducedbytheamountLcouldhavesecuredifmitigationhadbeenattempted,
orcauseofactionwillbetotallylost.
Minority:LcansimplysueTfordamages
F.LandlordDuties
1)ToDeliverPossession
a)AmericanRule
LegalPossessiononlyi.e.noobstaclestopossession
b)EnglishRule
LegalPossession&
ActualPossessionLmustactuallyphysicallyletTintotheproperty
2)MaintainCommonAreas
Lmustkeepreasonablysafeconditionsinallcommonareasorelsehewillbeliablefor
anyresultinginjuries
3)DisclosureofLatentDefects
Lmustdisclosealllatentdefectswithintheproperty
Anderson
Sinkswerecontinuingtobreakthroughoutthebuilding
Lkneworshouldhaveknownaboutthislatentdefect,isliableforinjury

4)ToNotBreachtheCovenantofQuietEnjoyment
a)CLLandlordwillnotinterferebyanyaffirmativeactoromissionwithtenants
peacefulenjoymentoftheleasedproperty.Musthaveadutytoacteitherinlaworinlease.
b)Modernlyanyaffirmativeactoromissionthatsubstantiallyinterferes(totalityof
circumstances)withthetenantsquietenjoymentbreachescovenant,irrespectiveofduty.

c)ConstructiveEviction
RemedyifTvacatesinatimelymanner(ToS)
Tcansuefordamagesand/orenjoybenefitsofconstructiveeviction(nothavingtopay
rentanylonger)
Reste(LeakyDrivewayintobusiness)
Lfailedtoactwhentherewasadutytoact
Dutycouldbemaintenanceofthecommonarea/latentdefectetc.
Couldalsobebreachofimpliedwarrantyofhabitability
MoreExpansiveView:solongasLhaspowertoremedy
5)DutytoProvideHabitablePremises:ImpliedWarrantyofHabitability
Landlordmustdeliverandmaintainpremiseswhicharesafe,cleanandfitforhuman
habitation.Premisesmustgenerallyberesidentialandviolationsmustbemajor.
SOA
MostjdxsrecognizeIWH,ofthosethatdo,manydonotrecognizeitforsinglefamily
houses
Alsorarelyapplicableincommercialleases
AtCL,therewasnoimpliedwarrantyofhabitability,anyproblemsariseshouldbe
fixedbytenant
GreenCLruleabolished,Policy:peoplegenerallydonthavetheskillstofix
everythingonthepropertyanymore,morepeoplerentingincities,apts.Etc.
6)DutytoProvideHabitablePremises:IllegalLeaseTheory
LbreachofdutyallowsTtostaywithoutpayingrent
However,DCcourtsaysitisnotvalidifproblemsariseafterthesigningofthelease,in
whichcaselandlordwillbeentitledtofairrentalvalueofresidence.

G.TransferofTenantsInterest
1)Assignment(VerticalPrivityestablishedbetweenLandT1)

Lesseepartswithwholetermorinterestandretainsnoreversionaryinterestinlease
LcanholdT1liableforallcovenantsTwasoriginallyliable
Burden/benefitofcovenantrunswithlandassumingsatisfactionofallotherelements
AssignmentdestroysprivitybetweenLandT,newagreementbetweenLandT1
TremainssecondarilyliabletoL(LandTprivityofK)
2)Sublease(PrivitynotestablishedbetweenLandT1)
Ifthereremainsareversionaryinterestintheoriginallessee
TisliableforanycovenantsbreachedbyT1,(LandTprivityofestateandK)
LcannotsueT1inlaw,butinequity(i.e.injunction,notdamages)(burdenofcovenant
notrunning)
T1cansueLformonetaryorequitabledamagesifTbreachesanyconvenant(benefitof
covenantrunning)
3)LandlordPermissionforTransferofTenantsInterest
CLLcanwithholdconsentforanyreason
Moderncanonlywithholdforcommerciallyobjectionablereason,consistentwith
goodfaithandfairdealing

H.LandlordLiabilityinTort
Sargent
UnderCL,Lhadnodutyofcare
Modernly,Lhasadutyofcareandcanbeliable
Policy:toinsurethatLwilltakewhateverprecautionsarenecessaryunderthe
circumstancestoreducethelikelihoodofinjuriesfromdefectsinhisproperty
I.ExculpatoryContracts
AandBagreethatBwillnotholdAliableforinjuriesBsuffersbecauseofAs
negligence
SomejdxsexculpatorycontractsarevalidwithregardtoLandTagreements(i.e.
freedomofK)
Somejdxsexculpatorycontractsarenotvalid(Tunkl)
Contrarytopublicpolicy
J.RetaliatoryEviction
LevictsTbecauseThasexercisedaright,itisanullity

K.RentControl
Pennellv.CityofSanJose
Lcanincreaserentswithinareasonableamount
Tseconomichardshipcanbeconsidered,thoughitdoesnthavetobe
NoviolationofDueProcessbecausepurposeforrentcontrolisprotectionofconsumer
welfare,whichisnotarbitrary,discriminatory,ordemonstrablyirrelevanttopublicpolicy
Noviolationofequalprotectionclauseifrationallyrelatedtolegitimategovernment
interestminimalscrutinytest

XI.SERVITUDES:EASMENTS,PROFITS,ANDLICENSES
Servitudeisaprivatelandusearrangement
A.Easements
Aneasementisaninterestinland,andthereforewhengrantedmustcomplywiththe
StatuteofFrauds(Dyer,easementingrossleftbydevisetobuildonproperty,violationof
StatuteofFrauds)
Easementsalwaysrunwiththeland
Servientestatemustpermitsomethingtobedoneupontheland
Example:BlackownsBlackacre(servientestate),WhiteownsWhiteacre(dominant
estate),ifBgrantsWtherighttowalkacrossB/Atogettoapublichighway,BhasgrantedW
aneasement
EasementAppurtenant
Benefitsdominantestateandmustbeattachedorrelatedtodominantestate,servient
estateburdened
EasementInGross
Personalrighttouseanothersland,generallyinalienableunlessintentofpartiesisclear
Servientestateonly,nodominantestate
Policyfavoringfreealienabilityofland
1)CreationbyExpressGrant
MustcomplywithStatuteofFrauds3
SomejdxsCanreserveaneasement(createinterestin3rdperson,orforhimself),
withtheexceptionwhenthereisapreexistinginterest(Willard)
Atestatormustdescribetheeasementwithreasonablecertaintyinorderforthe
easementtobevalidupondevise(Dyer)

2)CreationbyPrescription
ActualEntry,OpenandNotorious,Exclusive(excludingthepublic,butsharingwith
thetrueowner),Continuous,Hostile,UnderClaimofRight
Burdenofprooflieswithservientestatetoprovethatusewaspermissiveifchallenging
easement
DifferencebetweenAdversePossessionandEasementbyPrescription
A.P.
Possesstheproperty,improveit,liveonitetc.
Excludeallothersfromuse
E.P.
EntitledtoUSEonly
Canbesharedwithtrueowner,butnotwithgeneralpublic
3)CreationbyImplication:PriorUse(COQNAC)
a)Commongrantor
b)Ofphysicalpartonly(grantorkeptapart)
c)QuasiEasement
d)Necessity(ReasonableorStrict)
e)Apparent(reasonablydiscoverablebynextowner)
f)Continuouspriortoseverance
Norken,easementdoesnotendwhennecessityends
Policy:whenoneconveysproperty,heincludesorintendstoincludewhateveris
necessarytothebeneficialuseandenjoymentoftheland
4)CreationbyImplication:Necessity
a)CommonGrantor
b)Ofphysicalpartonly
b)Strictnecessityoftheeasement(i.e.impossiblewithoutit)
Merenonusewillnotterminateaneasementbynecessity(oranyeasement)
Policy:Marketabilityofproperty
B.NegativeEasements
Easementsarenegativewhentheyconveyrightstodemandthattheownerofthe
servienttractrefrainfromcertainotherwisepermissibleusesofhisownland.
CLnegativeeasements:(1)air;(2)light;(3)artificialstreamsofwater;and(4)
subjacentandlateralsupportofbuildingsorland
WaterRights

RiparianSystem:regardingnaturalwatersource,upstreamownercanonlymake
reasonableuse;improperusecanbeenjoinedbydownstreamriparianrightsholders(eastern,
southernandmidwesternstates)
PriorAppropriation:firstintimeisfirstinrightwithregardtoupstream/downstream
users,andmustbeputtobeneficialuse
LateralSupportFromAdjoiningLandowner
AengagesinexcavationonhislandcausingalandslideonBsadjoiningproperty,Ais
liabletoB(StrictlyLiableabsentnegligence)
AengagesinexcavationonhislandcausingabuildingtocollapseonBsadjoining
property,AisliabletoBonlyifAwasnegligent
SubjacentSupport
BownsmineralrightsunderneathAssurfacerightsland,removessubjacentsupport
causingacollapseofAsland,Bisstrictlyliable
BownsmineralrightsunderneathAssurfacerightsland,removessubjacentsupport
causingacollapseofAshouse,ifthesubsidencestillwouldhaveoccurredevenintheabsence
ofastructure,Bisstrictlyliablefortheharmtothelandcausedbythesubsidenceaswellasany
harmtotheartificialadditionsonthelandthatresultsfromthesubsidence
Peterson,ifintentofpartiesisclear,negativeeasementfornoobstructionofviewis
valid
C.TransferabilityofEasements
1)EasementsAppurtenant
Assumingtransfereehasnotice,appurtenanteasementsrunwiththeland
2)EasementsinGross
Transferrable,permittedthepartiesthatcreatedtheeasementevidencetheirintentionto
makeitassignable
2ormorepeopleownaneasement?
Onestock,2ownersneedtoagreeontheuseofaneasement
D.TerminationofEasements
1)Misusealonewillnotterminateaneasement,unlessauthorizedusecannotbesevered
frommisuseinjunctionuntilitcanbesevered(PennBowlingRec.Center)
2)Abandonmentbyownerofservientestate(a.k.a.ExtinguishmentbyPrescription)
Barringownerfromeasement(i.e.puttingupafence)
Abandonmentmayalsobeachievedbydominantestate
Nonusecoupledwithmanifestationofintenttoabandon

3)Endoftermfortheeasement
MergerofDominantandServientEstates,orDominantestateexecutesawriting
relinquishingservientestate
E.Profits
Profitsallowownerofprofittogoontothelandofanotherandextractproduceofthe
land(i.e.righttofish,righttograzecattleetc.)
Allthesamerulesapplyexcepttherearenoprescriptiveprofitsingross(badpolicy,
depletestheunderlyingfee)andtherearenonegativeprofits
F.Licenses
1)Unlikeprofitsandeasementsarenotinterestsinland
2)Totallyrevocable,neednotcomplywiththeStatuteofFrauds
3)Licenseecannotassignrights,rightsterminatewiththedeathofthelicensororifthe
licensorconveystheservientestate
G.IrrevocableLicenses
1)Licensecanbemadeirrevocablethroughequitableestoppel
SplitofAuthority
$Spent/Laborlicenseirrevocablesolongasnecessary
Noirrevocablelicensegranted
2)Licensecanalsobeirrevocablewhencoupledwithaninterest
Example:saleofalreadyminedcoalsittinginacaronlandgrantorgrantslicenseto
comeontothelandandpickupthecoal,irrevocablelicense

XII.SERVITUDES:REALCOVENANTSANDEQUITABLESERVITUDES
A.RealCovenents(AppliedwhenPlaintiffseeksDamages)
CovenantsarepromiseswhereasEasementsaregrants.Easementsalwaysrun,
covenantsonlyrununderspecificcircumstances.Covenantsdonotnecessarilyhavetobeinthe
samedeed,buttheymustbepartofthesametransaction(SonomaDevelopmentInc.)
1)Areweaddressingtheissueoftherunningoftheburdenorthebenefit?

Personistryingtoresistpromise,andheisnotoriginalpartyBurden
Personistryingtoenforcepromise,andheisnotoriginalpartyBenefit
ABurdenwillrunifthefollowingelementsaresatisfied:
(1)FormofCovenant(i.e.StatuteofFrauds)(Note:NotinallJdx.s)
(2)Intentforthecovenanttorun
(3)ThecovenantTouchesandConcernstheland
(4)Verticalprivityexists
(5)Horizontalprivityexists
NoticeMaybeissuewithrecordingstatutes
ABenefitwillrunifthefollowingelementsaresatisfied:
(1)FormofCovenant(i.e.StatuteofFrauds)(Note:NotinallJdx.s)
(2)Intentforthecovenanttorun
(3)TouchandConcern
(4)VerticalPrivity
ItiseasierforbenefitstorunbecauseBenefitsdonotimpedethemarketabilityof
property

Elements
1)Form(i.e.StatuteofFrauds)(3ElementsorIPADDS?)
AuthoritySplit
a)Covenantmustbeinwritingandsignedbythepartytobechargedbecauseitinvolves
aninterestinlandalsoservestoimpartnotice
b)Realcovenantsnotconsideredinterestsinland,noS.O.F.requirement
2)IntenttoRun
Intentistobedeterminedbyconstructionoftheentireagreement
RuleinSpencersCase(i.e.heirsandassignsnecessary)
ModernlyProbativeonly,notnecessary
3)TouchandConcern
Mustbealogicalconnectionbetweenthebenefittobederivedfromenforcementofthe
covenantandthepropertyitself
DeanBigelowTest
BurdenSiderestrictsrightstoland/reducesvalue
BenefitSideincreaseslandownersrights/value
Typicallymoneypaidforabenefitdoesnottouchandconcerntheland(Neponsit)

4)VerticalPrivity
Personpresentlyreceivingbenefit,orbearingtheburden,isasuccessortotheestateof
theoriginalpersonsobenefitedorburdened
Estatetransferredmustbeofsamequantum
5)HorizontalPrivity
Thecovenantmustbepartofatransactionthatalsoincludesthetransferofaninterest
inlandthatiseitherbenefittedorburdenedbythecovenant
Canbeatransferofadifferentquantumofestate

B.EquitableServitudes(AppliedwhenplaintiffseeksanInjunction)
ABurdenwillrunifthefollowingelementsaresatisfied:
(1)FormofCovenant(i.e.StatuteofFrauds)(Note:NotinallJdx.s)
(2)Intentforthecovenanttorun
(3)ThecovenantTouchesandConcernstheland
(4)Verticalprivityexists(Couldbeaslooseasanadversepossessor)
(5)Successormusthavenoticeoftheservitude(actualorconstructive)
ABenefitwillrunifthefollowingelementsaresatisfied:
(1)FormofCovenant(i.e.StatuteofFrauds)(Note:NotinallJdx.s)
(2)Intentforthecovenanttorun
(3)TouchandConcern
(4)VerticalPrivity
C.SubdivisionsandImpliedReciprocalNegativeEasements
Inplannedcommunities,impliedreciprocalnegativeeasementsareenforceablebased
oninquirynoticeandifthedeedisoutfromacommongrantor(someJdx.s),evenifthedeed
doesnotstatethespecificprovision(i.e.Sanborn,cantbuildagasstationbecauseallaroundare
singlefamilyhomes,andcertaindeedscontaintheprovision)
D.CovenantsinGross
Covenantwithnodominantestate,onlyaservientestate
Caullett
Noenforcementofacovenantforarightoffirstrefusal
1)Toovague/obscure
2)Doesnottouchandconcernthelandpersonalpromise
3)Burdenwillnotrununlessbenefitalsoruns

4)Grantorownsnoland
Ifbenefitisingross,burdenwillnotrun
E.TerminationofCovenants
Inordertoterminateacovenant,onemustproveoneofthefollowingelements:
1)Abandonment
Acovenanthasbeenabandonedwhenithasbeenhabituallyandsubstantiallyviolated
2)Laches
Sittingononesrightstoolong
3)Estoppel
Misleadingconductwhichwouldcausereasonablerelianceandinjury
4)ChangedNeighborhoodConditions
Neighborhoodhaschangedenoughsothatbenefitnolongerapplies
5)PublicPolicyConsiderations
Interestsinthepublicthatnecessitatetheterminationofthecovenant

XIII.NUISANCE
Somethingthataffectshealth,safety,offendsthesenses,violatesdecency,orobstructs
thecomfortableuseofproperty
A.PublicNuisancevs.PrivateNuisances
Publicnuisancesaffectthepublicatlarge;onemustbringsuittocityattorneyinorder
togetaninjunction
PrivateNuisancesonlyaffecttheindividualoralimitednumberofindividuals
Twodifferentclassifications:NuisancesPerSeandNuisancesPerAccidens
1)NuisancesPerSe
Anuisanceunderanyandallcircumstances,regardlessoflocation
i.e.Keepingmassiveamountsofexplosiveswithinaquartermileofanytown
(McAndrews)(StrictLiabilityimposed)
2)NuisancePerAccidens(NuisanceInFact)

Nuisancebecauseofthecircumstancesorlocationoftheparticularuse
e.g.Odors,Noise,Lightsetc.
Hutchens(jaggededgeofcarportwasnotanuisanceperaccidens,Phadnostanding,
nointerestinproperty)
a)IntentionalNuisance
i)Substantial
ii)NonTrespassory
Modernly,mattercanbetrespassory,inwhichcase,notnegligence,butcausefor
criminalliability
iii)Unreasonable
SplitofAuthority
a)Unreasonableweighgravityoftheharmagainstitsutility
i.e.LearnedHandNegligenceTest(majority)
b)Nuisancewillexistevenifthereissocialgood(minority)
iv)Defendantsubstantiallycertainofcircumstances
b)UnintentionalNuisance
Substantial
NonTrespassoryInvasion
Negligent,reckless,ultrahazardous
Morganv.HighPennOilCo.
Beforefirstcomplaintunintentional
Afterfirstcomplaintintentional
B.RemediesandDefenses
Typicallyinjunctionsserveasremediestonuisances;however
Boomerv.AtlanticCementCo.(GravityofharmNuisance;UtilityEmploysmany
people;courtofferedpermanentdamages,i.e.damagesrunwiththeland)
Spur(Ifjustdeveloper,doctrineofcomingtothenuisanceappliesandnoinjunction;
however,severalpeoplelivinginthehousingdevelopmentssocourtgrantedinjunction,but
developerhadtopayforSpursmovingcosts)

XIV.ZONING

StandardsofReview
Test
Minimal
Scrutiny(Citizen
hasB.O.P.)
Intermediate
Scrutiny(Gov.has
B.O.P.)
Strict
Scrutiny(Gov.has
B.O.P.)

Means
Rationally
relatedto

End
Legitimate
gov.interest

When
Social;
Economic

Substantially
relatedto

Important
gov.interest

Gender(EP);
(takings,nolonger);
RacialClass(EP);
Alienage(EP)
Fundamental
Rights(Due
Process)

Necessary
fora

Compelling
gov.interest

Zoningcarvesupacityintosegments:sectionsforsinglefamilyhouses;duplexes
commercialuses;andindustrialuses.
EuclidianZoning

VillageofEuclid
Isthiszoningplanconstitutional?
Yesavalidexerciseofthepolicepower,protectthecitizensfromnuisance
doesnotoffendthe14thamendment
MinimalScrutinyTestrationallyrelatedtogovernmentinterest(nuisancecontrol)
A.ExpansionofZoning
1)ForAesthetics
Bermanv.Parker(Gov.acquiredprivatepropertyviaeminentdomainbecause
legitimategovernmentinterestiskeepingcitizenshealthy,keepingcityclean;expandedzoning
forhousingdevelopment)
2)ForLowCostHousing
SplitofAuthority
Mt.Laurel(Peoplehaveafundamentalrighttofairhousing;triggersstrictscrutiny;is
limitingtowntowealthypeopleandindustrynecessaryforacompellinggov.interest?No.NJ
Law)
AsianAmericansforEqualityv.Koch(Doesnotconsiderlowcosthousinga
fundamentalright.NYLaw)
B.LimitingofZoningPower
1)NonConformingUses
Ausethatwaslegallyinplaceatthetimethemunicipalityenactedlegislation
prohibitingtheuse
VillageofValatie(holdingthatnonconforminguseofmobilehomenotparkedina
mobilehomepark,withamortizationperiodendingwiththedeathoftheownerdoesnotviolate
dueprocess)
SplitofAuthority:90daysor30years,arbitraryviolatesdueprocess

2)FundamentalRights
Ifazoningpowerconflictswithfundamentalrights,itwillnotbeconstitutional
Gilleo(hangingasignwithpoliticalviewinanareazonedfornosignswashelda
fundamentalright;zoningrestrictionwasunconstitutional)

XV.TAKINGS
Nopersonshallbedeprivedoflife,liberty,orproperty,withoutdueprocessoflaw,nor
shallprivatepropertybetakenforpublicuse,withoutjustcompensation.(5thAmendment,
U.S.C.)
A.PhysicalTakings
1)TemporaryInvasions
Temporaryinvasionsdonotviolatedueprocess,theyarenevertakings
PruneYardShoppingCenter(allowingpeopletopetitionanddistributeliteratureata
mallwasnotconsideredaviolationofdueprocess,eventhoughitwasalimitationofrightto
exclude)
2)PermanentOccupations
Permanentphysicaloccupationsarealwaystakings
Loretto(holdingthataNYordinancethatstatedlandlordsmustletcablecompaniesrun
cabledownthesideofthebuildingswasapermanentoccupationandconstitutedataking)
3)PublicUseRequirement
Whenthegovernmentcompletesacompensatedtaking,theusemustbeforthepublic,
i.e.notjustphysicalusebythepublic(parks,etc.)butforpublicpurpose
Kelo(holdingthatcondemnationandpaymentoffairmarketvalueforprivatehousesin
ordertobuildaPfizerheadquartersconstitutedapublicuse)
B.RegulatoryTakings
Governmenttellsyouyoucannotuseyourlandinacertainway.Ifregulationgoestoo
faritwillbeconsideredataking.
1)EconomicWipeoutsoftheWhole

Hadacheck(holdingthatprohibitingbrickfactoryfrommakingbricksinthemiddleof
thecitywasmerelynuisancecontrolandthusnoteffectiveasaregulatorytaking)
Lucas(preventionfrombuildingonabeachfrontpropertydeniesowneralleconomic
orproductiveuseconstitutesaregulatorytaking)
a)Nuisancecontrolisneverataking
b)Totaleconomicwipeoutisataking(mustbetotal)
c)Nuisancemustbeacommonlawnuisance
2)EconomicWipeoutsofaPartoftheWhole(ConceptualSeverance)
Splitofauthority:
Mahon(completewipeoutoftheestateofthemineralrightsonlyconstitutestaking)
BituminousCoal(wipeoutofmineralrightsdoesnotconstituteatakingwithregardto
thewholeestate)
Tahoe(32monthclosurenotconsideredataking;notweighedagainstthe32months,
butinfinitetime)
3)AdHocAnalysisApproach(PennCentral)(DCADE)
a)Distinctinvestmentbackedexpectationsextenttowhichregulationinterferes,i.e.
returnoninvestment
b)Characterofgovernmentsaction
Balancelegislativeburdenw/benefittosociety
c)Averagereciprocityofadvantage
Decisionisnotarbitrary(i.e.Landownerisnotbeingsingledout)and/orLandowneris
benefittingfromtheregulation
d)DiminutioninValue(economicimpact)
diminutionalonenotataking,greaterdiminution,greaterprobabilityoftaking
e)ExistenceofTransferrableDevelopmentRights
factoragainstataking
4)MiddleTieredScrutinyApproach(EXTINCT)(Cannotapplymiddletieredscrutiny
approachtoregulatorytakings)
a)Lingle
Abolishesmiddletieredscrutinyapproachforregulatorytakings

UseeitherTotalEconomicWipeoutApproach(Lucas)orPennCentralanalysis(i.e.Ad
HocAnalysis)
5)TimingMatters
a)Palazzolo
Asuccessortopropertycanchallengearegulatorytakingevenifthepriorpossessordid
notchallengetheregulatorytaking
CantputastatuteoflimitationsontheFifthAmendment
6)InverseCondemnationandRemedies
Typically,gov.willattempttosecureaparceloflandbypurchase;landowneragrees,
gov.takesproperty;iflandownerdoesnotagree,gov.exerciseseminentdomainpower.
InverseCondemnationInregulatorytakingsarea,landownerfilessuitagainstgov.
forgoingtoofarwiththeregulation,constitutingataking.
Remedies
BeforeFirstEnglishgov.wouldeitherrevokeregulation,repealthelawinquestion,or
exerciseeminentdomainpowerandpayfairmarketvalue
AfterFirstEnglish,providedthatthereisatakingandallusewasdenied,gov.is
requiredtopayforalltimeusewasdenied
ContrastedwithTahoewhichdidnotrequirepaymentforalltimeusewasdenied;
Tahoewasacauseofaction,FirstEnglishwasaremedy
C.Exactions
Gov.allowslandownertobuildbutonlyifthelandownerfirstgivessomethingtothe
gov.DoesexactioncomportwiththeFifthAmendmenttakingsclause?Yesif
1)EssentialNexusTest(Nollanbeachfrontproperty,gov.soughteasement)
Theremustbealogicalconnectionbetweenexactionsoughtandtheanticipatedharm
and
2)RoughProportionalityTest(Dollan,hardwarestorebikepathandgreenspace)
Individualizeddeterminationthattherequireddedicationisrelatedboth
innatureandextenttotheimpactoftheproposeddevelopment
a)Governmenthastheburdenofproof
b)Governmenthastoshowthattheexactionisactuallygoingtobeeffective
D.JudicialTakings

(NOTE:Notthelaw)
StoptheBeach
Courtstatesthatacourtordercaneffectivelyactasataking
SeePruneYard(shoppingcenter)
E.OtherTypesofTakings
ExParteBrown
LawyersservicesonbehalfofanindigentlitigantconstitutesatakingundertheFifth
Amendment,anddeservesreasonablecompensation(notnecessarilyfairmarketvalue,but
subjecttodecisiononacasebycaseslidingscaleanalysis)