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I. LANDLORD AND TENANT ....................................................................................................................................................

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A. NATURE OF THE LEASEHOLD ......................................................................................................................................................... 2
B. LEASES ................................................................................................................................................................................... 2
C. TENANT DUTIES AND LANDLORD REMEDIES ......................................................................................................................... 2
D. LANDLORD DUTIES AND TENANT REMEDIES ......................................................................................................................... 3
E. ASSIGNMENTS AND SUBLEASES ............................................................................................................................................. 3
II. EASEMENTS, COVENANTS, AND SERVITUDES ..................................................................................................................... 4
A. EASEMENTS ........................................................................................................................................................................... 4
B. REAL COVENANTS .................................................................................................................................................................. 5
C. EQUITABLE SERVITUDE .......................................................................................................................................................... 5
III. CONVEYANCING ................................................................................................................................................................ 6
A. LAND SALE CONTRACTS ......................................................................................................................................................... 6
B. DEEDS .................................................................................................................................................................................... 6
C. DELIVERY AND ACCEPTANCE ................................................................................................................................................. 6
D. COVENANTS FOR TITLE AND ESTOPPEL BY DEED ................................................................................................................... 6
E. RECORDING ............................................................................................................................................................................ 7
IV. SECURITY INTERESTS IN REAL ESTATE ............................................................................................................................... 7
A. TYPES OF SECURITY INTERESTS .............................................................................................................................................. 7
B. TRANSFERS BY MORTGAGEE AND MORTGAGOR ................................................................................................................... 7
C. FORECLOSURE........................................................................................................................................................................ 7
D. INSTALLMENT LAND CONTRACTS .......................................................................................................................................... 8
V. ZONING.............................................................................................................................................................................. 8
A. ZONING .................................................................................................................................................................................. 8

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I. LANDLORD and TENANT

A. Nature of the Leasehold


1. Tenancy for Years- fixed period of time w/ clear termination date; if greater than 1 year must
be in writing for SoF; automatically expires without notice
a. Termination
1) Breach of Covenants- LL can terminate if T breaches nay of the leasehold
covenants- LL’s right of entry
a) Failure to Pay Rent
2) Surrender- T gives up interest to LL
2. Periodic Tenancy- no clear termination date/automatically renews; continues in successive
intervals until notice to terminate; endures continuously w/o proper notice (in writing) to
terminate; notice must be equal to the length of period itself- unless >1 yr, give 6 mnth notice
a. Creation
1) Express Agreement- LL leases to T for “month to month”
2) Implied Agreement- usually expressly but can arise impliedly:
(1) no mention of duration, but provision of rent at set intervals;
(2) If in violation of SoF (LL/T negotiate on phone), = periodic tenancy;
(3) holdover doctrine – If LL elects to holdover a T who stayed on = implied
periodic tenancy
b. Termination- automatically renews until proper notice in writing and delivered; notice
must be given in advance the time equal to the length of period itself- unless >1 yr, give 6
month notice
3. Tenancies at Will- terminable at the will of either party; modern statute requires a reasonable
demand to vacate
a. Termination- terminated by either party with reasonable notice or as an operation of
law if: (1) death; (2) T commits waste; (3) T attempts to assign his tenancy; (4) LL transfers
his interest; (5) LL executes a term lease to a third party
4. Tenancies at Sufferance- When a T has held over past the lease; LL can recover rent until the T
is evicted; short lived status- until eviction is completed

B. LEASES
1. Common Law- Lease and covenants are independent
2. Modern Trend- T may be excused from his covenant to pay rent if the LL actually or
constructively evicts the T or breaches the IWH; LL can terminate lease is T doesn’t pay rent;
Covenants dependent and excuse one party’s performance when the other party’s breach relates
to a material part of the lease

C. TENANT DUTIES AND LANDLORD REMEDIES


1. Tenant’s Duty to Repair/Maintain (Doctrine of Waste) ***- must maintain and make ordinary
repairs; not responsible for ordinary wear and tear; MUST NOT COMMIT WASTE- (1) voluntary or
affirmative waste; (2) permissive waste- neglect; (3) ameliorative waste- enhance
2. Duty to Not Use the Premise for Illegal Purposes
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3. Duty to Pay Rent***- T breaches the duty but is still in possession- LL can: (1) Eviction- LL has
to go through the court system and (2) Continue relationship and sue for rent owed; LL CANNOT
engage in self-help! If T breaches the duty and vacates- LL can: SIorR- (1) Treat T’s vacating as
Surrender- T shows by words/conduct that T wants to give up the lease; (2) Ignoring- available
only in a MIN; (3) Re-let the premises and hold T liable for any deficiency; MAJ require LL make a
reasonable good-faith attempt to re-let the premises (mitigation)
a. Rent Deposits- If a Security deposit, LL cannot retain it beyond the extent of
recoverable damages
4. Landlord Remedies
a. T on premises but fails to pay rent – Evict or Sue for Rent
b. T abandons – Do Nothing or Repossess
1) LL Does Nothing – T Remains Liable- MAJ require LL try to re-let the premises
(mitigation)
2) LL Repossess – T’s Liability Depends on Surrender

D. LANDLORD DUTIES AND TENANT REMEDIES


1. Duty to deliver Possession of Premises- require L provide T with legal and physical possession
of the premises; If holdover T, LL has breached, and new T can get damages
2. Quiet Enjoyment- both residential and commercial leases; fundamental implied promise to
provide quiet use and enjoyment; LL can breach by (1) actual wrongful eviction or (2) commit a
constructive eviction- give T no choice but to vacate-
a. Actual Eviction
b. Constructive Eviction- SING- (1) Substantial Interference due to LL actions or failures to
act (2) Notice and LL must fail to act meaningfully and (4) T must vacate- Get out
3. Implied Warranty of Habitability- residential only; cannot contract around b/c void to public
policy; premises must be fit for basic human dwelling; T can get remedy by: MRRR (1) Move out
and terminate the lease BUT does not have to (unlike Constructive Eviction) (2) Repair and
deduct- T make repairs herself then deduces from rent (3) Withhold/Reduce rent until court
assess FRV, T should put in an escrow account; (4) Remain in Possession, continue to pay rent,
then sue LL for damages
4. Retaliatory Eviction- LL must not take reprisals against a GF whistleblower T
5. Discrimination- must provide reasonable accommodation for ALL

E. ASSIGNMENTS AND SUBLEASES


 Absence an express restriction, T may freely transfer interest, in whole (Assignment) or in part
(Sub-lease)
 LL can demand for written approval prior transfer
1. Consequences of an Assignment- transfers everything left to assignee; privity of estate- liable
to each other for all the covenants the run with the land (rent/paint/repair); L and T2 are NOT in
privity of K but are in privity of estate; L and T1 are NOT in privity of estate but are in privity of K;
T1 is secondarily liable to LL, if T2 defaults; LL can sue T2 under privity of estate and T1 under
privity of K

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2. Consequences of a Sublease- T1 transfers less than everything she has under the original
lease; relationship between L and T1 is the same; LL and T2 have no privity of estate or privity of
K; if T2 gets crazy, T1 is liable to LL
3. Covenants Against Assignment or Sublease
a. Strictly Construed Against LL- a covenant prohibiting assignment does not prohibit
subleasing and vice versa
b. Waiver of Covenant- waived if LL knows and doesn’t object
c. Continuing Waiver
d. Transfers in Violation of Lease Not Void
e. Reasonableness
4. Assignments by Landlords
a. Right to Assign

II. EASEMENTS, COVENANTS, and SERVITUDES

A. EASEMENTS
1. Introduction- grant of a non-possessory interest that entitles its holder to some limited use or
enjoyment of another’s land called the servient tenement e.g right to lay utility lines; give holder
a right of way across a tract of land
a. Types of Easements
1) Affirmative Easement- most; right to do something on servient land
2) Negative Easement- narrow in scope; entitles holder to compel servient owner
to compel the servient owner to refrain from doing something that but for the
negative easement would be permissible; can only be created by express grant
a) LASS- Light; Air; Support; Stream Water from Artificial Flow; Scenic View
b. Easement Appurtenant- it takes two parcels; dominant tenement derives the benefit
and a servient tenement suffers the burden; passes automatically with the dominant
tenement regardless if its mentioned; pass with the servient land unless the buyer is a
BFP without notice of the easement
1) Use and Enjoyment
2) Benefit Attached to Possession
3) Transfer of Dominant and Servient Estates
c. Held in Gross- personal or financial benefit not linked to the easement hold’s use and
enjoyment of own land; right to place a billboard on another’s lot; swim in another’s
pond; right to lay utility lines on another’s land- servient land is burdened but there is NO
dominant tenement; are NOT transferable unless for commercial purposes
2. Creation of Easement- PING- Prescription, Implication, Necessity Grant- Create an affirmative
easement
a. Express Grant- If meant to endure for more than one year must be in writing because
of the SoF that is a deed
b. Express Reservation- landlocked
c. Implication- easement implied form prior use; pattern of pre-exisitng use if use was (1)
apparent and (2) reasonably necessary
d. Prescription- AP (COAH) Continuous use for the given stat period (2) open and
notorious (3) actual entry (4) Hostile

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3. Scope- set by the terms or conditions that created it; can’t be any unilateral expansion to
benefit a non-dominant parcel
4. Termination
5. Compare Licenses- (1) privilege to enter the land for some delineated purpose, for a limited
purpose; (2) not subject to the SoF- can be created orally; (3) freely revocable at the will of the
licensor unless estoppel applies- estoppel applies only when the licensee has invested substantial
money/labor; (4) 2 scenarios: 1. Tickets- shows oversold 2. Neighbors talking by the fence

B. REAL COVENANTS
 Starts off as a contract regarding land; Roots in law
1. Requirements for Burden to Run- WITHN- (1) Writing; (2) Intent; (3) Touch and Concern; (4)
Horizontal and Vertical Privity; Notice
a. Intent – intend the burden would run
b. Notice-
c. Horizontal Privity- original covenanting parties must be in succession of estate: (1) at
the time promise was made grantor/grantee relationship; (2) LL/T relationship; (3)
debtor/creditor; difficult to establish- likely absent
d. Vertical Privity- easier to establish; non-hostile nexus between A and A1; only absent if
A1 acquired her interest via AP
e. Touch and Concern
1) Restrictive Covenants- promise to refrain from doing something related to
land; eg. Build for commercial purposes; post for sale sign; no pets
2) Affirmative Covenants- promise to do something related to land; if P wants $$
damages from D, construe the promise at law as a covenant that binds successors
2. Requirements for Benefit to Run- easier for benefit to run; WITV- Writing; Intent; Touch and
Concern; Vertical Privity- non-hostile nexus
a. Intent- intended the benefit would run
b. Vertical Privity
c. Touch and Concern

C. EQUITABLE SERVITUDE
1. Creation- roots in equity; If P wants injunction construe the promise at law as an equitable
servitude; WITNES- Writing; Intent- parties intended to bind successors; Touch and Concern;
Notice- notice when they took; ES- Equitable Servitude- Privity is NOT required to bind
successors; can be implied (Common Scheme Doctrine)
2. Enforcement
a. Requirements for Burden to Run
1) Intent
2) Notice- AIR- Actual Notice- prior to closing B came to know of restriction;
Inquiry Notice- B charged w/notice if neighborhood appears to conform; Record
Notice- publicly recorded notice
3) Touch and Concern
b. Requirements for Benefit to Run
c. Privity Not Required
d. Implied Beneficiaries
3. Defenses to Enforcement
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a. Unclean Hands
b. Acquiescence
c. Estoppel
d. Changed Neighborhood Condition- restriction no longer makes sense
4. Termination

III. CONVEYANCING
A. LAND SALE CONTRACTS
 Must begin with a land contract
1. Statute of Frauds Applicable
a. In writing, signed by the parties to be bound; must reasonably describe the land and state
some consideration.
b. EXCEPTION Doctrine of Part Performance - exception to writing requirement! If any of the 2:
(1) B takes possession; (2) B pays all/part price; or (3) B makes substantial improvements – B
can get Specific Performance
2. Doctrine of Equitable Conversion
a. Risk of Loss-equity regards as done that which ought to be done- B’s Land and B’s Loss from
moment K is signed; today- usually reassign risk of loss
3. Marketable Title- at closing!
a. Title free from reasonable doubt = free from lawsuits
b. Unmarketable if: (1) part of title rests on AP; (2) Encumbrances/ Mortgage – B can waive; (3)
Zoning Violations. S promises not to make any false statements of material fact or fail to
disclose any material defects.
4. Remedies for Breach of a Sales Contract
a. Specific Performance b/c land is unique
5. Seller’s Liability for Defects on Property
a. NEW construction only

B. DEEDS
 Lawfully passes legal title from S to B
 writing signed by grantor (should get grantee too), reasonably describes land, shows intent to
transfer, Signature of Grantor

C. DELIVERY AND ACCEPTANCE


1. Delivery- literally or manually transfer from grantor to grantee BUT physical delivery is NOT
required just grantor’s present intent to be immediately bound
2. Retention of Interest by Grantor or Conditional Delivery- oral condition drops out
3. Acceptance- presumed unless expressly rejected

D. COVENANTS FOR TITLE AND ESTOPPEL BY DEED


 3 Types of Deeds- Quitclaim, General Warranty, Statutory Special Warranty
6. Covenants for Title and General Warranty Deed

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a. Present Covenants-breached at the moment of delivery: (1) Seisin- ownership; (2) Right to
Convey- Grantor has power (no disability and no restraints) to make this transfer; and (3)
Covenant Against Encumbrances- NO servitudes (easements) or mortgages
b. Future Covenants- breached in the future (when it happens)- (4) Quiet Enjoyment- B’s
possession won’t be disturbed by a 3rd party’s lawful claim of title, (5) Warranty- Grantor will
defend grantee against title claims brought by others; (6) Further Assurances- Grantor will do
whatever is reasonably necessary to fix any defects. COVENANTS NEVER IMPLIED IN DEED
7. Statutory Special Warranty Deed
a. 2 Promises Grantor makes on behalf of himself ONLY: (1) Hasn’t conveyed land to anyone
other than grantee and (2) No Encumbrances made by Grantor
8. Quitclaim Deeds
a. NO promises from grantor; WORST deed for B- S implicitly promises in the K to provide
marketable title @ closing- BUT post-closing S is not liable

E. RECORDING
1. Recording Acts
a. If B is a BFP in a Notice JX- B WINS and (2) If B is a BFP in a Race Notice JX- B wins ONLY IF she
wins the race to record
2. Types of Recording Acts
a. Notice JX- Last BFP to enter is the Winner; (2) Race Notice JX- Last BFP AND must record first;
(3) Race JX- Whoever records first- unfair (SUPER MIN)
3. Who is Protected by Recording Acts?
a. Only BFP and Mortgagee/Creditor.
b. BFP: (1) purchases for substantial value and (2) B at the time of closing must have been
without notice (Actual; Inquiry; Record- imputed to B if A recorded properly) of A’s existence
4. Title Searches
a. Tract Index, (2) Grantor/Grantee Index;

IV. SECURITY INTERESTS IN REAL ESTATE

A. TYPES OF SECURITY INTERESTS


1. Mortgage
a. (1) debt and (2) voluntary transfer by debtor to creditor a lien in debtor’s land

B. TRANSFERS BY MORTGAGEE AND MORTGAGOR


1. Transfer by Mortgagee
a. Creditor (Mortgagee) gets lien
b. Creditor is usually protected by Recording Statutes put world on record notice of lien
2. Transfer by Mortgagor- Grantee takes Subject to Mortgage
a. Debtor (Mortgagor) get title and right to possess land

C. FORECLOSURE
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1. Priorities
a. If Debtor defaults… Senior Creditor gets full satisfaction before any Jr. Creditors…Creditors
MUST record mortgage… Whoever recorded first properly/First-in-Time/First-in-Right… If
foreclosure sale doesn’t cover Jr. Creditor’s debt = Deficiency Judgment

D. INSTALLMENT LAND CONTRACTS


1. Equitable Redemption
a. Recognized up to the foreclosure sale, debtor can pay-off the amount plus interest to avoid a
Deficiency Judgment
V. ZONING

A. ZONING
 Government right to enact statues to reasonably control land use for people’s general welfare
 Variance- permission to depart to zoning ordinance
o Area- compatible use but ill fit ; Must show: (1) undue hardship not self-imposed (2) there
will be no diminution to property value by granting variance
o Use- incompatible use; special circumstances depend on need/desire/location/etc.
 Non-Conforming Use- previously allowable but is now non-conforming must be compensated by
the city; can grandfather in users

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