Rule Against Perpetuities: RAP (cont'ed)
RAP
- Soc. Policy
- Can tie up land 4 a rsbl per. of X but no longer
- Rule against remoteness in vesting
- Analysis
- Classify: 3 FI's of VRSTO, CR, & EI
- Warnings that int. must B tested (s.t.'s work & s.t's
not work: just hints)
- Int. in unborn
- Contingencies before vest
- Req'ed 2 survive 2 a future date
- All these R descriptions of CR & EI
- Classify by
- Owners
- Estates
- Test / not
- Lives
- Result
- Test
- Test 3 FI's: VRSTO, CR, EI
- Must vest / fail 2 vest w/in life / livs in being + 21 yrs
- Life / lives must B human
- If pass, o.k. but if fail, destroy
- Meas'ing Lives
- Meas'ing lives where life / lives may save the int. / prove
it's no good
- Sometimes, we kill all the people in the world 2 show no life
saves int.
- Open class of lives never saves an int.
- Ideally comes from family
- Warnings that int. may B bad / perpetuity
- Gifts 2 members of a class @ an age beyond 21
- Gift 2 a settlor's grandch. in an intervivos transfer (settlor:
someone who creates)
- Gift 2 someone else's grandch. in a will, when that someone
else is living
- Gifts that vest on death of person described by marital rel.
- Gifts that vest upon finishing some act not pinned down 2
anyone's life / contingencies uncert. 2 occur w/in per. of RAP
- Tricks 2 Grnch
- Grandch. of testator always take under RAP if there's a wait
of no more than 21 yrs. b/c of the ch. of the testator always
constitute lives in being
- Grandch. of any dead person, not just testator, always take
under RAP if there's wait of no more than 21 yrs. b/c ch. of the
dead person constitute closed group of class that guarantees that
the int. will vest / fail 2 vest w/in the per.
- W/o more int., int. in grandch. of living people R prime candidates
4 failure
- Widow's can't serve as meas'ing lives b/c don't know who they
R
- Destroy
- Creating Effective Int's
- Sometimes can create w/2 pieces of paper what U can't do w/1
- Can't create POR in 3rd person but can transfer POR
- Goal 2 tie up prop. 4 long X then make meas'ing lives babies
- Class Implications
- If 2 large 2 B manageable, then own uncert. even if closed
class & not allowed
- Desc's of Queen Victoria living @ date of my death
- To tie up 4 long X
- Largest group of class tolerable in US
Co-ownership / Concurr. Estate (C/E)
Co-ownership
- Charact.
- Two people who want 2 own a piece of prop.
- Not a preferred arr.
- X Frame
- FI's R consecutive but here concurr. ownership of P/E &
F/E in same X line
- Gen'ly FSA
- Not have 2 B ownership of P/E
- Three C/E's
- Joint Tenancy w/rt. of survivorship (JTWROS)
- Tenancy by the entirety (TBE)
- Tenancy in common (TIC)
- JTWROS
- Key
- Rt of survivorship so when A dies, B gets A's share
- Historically, A's & B's shares were =
- Wording
- O -->A & A as JTWROS & not as TIC
- Severance
- Can always sever as 2 himself
- Express / implied
- If sever, then JTWROS is ended
- Can always transfer int.
- TBE
- Key
- Like JTWROS but only btwn husband & wife
- Recog'ed Jxn's
- Not exist in community prop. jxn's so not in CA
- Exists in some C/L states & imp. in those jxn's that recog.
- Wording
- To H & W as TBE
- Can't transfer int. sep'ly so H & W has 2 transfer jointly
- TIC
- Key
- No rt. of survivorship
- Int. passes @ death by will / by intestacy
- Fractions not have 2 B =
- Can transfer int.
- Expansion of JTWROS
- Charact's
- Four Unities in C/L
- X :Must B @ same X
- Title: under same instrument
- Int. : identical int's = %'s
- Poss'n: common rt. of poss'n & ownership
- If 1 of the unities missing, then TIC
- Presumptions
- In C/L, if unclear had JTWROS but today if unclear then have
TIC
- Wording
- Perfect would B: 2 A & B as JTWROS & not as TIC
- : 2 A & B as JTWROS / 2 A & B as JT & not as TIC
- Quest'able: 2 A & B as JT
- Probably no good: 2 A & B jointly
- Must have combination of P/E & F/E
- Not subj. 2 intestacy / will
- One always wins & 1 always loses
- If die 1st, lose
- If risk averse, dislike this
- Purpose
- Transfer prop. @ death w/o probate
- Express solidarity btwn 2 people
- Shares
- Unequal shares now but historically had = shares b/c unity
in int.
- To set aside the unity of int. rule, do equitable pwr 2 assign
proceeds of sale 2 do indir'ly what ct. couldn't do dir'ly
- Legally would still have = shares
- When 2 Imply Severance
- Intended
- Soc'ly wholesome but limited b/c do something Tenant (T) didn't
do 4 themselves
- Mortgage as Severance
- Lien Theory Mortgage
- Borrowing $ 2 buy house, then legal title in buyer but bank
puts lien, sec. int. / equit. int.
- Can't imply severance b/c buyer didn't convey legal title
2 bank
- So mortgage isn't an implied severance
- Title Theory Mortgage
- Legal title w/the bank & buyer has equit. title
- Min. jxn's formalistice arg. there's conveyance so implied
severance but dumb arg. b/c probably had no intent 2 sever
- Riddle v. Harmon (Mrs. Riddle tried 2 convert
JT into TIC)
- Severance
- Safe express severance would B 2 convey 2 a straw & straw
conveys back
- Here, conveyed 2 herself
- Express Secret Severance
- CA civil code restrict & Dobris doesn't like it
- Intent Effectuation Not Formalism
- Can create JT in 1 person 2 himself so should B able 2 sever
- Harms v. Sprague (2 bros, 1 cosigned sec. int.
& devised will 2 leave all 2 friend)
- Formalism
- Implied Secret Severance
- Mortgage doesn't sever JT by implied severance in title theory
state / lien theory state
- Lien on mortgage doesn't survive the death
- Bro Did Intend 2 Sever
- Willed all 2 friend
- Moved out 2 friend's prop
- Note says proceeds from salfe of int. in JT
- Rel. btwn bro & friend probably lovers b/c household,
finance, etc. which may have affected the outcome b/c not heterosexual
marriage
- Policy Protecting Parties in JT
- Protect wife, widow, surviving spouse (surviving bro stand
in as widow)
- Protect partners, sibs, parents / kids
- No Implication of Severance & Effect on Lenders
- Grant of lease
- Grant of L/E
- Prof'al lenders would get both JT's / none 2 protect themselve
but casual lenders probably wouldn't know the rule & would
B hurt
- Protects other T against bad investment / policy of making
wives win
- Soc. Policies of JTWROS
- Rts of use R reciprocal
- Each has rt. 2 use entire prop. consistent w/rt. of others
so must get along / get rid of prop.
- Rt 2 Partition
- Can't Get Along
- Co-ten's can partition prop. / rt. 2 end the rel. judicially
- Can vol'ly end & better 2 do so
- Methods: Equitable Axn of Partition
- Partition by sale & split the proceeds & this methos
preferred
- Partition in kind: div. the prop. phys'ly
- Delfino v. Vealencis (D had waste busi. &
P wanted partition by sale)
- Partition in Kind Exception Case
- No good rsn 2 sell
- Family busi. protected
- Sanctity of home
- Partition in Kind v. Partition by Sale (Judge's
concern about mistakes)
- Partition in kind when ez 2 div. land & no decr. in value
of whole
- Most ct's like partition by sale b/c ez, not misvalue pieces,
more value 2 sell the whole plot, & jud. eff.
- Here, could probably have gotten more $ 4 whole plot so exception
- Grey v. Crotts
- Drew Lots 4 Home
- Ct's great equitable pwr when either partition / acct'ing
shown
- Ez'er & = chance by casting lots
- Would sell if really wanted the piece
- Never v. Some Cloud 4 Agmt Not 2 Partition
- Never is perpetuity so void as unrsbl restraint on alienation
- Spiller v. Mackereth (TIC & not letter 2
pay rent / get out)
- TIC Case
- No duty 2 pay rent 2 Co-T unless agmt / ouster
- Good rule 4 family sit's
- Ouster when ouccupying co-T refuses demand of = use &
enjoyment
- Failed 2 put in letter = use lang. so no ouster
- Good b/c after, 1 co-T would end up owning prop. which is
pref'able
- Swartzbaugh v. Sampson (JTWROS & wife wanted
lease 2 B cancelled, didn't sign)
- Could void lease by ouster b/c husb's int. was rented, not
hers
- Could partition then / collect rent 4 her half
- Partition 4 TFY, Term of RVY, / the whole thing
- No Adv. Poss'n
- Can't as lessee but can start bldg title by ousting her
- Rent & Profit
- C/L req'ed no acct'ing 4 rents & profit
- Statute of Ann in 1704
- Req. acct'ing 4 rents recived of 3rd parties
- No acct'ing 4 own use but co-T's have 2 acct 4 rent
- Rental of co-T's rts
- Rent is rt 2 stand in co-T's shoes & keep all $
- Any X rent 2 3rd party, only 1 T's rt's / rent of all B/A
issue
- If not express, co-T can sue the other co-T 4 rent
- Contrib. & Credit
- C/A of limited scope 4 contrib.
- Acct'ing can B sep C/A which comes in as sep. part of partition
so equit. C/A
Landlord-Tenancy (L-T)
L-T
- Concept
- If rent house 2 T, T has some kind of tenancy & L has
RVN
- Status Law
- Four Kinds
- Term 4 yrs (TFY)
- Periodic Tenancy
- Tenancy @ will
- Tenancy of sufferance
- TFY
- Estate that lasts 4 fixed amt of X
- Used 4 residential rentals & commercial leases
- Periodic Tenancy
- Per. of some fixed duration which cont's 4 succeeding per's
until either L/T gives notice
- Renew automatically
- Gen'ly residential tenancy of lwr socioecon but also mo. 2
mo. 4 high socioecon
- Money protects L & T / transfer of rent
- Not lease on paper
- Tenancy @ Will
- No fixed per. & endures only so long as both L & T
desire / will it
- Tenancy @ Sufferance
- Hold-over tenancy where T entered rt'ly but held over wrongfully
after lease
- Law 4 those who didn't work normal way so lack clarity
- TFY Ends
- Ten. @ Suff. when T stays w/o new arr. after TFY ends
- L's Election in Rsbl X
- Holdover & bind 2 whatever local holdover ten. OR
- Treat as trespasser & evict T
- Soln's
- Punish by holdover 4 yr. by old terms 2 protect L & prospective
T
- Pay holdover T's
- Modernly not punish as hard
- Garner v. Gerrish (empty bldg)
- Nonstand. Tenancy
- Life ten. term . @ will, strange ten. @ will, / no category
- Effectuate parties intent
- Crechale & Polles, Inc. v. Smith (T not
vacate & oral agmt wasn't acknowledged)
- Ct's dislike holdovers esp'ly punishing dramatically
- L didn't make a choice & said both trespasser & holdover
- Pro-T Policy
- Treat letter as trespasser
- Rough justice & damage only 4 actual occupancy
- Categories differ by chronology
- Lease
- Part Convey & Part K: See Conveyance Before
K
- Convey as core of L-T: transfer piece of X line from L 2 T
so T has TFY & L has RVN w/o prom's
- K involves prom's like rent, heat, quiet, etc. & law can
imply prom's / cov's
- Dep. prom's 4 poss'n, rent, cov. of Q/E but all others indep.
prom's
- Not imply dep'cy gen'ly but ct. could
- Implied cov's (covenants) (Hannah v. Dusch)
- Imply most imp's prom's so can imply anything if imp.
- Three implied in all leases
- Rent
- Poss'n
- Cov. of quiet enjoyment (Q/E) against all who rt'fully claimed
through / under L
- Amer. Rule Jxn
- Cov. such that L will prom. 2 put new T into legal poss'n
- Burden on T so eff. b/c higher incentive on T
- Eng. Rule Jxn
- Legal & phys/actual pos'n when lease starts the 1st day
- Better than Amer. rule b/c L knew prior T, better suited @
eviction, L created the prob, & rational
- Any Rule good b/c people known & can barg. away
- Ernst v. Conditt (sublease v. assignment)
- Assignment (substitution)
- Lessee conveys entire T's int. in X line terms so T1 pays
rent 2 L
- Burden of prom's run down 2 assignee such as rent
- Default 2 find substitute
- Sublease (subinfeudation)
- T conveys less than whole piece of X line so re-rent T's int.
w/T acting as subL
- RVN & ROE kept by T so subT pays rent 2 T, & T pays
rent 2 L
- Orig. lease called head lease & L not a 3rd party benefic.
- Prom's Run Down in this Case
- Conditt pays rent b/c burden runs down 2 him as assignee
- Conditt's prom. 2 Roger created 3rd party benefi. in Ernst,
L so has C/A
- Privity
- Privity of Estate (P*E) is shared int. in X line & liab.
4 X U R in poss'n
- Privity of K (P*K) is prom. exch'ed & connected by K
- Orig. L & T has both privities
- When T transfers TFY 2 T1, T1 is in P*E w/L but not P*K
- Assignment, L&T no longer P*E but still P*K so T still
needs 2 keep prom's & 2nd'ly liab.
- L & T1's P*E means T1 keeps prom's made by T rel'ing 2
tenancy but only the ones that R imp. & runs w/the land
- Assignment Where T1 Embraces T's Lease
- If T1 assumes prom's of head lease, then all orig. prom's
run down 2 T1
- Creates 3rd party benefic. in L & P*K btwn T1 & L
- L Only Recov's ONCE if there's been succession of T's
- Berg v. Wiley (T had restaurant & L wanted
it closed; T won b/c L was a jerk)
- No Self Help 2 Evict
- In Minn, changed law & no self help in getting rid of
T
- Other Jxn's on Self Help
- Est. conduct of T
- Must B peaceable so no violence, not against T's will &
narrow interp.
- Risk of Self Help so L gen'ly use it in slums, against the
poor
- Policy Aginst Self Help
- B/c unfair b/c denies due process, poor gets hurt, & breaches
peace
- Consid. inherently bad now
- Adv. 2 Self Help
- Harms L fin'ly going 2 ct & T not deserve X delay
- Maybe lwr rent / allow more people 2 B L's
- Barg'ing Lwr Rent 4 Self Help
- Split of auth. & allow in commercial but not in res.
- Here, forbidden even in commercial b/c like slavery
- Duties, Rts, & Remedies
- Caveat Lessee so let T beware
- Exceptions 2 Caveat Lessee
- Latent defect: L must disclose known dang. cond's that R latent,
concealed, / not discov'able by ord. inspection b/c mkt works
w/full info
- Fraudulent concealment by L
- Furnished house must B fit 4 use (short term)
- Underlying all is that mkt fails by lack of info so law steps
in
- Reste Realty Corp. v. Cooper (driveway, flooded)
- Defense of Constructive Eviction
- Actual Eviction is explusion, excl, denial of
access 2 premise, / phys'ly remove U from premise
- Breach Cov of Q/E & Constructive Eviction
- T not have 2 pay rent b/c rent prom. dep. on cov of Q/E
- Subst'l breach, then seriously interfere w/use & enjoyment
of prop.
- Must leave if constructive eviction w/in rsbl X
- Eviction
- Actual: Total / partial
- Remedy of Partial gen'ly same as total eviction & no rent
b/c L shouldn't apportion wrong by lwring rent & L created
the pro.
- Constructive: Total / partial but split of auth.
on partial
- Prob. on partial b/c if recog. it, then ask remedy same as
partial actual eviction of no rent
Pro T then no rent but if dislike dramatic result, then no remedy
- Partial constructive eviction would've played maj. role if
didn't invent implied warranty of habitability
- Burt Case
- Decl Jgmt of constructive eviction given so good 4 commercial
T's 2 know before moving / walking out
- But if walk out, more clear b/c U R serious, filters nuisance
cases, etc.
- Hilder v. St. Peter (slum housing, T won)
- Soc. Soln 2 Slum Housing is $ but not know whose $
- Prop owner's key enemy is water b/c prop. gets damaged
- Punitive Element in this case
- Transgressed human decency
- All busi. have in. stand. & L no dif.
- Constructive Eviction Not Solve Slum Housing
- T can't afford 2 move / would move 2 same kind of place
- Mkt disfn. so law should step in
- Implied Warranty of Habitability
- Implied from L 2 T that apt. habitable & fix & dep.
on rent prom.
- If breach, T entitled 2 damages of rent
- L gets 0 but might B bad b/c no $ 2 fix bldg but want 2 make
a pt
- This doc. exists b/c mkt, constructive eviction, & housing
code failed & no enforcement exists 4 HC even though priv.
C/A b/c no polit. will / $
- Some jxn's won't allow 2 waive this doc. as pub. policy
- Arg's 4 & against jud. activism: leg. slow, not legit.
- Arg's 4 & against rotten housing: econ, better than st.
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