Outline Property
Outline Property
Outline Property
ii. Estoppel
1. Owner stood by & acquiesced in the change of use and permitted
the expense to be made
iii. Implied
1. Single parcel in common – severed into two separate owned
parcels
2. Before severance: prior quasi-easement => prior use on part of the
land
3. After severance: must be reasonably necessary continued for
benefit of new owner of severed parcel
iv. Necessity
1. Single parcel in common – severed into two separate owned
parcels
2. Easement strictly necessary due to the severance (typically ingress,
egress)
3. Does not have to be a prior use
v. Express Creation
1. By deed or will (statute of fraud)
2. Reservation in grantor
a. Example: O coveys P1 land parcel to A, reserving right of
way in it.
3. Creation in stranger to the deed
a. Example: O was two parcels. Sells P1 to A. Sells P2 to B
with easement in the deed: “reserved in favor of A and her
successors to P1”.
b. Was not possible in CL
c. Modern rule: allowed: enforceable by A even though A
was not part of the B and O deed.
12. Covenants
a. Vertical privity
i. There is a succession of estate from promisor (or promissee) to the
promisor’s (or promissee’s) assignee
ii. Burden
1. promise is part of land transaction
iii. Benifit
1. succession in some interest of land
b. Horizontal privity
i. Original parties (promisor and promisee) to the covenant engaged in a
land transfer.
ii. Burden
1. Fee Simple Absolute
c. Notice
i. Burden
1. actual or constructive
13. Zoning
a. Types
i. Area and Lot Zoning
1. Size and shape of lots: ex.
a. Minimum size
b. Minimum frontage
ii. Building & Bulk regulations
1. placement, height, shape and bulk of building
a. Set-back requirements, height restrictions, floor-area ratio,
percentage of coverage of lot, minimum floor size
iii. Use regulation
1. Residential, Commercial, Agricultural and Industrial
a. “Cumulative” and “non-cumulative”
i. Euclid
1. Like factorials 3!
b. Grandfathering
i. May continue (even under a new owner since it follows the status of the
land)
1. For normal period, cannot renovate or upgrade beyond normal life
span
ii. Must be continuous
1. Cannot change use and resume later on
iii. Cannot be expanded
1. Expansion of store is not allowed
14. Takings
a. Eminent Domain (Government forces sale)
i. Public Use
1. Very deferential courts
2. Provision of public access
a. Public buildings, parks, roads, easements of access
3. Provision of public services (often transfer to a private owner)
a. Railroad tracks, electrical lines, oil and gas pipelines
4. Mitigating harm
a. Land Use restrictions
b. Sometimes transfers to private owner: Transfer of blighted
neighborhood to developer for redevelopment
5. Provision of broad societal benefits
a. Preservation easements, etc.
b. Sometimes transfers to private owner: Transfer of blighted
neighborhood to private company to increase tax income
and attract new jobs
ii. Just Compensation”
1. For property value
a. Market value, not subjective value, taking into account
expected changes
2. For damages to remainder
a. Can be part of land or easement, reimbursed for loss to
remainder from severance
15. Transactions
a. Agents
i. Listing broker
1. Fiduciary duty to seller
2. Get commission when they find a buyer
ii. Selling broker
1. Fiduciary duty to seller
2. Get commission when they find a buyer
iii. Buying broker
1. Fiduciary duty to buyer
2. Get commission after closing
iv. Fiduciary duties
1. Full disclosure of useful information
2. Accounting on all matters
3. Confidentiality on all matters
4. Obedience to clients needs
5. Negotiating best price for clients
6. Reasonable care to clients needs
b. Offers & Contracts
i. Contract before closing
1. Buyer must
a. Do title search
b. Obtain mortgage
c. Do inspection
ii. At closing
1. Transfer deed
c. Disclosures & Equitable Conversion
i. Defects
1. Must buy as is
2. Buyer must inspect property
3. Hidden defects must be disclosed
a. Ex bad pipes, weird neighbors, etc.
4. Stigmatization of property must also be disclosed
a. Ghosts, murder, meth lab etc
ii. Equitable conversion
1. After contract but before closing
a. Both seller and buyer are equitable owners
i. Share risk of loss
ii. Unless seller negligent
iii. Unless unmarketable title
d. Deeds
i. Warranties
1. General
a. seller owns the property she is conveying in fee simple;
b. she has the right to convey it;
c. it is free of encumbrances;
d. the buyer will enjoy quiet title to the property; and
e. seller will defend the buyer from all lawful claims of
others.
2. special/limited
a. Here, the seller warrants to the buyer that during the term
of the seller’s ownership of the property:
i. No one other than the seller developed ant lawful
claims of title to the property
ii. It does not, however, warrant that no such claims
arose prior to the seller’s ownership of the property
3. Quitclaim
a. Warrants nothing
b. It merely states that to the extent the seller has any interest
in the property, she conveys it to the buyer
c. These deeds are often used when there are minor boundary
disputes or uncertainties between properties
d. Their use increased during the foreclosure crisis when it
became clear that many foreclosing parties did not have
adequate legal documentation demonstrating their right to
foreclose many homes that were foreclosed upon were
subsequently conveyed to new owners by quitclaim deeds
4. Encumbrances & marketable title
a. Title free from reasonable doubt or threat of litigation
b. Defects
i. Lein
ii. Easement
iii. Use restrictions
e. Title Assurance
i. Mechanics of recording: FITFIR & statutory systems
1. Goal
a. Provide (prospective) buyer of land a means to verify
earlier transactions in the property that are inconsistent
with his own (prospective) rights.
b. If earlier transaction but not recorded, subsequent sale may
gain priority of earlier transaction (fair? efficient!)
2. Types of Statutes
a. Pure race statutes
i. Race to the recorder’s office: first to record
(regardless of notice)
b. Pure notice statutes
i. Prior sales invalid against subsequent sales by good
faith purchasers that are without notice (regardless
whether second buyer records before prior buyer)
c. Race-notice statutes (CA, Cal. Civ. Code 1214)
i. Subsequent purchaser protected if (1) records before
prior buyer; AND (2) takes without notice of the
earlier conveyance
f. Mortgages & Foreclosure
i. Mortgage
1. The conveyance of a security interest in land, intended by the
parties to be collateral for the repayment of a debt. It’s a union of 2
elements:
a. A debt
b. Voluntary transfer of a security interest in the debtor's land
to secure the debt.
i. Debtor = mortgagor
1. Title
2. Right to possession
ii. Creditor = mortgagee
1. Right to foreclose
ii. Foreclosure
1. 120 days past due
a. Judicial procedure:
i. lender files a lawsuit in court. Court will order the
home sold at a foreclosure sale.
b. Non-judicial procedure:
i. steps outlined in state law. In most cases, the lender
must notify the borrower of the default, give the
borrower a short amount of time to bring the
account current, and notify the borrower (and
possibly the public) of the foreclosure sale date.
After completing the steps, the bank can proceed
with the foreclosure sale without court approval.