Property II Outline. Draft Person should consider the following: Creation o In gross or appurtenant Definition/Limitation o Purpose & Scope Obligation o Repair issues Duration o Express (ends on this date) Succession o In gross / appurtenant Termination o Express or Not Location/Relocation o Majority Default not unilateral Statutory Requirements o (Real Estate Transactions) Easement – a grant of an interest in land that entitles a person to use land possessed by another Non possessory right, can own an easement but easement is not owning the land Reservation and Exception Reservation – retains for the grantor a newly created property right. Exception – retains for the grantor a preexisting interest in a described geographical part of the property or recognized a previously existing property right in a third party. 1) 2) 3) 4) Dominant vs. Servient Estate a. Dominant – land benefited by the easement b. Servient – land subject to (i.e. burdened) by the easement Affirmative v. Negative Easements a. Holder has the right to do things which, were it not for the easement, they would not be permitted to do. i. As a general rule, an easement appurtenant to one parcel of land may not be extended by the owner or the dominant estate to other parcels owned by him, whether adjoining or distinct tracts to which the easement is not appurtenant. 1. However, misuse without an increase in the burden on the servient estate is not sufficient harm to overcome considerable hardship a. If landlocked statutory condemnation to get RoW Easement. b. Holder may prevent the possessor of the land burdened by the easement from performing acts upon the land that he would otherwise have a legal right to perform. Appurtenant v. In Gross a. Appurtenant belongs to who owns the land dom. & servient estate. i. When dominant estate is transferred any easement appurtenant to it automatically passes with it and cannot be conveyed w/o simultaneously transferring dominant estate. ii. Assumed Appurtenant b/c 1. most are intended to be appurtenant 2. since it passes automatically with a grant of the dominant estate, default tends to protect the grantee from consequences of an inadvertent failure to include a separate grant of an easement 3. any detriment to servient estate is usually offset by a benefit to dominant estate iii. b. In Gross May be personal to the easement owner servient estate By Grant or By Reservation a. Grant – created by a written instrument grant of easement to grantee b. Reservation – an easement in favor of the grantor who convey a fee or interest to another. Express Easements – in writing, identify grantor and grantee, words, description and signed by grantor. 1 - Creation o Express Easement Elements In writing Identifies grantor and grantee Words of purchase Description Signed by Grantor o Grant vs. Reservation o Fee presumed unless lesser estate intended Grant construed in favor of the Grantee If intention is in doubt consideration given to situation and circumstances If intention is clear from the language of the deed, then it will be given effect regardless of technical rules of construction. Factors in determining whether a deed to convey FS title or an easement o Amount of consideration o The particularity of the description of the property conveyed o The extent of the limitation upon the use of the property o The type of interest which best serves the manifested purpose of the parties o The peculiarities of wording used in the conveyance document o To whom the property was assessed and who paid the taxes on the property o How the parties to the conveyance or their heirs or assigns have treated the property. Professor Williams Notes on Factors o Consideration paid o Description o Language – right of way/across o Needs of the parties o Restrictions on use. Public policy discouraging separate ownership of narrow strips of land - Interpretation/Extent o Extent of Easement Dominant Reasonable use of servient land cannot unduly burden or neg. impact Servient any use of estate so long as there is no interference w/ easement o The holder of an easement or profit is entitled to use the servient estate in a manner that is reasonably necessary for the convenient enjoyment of the servitude. o In determining intent of the parties concerning scope courts have considered: Whether the easement is granted or reserved The amount of the consideration, if any, that the original beneficiary of the easement gave for the easement o Changes to Easements Location CL Rule: Relocation By Consent (majority) o (mutual consent for relocation) agreement of both parties o Burdens on dominant parcel o Erosion of easement holders rights o Devalue the easement (consideration) o Judicial efficiency w/o dominant consent? o Unilateral Relocation (minority) Best use of servient estate Encourages grants of easements Purpose of easement not detrimented CI: can at own costs move w/o consent but only if it does not significantly lessen the utility of the easement or increase burdens of the estate owner or frustrate the pupose for which it was created. 2 o Use - Substantially similar w/o frustrating the purpose. Dominant cannot unduly burden or negative impact Servient any use of estate so long as there is no interference w/ Easement Can change intensity of use over time, but not kind of use General rule when an easement is created by grant or reservation and the instrument creating the easement does not limit the use to be mae of it, the easement may be used for “any purpose to which the dominant estate may then, or in the future, reasonably devoted.” Repairs Owner of easement has duty to make repairs to easement o Servient estate owner has no obligation to repair easement But may for reasons of use & tort liability Owner of easement has right to improve o Ex. Paving. So long as you don’t unduly burden the servient land. Succession o Appurtenant Absent an express provision in deed stating otherwise, an appurtenant easement is presumed to be transferred with the dominant estate. (if want In Gross have to be explicit and in writing) Succession to Dominant Estate If the terms provide that the easement will be extinguished upon transfer such will be the case If the terms provide that upon transfer the appurtenant easement will become an easement in gross for the benefit of the transferor such will be the case If the deed creating the easement prohibits its transfer with the dominant estate but does not specify the consequences o Either the easement is extinguished; OR o The provision is ineffective and the easement passes with the dominant estate. An attempt to transfer an appurtenant easement separately from the dominant estate would not be effective o But would usually not extinguish the easement Succession to Servient Estate If servient land transferred, easement runs and enforceable against the successors of the servient estate o In writing, Intended it to run, had Notice. If no expressed contrary intention in the granting instrument o Courts presume intended it to run If successor purchases the servient estate w/o notice of the easement o Most modern statutes extinguish the easement. Burden of easement runs if intent and notice requirements are satisfied. Benefit presumed to run with the land Burden if the following runs with the land Writing o Original easement (b/t A& B) must be in writing Intent presumed o Intent in original easement (b/t A & B) must intend to run Notice actual, inquiry, constructive o Actual (in deed) o Inquiry (factual circumstances/reasonableness std.) o Constructive o In Gross Commercial question. If commercial presumed assignable o Economic gain If non-commercial presumed non-assignable o Personal satisfaction non- assignable unless in writing 3 Some jurisdictions have adopted restatement view that says all assignable unless parties agree otherwise. Older View If the primary purpose of the easement is to gain personal satisfaction the easement is deemed non-commercial presumption not assignable. In determining the intent of the parties court will look to o The r/t b/t the grantor of the easement and the grantee The more personal the r/t, the less likely the parties indeed the easement to be assignable o The degree to which assignability of the easement increases the burden on the servient estate. Either by increasing its use or decreasing its value The greater the burden, the less likely the owner of the servient estate intended the easement to be assignable. o Consideration paid for the easement The purchase price should reflect the intention of the parties as to alienability The greater the cost of the easement, the more likely the parties intend the grantee to be able to recoup some of those costs by selling the easement o Degree to which the use of the easement is temporary and personal. If the use is temporary and personal, parties probably intended the easement to be used only by the grantee for the time designated and so is probably non-assignable. o Two times when the ct. is justified in considering all the facts to determine intent of parties Where the extent and reasonable use of the easement is an issue Where the language used is ambiguous CHART ON P. 404 - - Termination – Once Terminated easement gone/done/over forever o Express Duration Breach of Condition Purpose Accomplished – or Purpose becomes impossible to accomplish o Subsequent Events – Default rules Misuse that cannot be prevented by injunction Severance try to transfer easement and not dominant estate (in appurtenant) severed and thus terminates Release in writing Abandonment non use + intent Merger cannot have easement in your own land Involuntary Destruction terminates (acts of god) o Voluntary destruction D terminates // S does not terminate An express easement can terminate in accordance with the terms of its creation or through extinguishment as the result of subsequent events o Termination Created to last for a specified period of time Created to serve a particular purpose o Extinguishment Release Dominant Owner may terminate by releasing the easement in a formal written instrument. 4 o Must meet the requirements necessary to create an easement. Abandonment Dominant Owner may terminate by abandoning the easement o Manifested in unequivocal conduct sufficient for that intent. Failure to use for authorized use Non-use alone is seldom sufficient (need intent) o Cts. More willing to find abandonment in easements than other interests b/c clears up titles and encourages full use of the servient estate. Dominant Owner may terminate by improper exercise of his rights. Misuse and Overuse generally not sufficient o Has to be of the kind which cannot be prevented by injunction to terminate Although servient can get an injunction to enjoin excessive use. Servient Owner acts or conduct may extinguish easement. (writing, intent, notice) Easement will not run if bona fide purchaser for value w/o notice o Ex. Easement owner does not record easement and inspection of property does not give notice. Servient owner can extinguish by making adverse use of the parcel for SOL necessary to acquire an easement by prescription. Merger Dominant and Servient Owner conduct together to extinguish easement o Dominant acquires title of Servient estate Extinguishment by Estoppel Requires actions on the part of both Dominant and Servient When servient owner reasonably relying on the actions of the dominant owner, engages in conduct inconsistent with the continuance of the easement. o If servient owner would suffer unreasonable harm by a restoration of easement rights, the easement owner is estopped from asserting these rights The easement is extinguished. Third Parties – can be done against the will of both Dominant and Servient. Eminent domain Mortgage foreclosure Tax Sales Punitive Damages Only where a wrongful act is accompanied by aggravating circumstances such as willfulness, wantonness, malice or oppression that such damages are recoverable. o - Compared to Licenses – non-possessory right to use land of another, merely permission to enter py. Limited Temporary Specific Purpose Personal to Licensee Often implied but can be written or oral Revocable at will Not-transferable (default rule) Cannot be inherited or given by will Terminated at Will of Creator Differs from Easement Can be Oral Easements subject to Statute of Frauds so need to be in writing Easement for a more designated area For a specific time or perpetuity For more consideration For improvements or repairs Control over what happens o License v. Easement 5 License – a privilege to do certain acts of a temporary character on the land of another which is revocable at will of a licensor unless a definite time has been specified, or unless it is coupled with an interest. Easement – non-possessory interest in land of another An Easement differs from a license in that a license generally grants permission to do something on another’s property. Whether license or easement exists factors to consider Intent of the parties Duration of right created (permanent?) Amount of consideration given for the “right” o “right” could mean right in land or a license. Reservation of power to revoke that “right” Nature of “right” created – obligation the parties have agreed to Implied Easements – Easement not in writing o arises out of r/t of parties w/o some sort or express agreement. Courts disfavor – but w/intent law infers easement – Easement implied by Prior Use o Arises when land conveyed o Elements Common ownership Visible benefit Used long enough intended to be permanent Reasonably necessary for enjoyment o Scope prior use establishes Scope. – Easement implied by Necessity o Arises when land conveyed o Elements Common Ownership Land Severed Severance creates the necessity If landlocked sometime after severance do not have IE by Necessity o Scope whatever is “reasonable” Necessity can be judged by standard applied. Either Strict Necessity or Reasonable Necessity. o The degree of necessity required for an IE by reservation is greater than the degree of necessity required for an IE by grant Had opportunity to create an express easement o The degree of necessity required for an IE by Nec. is greater than the degree of necessity required for an IE by PU. IE by PU has other factors which safeguard arbitrary IEs o The more obvious, continuous, permanent, and apparent a use is, the less degree of necessity is required for an IE by PU Other elements of IE by PU safeguard. Prescriptive Easements 377 Elements o Adverse and Hostile Presumption: someone on py w/o permission If have permission cannot claim prescriptive easement o Open / Notorious / Visible Use must be visible enough that diligent owner would know Not actual notice standard o Exclusive Landowner has not done something to exclude o Continuous Uninterrupted Pattern of use Frequency consistent w/ purpose 6 o - For Statutory Period In some jurisdictions stty period may be shorter for prescriptive Et. than Adverse Poss. Easement by Estoppel starts as a license, relies on that license by their detriment becomes easement by estoppel. - Concept Interest in land? Writing Req’d? Permissive or Non Permissive Permissive Revocable at Will? Yes License Express Et No (permission to enter) Yes No (can be oral, written or implied) Yes [Express] (Subject to Stt. of Frauds) Permissive No (can be terminated but not @ will) No (IE terminate as Ex.Ets do) No (IE terminate as Ex. Ets do) IE by PU Yes No. Permissive IE by Nec. Yes No. Permissive Prescriptive Et. Yes No. Non-Permissive Real Covenants Creation and Validity Enforcement and Running Defenses to Enforcement Real Estate Transactions Requirement of a Written Instrument Requirement of Deed Delivery Real Estate Brokers Marketable Title Recording Statutes 7 What determines Scope? Appurtenant or In Gross? In Gross Appurtenant (Dependant on language, intent, etc) Prior Use Establishes Scope Whatever is Reasonable Established by the Use