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Real Property – Nutshell Examples - page 21 / 22





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CG’s covenant.  If Lot 2 was not part of the subdivision when CG gave Ann its covenant, Bob may not enforce it against her. (248)

Enforcement of a Covenant Given by a Subsequent Grantee to the Common Owner – TPB’s

Ex:CG Company conveyed Lot 1 to Ann.  CG Company then conveyed Lot 2 to Bob, who covenanted that he would restrict his land to residential purposes for the benefit of all lots in the subdivision.  Ann may enforce Bob’s covenant as a TPB of his promise.  She is an immediate beneficiary of his promise and is not required to show that either the burden of the benefit of Bob’s covenant runs. (249)

When TPB Theory Applies

Ex:CG Company conveyed Lot 1 to Ann.  CG then

conveyed Lot 2 to Bob.  Bob covenanted to restrict his land to residential purposes, but the covenant did not state what land was intended to receive the covenant’s benefit.  Witnesses testify that CG told Bob that the covenant was intended to benefit all other lots in the subdivision and that Bob agreed.  Under these circumstances, some courts will permit Ann to enforce the covenant, though she is not expressly designated as the covenant’s beneficiary. (250)

Common Plans – To Burden Benefited Lots

Ex:CG Company conveyed Lot 1 to Ann, Lot 2 to Bob and Lot 3 to Cindy.  The deeds to Ann and Bob include building restrictions, but the deed to Cindy does not.  If no general building plan exists in the neighborhood, Cindy’s lot is not subject to an implied reciprocal servitude.  If Cindy’s lot is not burdened, Bob’s may also not be burdened since it is not benefited.  Thus, Ann cannot enforce the restriction against either Bob or Cindy under this view. (252)

Ex:CG Company conveyed Lot 1 to Ann with a restriction in her deed, then conveyed Lot 2 to Bob with no restriction, and then conveyed Lot 3 to

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