property question - covenants and privity of estate
Posted: Sat May 08, 2010 2:21 am
ok - property question:
The majority view is that burdens need horizontal privity of estate to run with the land. In most jurisdictions, this means that the covenant must have been in the conveyance/deed between the original owner and whomever he sells too.
So, given that, is this correct?:
A sells land to B, with a covenant saying that B cannot build a factory on the land. This is a burden on B, and it runs with the land (meaning it stays with the land and will affect B's heirs/whoever B sells too) and there is privity of contract, so it is valid.
But benefits do not need privity of estate.
What would a benefit even be? I am having a hard time thinking of one - what is a good example, and how is a covenant that is a benefit different from an easement? And how is a benefit covenant made if not during the conveyance? Is it just essentially a promise/contract made after the land conveyance?
Thanks - and cannot wait to be done with property. Learning about conveyances and privity of contract is always how I envisioned spending my friday nights at 22....
The majority view is that burdens need horizontal privity of estate to run with the land. In most jurisdictions, this means that the covenant must have been in the conveyance/deed between the original owner and whomever he sells too.
So, given that, is this correct?:
A sells land to B, with a covenant saying that B cannot build a factory on the land. This is a burden on B, and it runs with the land (meaning it stays with the land and will affect B's heirs/whoever B sells too) and there is privity of contract, so it is valid.
But benefits do not need privity of estate.
What would a benefit even be? I am having a hard time thinking of one - what is a good example, and how is a covenant that is a benefit different from an easement? And how is a benefit covenant made if not during the conveyance? Is it just essentially a promise/contract made after the land conveyance?
Thanks - and cannot wait to be done with property. Learning about conveyances and privity of contract is always how I envisioned spending my friday nights at 22....