Property Outline - Rutgers University 2
Property Outline - Rutgers University 2
Property Outline - Rutgers University 2
D. Constructive Trusts
i. A duty or relationship imposed by courts of equity to prevent the unjust
enrichment of the holder of title to, or of an interest in, property which such
holder acquired through breach of duty, fraud or some other circumstances
making it inequitable for him to retain it against the claim of the
beneficiary of the constructive trust.
1. Roper v. Edwards
a. Roper brought this action to compel Edwards to convey
one acre of the land acquired by Edwards from Roper’s
grandmother in settlement of a civil suit, with the
stipulation that the one acre be conveyed to Roper as
specified in the grandmother’s will at her death.
b. RULE: A constructive trust will be imposed on the holder
of legal title acquired through conduct short of actual
fraud where such retention would result in unjust
enrichment.
E. Anti-competitive Covenants
i. These are enforceable at law if reasonable (i.e. failing to substantially result
in an anti competitive effect.
F. Special Groups.
i. Women
1. Dower (a woman gets 1/3 of husbands land assets) and Courtesey
are gone.
a. A surviving spouse has a right to a minimum percentage of
the deceased spouse’s estate.
b. Western states use “community property”. The couple
owns all property as a couple.
ii. African Americans
1. Shelley v. Kraemer
a. The Kraemers sought to oust the Shelleys, African-
Americans, from their recently purchased property on the
grounds that it was subject to a racially restrictive
covenant.
b. RULE: The Eq. Pro. Clause of the 14 th Amendment to the
U.S. Const. Prohibits judicial enforcement by state courts
of restrictive covenants based on race or color.
2. Evans v. Abney
a. Senator Bacon and the park held in trust for white kids.
b. RULE: The cy pres doctrine is not applicable when the
testator would presumably have preferred to have the
whole trust fail if the particular purpose of the trust
became impossible to accomplish.
VII. Nuisance
A. An unreasonable use of land which causes substantial harm to another’s use of their
land.
i. Proper remedies-
1. Injunctions – stop doing what you are doing.
2. Damages - you can continue doing what you are doing but you
must pay your neighbors.
B. Types of Nuisance
i. Nuisance per se – an act that is a nuisance simply because of the activity.
(e.g. a funeral home in a residential area).
ii. Nuisance in fact – a nuisance that happens because you are doing things in
a certain way.
iii. Private nuisance – a nuisance that hurts only one neighbor
iv. Public nuisance – effects a large group of people (often defined by statute).
A prosecutor needs to bring the claim, the public can’t.
C. Nuisance vs. Trespass
i. Trespass includes the physical invasion of your property.
ii. Nuisance does not need a physical invasion.
D. CASES
i. Page County Appliance Center, Inc. v. Honeywell, Inc.
1. Honeywell placed a computer in the business adjoining the
Appliance Center. It interfered with the Center’s business of
selling TV sets.
2. RULE: Lawful activity constitutes a nuisance if it unreasonably
interferes with another’s enjoyment of his or her property.
ii. Fontainebleau Hotel Corp. v. Forty-Five Twenty-Five, Inc.
1. 45-25 sought an injunction that would enjoin the Fontainebleau
Hotel’s construction of an addition that would block all sunshine
from 45-25’s hotel.
2. RULE: There is no legal right to the free flow of light or air from
an adjoining parcel of land.
iii. Prah v. Maretti
1. Prah sued to enjoin Maretti from building on his land so as to
block the flow of sunlight to Prah’s solar heated house.
2. RULE: The doctrine of prior appropriation (who got there first
has a right to a resource) applies to sunlight. Private nuisance law
is better than the doctrine of ancient lights to resolve suits like this.
VIII. Concurrent Estates
A. Joint tenancy
i. Attributes
1. “Joint tenants own by the whole and by the part”.
a. Joint tenants are regarded as one singular unit. (They
each own a presumptive share in proportion to the number
of joint tenants).
b. They share a future interest. When one tenant dies, the
other tenants share the right of survivorship.
c. It is transferable inter vivos.
d. It is NOT devisable or descendible.
ii. How to create one …
1. 4 Unities
a. TIME: Must get it at the same time
b. TITLE: In the same title (in the same instrument)
c. INTEREST: In the same interest (with identical interests)
d. POSSESSION: With identical rights to possess the whole.
2. You need a clear expression of the right of survivorship.
a. You need to use language like
i. “O” to “A” and “B” as joint tenants with a right
of survivorship.
b. Use of a straw man
i. You cannot convey to yourself in a Joint tenancy
iii. How to destroy one
1. Severance (by sale)- if you sell your interest, you end the Joint
tenancy. It severs the joint tenancy as to that selling joint tenant’s
interest.
a. The person who buys from the selling joint tenant is a
tenant in common.
b. The remaining joint tenants are still joint tenants with
each other. They are tenants in common with the new
purchaser.
2. Partition
a. They may agree to partition the land.
b. It may be done by a judicial action (it is an equitable
proceeding).
c. Partition in kind- a physical division of the property.
d. Forced Sale- the court could order a forced sale with the
proceeds distributed appropriately.
3. Mortgage
a. A minority of states follows the title theory of mortgages.
It says the execution of a mtge by one joint tenant severs
the joint tenancy as to the debtor joint tenant’s interest.
b. The lein theory of mtges- a joint tenant’s execution of a
mtge on their share will not sever the joint tenancy.
B. Dual Life estates with alternate contingent remainders
i. Indestructible property rights of survivorship with life estates.
1. “O to A and B as life tenants, with a remainder in A if A survives B
and a remainder in B if B survives A.
C. Tenancy by the entirety (Courts prefer this to joint tenancy if the language in the
conveyance is vague).
i. Recognized only in a minority of states (Only for husbands and wives)
ii. The tenants share the right of survivorship
iii. It arises presumptively in any conveyance to a couple if they are married.
iv. Creditors of only one spouse cannot touch the land in tenancy by the
entirety.
v. A unilateral conveyance by one of the spouses is a nullity. IT CAN ONLY
BE SEVERED IN DIVORCE.
D. Tenancy in common
i. Attributes
1. Two or more people own with no right of survivorship
2. Each cotenant owns a part with a right to possess the whole
a. It is descendable
b. It is devisable inter vivos
c. It is alienable.
ii. Courts like the tenancy in common. They prefer it to joint tenancy.
iii. Language
1. To “A” and “B” as tenants in common.
iv. RIGHTS OF TENANTS IN COMMON
1. Possession: Each cotenant has a right to possess the whole.
a. If one cotenant wrongfully excludes another, he has been
an OUSTER.
2. Rent: Rent from a cotenant in exclusive possession
a. A cotenant in exclusive possession is not liable to the others
for rent unless he has ousted the others.
b. What about rent from third parties?
i. A cotenant that leases the property to another
must provide his cotenants with his fair share of
the rental income.
3. No Adverse Possession: Unless he has ousted the others, one
cotenant in exclusive possession cannot acquire the land through
adverse possession.
4. Land costs: Each cotenant is responsible for their part of the
carrying costs of the land (taxes, etc.)
5. Contribution: For any repairs made, the repairing cotenant has a
right to contribution for any repairs made so long as she tells the
other cotenants of the needs and she makes the repairs reasonably.
a. There is no affirmative right to contribution for
improvements made during the life of the cotenancy. At
partition, the improver gets a credit equal to any increase
in value brought by her efforts. If the improvements result
in decrease in value, they lose the value.
6. A cotenant must not create WASTE.
v. Ending a tenancy in common
1. Partition- divides the land, ending the co-tenancy.
2. Ouster
a. Actual- physically kicking cotenant off of the land.
b. Constructive- The land is too small for all of the cotenants
to stay there.
E. CASES
i. Olivas v. Olivas
1. Because of a lengthy delay between the Olivas’ divorce decree and
the property division, Mr. Olivas waited several years before
seeking rent from Mrs. Olivas, who had remained in their home.
2. RULE: In a divorce proceeding where a spouse departs a residence
held as community property due to marital friction, a constructive
ouster is effected, but if the spouse abandons the home for another
intimate partner, a constructive ouster is not effected.
ii. Carr v. Decking
1. Father and son are cotenants. Father executed a lease with
Decking without son’s permission.
2. RULE: Where a cotenant lawfully leases his interest to a third
party without the consent of the other tenant, the other tenant
cannot demand use of the entire parcel, rather, he can only demand
to be let into co-possession.
iii. Tenhet v. Boswell
1. Johnson, a joint tenant with Tehnet leased his interest in the joint
tenancy property to Boswell for a term of years and died during
that term.
2. RULE: A lease does not sever a joint tenancy and expires on the
death of the lessor joint tenant.
iv. Kresha v Kresha
1. A dissolution decree awarded land held in co-tenancy to Rose
Kreshda, who then attempted to terminate her son’s pre-
dissolution lease on the property.
2. RULE: Pursuant to a divorce proceeding, where one party is
awarded the entire ownership of certain lands, those lands are
taken subject to leasehold interests in the exspouse’s former
ownership interests.
v. Sawada v. Endo
1. The Sawadas who were injured by the Endos and could not obtain
satisfaction of their judgments from Endo’s personal property,
sought to set aside a conveyance by Endo and his wife of some land
that had been held by them as tenancy by the entirety.
2. RULE: An individual spouse’s interest in property owned in
tenancy by the entirety is not subject to the claims of his or her
individual creditors; thus, the spouses can jointly convey the
property free of such claims.
IX. Leasehold estates
A. ISSUES
i. Does the landlord have to provide actual possession or the right to possess?
1. American rule: Landlord must give legal right to possess.
2. English rule: Landlord must give actual possession..
B. Term of years
i. Attributes
1. This is a lease for a fixed and determined period of time (could be
any amount of time).
a. it could be one day, two months, eight years.
2. You don’t need notice to terminate.
3. A term for years greater than one year must be in writing to be
enforceable (STATUTE OF FRAUDS APPLIES).
a. Death of either party doesn’t terminate the tenancy.
b. If future interest is in the landlord it is called a reversion.
If in another party, it is called a remainder.
C. Periodic tenancy
i. Attributes
1. It is continuous (it automatically renews itself). It continues until
either landlord or tenant gives proper notice for termination.
2. Language
3. To “A” from year to year. Or month to month.
4. IT CAN BE IMPLIED.
a. If there is no explicit language of duration, but there is
rent paid at designated intervals, it is implied that the
period is the term of the rent.
b. THE ORAL TERM OF YEARS IN VIOLATION OF THE
STATUTE OF FRAUDS CREATES AN IMPLIED
TENANCY.
c. The holdover doctrine
ii. IN a residential lease, if L decides to hold over a
tenant, there is an implied periodic tenancy
created
5. To terminate
a. Common law: Must give notice equal to the length of the
period of the tenancy (unless the period is one year or
greater, then all you need is six months)
b. The parties may privately agree to lengthen or shorten
these provisions in the lease.
6. To raise rent
a. The landlord must give a notice.
D. Tenancy at will
i. Language
1. To “T” as long as L or T desires. (The right to terminate, if
unstated is implied to be reciprocal).
ii. Attributes
1. Tenancy for no fixed period or duration.
2. A reasonable demand to quit or vacate is required to end the lease
(30 day notice requirement).
a. Tenancy at sufferance
i. This is a holdover. It lasts only as long as it takes
the landlord to evict the holdover or creates a new
tenancy.
E. Tenancy at sufferance
i. A tenant rightfully in possession who wrongfully stays after the leasehold
has terminated (holdover tenant).
F. Landlord Tennant Relationships
i. Tenant’s Duties
1. Tenant’s liabilities to third parties
a. Tenant needs to keep the premises in good repair. Tenant
is responsible and will be held liable for injuries suffered
by third parties even though the landlord has expressly
promised to make all repairs.
2. Duty to repair
a. Tenant must merely maintain the premises.
b. Tenant must not commit waste.
i. If any waste, then you are liable.
3. Duty to pay rent
a. If tenant breaches the landlord can . . .
i. If the tenant is in possession . . .
1. Move to evict through appropriate
judicial action.
a. The landlord is still entitled to
rent until the person is out of
possession.
2. Sue for the rent owed.
ii. If the tenant is out of possession . . .
1. Surrender- if the tenant accepts the
tenant’s surrender, the problem is over
and the lease is amicably terminated. To
surrender it needs to be in writing.
2. Ignore- leaves the apartment and does
nothing to use the appt. In the face of a
breaching tenant, you should lease the
premises on the tenant’s behalf.
3. Relet- you should keep the appt together.
ii. Landlord’s duty
1. Duty to deliver possession
a. The majority rule- landlord’s must put tenant in actual
physical possession at the start of the lease.
b. The minority rule- landlord must convey the right to
possess the appt.
2. The covenant of quiet enjoyment
a. An implied promise in every residential and commercial
lease. The implied covenant tells us that a tenant has a
right to quiet use and enjoyment of the premeis without
interference from the landlord.
b. How is it breached?
i. Overtly- By actually and wrongfully evicting the
tenant from whole or part of the rental.
ii. Implicitly- when the landlord commits
constructive eviction.
1. Constructive eviction
a. Substantial interference by some
act or failure to act by the
landlord.
b. Some chronic problem that
interferes with quiet enjoyment
c. Notice must be given by tenant to
landlord to have situation
remedied. If the problem is not
fixed within a reasonable time,
then there are issues.
d. Goodbye or get out.
2. Exceptions at common law:
a. Landlord has a duty not to bring
nuisances on the property.
b. If the offensive conduct occurs in
a common area it is the
landlord’s responsibility.
iii. The Implied Warranty of Habitability
1. Applies to residential leases only.
2. The Premises must be maintained in habitable condition for the
duration of the lease. IT IS NONWAIVABLE? The states are split
on theis.
3. The warranty may be part of the housing code.
4. If there is a breach of the implied warranty of habitability…tenant
could . . .
a. Move out
b. Repair and deduct
i. The tenant can make a repair and deduct the costs
from future rent.
c. Reduce
i. Tenant can reduce the rent equal to the fair rental
value of the property with the defects.
d. Remain
i. The tenant can remain in possession and sue the
landlord for damages.
5. LANDLORD DEFENSES TO THE IMPLIED WARRANTY
a. They didn’t know about the problem.
b. Not enough time since notification.
c. Not a substantial problem.
d. The problem was caused by the tenant.
e. The repairs are underway.
f. The tenant won’t allow the landlord to fix it.
g. No such condition exists.
iv. RETALIATORY EVICTION
1. If a tenant, in good faith, reports a landlord lawfully for housing
code violations . . .
a. The landlord is barred from:
i. harassing the tenant
ii. terminating the lease
iii. raising the rent unfairly
iv. failing to renew lease.
v. Assignment vs. the Sublease
1. Tenant can transfer their interest in whole or in part
a. An assignment is when a tenant transfers the entire
remaining interest in the property to another. The
landlord and the new tenant come into privity of estate.
The landlord is liable to the new tenant and the new tenant
is liable to the landlord for all covenants in the original
lease that run with the land.
i. Landlord and the old tenant will always be liable
to each other in secondary liability.
1. T1 assigns to T2. T2 assigns to T3. T3
does wrong on the property. If L sues T3,
L wins b/c they are in privity of estate.
They are not in privity of contract unless
T3 struck a deal with L. L can proceed
against T1 because there is still privity of
contract. L cannot proceed against T2 b/c
there is no privity of estate or contract.
2. If a tenant sublets . . .
a. Original tenant is still in privity with the landlord. The
new tenant is only in privity with the old tenant. The old
tenant has a future interest in the land.
i. In subleases . . .
1. T1 and the landlord’s relationship will
always remain in tact.
vi. CASES
1. Vasquez v. Glassboro Service Association, Inc.
a. After Vasquez’s employment as a migrant farmworker was
terminated, he was not allowed to remain overnight in the
employer-provided barracks until he could find alternative
housing.
b. RULE: When a migrant farmworker’s employment is
terminated, he may be removed from the employer-
provided housing only through a judicial proceeding.
2. Sommer v. Kridel
a. Sommer did not attempt to re-let the premises he had
leased to Kridel even though the opportunity arose to do so
and Kridel had specifically informed Sommer that he
would not take the room and asked for acceptance of his
surrender.
b. RULE: A landlord had a duty to mitigate damages when a
lessee surrenders. He must make a reasonable effort to re-
let the premises.
X. Condominiums and Co-operatives
A. Condominums
i. Ownership
1. Own the buildings and the common areas as tenants in common.
You cannot sell or partition a common area.
2. You own the space in your condo in FSA.
ii. Board Of Trustees
1. THE SIZE OF YOUR CONDO DETERMINES YOUR VOTE ON
THE BOARD OF TRUSTEES
2. The developer has voting rights of unsold units until more than
50% of the units are sold.
B. Co-operatives
i. Ownership
1. A co-op is a single entity (a not for profit organization). Each co-op
owner owns shares in the stock of the organization. Those shares
reflect your right to purchase x amount of space and vice versa.
2. Each owner pays his or her share of everything. If one person
defaults the whole place could fold.
C. CASES
i. Wolinsky v. Kadison
1. The Board of Directors for a condo complex exercised its right of
first refusal regarding Wolinsky’s offer to purchase a
condominium.
2. RULE: No person shall be denied the right to purchase or lease a
unit because of race, religion, sex, sexual preference, marital status
or national origin.
ii. Aquarian Foundation, Inc. v. Sholom House
1. When a condominium owner sold her unit to Aquarian without the
consent of Sholom’s board of directors, Shalom House sued to set
aside the conveyance
2. RULE: A clause in a condominium’s declaration permitting the
association to arbitrarily withhold its consent to transfer a unit
constitutes an unreasonable restraint on alienation.
iii. Breene v. Plaza Towers Association
1. Breene owned a condominium in the Plaza Tower complex and was
prohibitied from renting her unit by the Plaza Towers Assoc.
2. RULE: A restriction adopted after the purchase of a condo unit
will not be enforceable against the purchaser except through the
purchaser’s acquiescence.
iv. O’Buck v. Cottonwood Condominium Assoc., Inc.
1. Cottonwood found that roof leakage was caused by people walking
on the roof to fix antennas. They prohibited antennas anywhere on
the building. The O’Bucks lost reception on three of their TVs.
2. RULE: Condominium declarations and bylaws granting a board
the authority to enact rules banning TV antennae will withstand
judicial scrutiny if they are deemed reasonable.