1. Real Estate Principles, 11th Edition
By Charles F. Floyd
and Marcus T. Allen

2. Private Restrictions on Ownership
Chapter 3
Private Restrictions on Ownership

3. Private versus Public Restrictions
Private restrictions are non-governmental limitations on the owner’s ability to use a property.
Public restrictions are governmental limitations on the owner’s ability to use a property
Collectively, such restrictions are called “encumbrances”
This chapter focuses on private restrictions. The next chapter focuses on public restrictions.

4. Covenants, Conditions, and Restrictions (CC&Rs)
Private encumbrances that limit the way a property owner can use a property
Recorded in public record
Enforceable by parties who benefit from the limitations
Generally “run with the land”

5. Close-Ups & Legal Highlights
“Meadow Brook Ranch Use Covenants”
“Validity of Restrictive Covenants”
“Restrictive Covenant Disputes”

6. Liens
A legal claim held by a lienor against a property owner’s property as security for a debt
General lien – a lien against all property owned by lienee
Specific lien – lien against a specific property item (a mortgage on a shopping center, for example)

7. Mortgage Lien
Mortgage – a pledge of real property as collateral for a debt or other obligation
A specific lien, usually voluntarily given by property owner
Mortgagor is the borrower
Mortgagee is the lender
Foreclosure is the process used to enforce the pledge if the mortgagor defaults

8. Mechanics’ Liens Mechanic’s lien
Security interest held by someone who supplies materials or labor for work of improvement and is not paid by the property owner for the materials or labor as agreed
May lead to foreclosure if debt is not paid
See Legal Highlight “A Cautionary Tale on Mechanics’ Liens”

9. Easement Right to use someone else’s property in a specified manner.
Types of Easements
Easement Appurtenant
Dominant estate
Servient estate
See Figure 3.1 Easement Appurtenant Created by Joint Driveway
Easement in gross

10. Creation of Easements Creation of Easements by:
Express grant or reservation
See Figure 3.2 Easement Created by Express Grant
See Figure 3.3 Easement Appurtenant Created by Implied Reservation
Implication
Prescription
See Legal Highlight “Prescriptive Easement”
See Legal Highlight “The Case of the Landlocked Parcel”

11. Nature of Easements
Permanent in nature – easements “run with the land”
When dominant parcel is sold the new owner benefits from the easement
When servient tenement is sold the new owner’s property is encumbered by the easement
License – a revocable personal privilege to use land for a particular purpose

12. Termination of Easements
Agreement
Merger
Abandonment

13. A Relatively New Type of Easement: The Conservation Easement
A “negative” easement that prevents rather than provides a right to use a property in a specified manner
Increasingly used for historical preservation or environmental protection
See Close-Up “Use of Conservation Easements”

14. Profits & Encroachments
Profit - profit a prende – a non-possessory interest that permits the holder to remove specified resources from the land
Encroachment – an unauthorized invasion or intrusion of a fixture, building, or other improvement onto another owner’s property.
May negatively impact value
Best detected by boundary survey

15. Adverse Possession
Process by which title to land is transferred from its legal owner to someone who openly possesses the land for a statutory time period without the permission of the owner.
Requirements to obtain title by adverse possession
Actual and exclusive
Open and notorious
Hostile
Continuous
Under a claim of right
Statutory period
See Legal Highlight “Adverse Possession”