Property Outline Edited (Boz)

8/8/2019 Property Outline Edited (Boz)

1/49

1

PROPERTY OUTLINE

2009 PROFESSOR TURNIPSEED

Part I. An Introduction to Some Fundamentals

Chapter 1: First Possession: Acquisition of Property by Discovery, Capture and Creation

1. Acquisition by Discoverya. Johnson v. MIntosh, 1863- CJ marshalli. Action to quitetitle- aka figure out who ownedtheland

ii. Pclaimstitleto hislandthathereceived from Indian chiefs in grants in twoseparate years. D claimedtitleto land becausethey got it from the government.

iii. HELD- NO,they donthavetherightto selltheland becausethey themselvesneveractually ownedtheland. They can only sellthelandto the United States.

iv. MAIN PRINCIPAL- Discovery gavetitleto the government by whosesubject orby whoseauthor, it was made,againstall otherEuropean governments, whichtitlemight beconsummated bypossession.

v. When Europeanstookthelandthey gavethe Indians only OCCUPANCYrights.(discovery of othercivilized nations)Only 1can haveabsoluteproperty rights.

b. Discovery Doctrine-i. Explanation ofthe way in whichcolonialpowerslaidclaim to newly discoveredlandsduring theAge of Discovery. Under it,title to newly discovered lands laywith the government whose subjects discovered new territory.

c. Conquest- isthetaking ofthepossession ofenemy territory through force followed by aformalannexation ofthedefeatedterritory by theconqueror.

d. Labor Theory and John Locke- says itdoes not matterwho isthere firstthatrathernobody hasaright butto himself,and whateverlabororworkhedoes ithis. But once

labor isdone no one man can claim thelandalonei. Who isto define whatproductive use is?

e. Accession- When oneperson comes intoplay when oneperson addsto theproperty toanother.

i.PowerConferspropertyii. Property conferspower

iii. Learn it. Know it.Live it.2. Acquisition by Capture

a. Pierson v. Post- Hunting foxes casei. A fox isan animal, wild in nature,andaproperty right in suchan animal is

acquiredby occupancy only.ii. Justthe merepursuit ofan animal is notenough,even iftheanimal is wounded in

anyway. IF it is mortally woundedthen itsadifferentcase,then there might betheright becausethan theanimal is unableto escape.

iii. RULE- pursuitalone is insufficient to constitute occupancyiv. If meresight oftheanimal gavepossession oftheanimalthere would bea vast

increase in the numberofargumentsandlitigationv. DISSENT- Death ofthe foxes is inpublic interestvi. Majority used formalism to getto theirholding- looking toprecedent.

b. Ghen v. Rich- whaling/ common usagecasei. The person who killed it in the first place is the owner. Neithertheperson who

found it ortheperson who bought itknew who the ownerwasii. There isacommon usage in Cape Codthat when a whale iskilledandanchored

andleft with marks ofappropriation underthecircumstancesdescribed, it became


2/49

2

theproperty of itscaptors. Customsaredesignedto encouragethe wealth ofthe

people in the industry. Shouldacourt follow custom?3. Luring wildanimalsto onesproperty

a. Keeble v.Hickeringill- DUCK DECOYSi. Issue- Doesthatlandownerhavearightto attract wildfowlto hisproperty

unimpeded by thedirect interference ofanotheraimedsolely atkeeping the

wildfowlaway? Yes!ii. The ownerhasthelandhastherightto usehispond forhistrade ofattracting,

catching and using the wildfowl. One who hinders on this isliable.Maliciousinterfering withtrade orbusiness.

iii. If D hadset uphis ownpondandLURED theducksaway then it would be okay.Example oftheschool

iv. Note- herethePhadpossession oftheducks becausethey weretrapped in thedecoy.Constructivepossession- landowner isregardedasthepriorpossessory orany wildanimal on theirland untilthey aretaken off.

v. Interference withcapture is okbecause itpromotesan incentive forboth oftheschoolsto get better

4. Discouraging trespassa. Preventdamagesto otherspropertyb. Encourage orderc. Encourage investment in theirpropertyd. Safety

5. Acquisition by Creation: theassertion that if you createsomething if you arethe first-thatthen something is yours. Based on lockslabourtheory. PROBLEM- yourlaborisnotalways Just yours

a. Property in Ones IdeasandExpressions : GeneralPrinciples of IntellectualPropertyb. International News Service v. Associated Press (P)- S.ct 1918

i. dcontendsthatPhas no copy writeto the news because it is not within thecopyrightact,also that oncethe news is madepublicthethereare nopropertyrights. Courtsays,therelationship issue is not that between the D and the public,but rather between D and P- the news is quasi property. Because it is gathered,distributedandsoldthroughenterpriseskill,laborand money justlikeany othermerchandise.

ii. Dstaking ofPs news unreasonably interferes withPsrightto makemerchandise out ofthe news, interferes withPs businesses, wherePdoesthelaborand D reapsthe benefits.

iii. Ifthere was no righttoproperty newsthen why wouldpeople be in the business,the wouldnt makeany more.

iv. Quasi property- because once it isreleasedto thepublic, it no longerbelongstoanyone

v. Trade secret-cokeexample- didnt getapatent because in 20 yearseveryonewould beableto use it

c. Property in Ones Ideas and Expressionsd. Cheney Brothers (d) v. Doris SilkCorp-hand

i. Can Psdesigns beprotected only during the firstseason in whichthey areintroduced? no


3/49

3

ii. General Rule-in the absence of some recognized right at common law, or underthe statutesa mans property is limited to the chattels which embody hisinvention others may imitate at their pleasure

iii. Competition will make betterproductsandreducetheprices.If there is no property right in the creator, no incentive to produce

iv. If there is a property right => monopoly1. Smith v. Chanel, Inc- trademarkrequired greatexpenditures of money,

effortandability,thecourt foundthat Chanel was notentitledtomonopoly even thought itcreatedtheproduct. servesan importantpublic interest by offering comparable goodsatlowerprices

a. Trademarks used to symbolize, identify whatever the entity is.Usual last until it becomes generic.Kleenex, aspirin, Xerox

2. Douglas Baird- Discussesthedifference between wheatand information.Wheat orlandaretangiblethat one in thepossession of oneperson,whereas withthe news it would beliketelling the farmerafterhesdonewithallhis work,hehasto hand it overto someoneelse, who justwatchedhim grow it.

6. Legislation? Idea behindcopyrights,patentsandtrademarks isto grantalimited monopoly overprotected material.

a. Copyrights protecttheexpression of ideasb. Trademarks-c. Nicholas v. Universal Pictures Corp-P wastheauthorofaplay, D madea movie but

thecourt foundthe Ds movie wastoo unlikethe Osplay to bean infringement,notwithstanding somedetailsthat D usedthePs work.

d. Diamond v. Chakrabarty- microbiologist who filedapatent forthe invention ofahuman made, genetically engineered bacterium

i. Firstthecourtlookedto see is whetherornotthe bacterium waseitheramanufacture orcomposition of matter.

ii. Manufacture istheproduction ofarticles foruse from raw materials orprepared,by giving to these materials new forms, qualities,properties orcombinations

whetherby hand,laborormachines.e. White v. Samsung

i. Samsungput outacommercialthatdepictedarobotdressedlike Vanna in front ofa wheel of fortuneto suggestthattheirproduct willstill be working even whenhumansare no longeraround.

ii. The majority opinion makes itatortto even remindthepublic ofacelebrity. Thisraisesserious firstamendment issues. The DC- notesthatthecommercialdid notusehername,likeness,signature orvoice.

iii. Balance between the ownerandthepublic, needthisto maintain a freeenvironment in whichcreative geniuscan flourish.

7. Property in Ones Personsa. Moore v. Regents of the University of CA

i. P was informedlaterthathis body was being used forresearch.ii. Court Reasoning-1. Failure forconsent- when D failedto disclosetheextent oftheresearch

andcommercial interest in thecells before getting consent from P, D hasinvadedalegallyprotectedpatient interest.

2. Conversion: In orderto establishconversion P mustestablishan actualinterference withhis ownershipright orright ofpossession.Here, it isclear thatPdid not expect to retain possession of his cells after their


4/49

4

removal.Expectations! Uniqueness - So then P mustprovesomeownership interest in them. Thecourtsaidthere is no interest because

a. There is no reported judicialdecisionssupporting Mooresclaimb. CAstatutory law drastically limitsany continuing interest ofa

patientsexcisedcells

c. Thesubject matterofthepatent is nothing like whatthey took, itisa new celllineandtheproducts from itcannot beMooresproperty.

3. Comparesto Privacy cases, in thataperson hasproprietary interest intheirown likenessandthat unauthorized, business use ofthelikeness isatort. Courtrejectsthis, itslikeapplesand oranges, why are weeven

comparing them.iii. Should conversion be extended? No

1. We need notthreaten those who areengaged in socially usefulactivitiesthat makeadvances in the medical field.

2. Expanding liability wouldseriously threaten to destroy theeconomicincentiveto conduct important medicalresearch.

iv. Dissent- thinksthatproperty issucha broadterm andabstractandthat it isimportantthat it beaprotectableproperty right.

1. Talksaboutthe bundle ofrights-a. Rightto possess, use,excludeanddispose just because you

might nothaveany oftheserights,does not mean that its notproperty

b. Allowsthepatientto say no, butdoes notallow thepatientto yesandthatthey wantsome ofthe benefits

c. Only the initial guy thatthey can sue- deeppocketsv. Someproperty haslimitations. I.e.- you havearightto something but you cant

see it, orgive itaway.1. Renting an apt2. Musicd/ledlegally on itunes.3. Babies- cantsell it butcan give itaway4. Degrees- cantsell orgiveaway5. Political offices6. Vote7. Trustees

vi. Accession- if you addsomething to something to come up withsomething better,should you getthe value ofthat?

1. Might beableto getsomedamages, but only to the value ofthecellswhen they came out ofthe body, notafter

vii. Rightto Include- rightto let othershave orenjoy onesassets1. you may come in you may havethis, if you pay me

viii. Rightto exclude- flipside- often saidto be #1 stickin the bundle1. you may notcome in you may nothavethis unless youpay meix. Key- each is necessary fortransferability1. Exercise ofeach is backed up by the government

b. Jacque v. Steenberg Homes, Inci. D hada mobilehomehehadto deliverandthe quickest way was overPs

propertyii. Looksatthe individualland owners interest inprotecting his orherland from

trespass.Heldthatright ishollow ifthelegalsystemprovides insufficient meanstoprotect it.


5/49

5

iii. Note- Society hasan interest inpunishing anddeterring intentionaltrespassersbeyondthat ofprotecting the interest ofthe individualland owners

c. State v. Shacki. Dsentered uponprivateproperty to aid migrant farm workersemployedand

housedthere.

ii. Held,the ownership of real property does not include the right to bar access togovernmental services available to migrant workers and hence there was notrespass within the meaning of the peal statute. Necessity, private or public, maytherefore justify entry upon the lands of another.

Chapter 2: Subsequent Possession: Acquisition of Property by Find, Adverse Possession

and Gift

1. Acquisition by Finda. When an ownerlosestheirproperty,according to thelaw they arestillthe owner.

Theirtitleto thelostproperty issuperiorto that ofeveryone including the finder.General Rule is that the finder of the lost property has title to the lost property

superior to all by the true owner.b. Armory c. Delamirie Sweepers boyi. The finders interest is goodasagainsteveryoneexcept forthetrue owner

ii. Psued forTROVER- isacommon law action formoney damagesresulting from the Dsconversion to his own use ofchattel owned orpossessed by theP. Here,the D waiveshisrightto obtain thereturn ofthechatteland insiststhatthe D be forcedto buy thechattel. Replevin- wouldbethereturn ofthe good.

c. Class notes:i. Damages? Fairmarket value- (1- ( theprobability true owner))

ii. Why do we protect ownership?1.

Encouragesproductive use ofresourcesa. Ifsomeonecan takeaway yourstuffthen you probably

wouldnt wantto invest much in yourbelongings

2. Investment3. Law is usually cheaperway to protect ownershipthan self- help

iii. Rewardhonest finders,andtry to maximizethe odds of getting thepropertybackto thetrue owner.

iv. What isthetrue ownerappearedsatthe goldsmithsshopanddemandedreturn ofthe jewel? (afterthe finderalready won j)- In theory you shouldgo afterthe finder, butproblems

1. They mightactually wantthe item itself back2. Damagedaward,discounted3. Hardto findthesweep4. Even ifthey findthesweep,the money is gone

v. True ownerv. goldsmith?1. Goldsmithalreadypaid once

a. Subrogationd. Hanna v. Peel- soldier


6/49

6

i. Bridges v. Hawkensworth-asmallparcel was found on the floor(contained banknotes) ofashop in thatportion oftheshopthat frequentedby thepublic,the issue was whetherthe finderortheshopkeeperwasentitledto it.Pasked D to lookafterthen incasethereal ownershows up, 3yearslaterno oneclaimedthe notes. Thecourtheldherethattheparcel was

never in thecustody oftheshop owner, orwithin theprotection ofhishouse,andthattheshop ownerhad no duty otherthan to notify thepublic.Thereforethereare notcircumstances warranting an exception to therulethatthe finderhasasuperiorclaim overanyone by thetrue owner.

ii. There wouldnteven bean issue if it was found outsidetheshopiii. South Sattafordshire Water Co. v. Sharman- workers, underthe

landownerorders, werecleaning outapool of waterwhen they discovered2rings, TheCourt said that if a servant or an agent finds something, hefinds it for their mater. So the finder here, an employee, found the rings for

the benefit of his employer, the landowner.1. Heretherings wereembedded notsitting on top

iv.

Elwes v. Brigg Gas Co. courtheldthattheleassorownedthe boatandthatit made no differencethathedid notknow itexistedpriorto discovery.1. Embedded2. Importantthat itsso old

e. From thesecases ourcourtholdthata person possesses everything attached to orunder its own land, and that a person does not necessarily possess everything that

is unattached on the surface of the land.f. HERE,the brooch wasand notattachedto Dsland. D neverphysicallypossessed

thepremisestherefore it was neverhis.Hedid now know about it untilP found it,thereforePprevails.

g. Polices-i. Returning item to the true owner

ii. Carrying out expectations of parties- probably highest when you are inyourown privatehomeand occupied.

1. Whataboutprivateand unoccupied?2. Whatabout business not open to thepublic-3. Different from a businessthat is open to thepublic

iii. Rewarding honestyh. Armory finderv. baileecase,distinguisharmory from whateverfacts you are

given on theexam. (here wehave finderv.locus owner)i. Locus owner- rights? Right oftrespass,privacy, 4thamendment, mineral

rights2. McAvoy v. Medina-

a. D, owneda barbershop,b. There isadifference between property that is lostand property that was

voluntarily placed on the table andaccidentally left there. Thedhadtheduty tousereasonablecare in thesafekeeping oftheproperty.

c. Generally theplace where it is founddoes not make much ofadifferenced. In thiscasetheproperty wasvoluntarilyplaced in theshop by its owner, by merely

finding itPdid notacquiretherightto take it from theshop.


7/49

7

e. AbandonedProperty? Belongsto the findergenerally heretheconcern of finders(n to protectthetrue owner) islost becausethe ownerhasrenouncedany claim

f. Treasuretrove-wasany money orcoin, gold,silverplate orbullion hidden in theearth.

i.

In reseizure- $ in gastank= because it wasabandonedthe money belongedto the buyerasthe firstperson to find it,the mechanic was working forthebuyer

ii. Barry Bonds- first it waspossessed by theMLB,then abandoned when hitinto theair,then theirfirstperson who posses it is now the owner.P wasthe firstto catchthe ball (hadapre-possessory interest) butthen wasattacked by othermembers ofthecrowed,thereforereleasing the ballandD picked it up. D did notpartake in theattack. Bothside ofthecasehavequally relevantargumentsso thecourtappliedequitabledecision- to sellthe ballto athirdparty andthen splittheprofit.

iii. Initial Custody- who should get itrules? Usually thelocus1.

Reasonable value oftimeto get it.2. Something extremely old orofhigh value-

3. Something oflow value3. Acquisition by Adverse Possession

a. The theory and elements of Adverse Possessioni. ActualEntry andPossession- thepossession must beexclusiveand ofsuch

a naturethatthecommunity wouldthinkoftheadversepossessorastheowner

ii. Powello- saysadversepossession functionsasa means oftransferringownership.barsactions by theerstwhile ownerbutalso vestsa new title,created by operation ofthelaw.

b. Oliver Wendell homes,laws ofprescription- ifa man neglectsto enforcehis ownrights,hecannotcomplain if,aftera while,thelaw followshisexample

c. Van Valkenburgh v. Lutzi. Foradversepossession it must beshown by clearandconvincing proofthat

foraliated 15 yearsthere wasan actual occupation underaclaim fortitle, forit is only thepremiseso actually occupiedand no othersthataredeemedto have been adversely.

ii. Elements ofproof1. Areprotected by asubstantialenclosure

a. Courtsaysthere is2. Usually cultivated orimproved

a. Proofshowsthatthere was no cultivation3. In somestatesthey haveto pay atax on theland in orderto prevail4. Color of title- refersto aclaim founded on a written instrument,

likeadeed ora will5. Claim of title issimply one way ofexpression therequirement of

hostility orclaim ofright on thepart ofan adversepossessor

d. Pros-i. Maximizessocial utility ofrealproperty


8/49

8

ii. Ancientevidence- helps figure out who actually ownstheland (cost offiguring out who owns in increases overtime)

iii. Expectationsiv. Goodto every onceanda while quitetitle v. Earning theory weshouldrewardpeoplethatare beingproduct withthe

landvi. Sleeping theory-punishpeople who sleep on theirrightse. Cons-

i. Moral issues- isntthistrespassingii. Unfairto thetrue owner(first in time)

iii. Underminesthetitlesystemiv. Discouragespeople from buying thelandv. Underminesrightto exclude

vi. *atax foreclosuresale- usually restartstheclockon adversepossession-f. Requirements for adverse possession

i.Entry- actualphysical occupation oftheland1. Servespurpose ofstarting thestatute oflimitationsclock

2. Natural useii. Open and notorious noticeto thetrue ownerto letthem know

something might behappening to theirland1. Bothrelateto theearning andsleeping theory

iii. Adverseclaim ofright-1. Threedifferent waysstates of goneaboutdefining this

a. Irreverentstate of mindi. Most go withthis one

ii. Englandb. I thought I owned it

i. Garagec. I knew I didnt own it but I wantedto make it mine

iv. Continuous-1. Requiresthattheactual owneruse itasan actual ownerwould

make of it,thetypicalactually ownera. i.eexample ofliving in Nantucket- might only use it in the

summertimeg. The Mechanics of Adverse Possession

h. Mannillo V. Gorski- 15 inchesi. Two opposing views:

1. Maine doctrine- wouldrewardthepossessory who entersanothersland withapremeditatedandpredesignedhostility.

a. Encouragestheknowing wrong doer2. Connecticut Doctrine- makes in inquiry into therecess ofthe

adverseclaimants mind. saysthe very nature oftheact isanassertion ofhis own titleanddenial ofthetitle ofall others.

ii. Held- no matteriftheadversepossessorwas mistaken ornottheresult isthesame.


9/49

9

iii. BUT theelement of open notorioushere was not met because ofthe minorencroachment. It is only when thetrue ownerhasactualknowledge oftheintrusion that itcan besaidthepossession was open and notorious.

iv. Unfair?Might be unfairto theadversepossessorwho underan innocentand mistaken belief oftitlehas undertaken an extensive improvement

which encroaches on an adjoiningparty- mighttheP be forcedto conveytheland upon payment ofthe fairvalue?v. Almosteveryone now hastitle insurance, not only foradversepossessors

butalso ifsomeone makesa mistake in tracingpossessorsvi. Doctrines-

1. Doctrine of agreed boundaries- providesthat Ifthere is uncertaintybetween the neighborsasto thetrue boundary line, on oralagreementto settlethe matterisenforceable ifthe neighborssubsequently accepttheline foralong period oftime

2. Doctrine of acquiescence- providesthatlong acquiesce isevidenceofan agreement between theparties fixing the boundary line

3.Doctrine of Estoppel- when one ofthe neighbors makesrepresentationsaboutthelocation ofthecommon boundary andtheotherchangestheirposition in reliance on therepresentations orconduct

i. Howard v. Kunto-i. The factthattheland was used only in thesummermonths makes no

difference in establishing adversepossession. Continuous in thesensethatatrue ownerwould.

ii. Thiscase isdifferentthen most foradversepossession because itdoes notclaim morethan thetitleallows forbut from acompletely differentarea ofland.

iii. Courtheldthattheprivity requirement if no morethan a judicialrecognition ofthe need forsomereasonableconnection between successiveoccupants ofrealproperty so asto raisetheirclaim ofrightabovethestatueofthe wrongdoer. Courtallowed forpriorestatescould betacked onto thepresentdefendantstimeperiodto meetthestatutory timeperiod because ofthesufficientconnection between the occupants.

iv. Tacking- ofadversepossessors- adding thosetwo timestogether, whichwould belongerthan thestatutory limits

v. Tacking of owners- entireperiodagainst 1 owner?vi. Herethey wereallowedto tackon theprevious ownerstimeto theirs

becausethey are inprivity- voluntary transferofeitheran estate orpossession from once occupantto another

vii. Disability- takelongeroftheeitherthe normal SOL orend ofdisabilityplus 10 years

1. Canttackdisabilities2. Disabilities mustexistatthetimetheadversepossessorenters

j. Adverse Possession of Chattelsi. OKeeffe v. Snyder-


10/49

10

ii. Discovery rule-holdsthatthe SOLdoesnt begin to run untilthe injuredparty discovers (orby reasonablediligencecouldhavediscovered)the factsthat form the basis ofthecause ofaction. Thepurpose ofthisequitableprinciple isto mitigatetheharshresults ofthe SOL

iii. Atheftacquires no titleandcannottransfergoodtitleto othersregardlessoftheirgood faith orignorance ofthetheft.Hence, ifthepics were in factstolen D has no titleto them

1. To acquirechattels by adversepossession,thepossession must behostile,actual, visible,exclusiveandcontinuous.Here it is verydifficultto determine issomething it noticeable.

iv. Trialcourtshouldlookat:1. WhetherOkuseddue diligenceto recoverthepaintingsatthe

time oftheallegedthereandthereafter2. Whetheratthetime oftheallegedtheftthere wasan effective

method, otherthan talkedto hercolleagues forherto alerttheartworld

3. W

hetherregistering thepaintings wouldputreasonably prudentpurchaser ofart on constructive noticethatsomeone otherthanthepossessorwasthetrue owner

k. Burden forthediscovery rule is on the ownerto show duediligencel. Cause ofaction accruesatthetimetheft,absent fraud orconcealment, unless

ownerisentitledto benefit ofthediscovery rulei. Goesto theconduct ofthe owner, notpossessor, iscontrolling

ii. Firstknew- orshouldhaveknown throughduediligencem. States- when solaccrues

i. Time oftheftii. Firstknew

iii. Shouldhaveknownn. Courtallowstacking ofperiods ofpossessiono. Voidable title- if you title unlesssomeone witha bettertitlecomesalong theft

can havethisaslong asthetrue ownerdoes notcome back

4. Acquisition by Gifta. InterVivos- theseare gifts madeduring the grantorslife when hisdeath is not

imminent. Once madethey are irrevocable(v.testamentary).b. CausaMortris- gifts made in contemplation of imminentdeath- thispermitsdeath

bedconveyances outside ofthe will. Ifthe would bedonorsurvives,the gift isautomatically revoked

c. Need intent and deliveryi. Gift isenforceable.Apromiseto makea gift, unlessthere isreliancethat

leadsto promissory estoppelsthen it is notenforceable.d. Newman v. Bost-

i. Insidethe bureau werelife insurancepapers whichthed in turn soldii. The issue is ifconstructive delivery ofa gift issufficient ifactualdelivery

is notpossible? Yes- Reversed.


11/49

11

iii. Sinceactualdelivery waspossible,constructivedelivery ofthe insurancepolicy is insufficientandthereforethepolicy belongsto theestate.

iv. As forthe furnitureto whichPhadthekeys,constructivedelivery issufficient,dueto theirsizeand weight, manualdelivery is notpossible.

v. Constructive- typical- key,something that wouldallow you accessto anobjectvi. Symbolic- say fornotrealproperty- written a note

vii. Safe- do you get what is in side?Well what isthepoint ofthesafee. Gruen v. Gruen- Court ofAppeals, NY 1986

i. Court found that an inter vivos gift is different from a testamentarydisposition, which is an intent to make a transfer only upon the donorsdeath. The test here is whether the donor intended the gift to transfer a

present interest or intended the gift to have no effect until after the donordied.

ii. Evidenceshowsthatthe father intendedto givethepainting to P whileretaining hislifeestate.

iii.

Delivery issatisfied by constructivedelivery.iv. Acceptance isshown by thepresumption thatarecipientacceptsa gift ofvalue

v. gavehisson aremainder interest, which was irrevocable.Meaning thathehastitleto it but notpossession untilafterdeath.

f. Threeelements ofa gifti. Intent

ii. Delivery-the writing wasasymbolic deliveryiii. Acceptance

5. Complete ownership inproperty- allthesticks in the bundle (well maybe notall butasmany as you can get)

LIFE ESTATE- Say Turnipseedhas alifeestateandsells itto John, John dies beforeTurnipseed,estate goesto Johnsheirs fortheremainderof Turnipseedslife

1. Waste- thelaw of wastea. Used when two ormorepeoplehaverightsto property atthesametime. The idea

isthatAshould not beableto usetheproperty in a mannerthat unreasonablyinterferes withtheexpectations of B.

i. Designedto avoid wasting theland- goal isto maximizethe use oftheproperty

b. Affirmative waste- arising from injuriousactsthathave morethan trivialeffectsi. Ex. Of minerals, its okay too keepextracting mineralseven if it isharmful

IF they were begin extracted when the future interest werecreated.c. PermissiveWaste- failureto takereasonablecare oftheproperty

2. Wisdom ofcreating alegallifeestate- Someproblemsa. Saleb. Leasec. Mortgaged. Waste


12/49

12

e. Insurancef. Theperson creating alegallifeestatecan draftthe instrumentso asto givethelife

tenantapowerto sell ormortgagea feesimple orto lease beyondtheduration oftheestate

3. LegalLifeestates ofpersonalitya.

Unlikereallandestates ofpersonality areeasily sold4. Protecting thelifetenant by creating atrust-

a. More flexible thatalegallifeestateb. Usually givethetrusteepowerto sell,lease, mortgage,remove minerals, ordo

whateveraprudentpersons would investtheproceeds.lifetenantcan be madeatrustee orthecourtcan

Chapter 5: Co- ownership and Marital Interests1. Co-ownershipandMarital Interests:

a. Tenants in common- haveseparate but undivided interest in theproperty theinterest ofeach isdescendibleand may beconveyed by deed orwill. Thereare

NO survivorshiprights between thetenants.i. Can you forceto sell yourportion ofa TIC? Yesb. Joint Tenants- havetherightto survivorship;they areregardedas onesingle

owner. In theory then each ownsthe whole undividedproperty;so when one jointternatedies nothingpassesto thesurviving jointtenant.

i. Aand B own property.Adiesleaving property to H.Who owns it now?Just B ownsall. Cannot giveaway your interest in a jointtendency.

ii. Thereare 4 unitiesthatareessentialto a jointtenancy1. Time2. Title3. Interest4. Possession

c. Tenancy by entirety- can only becreated by husbandand wife. Neitherhusbandorwideacting alonehastherightto judicialpartition ofproperty Cantunilaterally severeatenancy by entirety creditorcantcomeafterif its just ofone oftheparties so if youre in a juris where you canput intangibleproperty inatenancy by entirety, its goodprotection from creditors.

i. Haveto be marriedat the time you createatenancy by entiretyd. You can combine a JT with a JTIe. Avoidance of probate probate isthe judicialsupervision oftheadministration of

thedecedentsproperty thatpassesto othersatthedecedentsdeath.Probate iscostly a jointtenancy avoidsprobate because in interestspasses on the jointtenantsdeath

f. A jointtenantcannotpassher interest in a jointtenancy by willg. Unequalshares- thisrequirement no longerexistsh. Riddle v. Harmon-

i. Can a jointtenantterminatea jointtenancy by granting herone-halfundivided interestto herself. YES! Reversed.

ii. A jointtenancy may beconvertedto atenancy in common by destructionof one ofthe 4 unities.Each joint tenant clearly has the right to destroy


13/49

13

the joint tenancy without the consent or knowledge of the other jointtenant by conveying her separate estate by gift of otherwise.

iii. Atcommon law,the only way foraperson to createda jointtenancy withanotherperson wasto usea straw man who wouldreceivedtheproperty,then reconvey itto the original ownerand other jointtenants.

iv.

Clarkv. Carter- foundthestraw man to be indispensable- reasonedthetwo to transfernotion.v. Modern objections? To singleparty severance

1. Without notifying otherJT (actual notice)2. Without notifying any thirdparty (fraud issues)3. w/erecordation

i. Harms v. Sprague-i. Is jointtenancy severed if one jointtenant mortgageshis interest in the

jointproperty? Noii. Previouscourtshaveheldthata judgment lien on one joint tenants interest

does not sever the joint tenancy unless a deed is conveyed and the

redemption period has passed.iii. If mortgage is merely a lien and not a conveyance of title, the execution ofa mortgage by a joint tenant would not destroy the unity of title.

iv. Becausethe JT survivedtheexecution ofthe mortgage,P becamethesoleowneroftheproperty upon his brothersdeath. The mortgagedoes notsurvive.Ptakestheproperty throughtheconveyancethatcreatedthe jointtenancy, nothis brotherssuccessor.Mortgage wasthereforeextinguishedatdeath.

v. Theory of mortgage- iftitletheory then person giving the mortgage isactually deemedto receivedtitle- then it would breakthe jointtenancy.

j. Joint Tenancy Bank Accountsi. Agent /convinceaccount- during life- both ofthepeoplehaveaccessto the

money- butthe otherperson can only writechecks forthe benefit fortheperson who put in the money to begin with

1. atdeath- thereare no survivorshiprightsii. True jointtenancy w/ right ofsurvivorship- bothcan writechecks- and

there issurvivorshipaccountsiii. Payable on death/transferable on death- notaccessduring life, only at

deathiv. Problem 3- Aand B havea jointsavingsaccounts----how much ofthe

accountcan Ascreditorreach?1. Creditorscan reach it only inportion to thedebtors ownership of

the funds (what % eachperson put in)2. ParolEvidence isadmissibleto show contribution and whetheror

not oneperson mean to makea gift3. Burden is on thedebtorsto show whattheir interestsare4. Majority rule- can be 100%

k. Relations Among Concurrent Owners


14/49

14

i. Eachtenant isentitledto possession oftheentireparcel ofland yethecannotexercisethatpossession withoutcoming into conflict withthereciprocalright ofhiscotenant

ii. Partition the privilege of each co-owner to transform concurrent estatesinto estates held in severaltyiii. Can beachievedthrough voluntary agreement

iv. Delfino v. Vealencis1. Partition ofsaleshould beallowed when2. Thephysicalattributes ofthelandaresuchathatapartition ofthe

landaresuchthatapartition in kind is impracticable orinequitable3. The interests ofthe owners would betterbepromoted by apartition

by salev. Owelty- nuisancedamages

vi. Court mustconsiderthe interests ofall ofthetenants in common tand notjusttheeconomic gain of one ofthetenants

vii.

Thesedays mostcourts would useapartition by saleviii. Problem 6- Chair- ending updoing atemporalspiltix. Sharing the Benefits and Burdens of Co-ownershipx. Spiller v. Mackereth

1. Generalrule- in the absence of an agreement to pay rent or anouster of a cotenant, a cotenant in possession is not liable to hiscotenants for the value of his use and occupation of the property.

a. Therehasto beevidence whichestablishedan ousterbeforespiller isrequiredto pay

b. Ousteri. Used in co-tenancy casesto describetwo distinct

factsituations1. The beginning oftherunning ofthe SOL for

adversepossession2. Theliability ofan occupying cotenant for

rentto othercotenants2. RULE: Tenants in common areseizedpermy etpertout.Eachhas

an equalrightto occupy;and unlessthe one in actualpossessiondeniesthe othertherightto enter, oragreesto pay rent, nothingcan beclaimed forsuch occupation

3. SIMPLY- beforean occupying cotenantcan beliable forrent inAL,he musthavedeniedhiscotenanttherightto enter.

l. Swartzbaugh v. Sampson- Walnut farm/ boxingpaviliona. An estate in jointtenancy can besevered by destroying one

ormore ofthe necessary unities,eitherby operation oflaw,death orby voluntary orcertain involuntary acts of onejointtenant withouttheconsent ofthe other. One oftheunities ispossession.


15/49

15

ii. During thelives ofco-tenate,therulesregulating thetransferoftheirinterestsaresubstantially thesame whetherthey aretenants in common orjoining tenants. Neitherofthetwo can do any actto theprejudice ofhisco-tenants in theirestate.

iii. Generally, oneco-tenantcannot, withouttheconsent ofhisco-tenant, bindofprejudicially affecttherights ofthe other1. Exception- allows one jointtenantto lease ofthe jointproperty

withouttheconsent oftheco-tenantandputthelease inpossession. Theory behindthis isthatthe one jointtenant isentitledto possession oftheentireproperty andthelease merelygivesto thelesseearightthathe,thelessor,had been enjoyingalready.

2. Butthelessor/jointtenantcannotconvey whathedoes nothave.The nonlessorco-tenantcan recoverfrom thelessor-tenantaproratashare oftherents ifthelesseerefusesto allherto use ofhershare oftheestate

3.

Courtconcludesthattheleasehere is valid.m. Otherremediesavailableto Mrs. Si. Partition

ii. Ouster1. Majority wouldsay you haveto get ousted before you can get fair

value ofrentalpayments2. Shecould get

a. FMV oftheleasepayments forthetimethatshe wasejectedthen shehasthe option to..

b. An injuction to force Sampson to enforcethe factthatshehastherightto entertheentireland

n. Rents and Profitsi. In allstatesacotenant who collects from thirdpartiesrentsand other

paymentsarising from theco-ownedland mustaccountto co-tenants fortheamountsreceived

ii. Absent oustertheaccounting is usually based on receipts not fairmarketvalue

o. Repairsand improvement- most jurisdiction a cotenant making or paying forthem has no affirmative right to contribution from the other cotenants in theabsence of an agreement.

i. Improvements:1. Generalrule isthatthe interest ofthe improveareto beprotected if

thiscan beaccomplished withoutdetrimentto the interest oftheothercotenants

2. Thus, isproperty isphysically dividedpursuantto apartition theimprovedportion isawardedto the improving cotenant. If it is notphysicallypossiblethen theproperty issoldandtheproceedsaredistributedasto awardthe improver

3. In apartition they would getthe fmv ofthe improvement


16/49

16

4. Isphysicalpartition ispossible by would jeopardizethe interest ofthe improverby awarding the improvementsto thecotenantsthenthecourt will orderpayments, oweltys, from noncontributingcotenantsto the improver in an sameamountequalto the formersshared oftheenhanced value oftheproperty resulting from the

improvements5. downsiderisk when improvementscost morethan the increasedsale value..vice versa is upside total increase in value is morethan thecosts ofthe improvement.

p. FMV with improvements minus FMV without improvements= FMVimprovement

q. Rent?? Takealltherentalpayments, bring them all backto present value,thenwouldhaveto turn that in to mr.s

2. Marital Interestsa. The Common Law Marital Property Systemb. Anything on the federallevel formarriagehasto be between a maleand female.c.

Community more westside ofthecountry-anyproperty that flows in DURINGthe marriage,excluding giftsand inheritances, iscommunityproperty.Propertythey hadcoming into the marriagethen itremains yourseparateproperty but ifthey comingle itthen itscommunity. If you keep itseparate itsstill yours.

i. What if you move? There mightstill besomeproperty that willstill beconsideredcommunityproperty

ii. Communityproperty-Atdeaththesurvivorisentitledto half of itandcanegivehalfto whom they choice

1. During life,signature of bothspousesto do anything withcommunityproperty

d. Separateproperty- (mostly every stateeast oftheMississippi) based on theconceptthat if its in yourname,thetitle,then its yoursatdeathto do withwhateveryou like.

3. Sawada v. Endoa. Issues is whetherthe interest of onespouse in realproperty,held in tenancy by the

entireties, issubjectto levy andexecution by his orherindividualcreditors.i. InterpretstheMarriedWomansactasa goalto abrogatethehusband

common law dominance overthe martialestateandto placehis wifeatanequal

ii. In tenancy by entirety, bothspousesareseised ofthe wholeestate.iii. Neitherhusband orwifehasaseparatedivisible interest in theproperty

held by theentirety thatcan beconveyed orreached by execution.iv. Not unfairto thecreditors becausetheypresumably had notice ofthe

characteristics oftheestate whichlimitedhisrightto reachtheproperty.v. Held- that the very nature of an estate by the entirety is a unilaterally

indestructible right of survivorship, an inability of one spouse to alienate

his interest, and, importantly for this case, a broad immunity from claimsof separate creditors remain among its vital incidents- so no, not in

fraud, not subject to the claims of the creditors from one of the spousesduring their joint lives.


17/49

17

vi. Dissent- thinksa betterinterpretation oftheact isthatsinceatcommonlaw theactcouldalienatethehusbandrightto survivorship,thisact wouldenablethe wifeto do likewiseandthereforethe J fthecreditors would beableto levy aandexecute upon theirseparaterights ofsurvivorship.

vii. Termination of Marriage by Divorce1.

Alimony- moneypaid by ahusbandto wifeasacontinuation ofsupport.

2. At first you could only getadivorce forsomeextremesuchascruelty oradultery. Now stateshaveenacted No Fault Divorce.

3. Rule ofequitabledistribution- property isdivided by thecourt, initsdiscretion, on equitableprinciples

b. maritalproperty- somedefine itasto includeallproperty acquiredduringmarriage by whatevermeans (gifts,earnings, inheritances) otherstatesdefine itasonly earnings.

c. In Re Marriage ofGrahami. Definesproperty as everything thathasan exchangeable value orwhich

foesto make up wealth orestateii. An educationaldegreedoes nothavean exchanged value orany objectivetransferable value on an open market,personalto theholder,terminates ondeath oftheholderandcannot be inherited.

iii. DISSENT- wifesearnings werean investment1. The issue is not whetherthedegree isproperty butratherthatthe

husbands increasedearning capacity2. Majority saysshouldhaveasked formaintenance, butdissentlooks

atthestatutethatshowsthatshe wouldhave been deniedthisanyway.

3. Also mentions what wouldhavehappened ifthey hadacquiredassets

iv. Common law associated withtrust- allow you to transferyou interest intrust

1. Cannot betransferreda. Spendthriftprovision- says you cannottransferyou interest

in thetrust creditorscannot getto it,thats why 99% oftrustthataredraftedhavethese.

b. Pensions/ socialsecurityc. Rent Controlledaptd. Rightto somelawsuits

i. Personal injuryii. Invasion ofprivacy

2. Nottransferableatdeatha. Lifeestateb. Annuityc. Pension rights

4. Celebrity Status orpropertya. Elkus v. Elkus - opera


18/49

18

i. To theextent Ds Contributionsandeffortsledto an increase in the valueofPscareer,thisappreciation wasaproduct ofthe martialpropertysubjectto equitabledistribution

ii. Martialproperty isproperty acquiredduring the marriageregardless ofthefrom in which it isheld

iii.Previouscaseshaveheldthata medicallicenseenhancedearning capacity,so asto enableaspouse who contributedto itsacquisition to share itsvalue

iv. Thecourtshouldconsider any equitableclaim to, interest in, ordirect orindirectcontribution madeto theacquisition ofsuch maritalproperty..andto thecareerorcareerpotential ofthe other pg 330

v. Purpose ofthelegislation wasto prevent inequities whichpreviouslyoccurred upon thedissolution ofthe marriage

b. MaritalagreementsRequirements fora valid maritalagreementi. Writing ( formalities- notary/witnesses)

ii. FULL! financialdisclosure assets,liabilities, incomeiii.

Competentand independentlegalcounseliv. Freecoercive behavior

v. Someaddreasonablerequirement- attime oratdivorce- minority ofthestates

c. Alternative wealthy parentsto set upan irrevocabletrustpriorto marriage i. Spendthriftprovision- keepscreditors from accessing money.Also want

thechilds interestto bediscretionary- trustee isattotaldiscretion todecidehow much ofthetrust goesto thechild- this way it is notreachableby diving spouse orby creditor(not mandatory interests)

d. Shouldamend yourwill,designatea beneficiary, bankaccount (people willtakeoutthe money andput it in adifferentaccount beforethe otherperson getsto it-shouldprobably just movehalf ofthe money into yourown account)

e. Professional goodwill- most jurisdictionstreatprofessional goodwill/ reputationlikely to generate future business,asadivisible maritalasset

i. Termination of Marriage by Death of One Spouse1. AtEnglishcommon law- landshouldstay in thepatriarchal family

butthespouseshould besupported fortheremainderoftheirlives2. Dower- wasa gift made by the bridegroom to the brideatthe

weddinga. Gavethesurviving wife in all freeholdland of whichher

husband wasseisedduring marriageandthat wasinheritable by the issue ofhusbandand wife

b. 1/3 ofeachparcel of qualifying land3. Curtesy- athis wifespriordeath,a widowerwas,atcommon law,

entitledto alifeestate in eachpiece ofthe wifesrealproperty ifcertain conditions were met

4. Dowerv.electiveshare- usually atdeaththeelectiveshare willyield you more money

a. Dowerattachesassoon as you get married- whereaselectiveshare is only relevantatdeath


19/49

19

b. Electiveshare- someonedies,they are married,1/3 or of what? In NYS justprobatestuff,thingsthatpassthroughthe will, intestacy, items in thesole name ofthedecedent. Non probate (life insurance,retirementbenefits, jointtenancys goesto survivor,does not go to the

will)ii. The modern electiveshare- givesthesurviving spousean electiveshare inallproperty- realandpersonal- thatthedecedentsspouse ownedatdeath

1. Only relevant in non-communityproperty statesf. Community property

i. Meansthatproperty alltheproperty acquiredduring theperiod ofmarriage believesequally to spouses,eachhaving equalrightto managetheproperty.

1. In Com.Property statesproperty isdivided into 2classes,community andseparated.Allproperty acquired by aspousebeforethe marriage, orafterthe marriage ittheproperty wasa gift,

descent ordevise, isthatspousesseparateproperty.All others iscommunityproperty. This includes wages,each gets 50%2. Effect ofcommingling separate and community property?Which

theexactrule varies from jurisdiction, generally,comminglingcausesseparateproperty to becomecommunityproperty unlesscontrary intent on thepart ofthecouplecan beproven

3. Rightsatdivorce- half ofcommunityproperty-ii. Alaska you can choseto haveseparate orcommunityproperty-

1. Step up in basis of property atthedeath- (forseparateproperty,in JT) FMV valueatdeath- if w then sells itlatertha w wouldenduppaying lesscapital gainsthan they hadto

2. In communityproperty- then you geta fullstep up in basis. FMVon death.

g. Rights of Domestic Partnersi. principlethatlegalrightsand obligations may arise from theconduct of

theparties withrespectto another,even thoughthey have no createdaformaldocument oragreement

ii. Where you die matters- thatstateslaws will govern allproperty except forwillproperty if you haveproperty in two states you mighthaveto gothrough2probates

iii. Defensive marriageact- federallevel- any statethatdoesnt wantto ,doesnthaveto recognizeasamesex marriage from anotherstateand onlyman and women on the federallevel

h. Goodridge v. Department of Public Healthi. Courtheldthatdenying marriagelicenseto theplaintiffs wastantamount

to denying them accessto civil marriage itselfii. Dsrationalhasthreeparts,arguesshouldprohibit because

1. Providing a favorable setting for procreation


20/49

20

2. Ensuring the most desirable environment for childbearing, whichthe department defines as a two parent family which one parent of

each sex3. Preserving sacred state and private financial resources

Part III. Leaseholds: The law of Landlord and Tenant

Chapter 6: Tradition, Tension and Change in the Landlord Tenant Law

1. Leaseholds: Thelaw ofLandlordand Tenanta. Periodictenancy andtenancy at willare nonfreeholdestates. First used in the

feudalsystem.b. Term of Years: Aterm of years isan estatethatlast forsome fixedperiod of

time orforaperiodcomputable by a formulathatresults in fixing calendardatesforbeginning andending, oncetheterm iscreated orbecomespossessory- dontneed notification becausethetimeperiod fortheend isalready set

c. Periodic Tenancy- isalease fora period ofsome fixedduration thatcontinuesforsucceedingperiods untileitherthelandlord ortenant gives notice oftermination

i. Common law rule isthat yearnotice isrequired fora yearto yeartenancy

ii. Foranyperiodictenancy oflessthan a year, notice oftermination must begiven equalto thelength oftheperiod but notexceeding 6 months

d. Tenancy at will- isatenancy of no fixedperiodthatenduresso long as bothlandlordandtenantdesire

e. Gardner v. Gerrish-i. Early common law wasthat when thelease is madeto haveandto holdat

the will ofthelessee,this must bealso atthe will ofthelessor- courtexplainsthatthisrule is based on thedoctrine oflivery ofsesin.Likethisit isan ancientrequirement

ii. Thelease here simply grants a personal right to the lease to terminate atthe date of his choice, which is a typical means to create a life tenancyterminable upon the death of the lease

iii. Ambiguous leases- aresubjectto arebuttalpresumption thatthey areatthe will of both oftheparties

iv. Thoseleasesthatareclean and unambiguously terminateatthe will ofonly oneparty areto becontrolled by theirexpressterms

f. Tenancy at Sufferance: Holdoversi. Tenancy at sufferance- arises when atenantremains inpossession (holds

over)aftertermination ofthetenancy. Common law givesthelandlord2options- evictionplusdamages orconsentexpress orimpliedto creationofa new tenancy

1. Crechale & Polles, Inc. v. Smith1-2 monthsafterhislease was up.

a. D claimsthathe wasntto PandPconsentto lethim stayfora few months


21/49

21

b. Pthen informed D thathe wastreating thelesseesholdoverasarenewal oftheterms ofthelease

c. Held- once the landlord elects to treat a tenant as atrespasser and refuses to extend the lease on a month to

me, the month basis, but fails to pursue his remedy of

ejecting the tenant, and accepts monthly payments checksfor rent due, he in effect agrees on the extension of thelease on a month to month basis.

ii. The lease:2. Delivery of possession

a. Hanna Duschi. English Rule- impliesacovenantrequiring thelessorto putthelessee in

possession1. Leassorshould be betteroffto know ifsomeone is going to

holdover2. Promotes goodconscience,soundprincipleand fairdealing

ii.

American rule-recognizedthelesseeslegalrightto possession butimplies no suchduty upon theleassorasagainst wrongdoers1. Pros-just becausethe formertenantholds overtheleassorshould

not beliable2. CourtadoptsAmerican rule

b. Sublease and Assignmentsi. Ernst v. Conditt

1. Assignmentarises when thelesseetransfershisentire interestunderthelease- rightto possession forhisentire interests undertheleaser

2. Sublease- thelesseetransfersanything lessthan hisentire intereststillhastherightto possession attheend oftheperioddesignated in thetransfer

3. Modern trend isto figure outthe intention oftheparties4. Privity oftheestate- then the benefitsand burdensassociated with

thelandlordtenantrelationshipcontinueto beplaced on the2people ofthestate on anything that runs withtheland- touchesand orconcern theland. i.epaying rent,taxes, makerepairs


22/49

22

3. The Tenant Who Defaults: i.e by failing to pay rent orobservesome otherleaseobligation- orisholding over,andthelandlord wishing to recoverpossession, orthetenanthasabandonedthepremisespriorto theend oftenancy, owning backrent.

a. The Tenant in Possessioni. Berg v. Wiley restaurant case

1. Common law rule- the landlord may rightfully use self-help toretake leased premises from a tenant in possession withoutincurring liability for wrongful eviction provided two conditions

a. The landlord is legally entitled to possession, which aswhere a tenant holds over after the lease term or where a

tenant breaches a lease containing a reentry clauseb. The landlords means of reentry are peaceful2. Another common law rule- a tenant who is evicted by his landlord

may recover damages for wrongful eviction where the landlord

either had no right to possession of where the means used toremove the tenant were forcible or both

3. Modern doctrine- is thatlandlord mustalways resort to thejudicialprocess to enforce his statutory remedy againsta tenant

wrongfully in possession.4. Policy isto discouragelandlords from taking thelaw into their

own hands because ittendsto causea breach ofthepeace alsothere is no causeto sanctionpotentially disruptiveself-help whereadequateandspeedy meansareprovided forremoving thetenantpeacefully through judicialprocess

5. Summary Proceedings- responseto the mixedshortcomings ofthelandlordsselfhelpremedy- becausetheyprovide fora quickandefficient means by whichto recoverpossession afterterminationofatenancy to promote quickness

a. Even if you go throughthecourt itdoesnt necessarilyimply thatthere is going to besome violence

b. The TenantWho HasAbandonedPossessioni. Sommer v. Kridle

1. weddingplanshad been cancelled2. Pthen sued D demanding thetotalamountdue forthe fulltwo year

term Afterreletting thepremises,Pamendedthecomplaintasking forrentdue between may and September, TC court foundforD,holding thatPhadaduty to mitigate damages by attempting

to relet the premises.ii. Riverview Realty co. V. Perosio-


23/49

23

1. Issue- isalandlordseeking damages form adefaulting tenantunderaduty to mitigatethosedamages by making areasonableeffortto reletthepremises? Yes

2. The minority view- based on antitrust law- is that the landlorddoes have an obligation to make a reasonable effort to mitigate

damages where a tenant has surrendered and abandoned thepremises prior to expiration of the lease3. Majority rule- based on property law- is that a landlord is under

no duty to mitigate damages caused by a defaulting tenant. Thiscourt held for the minority view.

4. There isacontinuing trendby thecourtto applyprinciples ofcontractlaw ratherthanpureproperty law to residentialleases.

5. Application ofthecontractrulerequiring mitigation ofdamagestoaresidentiallease may be justifiedasa matterof basic fairness.

6. Landlordsduty to mitigateconsists of making reasonableeffortsto relettheapt-thelandlordhasthe burden ofproving thathe used

reasonable due diligence in attempting to relettheapartment7. Areeffortsto relettheaptlikesaying they acceptthesurrenderofthedefaulting tenant?

a. Surrender- one thatconnotes quite neatly atenants offertoendatenancy

b. Whatabout when they get notice?2 ways you can mitigatethis.

i. You can acceptthesurrenderoftheproperty oralorwritten, orby implication- actions- then theleaseends when you acceptandthetenant is no longerliable forrent, butsill may beableto getdamages

1. Ifthere is no acceptance- tenant isstill onthehookfortherest ofrent owed in rent

c. Say landlordrelets on tenants behalf- then the oldlease isstill valideven though you areleasing to someoneelse- ifyou rent out oflessthan the FMV orthe originalrent,thenyou can suethe oldtenant forthe originalrent minus FMVplusexpenses

d. What iflandlordrents formorethan the originalrent?i. Lanlordcan justkeepthe oldtenantstill on the

hookandthen, in theory the oldtenant would beableto sue forthedifference

e. Accept?And geta new tenant then you cannotholdthelast on liable.

8. Rent andDamages- landlordhastherightto sue forbackrentandfordamages occasions by thetenants breach oflease obligations isstraightforward.

a. Difference between thepresentandtherentreserved in thelease ofthe unexpiredterm


24/49

24

9. Security Deposits purpose isto protectthelandlord in theeventthatatenantdefaults in rent,damagesthepremises orotherwisebreachesthelease

10.Rent acceleration-aprovision that upon thetenantsdefault,allrent fortheentireterm isdueandpayable generally valid

DUTIES4. QuiteEnjoymentand ConstructiveEviction

a. Reste Realty Corp. v. Cooperi. Doesatenanthavetherightto vacate ifhis quiteenjoyment ofthe

premises issubstantially interfered with by hislandlord? Yes-ii. There isacovenant of quite enjoyment,expressed orimplied,the

substantial interference with which by thelessorconstitutesconstructiveeviction. Thelesseethen may vacatethepremises,thereby relieving himofany furtherobligationsto pay rent.

1. Atenantsrighthoweverto claim constructiveeviction islost ishedoes not vacatethepremises within a reasonable timeaftertherehas been asubstantial breach of warranty of quiteenjoyment

iii. \Test- substantially unsuitable for the purpose for which they areleased, or which seriously interferes with the beneficial enjoyment of

the premisesiv. Partial constructive eviction- somecourts go farasto allow atenantto

recoverforpartialconstructiveevictionv. Traditionally thelandlord was notresponsible forthirdparties but ifthe

landlordhasthem undertheirpowerthan they haveaduty to try to keepthem quite

.b. The Implied Warranty of Habitability

i. Hilder v. St. Peter1. Traditionalapproach- atcommon law thelandlordhas no duty to

keepthepremises in repaironcethetenant moved in.2. Tenant need notabandon premises3. All rentals of residentialdwelling units includean implied

warrant ofhabitability thatappliesto latentandpatentdefects. Thetenantdoes notassumetheriskofdefects. In a place when thelease is entered and the implied warranty of habitability cannot be

waived4. Whetheran implied warranty ofH is breacheddepends on the

circumstance ofthecase, but idthedefect impactthetenantssafetyorhealth,there isprobably a breach.

5. Before suing the tenant must notify the landlord and then allow fora reasonable time for it to be fixed.

6. Basic measure ofdamages- isthedifference between the value oftheresidenceas warrantedand its valueas itactually exists. Thetenant may also recoverfordiscomfortandannoyance,as wellasany cost ofrepair. Tenantcan withhold futurerent


25/49

25

7. Punitivedamages? Ifsucha willfuland wonton orfraudulentnature

8. FMV (good) FMV (actual) + punitive=a. Courtprobably calculated wrong becausethen theactual

wouldhave been zero

9.

Standard?Housing code, if iteffects10.Usually a breach occurs when theleasepremisesare uninhabitablein theeyes ofa reasonable person

11.NY-IMH- unqualified obligation to keeppremiseshabitable-ordinary deterioration, workstoppages,acts 3rdparties, naturaldisasters

Risks? Isthatthecourt will findthere is no breachandpermitthetenantforunjustly being ableto pay rent

I.

- Public useexceptiono SubjectsL negligenceliability whenpublic is injuredresulting from unreasonably

dangerousdefects when. Lleasespremisesto T foruse open to public Defectsexistedat outsetlease Lknew orshouldhaveknown ofdefects Lknew orshouldhaveknown that T could not bereasonably expected

remedy thesituation

II. Transfers of Lando Introduction to Buyingand SellingRealEstate

Firststep isto assesshow muchthey can affordto pay, given their incomeandsavings

Mightalso contacta mortgage bankorfinancial institution to pre-qualify aloan

y Contract willset forththelegaldescription oftheproperty , itsprice,provision foran earnest money deposit,andthedate fortheclosing orsettlement

Then you can taketheletterforthepre-qualifiedloan- in orderto acceptorsign acontract withtheseller.

Brokers- workfortheseller- so becareful what you tellthem because itwill beshared withthesellerthey are undera fiduciary duty by law totellthem anything that isrelevantto the negotiationprocess

y Dont usean inspectorthatthe brokersuggestsy Buyers broker-

Executory- meaning thattitle is nottransferred immediately upon signingtheagreement, because bothparties will needto obtain atitlesearchect


26/49

26

Mostcontain a mortgagecontingency oraclauseallowing the buyertoobtain an inspection oftheproperty andrescindthecontract ifthecost ofremedying theproblem exceedssomethreshold

K-y PurchasePrice- how paid,termsy Legaldescription- maybesurveyy Goodtitle- insurancey Warranties oftitley Dateclosing- lease back?y Prorations utility bills,proptaxesy Party responsibilities fire/othery Furnishings/ fixtures includey Escrow termsy Return deposit?y Signatures

Statute of frauds transfers ofallrealproperty must be in writing Note 1- does notdisclose maritalstatute- why mightthe buy wantto know

this? In acommunityproperty state you would need bothsignaturesbecausethen ifthehouse isacquiredduring the marriage it isconsidercommunityproperty

Goodand merchantabletitle-y If buyersare jointtenants ortenancy by theentirety then the

surviving buyeralonecouldenforcethecontract-

III.Brokers:o Facilitaterealestatetransactions by marketing asellersproperty,listing

residentialproperties on aMLS, negotiationpurchaseagreements,serving asan

intermediary between buyersandsellerso Licensed by thestateo Mostsellersenlist brokersto helpselltheirproperty- in alisting agreementthe

sellauthorizesthe brokerto locateda buyeron thesellers behalf Selling brokers often workwithprospective buyers overlong period of

timeanddeveloppersonalrelationships withthem- most ofthe buyersbelievedthattheselling brokersthey hadrepresentedthem and nottheseller

Selling brokersactionscannotdiverge from theirclients interests orexpectations

They even haveaduty to reportto thesellerany information thatthebuyershares withtheselling broker

o Licari v. Blackwelder Psare 6 brothersandsisters who inheritedtheproperty Foundthatarealestate brokerisa fiduciary- he isrequiredto exercise

fidelity andgood faithandcannotputhimself in aposition antagonistictohisprinciple interest.


27/49

27

Arealestate brokeracting asasubagent withtheexpresspermission ofanotherbrokerwho hasthelisting oftheproperty to besold is underthesameduty astheprimary brokerto act in the utmost good faith

y A failureto do so rendersthebroker liability to the principle forwhatever loss the latter may suffer as a consequence thereof and

precludes recovery of a commission for his services Buyers brokers?Arecentpractice- do property searches,review sales,

show buyersprospectivehomes Dual agents- those working forboththe buyerandtheseller- thought

becausethey haveto beloyalto both- usually works only when theagentdisclosestheirstatuesto both oftheparties

Brokermustdiscloseany materialdefectsknown by the brokerandtheunknown to the buyer

y Haveaduty to diligently inspecttheproperty from any hiddendefects of which buyerorbrokerwere unaware

Types of listing:y Open Listing- leastprotective- sellerstillretainstherightto selltheproperty herself oruseadifferent broker- brokeronly gets

commission ifthey arethe firstto procurean offerfrom aready,willing andable buyerwho matchestermsand is wiling to buy

y Exclusive- agency listing- Permits only one brokerto selltheproperty foraspecificperiod oftime. Sellercan stillselltheproperty herself

y Exclusive- right-to-sell listing- this isthe mostprotectivethat abrokercan secure- the ownermustpay the brokerifany buypurchasestheproperty during thespecifiedduration ofthelistingno matterwho foundthepurchasers

When is the commissionDue? Traditionalrule isthata brokerearnscommission upon bringing to thesellera buyerwho isready, willing andable. Brokerisentitledto acommission ifthesellerdefaultsandalso ifthe buyerdefaults. (usually about 5-7%)

y Minority rule: isthatthe brokeris notentitledto accommissionuntilclosing,reflecting reality that mostsellerspay the brokerwiththeproceeds from thesale oftheproperty

IV.Contract ofthe Sale:o Statute of Frauds- soughtto makepeople moresecure in theirproperty andtheir

contract by making deceitfulclaims unenforceable Iftheprice is not given itstillcan be upheld ifthere isa mechanism for

determining theprice i.e fairmarket value Exceptions?

y PartPerformance: allowsthespecificenforcement of oralarguments whenparticularactshave been performed by one ofthepartiesto theagreement

y Estoppels: applies when unconscionable injury wouldresult fromdenying enforcement ofthe oralcontractafteroneparty has been


28/49

28

induced by the otherseriously to changehisposition in reliance onthecontract

o Hickey v. Green Relying on theagreementsPhadadvertisedhislandandsold it.LaterD,

informedPthathe no longer intendedto sellhim thelandanymore.

Restatement Second- if it isestablishedthattheparty seekingenforcement, in reasonable reliance on the contractand on thecontinuingassent oftheparty against whom enforcement issought, has so changedhis position that injustice can be avoided only by specific enforcement

Here, no public interest will be violated if D isheldto herbargain by theprinciples ofequitableestoppelssubjectto the following

y Pshavealready conveyed orarestill obligated to convey theproperty

y Thecase isremanded forthetrial judgeto require D to convey theproperty only upon paymentto herin cash ofthe balance ofthepurchaseprice within astatedtime

y Note: thestatute of fraudsandelectronictransactions: e-sign- somesay series ofe-mailsareenough forthestatute of frauds Therehasto be:

y Therehasto be goodevidencethatthere wasan oralcontractandy Andadetrimentalreliance

Remedies?y Caseshould beremandedto see ifthePsarestill obligatedto sell

theirproperty- then SpecificPerformance or

y Ifthey no longerhaveto sellthehickeyshouse orSOF is not metthen they can get money damages- litigation costs, value ofthebargainperhapsect

V. Marketabletitleo Sellermustconvey to the buyera marketabletitle- atitle notsubjectto such

reasonabledoubt as wouldcreatea justapprehension of its validity in the mind ofareasonable,prudentand intelligentperson, one whichsuchpersons, guided bycompetentlegaladvice, would be willing to takeand forwhichthey would bewilling to pay fairvalue

o Lohmeyer v. Bower General Rules-

y Theexistence of municipalrestrictions,suchas zoning, is notaground forthe buyerto rescindacontract- itsthe violation thatmakesthetitle unmarketable

y Privatecovenants orrestrictions,suchasheightrequirement, mayconstituteencumbrancesrendering title unmarketable justtheirmereexistence mightdo this

y Why differentruleshere? Itseasy to trackdown aprivatecovenanton property because its usually can be found withatitlesearch, itis notso easy to find out whatallthe zoning ordinancesare.

Marketabletitle thedefect of whichpurchasercomplains must be ofsubstantialcharacterand one from whichhe may suffer injury


29/49

29

Title insurance- something you canpurchaseto protect yourself in ordertoassure yourselfthatanotherperson who ownstheproperty cant bring asuitagainst you

482 question 2y Rhodes- common drivewaypartially on bothpropertiesestablished

by written instrument isencumbranceseven thought itdid notdiminish fairmarket value

y Sziskind- electric utility easementeven thought it wasknown tothepurchaser,areencumbrances

y Ludke- courtapplied minority rule- easement fully known to thepurchaserbeforecontract, orso open, obviousand notorious, is notan encumbrance

Note: Equitable Conversion- ifthere isaspecifically enforceablecontractforthesale ofland,equity regardsasdonethat which oughtto bedone.?Method ofconveying riskofloss treatsthe buyerastheequitable owneroftheland withthesellerasthelegal owner.

Riskofloss- used by somecourtsto determine whetherthesellerofthepurchaser isliable gottheloss when thepremises isdestroyed beforeclosing. (Paine v.Meller- says burden is on purchaser)

VI.The Duty to Disclose Defectso Stambovsky v. Ackley

Ghostcase- Thedoctrine ofcaveatemptor- letthe buyerbeware- imposesno duty on the vendorto discloseany information concerning thepremisesunlessthere isaconfidential orfiduciary relationship between thepartiesorsomeconduct on thepart ofthesellerthatconstitutes activeconcealment

y Requiresthe buyerto actprudently and operatesto barthepurchaserwho failsto exerciseduecare from seeking recession

Thereputation ofthehouse goesto the very essence ofthe bargainbetween theparties, greatly impairing boththe value oftheproperty anditspotential forresale.

as is clause not goodargument becausethe factsherearepeculiarwithin theknowledge oftheparty invoking it.

Where a condition which has been created by the sellermaterially impairsthe value of the contract and is peculiarly within the knowledge of the

seller or unlikely to be discovered by a prudent purchaser exercising duecare with respect to the subject transaction, nondisclosure constitutes a

basis for rescission as a matter of equity

oJohnson v. Davis

Johnsons,sellers,knew thattheroofleaked butthey affirmativelyrepresentedto thedavis thatthere were no problems withtheroof

Holding- that where the seller of a home knows of facts materiallyaffecting the value of the property which are not readily observable and

are not known to the buyer, the seller is under a duty to disclose them tothe buyers

Undercommon law there was no liability fornonfeasance.


30/49

30

Material?Wheneithery An objectivetest of whetherareasonableperson wouldattach

importanceto it in deciding to buy or

y Asubjectivetest of whetherthedefects affectsthe value ordesirability oftheproperty to the buyers

Realestate brokershave been among those who havepromotedsellerdiscloserlaws because ifthesellerhasaduty to disclose,therealestatebrokeralso hasaduty to discloseto aprospective buyermaterialdefectsthatareknown to the brokerbutare unobservableand unknown to thebuyer

VII. The implied warranty of Quality an implied warrantthatthe building is fit forthe usecontemplated by both oftheparties.

o Implied warranty of workmanlike quality- Lempke v. Dagenais:

y Lempkes,P,predecessors in titlecontracted withthe D to buildagarage.

y Can asubsequentpurchaserofrealproperty suethebuilding/contractoron thetheory of implied warranty ofworkmanlike quality forlatentdefectsthatcausedeconomicloss,absentprivity ofcontract? Yes.

y Privity of contract is not necessary for latent defects that manifestthemselves within a reasonable time after purchase and that causeeconomic loss. To requireprivity would beto defeatthepurpose ofthe implied warranty of good workmanshipandcouldleaveinnocenthomeowners withoutaremedy.

y Othercourtshave foundthat implied warranty existsindependently, imposed by the operation ofthelaw on the basis ofpublicpolicy because ofthepartiesrelationship,the nature ofthetransaction,andthesurrounding circumstances

y There is no rational foradistinction between mereeconomiclossandpersonal injury

y Extension ofliability islimitedto latentdefectsandlimitedperiodoftime

y Phasthe burden to show thatthedefect wascaused by the Dsworkmanship

y The builderhasadefensesuchasthedefects being theresult ofwearandtearorthat otherpeoplehave madesubstantialchanges

VIII. The Deed:o Consideration-Adeeddoes notrequireconsideration,a grantormay givethe

property awayo Failures in the description of the property-extrinsicevidence is usually allowed

to clearupany ambiguity in thedescription oftheproperty Latent ambiguity- not on the face ofthedeed- ie.My house in the

mountains, but I havetwo houses in the mountains


31/49

31

Patent ambiguity- 120Harvard not 102Harvardo Warranties ofTitle-almostalldeedscontain whatattorneysreferto asthe usual

covenantso Types of deeds warranting title:

WarrantyDeed- general- this isthe usualtype ofdeedand itcontainstheusualcovenants. It warrantstitle

Special warranty Deed- thistypecontainsthe usualcovenants butwarrantstitle only from defectarising during thetimethe grantorhasheldtheland.

Quitclaim deed- this form ofdeeddoes not warrantanything. It onlytransfers whatever interestthe grantorhas, ormay have, in theproperty.

y Giftso UsualCovenants

PresentCovenants: thesearecovenantsare breached when theconveyance when theconveyance is made- SOL beingsto run as ofthedate oftheconveyance

yCovenant of Seisin-thesellercovenantshe ownsthepropertyconveyed

y Covenant of right to convey- thesellerwarrantsthathehastherightto conveyproperty. Forexamplethiscovenant would bebreached ifthesellerhadtheproperty in an irrevocabletrustthatgave only thetrusteetherightto convey

y Covenant against encumbrances-thesellerpromisesthatthereareno easements,covenants, mortgages orliens on theproperty.Asapractical matteralmostallproperty issubjectto an encumbrance ofsomesort.Whatthesell willdo is warrantagainstthem exceptasenumeratedherein

Future Covenants-thesearecontinuing covenantsthat may be breachedatthe moment oftheconveyance oranytimethereafter. The SOLdoesntrununtilthere isan actual breach

y Covenant of quite enjoyment-thesellerwarrantsthatthe buyerwillnot bedisturbed in herpossession oftheproperty by thelawfulclaim ofathirdparty

y Covenant of warranty-thiscovenant meshesclosely withthecovenant of quiteenjoyment- thesellerwarrantsthatthetitleto theproperty is goodandthat,as grantor,he willdefendathis own costofany suit from aparty claimingparamounttitle

y Covenant of further assurance-this is unusual- more in England-sellerpromiseto perform whateveractsare necessary to perfectthebuyerstitleto theproperty.

Brown v. Lobery

IX.Abolition ofprivity regulations forsubsequentpurchaseso Many defectscannot bediscovered by inspectiono Builder ischeapestcoatavoidero Expectations ofsubsequentpurchasersuitablehome


32/49

32

o Implied warranty MAY discouragesloppy buildingX. Remedys statesreluctantto adopt uniform laws

o Compensationo Rescissiono Specificperformance

XI.Include K

o 10% earnest moneyo Liquidateddamagesclauseo Timeessence

XII. The Mortgageo Up untilthe 1980sacouple wouldhaveto go to alocalsavingsandloan

association and borrow the money to purchasetheirhome- thesaving andloanwould maketheloan from money in customersavingsaccounts, wouldsecuretheloan witha mortgage,and wouldholdthepromissory noteandthe mortgage untiltheloan was fully repaid orotherwiseterminated

oThen congressestablishedthe Federal NationalMortgageAssociation (FannieMaeandthe FederalhomeLoan Mortgage Corporation (FreddieMac)- thesewerecreatedto establishasecondary market in which mortgagescould be boughtandsoldlikestocks,thereby evening outcredit flowsacrossthe nation. (mortgagebackedsecurities)

o Fixed interest- borrowers makeaconstantpaymenteach month which includedbothacomponent forinterestand one forprincipal

o Adjustablerate- usually featurean initial below market interestratethat graduallyincreaseaccording to an index based on debt issued by the federalreserve bank

o Theaftergetting aloan to borrow the money,the borrowermust givethelenderanoteanda mortgage (akaasecurity fortheloan)

o The buyersarethe mortgagorandthelender isthe mortgagee- ifthere isadefaultthen theproperty can besold (foreclosethe mortgage) andapply theproceeds ofsaleto theamountdue on the note.

o The mortgagors interest isknown astheequity- short for equity of redemption- Strict foreclosure,aproceeding in whichthe mortgagorwas orderedto pay

within a givenperiod orbe foreverbarred- Foreclosuresale- pay offdebt ifthere was notenough money from the

salethen the mortgageecouldrecovera judgment forthedeficiencyagainstthe mortgagor

o Deed oftrust- the borrowerconveystitleto thelandto aperson to hold in trusttosecurepayment ofthedebtto thelender

o Say the buyers buy ahouse for200,000, makeadownpayment for20,000,borrow 150,000 from the bankand givethe banka notesecured by asecondmortgage for30,000- thesecond mortgage issubjectto thepriorrights ofthe firstmortgage (so thesecond mortgagehasan increasedrisk)

o Grant S. Nelson & Dale A. Whitman, Real Estate Finance Law 7.21 All jurisdictionsadhereto therulethat mere inadequacy ofthe foreclosure

saleprice will not invalidateasale,absent fraud, unfairness orotherirregularity


33/49

33

y Two main standards for invalidatingo Unless is itso grossasto shocktheconscience ofthecourt,

warranting an inference of fraud orimpositiono Price must be grossly inadequate beforeasale may be

invalidated

Deeds in lieu of foreclosure- can sometimesavoid foreclosure bytendering itsdeedto thelender in lieu then in mostcasesthelenderwillagreeto give upan claim foradeficiency judgment

Transferby mortgage-y Subjectto mortgage- meansthatpurchaserdoes notassumeany

personalliability forthe mortgagedebt forwhichthe mortgagorisliable

y Purchasers assumes the mortgagethen theypurchaserpromisesto pay offthe mortgagedebt-

y Acceleration clause might beaddedto enablethe mortgagee, upontransferofthe mortgagorsequity,to declarethe wholeamount of

the mortgagedebtdueand upon failureto foreclosey Installmentlandsalecontract oracontract foradeed- purchaser

takespossession andthesellercontractsto convey titleto thepurchaserwhen thepurchaserhas [aidetheprice in regularinstallments overa fixedperiod oftime

XIII. TitleAssurance- hasdevelopedto assurepurchaseroflandthey have goodtitletotheirpurchase

o A Recording System Introduction- every American statehadastatutethatprovide forlandtitle

recordsto be maintained by thecounty recorder Servesseveral functions

y Establishedasystem ofpublicrecordation oflandtitleso Anyonecan go see who ownstheland

y Therecording systempreserves in asecureplace importantdocumentsthat, inprivatehands, may beeasily lost ormisplaced

y Lispendends- notice ofpending action can be filed- whichcanputsubsequentclaimants on notice oftheclaims being litigated

y Finally,therecording actshavethe function ofprotectingpurchasers forvalueandlien creditorsagainstpriorunrecordedinterests thusasubsequentpurchaser

Common law rule- first in time, first in effecto The indexes

Tract index- by parcel id number- rare becauseto being withland wasdescribed by meetsand bounds

Grantor-grantee index- underthe grantorsall instrumentsare indexedalphabetically andchronologically by grantors name

y In the grantee indexall instrumentsare indexed underthe granteessurname


34/49

34

y How?o Grantee indexto search backwardsand vice versato make

sure you dont missany unrecordeddeeds- kindalikesearching kindred

y How farback?o Chain of title problems-refers generally to therecordedsequence oftransactionsby whichtitlehaspasses from asovereign to thepresentclaimants

Also refersto theperiod oftime forwhichrecords must besearchedandthedocumentsthat must beexamined within thattimeperiod

o Personsprotected by therecording system- creditors orsubsequentpurchasersfora valuableconsideration

Requirescourtsto determine what is valuableconsideration- why docourtsrequire moreconsideration hereto enforcethecontract?

o Notes: Creditors-a numberorrecording statutesprotectcreditors but only ones

thathaveestablishedalien,suchas by attachment, notallcreditorso

Inquiry notice- atype on constructive notice- based on the factsthat wouldcauseareasonableperson to make inquiry into thepossibleexistence ofan interest inrealproperty

o Market Title Acts- limittitlesearchto areasonableperiod oftime when oneperson hasarecordtitleto land foradesignatedperiod oftime, inconsistentclaims orinterestsareextinguished

o Title insurance- inadequaciesand inefficiencies ofthepublicrecords inprotectingprivatetitles- usuallypurchased in the value oftheproperty- by thelender isthevalue oftheloan

Now allsecondary marketpurchasers ormortgagesalso requirelenderstitle insurance,therehas been an explosive growth in title insurance

oTitleassurance

Why importantto haveclearset ofrules- i.d who ownslandy Chapter1- clearrulespromotealienability andeconomic

efficiency Whatarealternativetypes ofrulessociety coulddevelop ownership

y Could useactualpossession ofproperty orofthedocument itselfy Personalproperty

Recording systemsdominate- repository (lost)anddecreasedcosts-possessing v. guarding

o Actual noticeo Record noticeo Inquiry notice

Chapter 9: Judicial Law Use Controls- the Law of Nuisance1. Law of Nuisance- parttortspartproperty

a. Liability if forinterference withthe useandenjoyment oflandb. Sic uteretuo utalienuym non laedas- that one should sues ones own property in

such a way as not to injure the property of another


35/49

35

c. An introduction to the SubstantiveLawi. Morgan v. High Penn Oil co

1. Ds operatedan oilcompany appox 1,000 feetaway whichemittednauseating gasesand odorsthat invadedacross nineacres ofPslandand otherlands in thearea.

2.

Jury foundthe nuisancedamages for2,500

- andalso enjoinedtheD from continuing the nuisance

3. A private nuisance exists when one makes an improper use of hisown property and in that way injures the land or some

incorporealright of ones neighbor

4. Can beeither intentional orunintentionala. Intentional when thathisconduct is unreasonable under

thecircumstances oftheparticularcase when thepersonknown thattheconduct in question isresulting from hisacts orthey aresubstantialcertain to result from hisconduct

b.

Unintentional when hisconduct is negligentreckless orultahazardous5. Holds=theevidence isampleto shouldthatthe gas isto sucha

degreeasto impairP in asubstantial mannerandtheiruseandenjoyment oftheirland

6. Issuance ofan appropriate injunction is necessary to protectPagainstthreatened irreparable injury

7. Unreasonablness- ratherthan inviting acomparison of whetherthesocial benefits ofthe Dsconduct outweigh itsexpectedcosttherelevant inquiry is whetherthe interferencecrossessomethresholdthat marksthepoint ofliability

8. Jost-considered whetherthe gravity oftheharm out weightstheutility oftheactorsconduct

9. Intentional invasion is unreasonable to nuisance when brestatment

a. If,as before,the gravity of the harm out weights the utilityof the actors conduct or

b. If,alternatively ,theharm cause by theconduct isseriousandthe financial burden orcompensating fortheharm tootherwould not makethecontinuation oftheconduct notfeasible

c. Acting forthepurpose ofcausing the invasion ORknowingthat it isresulting orissubstantially certain to result fromtheconduct in question

10.Lateraland Subject Support11.Nuisance- substantial nontrespassory invasion of useand

enjoyment oflandthat iscaused by negligent,reckless, orultahazardousactivities,orby activitiesthatare intentionalANDunreasonable.


36/49

36

12.Coasetheorem- figure outthecostto abate orthecostpay -to findtheleastcostavoider

13.Then you needto figure out who gets it14.Problem withpaying futuredamages- what if you sell yourhouse,

errorcosts,prob notaclassaction

a.

So maybean injunction isthe betterway to gob. Allowspartiesto negotiateii. Remedies

1. Estancias Dallas Corp. v. Schultza. There isan implied finding thatthetrialcourt balancedthe

equities in favorofthePs by entering the J granting theinjunction

b. Value oflanddecreased from 25,000to 12,500afterwouldhavecostthe Ds 40,000 moreatthetime forquiteACs but now it would be 150,000to remedy theproblem,/

2.

Boomerv.Atlantic Cement Co.a. Two possible methods-i. Oneto grantthe injunction butpostponed itseffect

to aspecified futuredateto givethe opportunity fortechnicaladvancesto permitdefendantto eliminatethe nuisance (courtrejectsthis,time issues,technology? Out oftheircontrol)

ii. To grantthe injunction conditioned on thepaymentofpermanentdamages (bothpastdamagesandallofthe futuredamages)to P, which wouldcompensatethem forthetotaleconomiclossto theirpropertypresentand futurecaused by Dsoperations bindscurrentand futureparties frombringing suit- which wouldresult in thedecrease invalue oftheland-

1. Also doesnt include otherparties2. Makes no incentiveto change

b. Scales of justice-lookatthe injury to theP ifthe injunctionis not grantedandthe injury to the D ifthe injunction isgrantedandthe injury to thepublic

c. Justan injunction here- then thecementcompany hasanincentiveto buy theirway out of it

d. Bilateral monopoly issue?3. SpurIndustries, Inc. v. DelE.Webb Development Co.

a. Public nuisance you haveto haveaspecial injury to havestanding- might bepg.662- here webb did becausehe waslosing money

b. Spurs foreseeabilityc. First in time- important but notconclusive-


37/49

37

Legislative Land Use Controls: The Law of ZoningI. Introduction: Historical Background

a. Changes from industrialism createdcongestion, overcrowding, noise,tenementhousing, moralturpitude, factories belching smoke from softcoaland foul odors

b. Early ordinances were usedto control nuisances- now the mostcommon areeightbulk,areaandexteriordesignc. Village ofEuclid v.AmblerRealty Co

i. thesupremecourt upheldthe Village ofEuclids Zoning ordnancesagainstachallengethe zoning law violatedthedueprocessclauseandtheequalprotection clause

ii. Zoningplan known Ascumulative zoning- thedifferent zonesarerankedin ahierarchy- Euclidean zoning=

1. Use-62. Area-43. Height- 3 districts

iii. Pclaimsthatthe ordinance violatesthedueprocessclause ofthe 5thamendments which guaranteesthat noperson shall bedeprived oflife,liberty, orproperty, withoutdueprocess ofthelaw- they claim thattheysufferfrom loss of itslands valueandloss oftherightto use itsland forotherwiselegalpurposes

iv. For a law to be constitutional it must1. Advance the public, health, safety, morals or general welfare- a

legitimate state interest2. The means chosen to achieve the interest is rationally related to

the legitimate state interestv. Reasons- make iteasierto provide forfireapparatuses

1. Increasedhomesecurity2. Prevention ofstreetaccidents- by children3. Reducing traffic4. Decrease in noise5. More favorableenvironment forchildren

vi. The Courtarguedthatthe zoning ordinancewas not an unreasonableextension of the village's police power and did not have the character ofarbitrary fiat, and thus it was not unconstitutional.

vii. Court foundthatAmblerRealty had offered no evidencethattheordinancehad in facthadany effect on the value oftheproperty inquestion, but basedtheirassertions ofdepreciation on speculation only.Thecourtruledthatspeculation was nota valid basis foraclaim oftakings.

viii. Garden City- zoning1. Segregation of usesdesirable

a. Downsides?Longerto getplaces,thecommuteto workislonger

2. wholesomehousing- centralaima. Single family- duplex-apts

3. Open spacesurrounding houses- setbacks,lotsize,ect


38/49

38

a. Surrounding factories- industrialparks4. Littlechangerequired- no professionalstaff needed5. Ignoreddynamicculture ofa metropolisanddensity, growing

populationII. The Structure ofAuthority underlying Zoning

a.

Enabling Legislation- The Standard State Zoning Enabling Act- delegated zoningauthority to thelocal governmenti. To enacta zoning ordinanceacity mustcreateaplanning orzoning

commission anda board ofadjustments. They havethe function ofrecommending acomprehensiveplan and zoning ordinanceto thecitycouncil.

ii. Thecomprehensiveplan- notall jurisdictionsrequirethis, it isastatementofthelocal governments objectivesandstandards fordevelopments.

1. Not invalid unlessthey are unreasonable ornot in thepublicinterest

b. Nonconforming usei. N

orthwesternDistributors, Inc. v. ZoningHearingBoard- adult book1. Issue- whethera zoning ordinance whichrequirestheamortizationanddiscontinuance ofalawfulpreexisting nonconforming use isconfiscatory and violative oftheconstitution asataking ofproperty without justcompensation

2. Theamortization clausesaidthat one nonconforming withthe newamendment wouldhave90daysto relocate

3. Sullivan courtheldthatprovisions ofamortization clause would

Documents

Property Outline Edited (Boz)