Property Rules

Created by Louis Lerner

Hot News Doctrine
All of the following conditions must be met: Their process of information collection involves significant expenditures. The collected information is time sensitive. A defendant “free rides” on the collected material. The “freeriding” party directly competes with the plaintiff’s market. The “freeriding” is likely to diminish incentives to collect information in a timely manner.

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TermDefinition
Hot News DoctrineAll of the following conditions must be met: Their process of information collection involves significant expenditures. The collected information is time sensitive. A defendant “free rides” on the collected material. The “freeriding” party directly competes with the plaintiff’s market. The “freeriding” is likely to diminish incentives to collect information in a timely manner.
The Bundle of SticksProperty ownership consists of these rights: The right to use The right to sell The right to give away The right to abandon The right to destroy The right to exclude
Coase TheoremWhen transaction costs are 0, private bargaining between two parties is far more efficient than going through court.
Abandoned PropertyAn owner of personal property who seeks to abandon it must intend to relinquish all interests in the property with no intention that the property be acquired by any particular person and undertake voluntary action to that end. Real Property cannot be abandoned.
Lost vs. MislaidLost means that you dropped it somewhere. It goes to the original owner, then the finder. Mislead means that you put it somewhere and forgot to pick it up. It goes to the original owner, then the owner of the place where it was left.
Adverse Possession ConditionsAn entry that is actual and exclusive, open and notorious, continuous for the statutory period, and adverse and under a claim of right.
Claim of Right StandardsObjective Standard Good Faith Standard Aggressive Trespass Standard
Color of TitleThere is an invalid document saying that someone should own something. This can benefit an adverse possessor.
Adverse Possession of Personal Property RulesUnder the Time of Conversion Rule, the statute of limitations begins to run at the time the conversion occurred. Under the Time of Demand Rule, the statute of limitations does not begin to run until the true owner makes a demand for the return of the property and the demand is refused. Under the Adverse Possession Rule, adopted by the Appellate Division, a cause of action accrues when the possession by the defendant “assumes the characteristic elements of adverse possession.” Under the Discovery Rule articulated by the NJ Supreme Court, O’Keefe’s cause of action accrues when the original owner knew or reasonably should have known of the cause of action through the exercise of due diligence.
Elements of a GiftIntent to give the gift, Delivery of the gift (physical, constructive, or symbolic), and Acceptance of the gift. If the gift was made in a will, a witness is required. Conditional gifts do not count as gifts with the exception of wedding rings.
Gifts Causa MortisA gift made in contemplation of and in expectation of immediate, approaching death is a valid substitute for a will.
Term of YearsA tenancy that is for a fixed period of time. It has to have a fixed start and end date.
Periodic TenancyA tenancy that has a fixed duration. Parties give notice when they are going to arrive or leave. The period is a month for a “month to month” lease, 6 months for a “year to year,” and a week for a “week to week.”
Tenancy at WillLeaseholds that do not have a fixed duration and which can be terminated at will by either party. No notice is required to terminate this arrangement.
Subleases vs. AssignmentsSublease: Only part of the remaining term of a lease is given to someone else. Assignment: The rest of the remaining term on a lease is given to someone else.
3rd Party Beneficiary TheoryThird parties who are advantaged by a contract but are not directly a part of that contract can enforce the aforementioned contract.
Factors used to Determine whether there is a Legitimate Reason to prevent an AssignmentThe financial status of the proposed assignee. The sustainability and legality of the proposed use(s). The future business prospects of the proposed use(s). Tenant “mix”. Plans for potential alteration of the premises.
Duties of a LandlordDuty to maintain common areas Duty to warn tenant of latent defects Duty to complete volunteered repairs with reasonable care Duty to, if the space is leased for a public use, be liable for tort based injuries. Duty to prevent tort-based injuries as a result of defects.
Constructive EvictionThis is when a place becomes unlivable due to the some action by a landlord (that isn't intended to exclude the tenant from part of the property). This only applies if the tenant actually leaves.
LeaseholdA present possessory estate that grants: A lessee (or tenant) possession of property for a specified period of time; and A lessor (or landlord) a reversion that permits the landlord to come into possession of the property upon the termination of the lease.
Fee SimpleA present possessory estate that has the potential to endure forever.
Life EstateA present possessory estate measured by a person’s life.
Determinable Property InterestA property interest that gives the original owner the right of reverter. This means that the interest automatically expires if a condition is met. Usually includes the language "so long as"
Property Interest Subject to Condition SubsequentA property interest that gives the original owner the right of reentry. This means that original owner can take back the property interest if a condition is met, but the original owner must act to take the property back. Usually includes the language "but if" Some states put a limit on how long an original owner can wait to reenter the property after the condition is breached. This happens if a condition is violated.
Property Interest Subject to Executory LimitationA property interest that gives the a third party an executory interest. This means that the the thrid party automatically gets the property if a condition is met. This interest cannot happen in a life estate.
Vested RemainderA remainder which is guaranteed to occur and with a known recipient.
Indefeasibly Vested RemainderA vested remainder which is guaranteed to go to a specific person.
Vested Remainder subject to Divestment.A vested remainder which could go to another person if a condition is met.
Vested Remainder subject to Open.A vested remainder that is to a set of people the size of which could potentially increase.
Contingent RemainderA remainder in an unascertained person and/or with a specified event or condition required. These are inherently subject to open. This happens if a condition is not currently met.
Shifting Executory InterestA future interest in a third party grantee that cuts off a second party grantee's estate at a while it is in their possession. This happens when a condition is violated.
Springing Executory InterestA future interest in a third party grantee that springs out of the grantor's estate at a later time instead of taking over from the second party grantee. This happens when a condition is not met.
Reversion vs. Possibility of ReverterReversion: The life estate one Possibility of Reverter: The fee simple one
Rule Against Perpetuities (RAP)Go through 3 Steps: (1) Is the interest type subject to rap? (Vested Remainder Subject to Open, Contingent Remainder, or Executory Interest) (2) Who is the life in being? (There can be more than one life in being at any given time) (3) after the last life in being dies, will the gift be guaranteed to be transferred within the next 21 years (inclusive)?
Cy PresWhen a court changes an agreement that violated RAP to make it not violate RAP
Wait and SeeThis is when courts don't do anything about an agreement that violates RAP and hope it sorts itself out before a preset time period (assume 90 years). The wait and see period begins
Definition of NuisanceNuisance is a substantial non-trespassory interference with someone else’s use and enjoyment of land.
Nuisance Jost TestThreshold Test If the threshold of something reasonably being a nuisance is passed, there is a nuisance; otherwise, there is not.
Nuisance Restatements TestBalancing Test Court must consider the injury to the defendant and the public caused by granting the injunction as well as the injury to the complainant if the injunction is denied.
Easement AppurtenantAttached to the land and benefits one property while burdening another
Easement in GrossGrants the holder the right to use the land for a specific purpose but does not pass on to future owners
Dominant TenementThe piece of land benefited by an easement
Servient TenementThe piece of land burdened by an easement
Ways to get EasementsBehavior/Implication Estoppel/Prescription (like adverse possession) Written Agreements (This is the one the Statute of Frauds cares about) Necessity
Implication Considerations for EasementsWas the easement formerly associated with a common owner? Was the easement in place when the land was given? Was the easement used continuously? Could the people reasonably have known that the easement was in place? Was the easement reasonably necessary?
Real CovenantsCovenants where money is at stake
When can a Real Covenant enforcing a burden be enforced?You need the following: Intent, Horizontal Privity, Vertical Privity, Touch and Concern, and Notice.
When can a Real Covenant enforcing a benefit be enforced?You need the following: Intent, Vertical Privity, and Touch and Concern.
Equitable ServitudesCovenants where an injunction is at stake
When can an Equitable Servitude enforcing a burden be enforced?You need the following: Intent, Touch and Concern, and Notice.
When can an Equitable Servitude enforcing a benefit be enforced?You need the following: Intent and Touch and Concern.
What is Touch and Concern (in covenants)?When something affects the parties' legal relations as landowners and pertains to the land
Horizontal PrivityThe relationship between the parties on opposite sides of a covenant. If the relationship
Vertical PrivityThe relationship between parties on the same sides of a covenant. There is no vertical privity if there is adverse possession.
Types of Notice for a CovenantActual Notice (Just telling someone) Inquiry Notice (They could have been able to tell based on the surrounding area) Record Notice (Jurisdiction specific; there are documents that exist that could give notice if reasonably sought out)
Fair Housing ActProhibits Landlords, Real Estate Companies, Municipalities, Banks, other lending institutions and some insurance companies from discriminating in the sale or rental of housing on the basis of Sex, Race/Color, Religion, Familial Status, National Origin, Disability.
Common Interest CommunitiesA group of people that bind an area with a set of Covenants, Conditions, and Restrictions that run with the land
Conditions for a covenant's restriction to be disallowed in a Common Interest Community under Nahrstedt.The restriction cannot be wholly arbitrary.
Conditions for a covenant's restriction to be disallowed in a Common Interest Community under the Restatement Test.The restatement establishes a presumption that a servitude is valid unless it is illegal, unconstitutional, or violates public policy.
Euclidean ZoningEnumerates and separates use districts which are graded from the highest or most desirable uses to the lowest or least desirable uses
Aesthetic ZoningZoning based on how things look.
2-Part Aesthetic Zoning Test(1) Whether ‘[a]n intent to convey a particularized message was present,’ (2) Whether ‘the likelihood was great that [a] message would be understood by those who viewed it.’
Exclusionary ZoningThe practice of adopting zoning policies specifically to exclude certain individuals. This is allowed unless the zoning violates civil rights or is otherwise impractical.
Eminent DomainThis is when the government takes someone's property. This is allowed only when the property is to be used for a "public purpose" meaning that there will be some sort of benefit for the public as a result of this.
TakingsWhen the government uses your land continuously and you get money because they did/are doing that. The definition of "continuous" is ridiculously broad.
Distinct Investment-Backed Expectations Test for TakingsThis is a multi-part test in which the following are considered: (1) the economic impact of the regulation on the property owner (2) whether the regulation interferes with the property owner’s “distinct investment-backed expectations.” (This is one of the most important ones.) (Complete devaluation is a big one here.) (3) Whether the government has physically invaded the land (4) Whether the regulation seeks to regulate nuisance-type uses of property (5) whether the regulation confers an “average reciprocity of advantage.” (6) whether the regulated party is being “singled out” for burdens more justifiably imposed on the community as a whole.
Takings Per SeThis is a taking which is allowed by a statute.
4 Things (Unities) Required for Co-OwnershipTime Title Interest Possession
Tenancy in CommonA type of co-ownership where two or more owners have undivided, separate, and proportionate shares of the property.
Joint TenancyCo-ownership characterized by the right of survivorship.
Tenancy by the EntiretyJoint Tenancy with Marriage
Partition TypesPartition in Kind (Co-owned land is literally split between the co-owners) Partition by Sale (Co-owned land is sold to the highest bidder and the money is split between the co-owners)
Marital PropertyProperty that can be split in a marriage.