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7 Real Prop Prob TR J68
7 Real Prop Prob TR J68
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SURVEY OF REAL PROPERTY LAW*
I. ADVERSE POSSESSION
A. Legislation
Maine
Ch. 450: Amends 14 MRSA 812 and provides a method for a land-
owner to give notice of his intent to prevent the acquisition of a right of
way or easement by use upon lands in the unorganized territory of the state.
In these areas, the landowner must file a copy of his notice of intention to
prevent such acquisition in the registry of deeds in the county in which
the land lies.
Ohio
S.B. 208: Amends 5309.01 to provide that the state or any agency or
political subdivision thereof which has or appears to have an interest in
real property adverse to the party in possession and claiming title, may be
made a party defendant in an action to quiet title.
*Report of Committee on Real Property Law, Literature and Research.
Spring 1972] REAL PROPERTY LAW, SURVEY
B. Significant Decisions
La Freniere v. Sprague, 271 A. 2d 819 (R. I. 1971).
HELD: Where the owner of a lot occupied ten feet farther to the
south than the actual southerly line because of his mistaken belief that his
occupation extended to the true line, this constituted hostile and adverse
possession. The fact that the adjoining owner on the south, within the
required ten-year period, had the line surveyed and notified the plaintiff of
the true location of the boundary line did not toll the running of the statute.
A confirmation of the decision in Dodge v. Lavin, 84 A. 857 (R. I.),
although recognizing that many jurisdictions entertain the opposite view.
Montgomery v. Branon, 278 A. 2d 744 (Vt. 1971).
HELD: The same evidence which sustained defendants' acquisition of
title to an interest in lands surrounding a hunting and fishing camp by
adverse possession also sustained their right of access to a neighboring pond
over the area used as a right of way. Even though the defendants passed
from the camp to the pond only from time to time over the years, their
adversely acquired title to the camp carried with it, as an appurtenance, an
easement to the pond.
Moravek v. Oscody, 456 S.W. 2d 619 (Mo. 1970).
Plaintiffs and their predecessors in title for many years used the ad-
joining farm land belonging to the defendants for ingress and egress to and
from their farm. Defendants contended that such use was permissive in the
beginning and that the land in question was unproductive wasteland.
HELD: The essential elements of easement by prescription for the pre-
scribed period was clearly established by evidence indicating that plaintiffs
claimed title to the easement over marginal land, which from the facts
cannot be considered as an unproductive wasteland belonging to an absen-
tee owner.
Rieke v. 0lander, 485 P. 2d 1335 (Kan. 1971).
Action to quiet title to certain land immediately north of a river to
which defendant claimed title by adverse possession.
HELD: Absent compelling reasons to the contrary, title to accretion
land follows the title to the riparian land to which it is attached, regard-
less of whether the latter title was acquired by deed or adverse possession.
Therefore, one who has acquired title to land by adverse possession is en-
titled to any accretions thereto, regardless of the time of their formation.
Slatin's PropertiesInc. v. Hassler, 271 N.E. 2d 665 (Ill. 1971).
Suit to quiet title to vacant and unimproved city lots. Plaintiff and
defendants derived title from a common grantor, but plaintiff's deed was
recorded first. Neither plaintiff nor its predecessors in title had paid taxes
or other charges levied against land for more than 40 years. Defendants
had paid general taxes on the same and, in addition, had paid all special
assessments and all charges for weed removal levied by the municipality.
Defendants claimed (1) that they had acquired title to said property by
adverse possession, in that such payments indicated sufficient possession
under section 7 of the Illinois Limitations Act; or (2) the plaintiff's claim
REAL PROPERTY, PROBATE AND TRUST JOURNAL [Vol. 7:68
was barred by laches; or (3) that plaintiff was barred by application of the
"clean hands" doctrine. From a decree finding issues for defendants, plain-
tiff appealed.
HELD: Reversed. Payments of general taxes and special assessments
and of municipal charges for weed cutting did not constitute sufficient
evidence of possession after payment of taxes for seven successive years
under color of title, as required by section 7 of the Illinois Limitations Act
relating to vacant and unoccupied lands. In addition, laches and the "clean
hands" doctrine had no application.
Decision seeks to distinguish case from Pyle v. Ferrell, 12 Ill. 2d 541, 147
N.E. 2d 341, wherein doctrine of laches was applied to similar facts. The
decision states that ground for distinction was that in Pyle the record title
holder knew or should have known that the defendants had received (an
allegedly void) tax deed to the property and had thereafter continued to
pay taxes on the same for many years. The distinction apparently was made
that the issuance of such void tax deed was sufficient to "alert" the owner
that he might lose his property by nonpayment of taxes.
C. Current Literature
Willenzik, The Possessor's Right to Compensation, 31 LA. L. REv. 491
(1971). Reviews the Louisiana law applicable to compensation to a possessor
who has improved upon land only to be subsequently evicted by a rightful
owner. The author suggests that the discrepancy in remedies afforded good
and bad faith possessors be reconciled through some modification of the
statutory scheme.
II. AIRPORTS
A. Legislation
Hawaii
P. A. 160: Empowers Department of Transportation to enter leases of
buildings, structures, or facilities and the land thereunder in connection
with establishment of air transportation facilities.
Pennsylvania
P. A. 86: Amends the Municipalities Authorities Act of 1945 to per-
mit authorities owning airports to lease land which is not immediately
needed for aeronautical purposes.
B. Current Literature
Berger, Nobody Loves An Airport, 43 S. CAL. L. REv. 631 (1970).
Lengthy treatise on public airports, ranging from trespass and nuisance
aspects of such development through economic effects on nearby residential
property values and on commercial and industrial properties.
Airports in the Urban Setting-A Symposium, 3 URBAN LAW. 175-285
(1971). Lesser, The Aircraft Noise Problem: Federal Problem but Local
Liability, p. 175; Danforth, Mercury's Children in the Urban Trap: Com-
munity Planning and Federal Regulation of the Jet Noise Source, p. 206;
Sackman, Air Rights- A Developing Prospect, p. 238; Roeseler, Airport
Spring 1972] REAL PROPERTY LAW, SURVEY
IV. BROKERS
This branch of the law discloses no particular trends other than in the
field of legislation where both the Connecticut and Colorado legislatures
reflected the popular concern for consumer protection by enacting statutes
to (1) prevent a recovery of commission by other than licensed brokers; (2)
require brokers to hold all sales and securities deposits in a separate escrow
or trust account; (3) create a fund from license fees to reimburse clients for
broker's fraud or conversion of funds.
A. Legislation
Colorado
Ch. 277: Creates fund, derived from additional real estate brokers'
license fees, for the payment, within limits, of judgment obtained against
real estate brokers and salesmen on grounds of fraud, willful misrepresenta-
tion, deceit, or conversion of trust funds arising out of real estate trans-
actions.
Connecticut
P.A. 359: Requires brokers to hold all moneys received on behalf of
any client in a separate escrow or trust account, distinct from his own
account.
P.A. 379: Prohibits any person who is not duly licensed as a real
estate broker from recovering any commission.
Kansas
S.B. 77: Amends 58-3022 to provide that real estate brokers must
deposit all funds not their own, including earnest money deposits, in trust
accounts in insured savings association (as well as insured banks).
B. Significant Decisions
Covino v. Pfeffer, 160 Conn. 212 (1970).
Action to recover broker's commission. On April 11, 1968 plaintiff and
defendants entered into a written exclusive sales agreement which gave the
plaintiff the exclusive right to sell defendant's property for a period of
90 days. On August 8, 1968 the defendant sold the property to a third
party for $500 less than that listed in the plaintiff's contract.
HELD: During the life of an exclusive sales contract an agreement
between the owner and the ultimate purchaser to sell and buy, whether
or not specifically enforceable, gives rise to a cause of action on the part of
an exclusive broker who uses reasonable efforts to sell the property. The
owner is deemed to have sold the property which is the subject of an ex-
clusive sales contract even though negotiations with the prospective pur-
chaser have not been consummated into a binding and enforceable contract
for sale during the exclusive period. All that is required is that negotiations
for the sale take place before the expiration of the exclusive sales agreement.
An extension of Harris v. McPherson, 97 Conn. 164, 115 A. 723 (1922)
which was limited to the situation where the owner sells the property to a
purchaserprocured by his own efforts.
Spring 1972] REAL PROPERTY LAW, SURVEY
broker. When the contract of sale was signed the buyer agreed to pay X's
commission in consideration of a reduction in the purchase price. Thereafter
the buyer refused to pay on the grounds that X was not a licensed broker.
HELD: Since X paid no more than a "finder's" role he is entitled to a
commission since finders need not be licensed although brokers must be.
The finders' distinction from the status of a broker lies in their bringing the
parties together with no involvement on their part in negotiating the price
or any of the other terms of the transaction.
Symond v. J. Rolfe Davis, Inc., 245 So. 2d 278 (Fla. 1971).
Broker was retained to obtain tenants by the developer of a proposed
shopping center under an agreement that the commissions were to be pay-
able when the leases were executed. The broker obtained proposed leases
from two tenants, but before the leases were signed the developer sold the
shopping center to S. A few weeks later S entered into leases with both of
these proposed tenants on substantially the same terms as those negotiated
by the broker. The broker claimed S should pay the commission because,
knowing of the efforts of the broker, he went ahead and made the leases
himself, thus being unjustly enriched at the expense of the broker.
HELD: S's knowledge of the broker's efforts was not enough to charge
him with the obligation of paying the commission. There had to be some
basis for an inference that S expected to pay for the broker's services or
deliberately took advantage of the broker's efforts. The evidence indicates
that S agreed to buy the shopping center on the condition that he be able
to obtain the two specific leases. The inference is that the purchase price
already reflected the services performed by the broker and thus S was not
unjustly enriched.
C. Current Literature
Benson, Finders and Finder'sFees, 47 DENVER L. J. 448 (1971). Finders
have long played an integral role in the world of commerce but only recent-
ly has a body of common law been developed to deal with their activities.
This is due in part to the peculiar nature of a finder's business and in part
to the reluctance of courts to depart from traditional legal concepts that
"almost" fit the legal problems raised in finders cases.
In this article the author describes the normal operations of a finder,
compares finders to brokers and agents, and analyzes the finder's operations
in hopes of determining appropriate legal principles. The case of Consoli-
dated Oil & Gas, Inc. v. Roberts, 162 Colo. 149, 425 P.2d 282 (1967) is used
to illustrate a typical factual situation in finders cases and to provide a
basis for the legal analysis presented in this article.
A. Legislation
Mississippi
S.B. 1697: Removes mandatory obligation of owner to give manage-
ment body first right of refusal to purchase or lease condominium unit
which owner intends to sell or lease.
H.B. 963: Makes units of condominium eligible for exemption as
a homestead.
Missouri
Ch. 394.120: Changes the definition of a quorum for cooperatives from
5 per cent of all members to 5 per cent of the first 2,000 members and 2 per
cent of the remaining members.
Ch. 394.180: Allows the board of directors of a cooperative to encum-
ber its property by mortgage or deed of trust. However, a cooperative may
not sell or lease or otherwise dispose of its property without the affirmative
vote of not less than two-thirds of all of the members at a duly held meeting
with notice of its purpose.
New York
Ch. 376: Amends Banking Law 103, 108, 235 and 380 to permit domes-
tic banks and trust companies to make loans at maximum rate of interest
of up to l/2 per cent over the 7 2 per cent rate presently allowed for
residential mortgage loans for the purpose of financing the purchase of
cooperative apartments, and to permit domestic savings banks and savings
and loan associations to make such loans if they are self-liquidating within
20 years (prior law permitted only five-year personal loans); and adds new
19a and 19b to Civil Rights Law prohibiting cooperatives from refusing to
consent to the sale of an apartment on the basis of the race, creed, national
origin or sex of the purchaser, thus casting in doubt case law under which
courts refrained from reviewing the absolute discretion of cooperatives in
such matters.
Ch. 737: Amends Social Services Law to authorize grants of up to $750
to welfare recipients for the purpose of purchasing a cooperative apartment.
B. Current Literature
Becker, A Marketing Primer for Condominiums and Cooperatives,
1 REAL ESTATE REV. 61 (No. 1 1971). Whether because builders and de-
velopers have followed sound market research and market planning ap-
proaches in merchandising the new housing, or because of initially strong
demand, there have been relatively few failures in the marketing of con-
dominiums or cooperatives. Most failures have been attributed to one of
two types of mistakes-architectural or locational. Studies made reveal that
no project failed because of defects in the plan or operational failures after
erection. It appears that builders of the few failures have been guilty of
violating a primary rule which requires that every project must have an
adequate project survey before construction is undertaken. Until a federal
market analysis is completed, questions of how the plan will be financed
and operated are of little interest. In short, the failures, when analyzed,
REAL PROPERTY, PROBATE AND TRUST JOURNAL [Vol. 7/:68
show that you cannot squeeze down square footage, open space and parking
and still furnish a home-like environment that buyers want. The author
then goes on to discuss the following factors: (1) general characteristics of
the market; (2) demographic characteristics; (3) designing the structure to
gain market acceptance; (4) special appeals to the condominium purchaser;
(5) six steps in marketing the project.
Goldstein, Negotiating for a Cooperative Apartment, 1 REAL. ESTATE
REv. 75 (No. 1-1971). Even though residential cooperative is not new and not-
withstanding that several billion dollars have been invested in cooperative
apartments since World War II, it is the author's belief that comparatively
few people seem to have a clear understanding of what a cooperative is or
what it is that a cooperative apartment owner really owns or what a sale-
purchase of a cooperative apartment involves. Certainly, very few people
appreciate the risk faced by a purchaser of a cooperative apartment. The
purpose of the article is to provide background information on cooperatives
and to examine, in some detail, the way in which transfers of cooperative
apartments should be handled.
Heemer, Mobile Home in the Sky, 1 REAL ESTATE REv. 76 (No. 2-1971).
The author believes that mobile homes can move up and down, as well as
on the ground. The article contains pictures and plans for a 25-story con-
crete tower to be used as a high-rise mobile home park.
Robbins, Condominiums for Fun and Profit, 1 REAL ESTATE REv. 5
(No. 3-1971). The premise of this article is that a period is beginning that
will be known as the recreation-condominium era wherein condominiums
will be sold primarily as investments for tax-sheltered income. This trend
will in turn foster whole new recreation towns and the rebuilding of many
old existing recreation towns. The article, in discussing how these financial
investments become a reality, how they are sold and how they are created
divides the presentation into (1) the standard condominium; (2) the invest-
ment condominium and (3) the resort and second-home kind of condo-
minium.
Zivan, Need for Reform in Taxation of Agricultural Cooperatives, 5
GA. L. REv. 529 (1971). A discussion of the Tax Reform Act of 1969 as
related to the tax policies of agricultural cooperatives.
Condominiums (A Symposium). 1970 U. ILL. L. F. 147-272. Kane and
Helms, The Illinois Condominium Property Act, p. 157; Vishny, Financ-
ing the Condominium, p. 181; Even, The Administration of Insurance for
Condominiums, p. 204; Anderson, Some Tax Aspects of the Condominium,
p. 220; Browder, Restraints on the Alienation of Condominium Units (The
Right of First Refusal), p. 231.
persons between ages 18 and 21, general and limited partnerships, foreign
corporate trustees, minors and persons of unsound mind owning undivided
interests without guardianships. One continuing trend, disliked by convey-
ancers, is the requirement that deeds contain addresses of the parties or
indications of the considerations paid-a movement generated and kept alive
by assessors and tax collectors.
While the literature on this subject runs the gamut of most of the vex-
ing problems the particular problems discussed most are those of the opera-
tion and impact of the recording system itself with the closely related prob-
lem of title standards.
A. Legislation
California
Ch. 690: Amends Financial Code by adding 18660.5 to exclude escrow
fees, properly assessed, from the maximum charges permitted to be made in
connection with a loan.
Connecticut
P. A. 133: Broadens the Uniform Gift to Minors Act by permitting
gifts of interests in real property to come within the provisions of that Act.
P. A. 158: Amends the real estate conveyance tax statute by requir-
ing a conveyance tax to be paid only when monetary consideration is re-
ceived by the seller.
P. A. 240: Amends 45-161 by providing that a will need be attested by
only two witnesses rather than three.
Florida
Ch. 71-9: Provides that property owned by a limited partnership can be
conveyed and encumbered in the partnership name by instrument executed
by one of the general partners.
Ch. 71-53: Makes out-of-state acknowledgments acceptable if the foreign
notary affixes either a seal or attaches a certificate of authority executed by
a clerk of a court where the notary's commission is recorded.
Ch. 71-55: Allows foreign corporate trustees to receive devises of real
property and to sell, transfer and convey the property.
Ch. 71-71: Provides that property owned by a general partnership can
be conveyed and encumbered in the partnership name by instrument exe-
cuted by one of the partners.
Maine
Ch. 57: Amends 33 MRSA 456 and provides that the address, including
street and number, municipality and state, of the grantee must appear on
all deeds and other instruments of conveyance. 457 provides that the error
or omission in this requirement shall in no way affect the validity, effective-
ness or recordability of such deed or other instrument.
Ch. 68: Amends 33 MRSA 669 and provides that if a petition in bank-
ruptcy is filed or a decree of adjudication or order approving a trustee's
bond is made, the trustee or any creditor may record a certified copy of the
REAL PROPERTY, PROBATE AND TRUST JOURNAL [Vol. 7:68
petition in the registry of deeds for any county wherein the bankrupt owns
or has any interest in any land.
Massachusetts
Ch. 183: Amends statutory forms for certain instruments pertaining to
transactions in land such as warranty, quit claim and mortgage deeds to
eliminate all reference to dower, curtesy and homestead. Forms now con-
form to extant law.
Minnesota
Ch. 63: Requires that only delinquent taxes be paid before an instru-
ment of conveyance may be recorded. Term means taxes due in the year or
years prior to the year in which the conveyance is recorded.
Ch. 795: No deed will be recorded unless same contains name and
address of person to whom tax statements are to be mailed.
Ch. 838: No deed may be recorded unless accompanied by a certificate
of value executed by grantor. Value shall be the amount of full actual
consideration paid for property. The form of such certificate shall be pre-
scribed by the department of taxation.
Mississippi
H. B. 735: Amends 449 to provide that minors or persons of unsound
mind owning undivided interest in real property of a fair and reasonable
market price less than the sum of $1,000 may convey same without guardian-
ship provided adult co-tenants are making sale for same price. (Previously
guardianship was required where fair and reasonable market price ex-
ceeded $300).
Missouri
S. B. 81: Amends 486.040 by requiring every notary to print, stamp or
type his name immediately below his acknowledgment signature in any
certificate which is to be recorded in the office of a recorder of deeds.
H. B. 140: Provides for disposition of state-owned and newly formed
islands in the Missouri and Mississippi Rivers.
New Mexico
Ch. 88: Stays sales of real estate under judgment or decree of fore-
closure until 30 days after entry thereof during which period the owner,
his heirs, assigns or other junior lien holder may satisfy judgment or decree
and avoid sale by depositing the required sum with interest and costs with
the clerk of the court.
Ch. 220: Defines joint tenancy in real property as one owned by two
or more persons with each owning the whole and equal undivided share
via a title created by a single devise or conveyance, when expressly declared
thereon to be a joint tenancy, or a conveyance from a sole owner to himself
and others, or tenants in common to themselves or to themselves and others,
or from husband and wife when held as community property or otherwise
to themselves or to themselves and others when so declared therein as being
a joint tenancy.
Spring 1972] REAL PROPERTY LAW, SURVEY
West Virginia
H.B. 657: Amends 36-5-1 through 5. Provides method by which a
power of appointment may be released or disclaimed. Such a release or
disclaimer may be affected by written instrument acknowledged and re-
corded in the office where the instrument creating the power is recorded.
B. Significant Decisions
Cast v. National Bank of Commerce, 186 Neb. 385 (1971).
Action to construe will, to determine validity of estate created by
devise of the fee to a designated devisee, subject to a condition that such
devisee shall, within a period of one year, by appropriate legal action, add a
certain name to his legal name; and should said devisee fail to comply with
such condition, then the title to the real estate to revert to the residuary
legatee specified in another paragraph of the will.
HELD: A condition attached to a fee simple estate, otherwise valid,
must be reasonable and not materially affect its marketability. If it materi-
ally affects marketability adversely, it is an indirect restraint upon aliena-
tion. A direct or indirect restraint on alienation, after a creation of a fee
estate, is void and against public policy.
The court admits that the authorities are not in accord on this issue
and that the court is, by this opinion, overruling previous Nebraska deci-
sions. The court felt impelled to make this choice by reason of Nebraska's
adoption of the Uniform Property Act in 1941 which, the court said, was
intended to abolish the ancient common law technical rules. The court
was of the opinion that public policy would be best served by preventing
restraints on alienation, either direct or indirect.
Coons v. Baird, 265 N. E. 2d 727 (Ind. Ct. App. 1971).
Ettel leased to Company Tract B, with option to purchase. Lease was
amended to grant Company option to purchase adjoining Tract C. Ettel
then sold Tract C, together with other land, to Baird which deed was sub-
ject to the option of Company to purchase Tract C. Company then assigned
its lease, as amended, including option to purchase to Coons. Ettel con-
sented to assignment. Later Ettel by warranty deed conveyed Tract B to
Coons and on same day quit-claimed Tract C to Coons. Coons maintained
that the option was exercised and the quit-claim deed represented a comple-
tion of the transaction, although the records disclosed no evidence that the
procedure set forth in the lease for the exercise of the option was followed.
HELD: Title quieted in Baird. Quit-claim deed did not represent ex-
ercise of option.
Case of first impression.
DeStefano v. Kaufman, 320 N. Y. S. 2d 825 (Sup. Ct. 1971).
Action to set aside a tax deed in which plaintiff raised two objections:
(1) the sale by which the county three years after the tax sale was in violation
of the county Tax Act; (2) the sale was invalid because the description in
the notice of sale and notice of redemption was insufficient.
HELD: Where notice of redemption of property sold at county tax
sale was defective, in that it did not adequately describe affected parcel,
Spring 1972] REAL PROPERTY LAW, SURVEY
county was prohibited from claiming title to property. Fact that property
had been sold for taxes on at least one other occasion did not preclude
plaintiff from raising objection that notice of redemption was defective,
where there was no way of establishing that plaintiff saw notice or relied
on it on previous occasion.
Dodson v. Phagan, 227 Ga. 480 (1971).
HELD: Where deed cites consideration as love and affection, parol
evidence is not admissible to show actual consideration to be grantee's
promise to pay expenses and subsequent failure of said consideration.
Hiddleston v. Nebraska Jewish Education Soc., 186 Neb. 786 (1971).
Action to enforce a right of reverter upon the termination of a fee
simple determinable. The defendants demurred, arguing that the possibil-
ity of reverter had been extinguished by statute which purports to bar all
possibilities of reverter and rights of reentry after 30 years from the date of
the creation of the condition or possibility of reverter. The issue involved
was the question of the constitutionality of the statute.
HELD: The statute was constitutional. Accordingly, the possibility of
reverter could not be enforced.
The court pointed out that similar statutes had been held unconstitu-
tional in Florida and in New York, but that, on the other hand, the Su-
preme Court of Illinois had sustained such a statute. The Nebraska court
was of the opinion that the statute was reasonable and was intended to
increase the utility of land and marketability of titles.
Kentucky Trust Co. v. Kessel, 464 S.W. 2d 275 (Ky. 1971).
Suit for judgment declaring rights to realty where will devised realty
owned by testator and his wife as tenants by the entirety to one son in trust
for life of wife and in fee simple to that son after her death. Wife did not
renounce the will and accepted other benefits under the will.
HELD: The wife ratified and legitimatized the testamentary disposi-
tion of the property and was thereby estopped from denying or contesting
the testamentary disposition. Under the doctrine of testamentary election,
one given a benefit under a will must choose between accepting the benefit
and asserting an independent claim to property which the will purports
to dispose of to others.
La Pierrev. Kalergis, 251 So. 2d 885 (Fla. Ct. App. 1971).
A father and mother conveyed property to the mother and their daugh-
ter. The deed contained a recital that "pursuant to Sec. 689.15 Florida
Statutes (F. S. A.), provision is hereby and in this instrument expressly made
for the right of survivorship between the grantees."
HELD: A joint tenancy with right of survivorship was created by the
direct conveyance. The statute abolished the common law doctrine of right
of survivorship among joint tenants with its requirements that there must
be in the grantees the unities of interest, time, title and possession. How-
ever, the unities were in fact present.
Case of first impression.
REAL PROPERTY, PROBATE AND TRUST JOURNAL [Vol. 7:68
C. Current Literature
Block, Alaskan Native Claims, 4 NATURAL RESOURCES LAW. 223 (1971).
While the acquisition of Alaska on an areal basis of 2c per acre in 1867
was unquestionably a farsighted act of statesmanship at that time, in recent
times we have discovered that it was not accomplished entirely free of title
problems. The native Alaskan Indians, Eskimos and Aleuts are claiming the
transfer was subject to certain ancestral rights for which they are entitled
to be compensated. The legal basis for these claims is aboriginal use and
occupancy, or what is frequently called "Indian Title." While the natives
have been pressing their claims for many years with little success, they
received an assist from the United States Department of the Interior in late
1966 when the Secretary of that Department imposed the so-called "Land
Freeze." The article is an extensive examination into all legal precedents
concerning the issue of title. The author concludes that it seems fairly cer-
tain that no beneficial ownership exists by reason of unrecognized aborig-
inal title. His opinion is that in the final analysis, however, legislation
obviously is the most desirable solution for all concerned. From a political
as well as legal standpoint, it would preserve the time-honored posture of
noninterference by the judiciary with the traditional and exclusive role of
congress in dealing with aboriginal Indian title. Too, it would settle once
and for all the Alaskan native claims.
Chatterton and Knitter, A Unified Automated Land Title System for
Wisconsin, 44 WIs. B. BULL. 8 (No. 6-1971). A suggestion is made for the
application of a computerized title system in Wisconsin.
Hudak, Registration-of-Land-Titles Act: The Ohio Torrens Law, 20
CLEV. ST. L. REv. 617 (1971). Discusses differences between registering
of title under Torrens Law and evidence of title being recorded prior there-
to. Points out advantages of law to third parties.
Jenkins, Ownership of Church Property and the Doctrine of Implied
Trusts, 22 MERCER L. REv. 515 (1971). A detailed analysis of Presby-
terian Church in the United States v. Mary Elizabeth Bluehull Memorial
PresbyterianChurch wherein the Supreme Court of the United States denied
a petition for certiorari. This denial brought to an end a controversy over
church property which had begun almost four years earlier and which had
twice been to the Georgia Supreme Court and twice to the United States
Supreme Court.
Kozolchyk, The Mexican Land Registry: A CriticalEvaluation, 12 ARiz.
L. REv. 308 (1970). Probably the finest and most thorough analysis of the
Mexican land registry system published in English, but also valuable for
its comparative law study of other civil law systems and the derivations of
specific legal concepts of land registry; supplemented by translations of
eight Mexican Supreme Court opinions.
Lewis, Offshore Boundary and Title Issues, IV NATURAL RESOURCES
LAw 737 (1971). A review of the judicial and administrative events that have
REAL PROPERTY, PROBATE AND TRUST JOURNAL [Vol. 7:68
occurred with each of the coastal states beginning with California as regards
the tidelands controversy.
Mark, Some Title Problems Arising in Connection with Trusts, 42
OKLA. B.A. J. q-19 (1971).
Miller, Romancing a Deed, 44 Wis. B. BULL 46 (No. 6-1971). A nos-
talgic discussion of the English origins of title transfer, and suggestions for
glamorizing the deed to a client.
Olds, Conveyances by Married Women in Texas, 8 HOUSTON L. REv.
677 (1971). Differing requirements for conveyances made in 1962, 1964 and
1968 under statutes as amended.
Ominsky, Adventures in the World of the Realty Transfer Tax-The
Pennsylvania Experience, 44 TEMP. L. Q. 73 (1970). This article explores
some of the more interesting aspects of the applicability of the Pennsylvania
Transfer Tax with some reference to significant local differences. It also
considers how a real estate transaction may be planned to minimize the
impact of the tax. Some of the major areas which are included are: (1)
partnership transfers, both by deed and by other methods; (2) corporate
liquidations; (3) straw party and related party exemptions; (4) foreclosures,
sheriff's sales and the effect of some applicable exemptions; and (5) general
problems in calculation of the tax base, including the effect of fixtures, im-
provements, mortgages, life estates, leases and other property rights.
Paulus, Ademption by Extinction: Smiting Lord Thurlow's Ghost, 2
TEx. TECH. L. REV. 195 (1971). A discussion of the means of avoiding the
doctrine of ademption by extinction.
Payne, Title Guaranty Funds: Symptoms, Cure or Nostrum? 46 IND.
L.J. 208 (1971). Analysis of transfer of title practice from lawyers to title
insurance companies and doubt that lawyers' title guaranty funds alone will
slow the trend. Suggests better public title records.
Pindar, Title Examinationsand Closings, 22 MERCER L. REv. 505 (1971).
A general discussion of title examinations in Georgia.
Rieselbach, Drafting Conveyances Under Chapter 706, 32 GAVEL 7 (No.
3-1971). A comprehensive change and reform of the Wisconsin statutes relat-
ing to conveyances, recordings, titles, mortgages, land contracts and land-
lord-tenant relationship became effective July 1, 1971. The author analyzes
significant changes relating to conveyancing and new procedures and forms
for use.
Shipley, Bankruptcy and Real Estate, 17 PitAc. LAw. 53 (No. 1-1971).
The article traces what happens to a title to real property when it passes
through a bankrupt's estate. The article is aimed not only at helping the
title examiner who comes across such a situation, but also at providing a
workable procedure whereby a title may be processed through bankruptcy
and emerge clear of any cloud.
Swierenga, The "Odious Tax Title": A Study in 19th Century Legal
History, 15 AM. J. LEGAL HIsT. 124 (1971). The issue of the validation of
tax titles is another clear instance of conflict between legislatures and the
courts in the 19th century, a conflict that has been largely ignored. The
author believes that in some respects the effort to strengthen tax titles
parallels the struggle for occupancy rights as well as debt stay laws, usury
Spring 1972] REAL PROPERTY LAW, SURVEY
statutes and occupancy rights. The issue of property rights was the nub in
both disputes and the same organs were involved-state legislature and
courts and the United States Supreme Court. This article examines the
legal and judicial history of tax titles in the 19th century, primarily in one
state, Iowa, where the issue became hotly contested. The article's purpose
is to illustrate in the light of social and economic forces the conflict of in-
terest between legislature and courts on a vital question of land titles and
taxation and how this disagreement was resolved over time.
Wharton, Application of Federal and State Security Regulations to
Real Estate Transactions, 12 S.T.L.J. 237 (1971). A discussion of the effect
of the Federal Securities Act and a typical State Securities Act on typical
real estate transactions.
Whitman, TransferringNorth Carolina Real Estate, Part I, 49 N.C.L.
REv. 413 (1971). A discussion of a recent survey, record title search,
discoverable non-record defects, personal property and fixtures, the title
certificate malpractice insurance as title protection, title insurance.
Whitman, TransferringNorth CarolinaReal Estate, Part II, 49 N.C.L.
REv. 593 (1971). A discussion of ethical problems, criteria for reform, title
insurance revision, reforming closing procedure and standardizing pro-
cedures.
Yates, The Federal Truth in Lending Act-A Dilemma for Title At-
torneys, 27 Mo. B. J. 208 (1971). As the article points out, the lawyer is
faced with a dilemma when called upon to examine title to real estate on
which the client holds a deed of trust falling under the provisions of the
Act allowing rescission. Normally, the lawyer has no means by which to
ascertain whether or not the letter of the Act has been complied with,
short of independent examination of the facts, since the disclosures are not
included in the abstract of title.
Report and Recommendations of Real Property Committee of Okla-
homa Bar Ass'n, for Amendments to Title Standards,and a Proposed Statute
Permitting Filing of Certified Copies Where Land Is Located in More
Than One County and the OriginalDocument Has Been Recorded in One
Such County. 41 OKLA. B. A. J. 2675 (1970). See also 41 OKLA. B. A. J. 2449
(1970) for earlier report of same committee.
Misconceptions of Parol Partitions In Texas In Light of Statute of
Frauds Requirements, 23 BAYLOR L. REv. 75 (1971). An examination of
cases concerning parol partitions involving land. Particular emphasis is on
community property situations where the husband and wife are contemplat-
ing a permanent separation or divorce.
Vfl. COVENANTS
To be noted in this field are the decisions indicating the increasing
conflict between mobile homes and restrictive covenants prohibiting "struc-
tures of a temporary character."
A. Legislation
Georgia
P.A. 715: Amends 29-301 to provide that the limitation on the time
REAL PROPERTY, PROBATE AND TRUST JOURNAL [Vol. 7:68
for which restrictive covenants or scenic easements running with the land
shall run in municipalities and areas of counties which have zoning laws
shall not apply to covenants and scenic easements running in favor of the
United States, the State of Georgia, political subdivisions thereof or cor-
porations, trusts or other organizations holding the land for the use of the
public.
Hawaii
P.A. 124: Amends 515-3 and 515-7 to provide that discrimination
based on sex in connection with real estate transactions (including block-
busting) shall be a discriminatory practice; and amends 515-6 to provide
that restrictive covenants and conditions limiting conveyances to or use or
occupancy by persons of particular sex are void.
Minnesota
Ch. 922: Limits the provision prohibiting implied covenants in real
estate conveyances in 507.16 to covenants of title, thus making it pos-
sible for covenants relating to the physical condition of the premises to be
implied in appropriate cases.
Texas
S. B. 236: Heretofore counties of more than one million population,
cities, towns and villages could enforce land use restrictions contained in
subdivision dedications. The population requirement has been eliminated
so that now any municipality without zoning has the authority to enforce
such private restriction.
B. Significant Decisions
Albino v. Pacific First Federal Savings & Loan Ass'n, 479 P. 2d 760
(Ore. 1971).
All deeds in a particular subdivision contained a clause prohibiting
all buildings except "a private dwelling house." Suit was brought by the
owner of two undeveloped lots in this subdivision seeking a declaratory
judgment that these restrictions do not prohibit the construction of eight-
unit garden apartment building. The plaintiff's claim was that the words
"one dwelling house" do not prohibit a house from being occupied by two
families living separate and apart from each other, and, therefore, it would
be just as legal to have eight families living separate and apart from each
other. The plaintiff also claimed that his two lots were on the edge of the
development, which had been started in 1940, and fronted on a highway.
A professional ballpark had been erected across the road, apartments and
offices had been built in the immediate area, and as a result an enormous
increase in traffic had occurred. As a result of this the municipality had
rezoned the area from single family residential to garden apartments. Rely-
ing on this the plaintiff argued that the deed restrictions were no longer
of any substantial benefit to the remaining parcels in the development and
unless they were removed he would be unable to use his lots for any bene-
ficial purpose and so would, in effect, lose them by confiscation.
HELD: The construction of garden apartments would decrease the
Spring 1972] REAL PROPERTY LAW, SURVEY
value of the residential home owners in the subdivision as well as the re-
maining lots which had not yet been built upon. Restrictive covenants will
not be overthrown unless the "radical change" in the character of the neigh-
borhood is such as to clearly neutralize the benefits of the restrictions.
VIII. EASEMENTS
A. Legislation
Colorado
Ch. 246: Enacts Underground Conversion of Utilities Act, which au-
thorizes creation of local improvement districts with power to make special
assessments on real estate benefitted by conversion of overhead electric or
communication facilities to underground locations.
Connecticut
P.A. 73: Amends 71-131(b) to carry out the recommendations of the
Governor's Committee on Environmental Policy by encouraging private
owners to convey environmentally desirable easements in consideration of
receiving appropriate tax relief. This Act provides that if a landowner con-
veys less than a fee interest to the municipality he is entitled to a revalua-
tion so as to reflect the effect of such encumbrance upon the value of his
land. Act is retroactive to include grants of easements made prior to October
1, 1971.
Indiana
P.L. 195: Authorizes establishment of conservation easements by
imposing restrictions, effective for a term of years in perpetuity, which will
preserve the open state of lands of cultural, scenic, recreational or historic
significance. Permits the acquisition, holding and conveyance of such ease-
ments by all state and local units and agencies of government in the same
manner as such units could acquire, hold and convey fee simple interests.
Nevada
Ch. 139: Provides that any owner, lessee or occupant of real property
who permits its use by other persons for recreational purposes does not,
thereby, grant any easement to the person so using the property.
B. Significant Decisions
Douglas v. Medical Investors, Inc., 182 S. E. 2d 720 (S. C. 1971).
The grantor reserved unto himself, his heirs and assigns an easement
or right of way, specifically stating that "the easement herein reserved shall
run with the grantor's adjacent property and shall be appurtenant thereto."
A declaratory judgment action was brought to determine whether or not
the particular defendants acquired the right to use this easement.
HELD: The language used, considered alone, did not create an ease-
ment in gross. Under the holding in Steele v. Williams, 204 S.C. 124,
REAL PROPERTY, PROBATE AND TRUST JOURNAL [Vol. 7:68
undefined width. Plaintiffs brought action for trespass and damages for
value of timber removed.
HELD: Granting of an easement of undefined width entitled defendant
to right-of-way reasonably wide enabling it to operate and maintain electric
lines. Such included the right to cut away and clear all trees that might, in
any way, endanger operation of lines and was not limited to right to trim
or cut branches overhanging lines, but permitted removal of "danger trees"
within or without normal right-of-way.
Soltis v. Miller, 444 Pa. 357 (1971).
A dispute arose between adjoining land owners over the existence and
restricted nature of a right-of-way from one party's land-locked property
across the other party's property to a public way. The right-of-way had been
used primarily for agricultural purposes, but there was testimony that in the
future the land might be used for its timber or minerals since it was un-
zoned rural land.
HELD: A right-of-way by necessity should be sufficiently broad so
as to provide for any reasonable and lawful use of the land required by
the land-locked parcel. Enlarged uses in easements resulting from changes
in the use of the dominant tenement should be recognized as within the
scope of the original easemnt.
Case of first impression.
Ward v. McGlory, 265 N. E. 2d 78 (Mass. 1970).
Grantors sold McGlory land, inaccesible except over their remaining
land, "together with a right-of-way over other land of the grantors on the
existing roadway east of the barn." Grantee put two electric poles along
the right-of-way and has used them to support electric wires to his land.
Grantors complained.
HELD: The easement given in the deed did not include the right to
transmit electric current over the land.
C. Current Literature
Olds, Destruction of Easements by Estoppel, 9 HOUSTON L. Rxv. 1
(1971). Estoppel should be used as the basis for deciding whether to protect
purchaser of servient estate (easement by implication or prescription).
a reasonable attorney's fee, and engineering fees when judgment for con-
demnation is denied or when the proceedings are withdrawn or when in-
verse condemnation occurs. In addition, the states of Minnesota and Mis-
sissippi repealed their existing eminent domain statutes and reenacted new
and comprehensive codes.
The two Delaware cases would seem to indicate that no liberalization
of the concept of eminent domain damages can be expected to come from
the judiciary. Much of the literature discloses an awareness of this problem
as well as the basic related problem of "when does a taking occur?"
A. Legislation
Colorado
Ch. 168: Provides for relocation assistance for persons displaced by
acquisition of real property by state agencies and subdivisions in connection
with federally assisted projects.
Connecticut
P. A. 208: Amends 49-24 by providing that the condemning authority,
before condemning any portion of property, must, if the remaining portion
does not conform to the area requirements of zoning, obtain a variance for
such remaining property. If the variance is not secured then the condemning
authority must pay the value of the entire parcel.
P. A. 518: Provides for an award to the property owner for his reason-
able cost, disbursements and expenses, including reasonable attorneys'
appraisal and engineering fees actually incurred because of condemnation
proceedings if (1) the final judgment is that the state agency cannot acquire
the property by condemnation or (2) the condemnation proceeding is
abandoned by the state. Also provides that whenever a judgment is rendered
in favor of a landowner in an inverse condemnation proceeding the court
shall determine and award such plaintiff, as part of such judgment, a
sufficient sum to reimburse him for his reasonable cost, disbursements and
expenses, including reasonable attorney's, appraisal and engineering fees,
actually incurred because of such proceedings.
Hawaii
P. A. 32: In connection with acquisition by state of real property for
any project in which federal or federal-aid funds are used, provides for
payment to owner of expenses incidental to conveyance of property to state,
mortgage prepayment penalties and pro rata share of taxes where con-
demnation proceedings are successful; provides court may award owner
reasonable costs, disbursements and expenses (including reasonable at-
torney's, appraisal and engineering fees) in cases where condemnation action
is unsuccessful or inverse condemnation action is successful; and estab-
lishes policies with which the state must comply in connection with such
acquisitions.
Illinois
P.A. 77-1467: Adds ch. 47, 14.1 which provides for distribution of
REAL PROPERTY, PROBATE AND TRUST JOURNAL [Vol. 7:68
eminent domain award where there is a contract for deed outstanding based
upon an amount equal to (a) the down payment, (b) monthly payments
made on the contract, less interest and the fair rental value of the property
for the period purchaser has enjoyed the use of the property under the
contract and (c) expenditures by the purchaser for improvements which
increased the fair market value of the property.
Iowa
H. B. 25: Provides that whenever a fee simple title to land is taken for
public use by condemnation or by purchase in lieu of condemnation, there
must be a legal description of the part taken and of the remainder which is
compatible with the abstract description.
H. B. 347: Provides that except for drainage and levy improvements
and public school improvements, a landowner may not be dispossessed under
condemnation proceedings of his residence, dwelling house, outhouse,
orchard or garden until the damages have been determined and paid or, in
the event of highway condemnation, within 180 days after the compensation
commission has filed its award and appraisement damages are paid.
H. B. 518: Provides for condemnation by the county for flood and
erosion control projects.
Massachusetts
Ch. 79: Adopts requirement that no taking of real estate shall occur
until at least one appraisal of the property has been made and filed with the
taking authority. Requirement can be waived by a prior written request of
all parties entitled to damages, whereupon an award of nominal damages
shall be made, subject to revision to reflect actual damages after an appraisal
has been concluded.
Vests in the board of officers which has made a taking, the power to
determine the parties to collect damages in the case of a legally deficient
title, provided that said damages are less than $500.
Minnesota
Ch. 595: Completely recodifies eminent domain law requiring all
bodies, whether public or private, with the power of eminent domain, to
exercise that power in accordance with ch. 117, as amended.
Mississippi
S. B. 1714: Repeals existing eminent domain law and enacts new and
comprehensive law.
Missouri
H. B. 94: Requires relocation assistance to any displaced person under
condemnation proceedings as a condition of receiving federal funds. The
same relocation assistance must be afforded if the real property is taken
by eminent domain through the expenditure of state or local funds.
Nebraska
L. B. 190: Enacts relocation assistance act to provide payments to those
persons displaced by publicly financed projects.
Spring 1972] REAL PROPERTY LAW, SURVEY
Ch. 355: Gives property owners right to reimbursement for costs, in-
cluding attorneys' fees, where (a) judgment for condemnation is denied,
(b) when the proceedings are dismissed and (c) where inverse condemnation
is necessary. Applies to condemnation proceedings where federal, state or
local funds are used.
Texas
S. B. 521: Provides that when in the acquisition of real property for a
program or project undertaken by any political subdivision of this state
it shall become necessary that an individual family, business, farm or ranch
operation or nonprofit organization be displaced, moving expenses, reloca-
tion payments, rents, supplements and other expenses in connection with
the transfer are to be deemed expenses of such property acquisition.
B. Significant Decisions
Barnini v. Sun Oil Co., 161 Conn. 59 (1971).
The plaintiff's land was taken for highway purposes by eminent do-
main. At the time there was a service station on it which was under a lease
from the plaintiff to the defendant with an option to renew. The commis-
sioner assessed damages for the taking at $85,000. A dispute arose between
the plaintiff and the defendant as to the amount due the defendant under
its lease. Trial court determined the value of the lease to be $2,040.
HELD: Affirmed. The rule for evaluating the leasehold interest in
land is properly arrived at, in the case of a complete taking, by subtracting
the rent provided for under the lease from the fair market value of the
lease. In a determination of what this amount should be, all elements
legitimately affecting the value of the lease should be considered.
City of Cheyenne v. Frangos, 48 P. 2d 804 (Wyo. 1971).
HELD: Evidence of prices for comparable properties on condemnation
is inadmissible in a condemnation case.
Housing Authority v. Myers, 115 N. J. Super. 467, 280 A. 2d 216 (1971).
Condemnation involved taking of a building which housed condemnees'
dress factory and retail outlet store.
HELD: A condemnee may include in proof of value of premises any
enhancement attributable to personal property used by owner in his
business operations on the premises. Where personalty which is integral
part of going business enhances freehold, condemnee's removal of personalty
after condemnation at his expense does not deprive him of his right to be
compensated for deprivation of such equipment. In event condemnor is
willing to pay value of property as enhanced by industrial equipment in
place, election as to whether such may be removed should be that of con-
demnor, not of condemnee.
Merced Irrigation District v. Woolstenhulme, 4 Cal. 3d 478, 93 Cal.
Rptr. 833, 483 P. 2d 1 (1971).
Action by irrigation district to condemn parcels of land. Supreme
Court of California considered the recurring issue in eminent domain as
REAL PROPERTY, PROBATE AND TRUST JOURNAL [Vol. 7:68
C. Current Literature
Barry, Market Value Enhancement by Public Project, 47 L.A.B. BULL.
49 (1971). The author discusses three recent California Supreme Court de-
cisions which examine the question of whether, and to what extent, increases
in value attributable to a proposed public improvement are a proper ele-
ment of "just compensation," and what evidence relating thereto is ad-
missible.
Harrison, Use and Enjoyment of Land-Compensation for Noise Dam-
age, IV NATURAL RESOURCES LAW. 429 (1971). Author believes noise has
become a significant factor in determining the market value of real property.
While noise alone is seldom, if ever, sufficient in intensity to preclude the
possession of real property, it does interfere with the use and enjoyment of
real property. Such interference is reflected in the price which can be ob-
tained by exposure of the property in the market, and diminution in market
value is invariably the test adopted for the measure of damages to real
property as a consequence of noise.
The scope of this article is limited to noise emanating from the use of
facilities owned by branches of government or quasi-public entities having
the power of eminent domain. The article examines cases where money
damages for injury to real property caused by noise have been recovered
under the eminent domain theories of condemnation and inverse con-
demnation and also under the tort theories of nuisance, trespass and neg-
ligence.
The author concludes that as the law now stands, noise is generally
recognized as a proper element of damage. But because noise is dissipated
over such a broad area, it becomes vulnerable to many defenses, leading
to a considerable amount of confusion and lack of uniformity in the high-
way cases. But the cause of much of this confusion, the failure to distinguish
between taking and damaging, has also contributed to the broadened
concepts found in recent aviation cases where damage provisions have been
rendered surplusage.
Kelly, ChallengingHighways: Widening the Access to Judicial Review,
20 CATHOLIC U. L. REv. 143 (1970). Examines the reviewability of highway
route location procedures and various means of obtaining judicial relief.
Level, Evaluation of Special Purpose Properties in Condemnation Pro-
ceedings, 3 URBAN LAW. 428 (1971). In dealing with special purpose prop-
erties, because of the lack of market and sales of such properties and the
unusual characteristics that give them value, courts have departed from
the laws of valuation applied in the usual condemnation case. Some con-
clusions which might be drawn when dealing with such properties are: (1)
market value, although applied if possible, may or may not be the legal
measure of compensation; (2) more liberality with respect to the evidence
admissible to prove value will be applied; (3) in one form or another, value
of the property for its special purposes, or to the owner, will be recognized;
(4) more liberal use of the cost and income approaches to value will be
allowed; (often the cost approach may be the only way of valuing special
purpose improvements; (5) substitution or the "substitute property doctrine"
may be applied to public properties, which doctrine determines compensa-
Spring 1972] REAL PROPERTY LAW, SURVEY
tion based upon the cost of necessary restoration of the utility lost; (6) there
is no way of valuing special properties; each case will require special con-
sideration; the rules respecting proof must afford some leeway if the
owner is to receive constitutional indemnification; (7) appraisers, when
undertaking appraisals of such properties, should expect to exercise some
ingenuity and to expend more effort in considering the factors which con-
tribute value to such properties beyond that enjoyed by more conventional
properties.
Lombardo, Eminent Domain, Date of Valuation in Ohio, 20 CLEv. ST.
L. R. 647 (1971). Points out how compensation can be affected by date of
valuation being after activity or delay of appropriating authority, and sets
out standards for arriving at fair market value.
Mencher, Condemnation Enters the Twentieth Century-An Alert to
the D. C. Bar, 38 D. C. B. J. 48 (1971). A discussion of a bill "To provide
for uniform and equitable treatment of persons displaced from their homes,
businesses or farms by federal or federally assisted programs" known as the
"Uniform Relocation Assistance and Real Property Acquisition Policies
Act of 1970" which became Public Law 91-646.
Olds, Examining Witnesses in the Condemnation of Industrial Prop-
erty, 17 PRAc. LAW. 71 (No. 6-1971). An illustration of the method for ex-
amining and cross-examining witness in a case involving condemnation of
industrial property.
Olson, The Role of "Fairness" in Establishinga Constitutional Theory
of Taking, 3 URBAN LAW. 440 (1971). There are numerous attempts to
define "taking" which revolve around the idea that government is required
by the constitution to give "just compensation" for a "taking for public
use"-the essence being that the loss should be borne by the community as a
whole. The article considers existing theories, analyzes a recent court de-
cision and synthesizes some identifiable considerations as to "what consti-
tutes a taking."
Schetroma, Eminent Domain: Just Compensation When the Con-
demnor Enters Before Instituting Proceedings, 75 DIcK. L. REv. 303 (1971).
An examination of the problem of compensating a landowner for property
which has been invaded by a condemning authority before the institution
of proceedings. The applicability of traditional eminent domain principles
and the varied rationales propounded by the courts in case law are dis-
cussed. An alternative approach is suggested as well as a proposal for legis-
lative action. It should be pointed out that the related controversy which
has arisen in the normal condemnation proceedings as to whether property
should be valued at the time the proceedings are instituted or at the time the
award is made is considered where relevant to the specific topic.
Snitzer, The Uniform Relocation Assistance & Property Acquisition
PoliciesAct of 1970-A New Era, 43 PENN. B. A. Q. 114 (1971). A discussion
of the new federal statute.
Snitzer, Valuation and Condemnation Problems Involving Trade Fix-
tures, 16 VILL. L. REV. 3 (1971). A discussion of what is a trade fixture, when
is it condemned, how do you value it and how do you apportion between
lessor and lessee.
REAL PROPERTY, PROBATE AND TRUST JOURNAL [Vol. 7:68
Maine
Ch. 256: Amends 38 MRSA 361 to provide that the Environmental
Improvement Commission has the regulation-making power to carry out the
provision of any law which it is charged with the duty of administering.
Ch. 372: Provides that no mercury may be discharged into waters of
this state.
Ch. 489: Provides for a Department of Environmental Protection given
the responsibility to protect and improve the quality of the natural environ-
ment and the resources which constitute it.
Ch. 491: Creates Department of Natural Resources to preserve, protect
and enhance the vast and varied natural resources of the state.
Missouri
Ch. 203.140: Extends the authority to enforce air pollution regulations
to all first and second class counties.
Ch. 306.26: Requires that sewage from marine toilet be contained on
board the boat; prohibits boat marine toilets from discharging any sewage
into waters of the state; excepts boats in interstate commerce.
Ch. 564.010: Makes it a misdemeanor to deposit any dead animal or
other filth into any well, spring, brook, branch, creek, pond, lake, river or
stream in this state. Also makes it unlawful to deposit such things near a
public road or highway or upon premises not owned by depositor.
Nebraska
L. B. 939: Enacts Environmental Protection Act.
Nevada
Ch. 409: Prohibits the pollution of waters.
Ch. 567: Enacts the Nevada Air Pollution Control Act.
Ch. 590: Enacts Nevada Water Pollution Control Law of 1971, which
creates the Bureau of Environmental Health of the Health Division of the
Department of Health, Welfare and Rehabilitation. Comprehensive act
deals specifically with sewage disposal to prevent contamination and pollu-
tion of waters.
New Jersey
Ch. 173: Authorizes Department of Environmental Protection to deal
with the damage caused by the unlawful discharge of petroleum products,
debris and other hazardous substances into the waters.
Ch. 177: Provides for control of and prevention of dumping waste
materials into waters adjacent to State of New Jersey in Atlantic Ocean.
Known as Clean Ocean Act, it provides that Commissioner of Environ-
mental Protection may adopt regulations to enforce it.
Rhode Island
Ch. 137: Authorizes governor, upon recommendation of Director of
Health, to proclaim existence of an air pollution episode, and gives gov-
ernor necessary power to prohibit, restrict or condition certain activity which
contributes to air pollution.
Spring 1972] REAL PROPERTY LAW, SURVEY
West Virginia
H. B. 916: Amends 16-20-1, 2, 5, Ila, lib, and lIc, redefining policy
and purpose of article to conform to those of the Clean Air Act of 1970.
Broadens powers of Air Pollution Control Commission.
B. Significant Decisions
Guthrie v. Alabama By-Products Co. 437 F. 2d 1087 (9th Cir. 1971),
afTJg 328 F. Supp. 1140 (S.D. Ga.).
Riparian landowners brought action under the Refuse Act of 1899
against industrial discharges for damages caused by water pollution. Plain-
tiffs relied on the principle that a civil remedy for violation of a penal
statute may be implied in favor of persons in the class for whose special
benefit the statute was enacted.
HELD: Action dismissed. Federal district court does not have federal
question jurisdiction under Refuse Act of 1899 since the Act was not in-
tended to create federal cause of action by riparian landowners for impair-
ment of value and loss of enjoyment of their land unrelated to impairment
of navigation.
State v. Arizona Mines Supply Co., 39 L. W. 2641 (Ariz. 1971).
The defendant was charged with two counts of "air pollution" in vio-
lation of the Air Pollution Regulations. Defendant argued that some degree
of knowledge or intent is prerequisite to conviction. The state contended
that it need not prove intent or knowledge since the offense is more in the
nature of "malum prohibitum."
HELD: Nowhere does this regulation (or the Air Pollution Act, for
that matter) provide, either expressly or impliedly, that before the state
pay convict someone of "air pollution" it must first prove that the air
contaminant was discharged knowingly or intentionally.
C. Current Literature
Bassuk, The Necessity of Architecture: A Built-Environment Fit for
People, I REAL ESTATE REV. 23 (No. 1-1971). The slow but inexorable accre-
tion of man-made environment has reached a point of harmful qualitative
change. The threat to man's survival is not nature but man's wanton dis-
regard and subjugation of it. While nature, as such, can achieve a balance
through its ecological mechanisms, man must attain equilibrium by con-
scious effort and control. Thus, with the proliferation of artificial environ-
ment comes the need for greater social responsibility in its design. This
calls for ethical and moral imperatives to be heeded in the design and build-
ing of environment. In short, we must humanize our environment. However,
the criteria for the well-being of the human animal are much more difficult
to establish than for the nonhuman and inanimate existence. What makes
man "so human an animal" is the ability to devise and use symbols, and
to consciously express emotional and intellectual thought.
As members of the community of specialists involved in the planning
and building of ax-hitectural environment, architects must apply those
criteria which will raise the quality of the built-environment to a level com-
REAL PROPERTY, PROBATE AND TRUST JOURNAL [Vol. 7:68
been slow to recognize an analogy between air pollution and the more tra-
ditional invasions of property. In this respect he believes that they have
failed to provide other sectors with needed impetus for change.
Krier, The Pollution Problem and Legal Institutions: A Conceptual
Overview, 18 U. C. L. A. REv. 429 (1971). Author stresses necessity for
solution of environmental problems (including pollution) by some type of
governmental intervention. Judicial processes available to accomplish
needed environmental objectives are discussed at length, with concluding
remarks on pollution control legislation and its administration.
Like, Multi-Media Confrontation-The Environmentalist'sStrategy for
a "No-Win" Agency Proceeding, I ECOLOGY L. Q. 495 (1971). The author
believes that for groups to prevail and secure a successful remedy at the
agency level in environmental battles does not necessarily demand a total
victory over the project that threatens the environment. The article in-
dicates what the author considers a means of achieving a victory for en-
vironmental values even if the agency determination proves unfavorable.
The author believes that a "no-win" strategy can maximize the environ-
mental benefits arising from lengthy administrative hearings even when
the chances of administrative victory are almost nonexistent.
Lippek, Power and the Environment: A Statutory Approach to Electric
Facility Siting, 47 WASH. L. REv. 35 (1971). An equitable solution of the
power-environment problem requires the consideration of a great number of
variables. The author concludes that the answer lies in a reduction of the
demand for power, the restructuring of electric rates, state regulation of
facility siting and comprehensive planning. The current regulatory struc-
ture is critically analyzed and a siting statute is proposed as an aid to states
considering such legislation in anticipation of probable federal require-
ments.
Little, New Attitudes About Legal Protection for the Remains of
Florida'sNatural Environment, 23 U. FLA. L. REv. 459 (1971). A review of
Florida cases involving environment and a suggestion that the law should
be changed to no longer protect human behavior that exploits environment
for economic advantage.
Mannino, Transportation and the Environment: The Institutional
Response of the Administrative Agencies, 42 PENN. B.A. Q. 446 (1971). A
discussion of the range of environmental effects of transportation policies.
Mathis, Urban Noise: An Insidious But EscalatingPollutant, 46 L.A.B.
BULL. 438 (1971). This article presents a fully researched discussion of
judicial and administrative methods that have been utilized in thus far
unsuccessful attempts at control of urban noise and further suggests some
means of making these efforts more successful.
McCraken, Articles XI and XIII-Environment and GeneralProvisions,
52 Cmi. B. REc. 116 (1970). Contains a brief discussion of the healthful
environment provisions of the 1970 Illinois Constitution.
Phillips, Environmentalists' Suits-Are They Standing or Falling? IV
NATURAL RESOURCEs LAW. 469 (1971). The author poses a basic overriding
question: Whether judicial review is to be accorded to individuals and
groups whose chief interest is in environmental preservation, when they
REAL PROPERTY, PROBATE AND TRUST JOURNAL [Vol. 7:68
A. Legislation
Alabama
P. A. 1512: Enacts Alabama Limited Partnership Act, a modified ver-
sion of the Uniform Limited Partnership Act.
P. A. 1513: Enacts Alabama Partnership Act; provides rules for deter-
mining what is partnership property, and allows conveyance of such prop-
erty in the partnership name by any partner under certain circumstances.
Connecticut
P.A. 330: Amends 46-22(a) so that now the wife is subject to being
deprived of any real estate she may have acquired from her husband in
consideration of their marriage or of love and affection whenever her hus-
band is granted a divorce.
Florida
Ch. 71-25: Provides that a widow's right of dower will be barred unless
within three years from her husband's death she files an instrument setting
out her intention to claim dower.
Illinois
P. A. 77-1676: Provides that there is no estate of dower or curtesy.
New Hampshire
Ch. 179: Establishes statutory rights in lieu of dower and curtesy.
B. Significant Decisions
Adams v. Foster,466 S. W. 2d 706 (Mo., 1971).
Plaintiff petitioned to quiet title in him after the death of his alleged
wife, who was the title owner of the real estate. Plaintiff claimed title as a
survivor in tenancy by entireties. Plaintiff failed to prove that he was law-
fully married to decedent and did not establish any contract creating joint
tenancy with right of survivorship.
HELD: Since plaintiff and decedent were never lawfully married, plain-
tiff was not entitled to right of survivorship as incident of tenancy by en-
tireties, in view of the fact that tenancy by entireties can only exist between
husband and wife.
Bastians v. Bastians, 36 App. Div. 2d 1020, 321 N. Y. S. 2d 480 (1971).
In a suit brought by a wife against a husband for divorce, the husband
counterclaimed requesting the court to decree that if the divorce should be
granted it would also grant a judgment decreeing the partition and sale of
the home owned by husband and wife as tenants by entirety.
Spring 1972] REAL PROPERTY LAW, SURVEY
C. Current Literature
Aronsohn, The Real Estate Limited Partnershipand Other Joint Ven-
tures, 1 REAL ESTATE REv. 43 (No. 1-1971). The legal relationship of the
REAL PROPERTY, PROBATE AND TRUST JOURNAL [Vol 7:68
XII. FrxTutus-U.C.C.
A. Legislation
North Dakota
Ch. 428: Amends subsection 5 or 41-09-34 by establishing rules of
priority between commercial code security interests and a "real estate
interest."
B. Current Literature
Braucher, Coogan, Davenport, Gilmore and Kripke, A Look at the
Work of the Article 9 Review Committee-A Panel Discussion, 26 Bus. LAW.
307 (1970).
Funk, The Proposed Revision of Article 9 of the Uniform Commercial
Code, 26 Bus. LAW. 1465 (1971). This article endeavors to set forth a brief
and simple explanation of the changes which have been proposed by the
review committee up to the present time and their effect upon the parties
to the secured transactions. Suggested changes in the law of fixtures are
discussed in some depth as well as changes in construction mortgages, pur-
chase money requirements and filing provisions.
Kennedy, Secured Transactions, 26 Bus. LAW. 1211 (1971). A review
of some of the reported cases of the past year involving secured transactions
under Article 9 of the Uniform Commercial Code.
Kenoe, Land Trust Financing and the Uniform Commercial Code, 52
CHI. B. Ric. 419 (1971). Financing statement, security agreement and other
requirements.
Skopil, Lease or Sale under UCC Sec. 1-201(37), 37 WILLAMETrE L. J.
96 (1971). This article deals with the application of section 1-201(37) of
the UCC and its Oregon statutory counterpart to chattel leases. The
change which the authors of the Code made in pre-code law in recognizing
that some leases are intended as security agreements is examined by dis-
cussing the code and the court established criteria applicable to questionable
chattel leases.
school until 1966, then leased it to the school district for use as an elemen-
tary school. The Court of Chancery decreed a reversion of the land.
HELD: The buildings and other improvements did not revert with
the land.
B. Current Literature
Fratcher, The Islanic Wakf, 36 Mo. L. REv. 153 (1971). A study of a
legal device which resembles a perpetual trust of land including a capsule
history of the development of the English law restricting restraints on alien-
ation and perpetuities in land.
Logan, Oklahoma Perpetuities and Such, 7 TULSA L. J. 5 (1971). The
common law rule against perpetuities in Oklahoma; duration of trusts;
fetters on alienation. (See 42 OKLA. B. A. J. 1095 (1971) for author's errata
sheet for the above article.)
Powell, The Rule Against Perpetuities and Spendthrift Trusts in New
York: Comments and Suggestions, 71 COLUM. L. REV. 688 (1971). Two
aspects of the problem of how far it is socially desirable to permit one who
has accumulated wealth to use or to dispose of his property exactly as he
chooses are discussed in this article. The first one discussed is how far is
there social justification for the setting of a limit on the projection on a
disposer's desires into the future, as is done by a rule against perpetuities
in the form now had by New York? Second, how sound, socially, is the
spendthrift trust concept embodied in the present statutes and decisions
of New York?
XIV. HOUSING CODES
A. Legislation
Connecticut
P. A. 193: Amends 1-19 by providing that the so-called "right to know"
law shall extend to all investigation records with regard to tenement, lodg-
ing or boarding houses when these records have been made by a municipal
building department or a housing code inspection department, local or
district health department, and giving every resident of the state the right to
inspect and make copies of all such investigation records.
P. A. 413: Amends 19-347(r) by exempting from the certificate of oc-
cupancy statutes apartment houses and buildings owned by a housing au-
thority and constructed or altered pursuant to contracts with the federal
government or the State of Connecticut which provide for annual contribu-
tions or other financial assistance.
B. Current Literature
Ackerman, Regulating Slum Housing Markets on Behalf of the Poor: Of
Housing Codes, Housing Subsidies and Income DistributionPolicy, 80 YALE
L. J. 1093 (1971). Looks at the possibility that strict housing code enforce-
ment can bring about decent housing and at the same time redistribute
income from the landlord class to the generally poorer tenant class. Also
compares the code enforcement method of achieving such goals to other
methods such as the negative income tax scheme.
Spring 1972] REAL PROPERTY LAW, SURVEY
A. Legislation
California
Ch. 649: Amends Civil Code 789.5 by providing that a mobile home
tenancy may be terminated for the following reasons: (1) failure of tenant
to comply with state and local laws, ordinances and regulations; (2) con-
duct of tenant constituting annoyance to other tenants or interfering with
mobilehome park management; (3) failure of tenant to comply with rules
established by management at inception of tenancy or upon six months'
written notice; (4) nonpayment of rent or other charges; (5) condemnation
of park. Management may not prohibit meetings of residents if held at
reasonable hours in park community or recreation hall, and must specify in
notice required by section the reason for termination.
Colorado
Ch. 143: Requires landlord to return security deposit to tenant within
limited time after end of lease, and provides that if any part of deposit is
retained, written statement of exact reasons must be provided. Sanctions
Spring 1972] REAL PROPERTY LAW, SURVEY
that the lessee not be forced to pay a greater amount than his proportionate
share of such increase in tax, that his exact percentage of such increase be
stated, and that he is entitled to a proportionate share of any tax abatement,
less reasonable attorney's fees.
Minnesota
Ch. 219: Creates the following covenants in all leases of residential
property: that the premises and common areas are fit for the use intended
by the parties; to keep the premises in reasonable repair; and to maintain
the premises in compliance with all health and building codes.
Ch. 240: Provides that it is a defense to an eviction action that the
termination of a tenancy was intended as a penalty for an attempt to en-
force any right under the lease or reporting the violation of a health, safety,
housing or building code. If the notice to quit was served within 90 days of
any act of the tenant noted above, the burden of proving the notice to quit
was not served for retaliatory purpose is on the plaintiff. In any proceeding
for the restitution of premises upon the ground of nonpayment of rent, it
is a defense if the tenant establishes that the rent was increased or services
decreased as a penalty for a lawful act of the tenant, provided the tenant
tenders to the court or the owner the original amount of the rent payable.
Ch. 784: Requires prompt return of any security deposit taken in the
rental of residential property or the giving, within 31 days, of a written
statement showing the reason for withholding the security deposit or any
portion thereof. In any action in which a damage deposit has been wrong-
fully withheld and no written statement is provided, the court may award
attorney's fees.
Missouri
Ch1. 441.520: Provides for the enforcement of minimum housing code.
New Jersey
Ch. 223: Amends the act respecting deposits to be made as security
under leases to require that the deposit shall be made in a banking institu-
tion or a savings and loan association in an account bearing interest at the
current rate of interest, and provides that the interest shall belong to the
tenant less a sum equivalent to one per cent per annum to be paid to the
landlord for administrative expenses. Applies to all rental premises or units
used for dwelling purposes except owner-occupied premises with not more
than two rental units.
Ch. 224: Authorizes a proceeding to be instituted for a judgment di-
recting that rents be paid into court and to be used for the purpose of
remedying conditions in substantial violations of standards of fitness for
human habitation and sets forth the procedure for such relief.
Ch. 227: Amends act relating to unlawful entry and detainer of real
estate to provide that in respect to real property occupied solely as a
residence by the party in possession, no entry may be made in any manner
without the consent of the party in possession.
Ch. 228: Abolishes the distraint for rent owed on a lease for the occupa-
tion of any real property solely as the residence of the tenant.
Spring 1972) REAL PROPERTY LAW, SURVEY
New York
Ch. 371: (i) Extends rent controls to June, 1973; (ii) increases the rate
of return allowed to landlords, (iii) eliminates rent controls from vacated
accommodations (formerly applicable only to one and two family dwell-
ings) provided that the tenant is not harassed into vacating by interference
with his comfort, repose, quiet or peace, and (iv) permits tenant to bring
civil action for treble damages and attorney's fees if he is forced to vacate
because of such harassment.
Ch. 374: Permits the local governing body to order the decontrol of
all rents to be effective two years after such order or prior thereto upon
execution or tender by landlord to tenant of a lease giving tenant same
terms as he has under his controlled tenancy.
South Carolina
P. A. 531: Taxes leasehold estate for 99 years or more to lessee with
property valued annually at full value of land.
B. Significant Decisions
Anderson v. Blondo Plaza, Inc., 186 N.W. 2d 114 (Neb. 1971).
Shopping center owner rented a store for use as a retail bakery, donut
shop and snack bar. The lease contained a covenant whereby the owner
agreed not to rent any store within a stated distance for a similar opera-
tion. The store immediately adjoining was then vacant, although it had
been previously occupied as a restaurant. After the tenant of the bakery
moved in he requested and was given permission to sell sandwiches, ham-
burgers, French fries, fish, chicken dinners, shrimp, scallops and ice cream.
Up to that time the adjoining store had not yet been re-rented. Subsequently
this store was rented for the purpose of conducting a Mexican-type rest-
aurant.
HELD: The subsequent lease was a violation of the landlord's restric-
tive covenant.
Bonan v. Sarni Original Dry Cleaners, Inc., 268 N. E. 2d 366 (Mass.
1971).
HELD: Clause in shopping center lease requiring tenant to maintain
"sufficient, modern and efficient equipment," and one that prohibited ob-
jectionable noise which may disturb other tenants or passer-by must be
reconciled and since modern and efficient equipment cannot be noiseless,
the landlord is not entitled to an injunction. Court was influenced because
some of noise resulted from poor construction of building.
Carousel Snack Bars v. Crown Construction Co. 439 F. 2d 280 (3rd
Cir. 1971).
Shopping center landlord rented space to a lessee to be used as a
stand-up type snack bar selling popcorn, candy, soft ice cream, hot dogs.
The lease contained a restrictive covenant prohibiting the landlord from
leasing any other space to a competing business. Subsequently, the landlord
leased a portion of the center to a conventional restaurant and cafeteria.
The first lessee sued for an injunction.
REAL PROPERTY, PROBATE AND TRUST JOURNAL [V/ol. 7:8
tered judgment for plaintiffs and defendants appealed. One claim of error
was that landlord failed to mitigate damages by not promptly seeking other
paying tenants after lessees abandoned the premises.
HELD: Affirmed.
The Superior Court, while recognizing there is a split of authority,
did not find this a propitious case for settling the issue by imposing the duty
to mitigate yet it intimated that absent reasonableactions on the part of the
nonbreachingparty it might do so.
Edwards v. Investment Company, 27 Ohio Misc. 57, 272 N. E. 2d 652
(1971).
While tenant, who was one month deliquent in rent, was absent land-
lord entered and changed door locks. Tenant was refused access to remove
personal property. Several months later, tenant was permitted to remove
goods from a garage where goods had been stored. Tenant discovered most
of his goods were missing or damaged and brought suit. Landlord claimed
that where tenant is deliquent in rent landlord may without notice or de-
mand terminate the lease and remove, store or dispose of tenant's goods
at the risk and expense of the tenant. Landlord further claimed the goods
had been abandoned by the tenant.
HELD: Tenant had not voluntarily or intentionally abandoned his
goods. A provision in a lease that, if tenant fails to pay rent when due or is
in default of any other provision, landlord may without notice or demand
terminate the lease, remove, store or dispose of tenant's property at the
risk and expense of tenant is void and unenforceable as against public
policy and landlord must resort to remedies of law for dispossessing a tenant.
This case was decided by a lower court and the Supreme Court of Ohio
has not had an opportunity to rule on this matter since 1862. Since that time
there has been a shift from a rural to an urban society with a significant
portion of that urban society residing in apartments.
Gray v. Whitmore, 94 Cal. Rptr. 904 (1971).
Tenant brought action against landlord for conversion and refusal to
surrender property owned by the tenant which remained on the property
after the landlord obtained restitution of the property.
HELD: California statutory provisions providing for redemption of
evicted tenant's personal property within 30 days after landlord has been
restored to possession by payment of judgment for rents and damages
in unlawful detainer action and providing for application of proceeds from
sale of tenant's property to satisfy judgment, if property is not redeemed
within 30 days, violates rights to substantive due process, procedural due
process and equal protection of laws.
Hamel v. Altman, 36 App. Div. 2d 521, 317 N.Y.S. 2d 722 (1971).
The defendant had occupied the store in which business was conducted
for 15 years. He had an option to renew for five additional years pro-
vided that notice of exercise of that option "be given" to the plaintiff land-
lord "in writing on or before March 31, 1969." The defendant mailed a
letter signifying intent to renew on March 28, 1971. The letter was never
delivered and on May 5 the plaintiff requested permission to post signs
REAL PROPERTY, PROBATE AND TRUST JOURNAL [Vol. 7:68
indicating the premises were "For Rent." A second letter to the plaintiff on
May 6 was rejected as untimely although the lease still had two months to
run.
HELD: Even if reliance on mails could be characterized as fault, it
was "excusable fault" and tenant who had timely mailed letter making
known his desire to renew five-year lease for store building in which it had
conducted its retail business for more than 15 years would not be deprived
of valuable assets by failure of post office to deliver letter where landlord
did not suffer any damage or prejudice because of delay.
Therefore, when the landlord ousted the tenant's assignee without terminat-
ing the lease, the landlord may refuse the tenant possession and, at the
same time, recover rent from him.
Leary v. Lawrence Sales Corp. 442 Pa. 389 (1971).
The defendant owned and operated a farmers' market. Several por-
tions of the interior of the market premises were leased to various entities
for conducting retail business enterprises, one of which was Shopping Cart
Inc., which operated a grocery store. The lease between the defendant and
Shopping Cart provided that the landlord retain possession and control of
the common passageways and aisles. The plaintiff fell in the aisle after
slipping on a partially eaten hot dog. The aisle provided access not only to
the grocery store but to other businesses operated throughout the market.
HELD: Where the owner of real estate leases various parts thereof to
tenants but retains possession and control of the common passageways and
aisles, the owner has the obligation of keeping the common aisles for the
business invitees of the tenants unless there is a contrary provision in the lease.
Levine v. Shell Oil Co., 269 N. E. 2d 799 (N. Y. 1971).
Shell leased a service station to a tenant. One of the tenant's employees
was injured when a defective gas heater on the premises exploded as a
result of Shell's negligence. The employee recovered a judgment against Shell
for personal injuries. Shell then brought this action for indemnification by
the tenant because of a clause in the lease whereby the tenant agreed to
indemnify Shell against "any and all claims" for personal injury or prop-
erty damage caused by a defect in the leased premises.
HELD: Even though the indemnification clause did not expressly refer
to liability resulting from the lessor's negligence, the lessor was entitled to
indemnification, overruling earlier decisions which construed such a clause
as excluding indemnification for negligence.
Lloyd Corp. v. O'Connor, 479 P. 2d 744 (Ore. 1971).
The defendant was one of 17 individuals who had guaranteed a
lease for a Japanese-type restaurant. The guarantors were the promoters
of the enterprise and each received stock in the corporation as consideration
for his guaranty. The guaranty was the type where the obligation of the
guarantors was prorated among them all and the particular defendant
guaranteed an amount equal to 5.88 per cent of rents and charges. After
the tenant was evicted by the landlord for nonpayment of rent an action
was brought for damages for loss of rent, etc. All of the 17 guarantors
except this one defendant paid under the terms of the guaranty. He con-
tended that he should be released because subsequent to the execution of
the lease and during the term of the tenant's occupancy, the lease was
amended by deleting a provision to the effect that the store was to be used
as a Japanese-type restaurant and that no American food was to be offered
for sale. At the request of the corporate tenant, the landlord removed this
prohibition from the lease so that thereafter the tenant could serve any
kind of food.
HELD: A surety is discharged only if there is a modification of the
basic agreement which materially increases the risk of a guarantor. Even
REAL PROPERTY, PROBATE AND TRUST JOURNAL [Vol. 7:68
though this defendant did not consent to the change and even though it
was of a major nature, nevertheless, it would not discharge him since it
was not found that the alterations had materially increased his risk as a
guarantor.
from developing the land in the way it wanted, nevertheless, the bank
could not terminate the lease. Absent an express provision in the lease
to the contrary, one who leases premises, intending a use for which govern-
mental approval is necessary, assumes the duty of obtaining such approval
and the risk of its refusal.
New Rochelle Mall v. Docktor Pet Centers Realty, 317 N. Y. S. 2d 404
(Sup. Ct. 1970).
When the landlord brought this suit to collect rent and common
area charges, the tenant, who had vacated the premises, justified his action
because of the landlord's failure to provide protection against rioting. The
tenant alleged that the landlord had at one time provided security person-
nel but then discontinued doing so.
HELD: This factor was insufficient to create an obligation if one did
not already exist. The rioting did not substantially bar the use of the leased
premises by this tenant.
Playmate Club Inc. v. Country Clubs Inc. 462 S. W. 2d 289 (Tenn.
1970).
A lease clause granted the tenant an option to renew for an additional
term, with the understanding that "the amount of rental during such re-
newal period will be set by agreement of the parties."
HELD: Although the numerical majority of states hold such a renewal
clause to be void for uncertainty, the amount of the rental is not crucial but
is "ancillary to the primary contract." Renewal options are for the benefit of
the tenant, and the landlord is normally the one who drafts lease agree-
ments. Therefore, the tenant should not be penalized by an ambiguity.
Raponotti v. Burnt-Mil Arms, Inc., 273 A.2d 372 (N.J. 1971).
Owner of an apartment building provided a swimming pool for the
tenants without additional charge. No lifeguard or safety equipment was
provided and a sign stated "private" and "swim at your own risk." One
of the tenants had a pool party with outside guests with the owner's permis-
sion. One of the guests drowned.
HELD: The pool was operated "indirectly" for profit and was "a public
pool" within the meaning of the New Jersey statute even though the general
public was excluded. Consequently, the jury should have been charged that
they could infer negligence from a violation of the statute.
A similar statute in California has been interpreted in the same man-
ner. See Lucas v. Hesperia Golf and Country Club, 63 Cal. Rptr. 189 (1967).
Richland-Lexington Airport Districtv. VIP Aviation of Columbia, Inc.,
183 S.E. 2d 448 (S.C. 1971).
Action to recover rent alleged due by reason of lease and concession
agreement. Lease contained a provision that lessor would not grant more
favorable terms to any other fixed based operator in setting fuel flowage
fees.
HELD: Lessor's suit is not barred on theory that lessor had violated
the aforesaid provision where defendant lessee was made general fixed
based operator and other lessees were made limting fixed based operators.
REAL PROPERTY, PROBATE AND TRUST JOURNAL [Vol. 7:68
3088 Steinway Street Inc. v. Bohack, 319 N. Y. S. 2d 680 (Civ. Ct. 1971).
A lease contained a clause requiring the particular premises to be
used only as a "super market with the right to sell all products now or
hereafter sold in chain supermarkets." The lessee chain supermarket closed
its store and assigned its lease to a clothing store. The landlord sued to
evict the subtenant.
HELD: The only issue was the definition of "supermarket." The five
principal characteristics of a modern supermarket are its large size, the sale
of many nonfood items, the self-service system for shoppers, the cash and
carry sales, and the sale of a wide variety of foods. Even though the clothing
store might have satisfied four of these characteristics, it clearly did not
satisfy the fifth, i.e., the sale of a wide variety of foods. If the fifth character-
istic were ignored it would eliminate any distinction between a supermarket
and a department store. (While the court issued a judgment of eviction it
stayed the same for six months, to be vacated if in that time the premises
were reconveyed to a supermarket.)
Townsend v. Singleton, 183 S. E. 2d 843 (S. C. 1971).
Parties had entered into a lease agreement for a specified period. Upon
its expiration, lessee continued in possession on a month to month basis by
oral agreement. The written lease agreement had contained a clause rela-
tive to waste material and the removal thereof by lessee. Landlord sued for
breach of contract and lease agreement seeking recovery of rent in arrears
and damages to leased premises.
HELD: Since lessee was a tenant at will and not a holdover tenant, he
was not bound by the terms of the prior lease and was liable only for
reasonable rent for the premises. Tenant was not liable for costs for removal
of waste materials when there was no evidence fixing cost of removal and
no evidence that landlord incurred any debts for that purpose.
Uricolo v. Evans, 40 U.S.L.W. (D. C. Super. Ct. 1971).
Issue raised was whether a trial by jury is guaranteed a tenant in
summary proceedings by Article Seventh of the United States Constitution
which provides that "In suits at common law, where the value in controversy
shall exceed $20, the right of trial by jury shall be preserved."
HELD: A summary proceeding to recover possession of land is but a
species of the common law action of ejectment. Ejectment was an action-at-
law triable by jury. The statute providing for summary proceedings does
not create a new kind of action but merely adds to or modifies the common-
law action and, therefore, the right of jury trial remains.
Williams v. Joyce, 39 L. W. 2415 (Ore. 1971).
Negro who was refused house lease because of his race sued under
administrative proceedings for damages for mental suffering. On the au-
thority of Hinish v. Meier & Frank Co., 166 Ore. 482, 113 P. 2d 438 (1941)
damages for mental suffering have long been authorized in the absence of
physical injury in judicial proceedings in the courts of Oregon. However,
the question raised in this case was whether an award for mental anguish
arising from humiliating discrimination represents "compensatory" damages
which can properly be awarded by the Commissioner of Labor.
REAL PROPERTY, PROBATE AND TRUST JOURNAL [Vol. 7:68
viability of this common law doctrine, and considers its alternative, the
implied warranty of habitability.
Meyers, Negotiating the Lease of an Office-Warehouse Building-A
Checklist, 17 PAc. LAW. 79 (No. 3-1971). The checklist of important points
to be considered in negotiating the long-term lease of an office or warehouse
building.
Moskovitz, The Model Landlord-Tenant Code-An Unacceptable Com-
promise, 3 URBAN LAW. 597 (1971). The author's opposition to this code
which was prepared by the American Bar Foundation can best be illus-
trated by quoting his concluding paragraph. "Those of us who are working
for real progress in bringing landlord and tenant laws into the twentieth
century will not be satisfied with a compromise solution which throws
tenants a few bones and we will actively oppose the compromise if it
threatens to prevent us to get the meat."
Moskovitz, Retaliatory Eviction: A New Doctrine in California, 46
CALIF. S.B.J. 23 (No. 1-1971). Landlord's attempt to exercise a lawful ter-
mination right motivated by a desire to dispossess the tenant for some act
(of tenant) that was not a breach of the lease or rental agreement. This
article examines the leading case, Edwards v. Habib, 397 F. 2d 687 (D. C.
Ct. App. 1968) and other judicial/legislative precedents.
O'Connor, Law, Lawyers and Tenant Unions in Chicago, 59 ILL. B. J.
732 (1971). An evaluation of the laws encountered by tenant unions and
suggestions for attorneys representing such unions.
Ominsky and LaMar, The Pennsylvania Rent Withholding Act, 43
PENN. B.A.Q. 109 (1971). An analysis of the application and interpretation of
the Pennsylvania Rent Withholding Act after five years' experience.
Reynolds, Oklahoma Real Property Law-Areas the Lawmakers Might
Re-Visit, 41 OKLA. B.A.J. 2397 (1970). Criticizes Oklahoma statutes and deci-
sions on shifting river boundaries, champerty and landlord and tenant.
Roisman, Tenants and the Law: 1970, 20 AM. U. L. REv. 58 (1970).
A discussion of the rights of indigent tenants living in substandard housing.
The article uses recent cases from the District of Columbia to show some of
the increasing rights of tenants and possible solutions to the problems raised
in the recognition of these rights.
Rosenthal, Duty to Light Exterior of Premises, 20 CLEVE. ST. L. REV.
420 (1971). A discussion on the changing position of the courts in imposing
obligations on the landowner to light potentially dangerous areas.
Sanders, The HabitableDwelling, 1 REAL ESTATE REv. 98 (No. 2-1971).
A summary of recent court decisions which take up the question of the
rights of the tenant when the premises become untenantable.
Tockman, Precautionsin the Protection of the Lessor's Property Inter-
est, 27 Mo. B. J. 168 (1971). The purpose of this article is to point out some
of the problems and the positions which the Missouri courts have taken
concerning lease provisions designed to protect the lessor's rights in the
event of an assignment of the lease.
Underberg, Ground Leasing Makes Dollars and Sense for Developers,
1 REAL ESTATE REv. 38 (No. 2-1971). The article points out the advantages
of ground leasing to the real estate developer and contains a comprehensive
Spring 1972] REAL PROPERTY LAW, SURVEY
examination of the key provisions of the lease instrument. The author be-
lieves that the ground lease, properly negotiated and carefully drafted, can
be an extremely effective instrument for use by the land owner and real
estate developer. It is possibly the most diversified instrument available to
the developer. It can be used as a demising tool as well as a financing tool,
and, in fact, can be used for both purposes simultaneously.
Housing Code Enforcement, ABA National Institute, 3 URBAN LAW. 525-
642, Gribetz, Housing Code Enforcement in 1970-an Overview, p. 525;
Grigsby, Economic Aspects of Housing, p. 533; Novick, The Physical and
Mental Health Aspects of Housing Code Enforcement, p. 538; Gilhool,
Social Aspects of Housing Code Enforcement, p. 546; Lieberman, The Ad-
ministrative Prospect-HousingCode Enforcement, p. 551; Moses, The En-
forcement Process-Housing Codes, p. 559; Curry, The Federal Role in
Housing Code Enforcement, p. 567; Alpern, The Judicial Process in Hous-
ing Code Enforcement, p. 574; Grad, New Sanctions and Remedies in
Housing Code Enforcement, p. 577; Levi, New Landlord-Tenant Legal
Relations-The Model Landlord-Tenant Code, p. 592; Moskovitz, The
Model Landlord-Tenant Code; An Unacceptable Compromise, p. 597;
Mandelker, The Local Community's Stake in Code Enforcement, p. 601.
production of uranium and thorium under lands sold with minerals reserved
to the state are not up to date and did not encourage exploration and pro-
duction of those minerals, that the Public School Fund was not benefiting
satisfactorily under prior laws and that the owner of the land was not
adequately protected. This Act was passed to remedy these deficiencies.
H. B. 1755: Provides means for extending the term of certain oil and
gas leases covering state lands which have been limited to a term of 25
years and which are now producing.
H. B. 1862: Provides that where a lessee is prevented from developing
minerals leased from the state as the result of action by the United States
or Texas, the lessee shall be refunded bonus, delay rentals and other fees
paid under the lease and is authorized to bring suit against the state within
two years after the expiration of the lease.
West Virginia
S. B. 193: Amends 20-6 to provide for more stringent standards for
regulations pertaining to surface mining and reclamation.
B. Significant Decisions
Acker v. Guinn, 464 S.W. 2d 348 (Tex. 1971).
Petitioner claimed ownership of one-half of low-grade iron ore under
mineral deed conveying "an undivided one-half interest in and to all of the
oil, gas and other minerals..." under the tract. Ore is obtained through
strip mining.
HELD: The ore is not conveyed by this form of deed. The ejusdem
generis rule is not applicable.
Determines status of ownership of strip-mined iron are in view of the
usual mineral deed form used to convey ownership of oil and gas in place.
Builders Supplies Co. v. Gainey, 178 S. E. 2d 794 (N. C. 1971).
Action by assignee of right reserved by vendor to remove gravel and
sand on a 35-acre parcel within a 331-acre tract to obtain an adjudication
that it was owner of an easement for purpose of taking and removal of sand
and gravel and to restrain purchasers from interfering or attempting them-
selves to remove any sand and gravel therefrom and for damages.
HELD: Evidence, including disclosures that vendor made selection of
the 35-acres and staked it off without objection from purchasers, that pur-
chasers removed sand and gravel from 331-acre tract up to the line so
staked off, and that purchasers subsequently assisted assignee in locating
stakes for a survey to be made of 35-acre tract, was sufficient to withstand a
motion for a directed verdict.
Clough v. Jackson, 479 P. 2d 266 (Mont. 1971).
Suit was brought for rescission of mineral deed on ground of fraud,
misrepresentation and undue influence.
HELD: Lack of materiality in agent's statement, during negotiations
for purchase of mineral interest, as to the distance of plaintiff's land from
producing wells which were in different oil fields, and absence of plain-
tiff's reliance on the inaccurate statement of agent, precluded plaintiff's
right to rescind conveyance of one-quarter mineral interest because of al-
Spring 1972] REAL PROPERTY LAW, SURVEY
C. Current Literature
Colvert, Performance of Assessment Work on Unpatented Mining
Claims-a Reappraisal, IV NATURAL RESOURCES LAW. 251 (1971). The au-
thor refers to the so-called Tosco case decided December 8, 1970 with
the opinion written by Mr. Justice Douglas. The opinoin holds, inter
alia, that the Secretary of the Interior now has had "subject matter juris-
diction over contests involving the performing of assessment work" on un-
patented mining claims. The Court, in effect, has confirmed the power and
authority of the Secretary of the Interior to declare such claims null and
void for failure of the mining claimants to satisfy annual assessment work
requirements thereon. The author believes that the decision has great force
upon owners of unpatented mining claims and that the Court's pronounce-
ments concerning the Secretary's jurisdiction will have considerable impact
upon the status of their claims. He believes that compelling reasons now
exist for reappraisal of pertinent statutory requirements and a critical
analysis of the opinion to determine, insofar as possible, precisely what it
means.
Drew, ContinentalShelf Law: Outdistanced by Science and Technology,
31 LA. L. REV. 108 (1970). Author comments upon the fast emerging and as
REAL PROPERTY, PROBATE AND TRUST JOURNAL [Vol 7:68
active participant with the right to "exercise extensive control of the pro-
ject and thus owed the public an independent duty-very shortly after that
decision the California legislature passed a statute which provides that a
construction lender shall not be liable for the negligence of the borrower
in constructing homes unless the loss is "a result of the act of the lender
outside the scope of the activities of the lender or unless it has been a party
to misrepresentation." This year the states of New Mexico and Virginia en-
acted substantially similar statutes.
A. Legislation
Alabama
S. B. 122: Enacts modified version of Uniform Consumer's Code com-
monly known as "Mini-code." Provides for maximum finance charges for
loans and credit sales; regulates extensions of credit, including consumer
loans, consumer credit sales and consumer leases; sets rates.
Arizona
Adopts a deed of trust act substantially similar to that which is in
effect in California, as well as several other states. Provision made for the
use of a deed of trust in lieu of a real property mortgage to secure the per-
formance of a contract. Act defines terms and sets forth procedures for
foreclosure and deficiency judgments.
California
Ch. 409: Amends 771 of the Insurance Code to provide that whenever
insurance is required in connection with the sale of real property or loans
upon the security of such property, the lender shall have the right to ap-
prove or disapprove for "reasonable cause," as such term is defined by
regulatory authority, rather than to approve or disapprove absolutely, the
insurer selected to underwrite insurance. Provision is made for the promul-
gation of regulations defining "reasonable cause."
Ch. 429: Adds Civil Code 2924.5 which requires that any clause per-
mitting acceleration of the due date for mortgages or deeds of trust covering
four or fewer residential units must be printed in both the body of the deed
of trust or mortgage and in the promissory note or other document secur-
ing the obligation in order to be valid.
Ch. 544: Amends 7153.1 of the Financial Code by deleting the restric-
tions that loans on condominiums may be made only when binding con-
tracts have been entered into for the sale of the majority of the units in the
projects, and adds the provision that no loan on condominiums, community
apartments projects or cluster-type residential project property shall be
made under the authority of this section in excess of an amount equal to
one per cent of assets unless binding contracts have been entered into for
sale of not less than a majority of the units in the project or the loan is
approved by the commissioner.
Colorado
H. B. 1076: Enacts Colorado UCCC, differing from the Uniform Act
in that (1) division of consumer loans into "regulated loans" and "super-
REAL PROPERTY, PROBATE AND TRUST JOURNAL [VoL 7:68
vised loans" is eliminated; (2) all consumer loans with rates of interest
over 12 per cent per annum are classified as "supervised loans"; (3) a lender
may contract for and receive reasonable fees or premiums for title examina-
tions, title insurance or similar purposes, including surveys, when the debt
is secured by an interest in land.
Connecticut
P. A. 79: Provides that unless a contrary intent is clearly indicated in
the will or codicil, a beneficiary of a devise of real estate which is subject
to a security interest existing at the date of testator's death shall not be
entitled to exoneration of the secured debt from the estate. The statute
further provides that a general directive in the will or codicil to pay the
debts of the testator shall not be deemed to be a clear indication of a
contrary intent within the meaning of this statute.
P. A. 181: Provides that unreleased mechanic's and judgment liens
which have expired by virtue of the statute of limitations need not be re-
leased of record and the lack of a release shall not be deemed to render the
title unmarketable.
P. A. 212: Amends 36-178(e) to inciease savings association fines for
default to an amount not in excess of four cents each month for each dollar
in arrears. Formerly the authorized fine was at the rate of two cents each
month per dollar in arrears.
P. A. 214: Amends 36-172(f) as follows: "A first mortgage on real estate
shall be a mortgage, trust deed or other instrument which will constitute a
first lien on real estate in fee simple or on a leasehold under a lease having
a remaining term, at the time such mortgage is acquired by the savings and
loan association, which does not expire before at least that number of years
beyond the maturity date of the obligation or obligations secured by such
first mortgage as is equal to the number of years remaining until the matu-
ity date of such obligation or obligations. The term of the leasehold estate
shall not include any period for which the lease may grant an option of
renewal."
P. A. 578: Adopts the Model Master Mortgage Recording Act.
P. A. 809: Amends 49-3, dealing with future advances to be made under
a construction mortgage at the discretion of the lender, by providing that
the statute covers site improvements such as road layout or utility installa-
tions even though no buildings are being constructed. Also permits the
parties to the mortgage to amend the same by a modification agreement
which changes the date of completion and the date for the payment of
principal and interest without endangering the priority of the mortgage.
Florida
Ch. 92: Amends 665.214(5) to authorize savings associations to sell loans
with or without recourse as contrasted with the former restriction of sale
only without recourse.
Indiana
S. B. 5: Enacts Indiana UCCC, differing from the Uniform Act in the
following respects: extends coverage of the act to "loans primarily secured
Spring 1972] REAL PROPERTY LAW, SURVEY
not exceeding four units and not more than three acres in size, if the
amount claimed to be due at the date of notice of foreclosure is more than
two-thirds of original indebtedness secured by the mortgage and the prop-
erty has been abandoned then the redemption period shall be one month.
Minnesota
Ch. 136: Empowers savings association to purchase at any sheriff's
judicial sale, or any other sale, any real estate upon which it has a mort-
gage, judgment or other lien, or in which it has an interest, and acquire
title to any real estate upon which it holds any lien, in full or part satis-
faction, and sell, lease or mortgage the same. In transactions involving the
purchase by a vendee of improved real estate for home purposes, or for the
construction of a home, a savings and loan association may, when author-
ized by its bylaws, acquire the title thereof, and it may give to the vendee
a contract to convey the same upon a sale thereof.
Ch.265: Requires notices of liens upon real property for federal taxes
to be filed with the registrar of deeds of the county in which real property
is located. Notices of liens on personal property, whether tangible or intang-
ible, for federal taxes are to be filed as follows: If a person, corporation or
partnership whose principal office is within the state, with the secretary
of state; in all other cases, in office of registrar of deeds of county where
taxpayer resides.
Missouri
S. B. 217: Grants architects, engineers, surveyors and mechanics or other
persons for water well digging or building, razing or demolition a lien upon
the building or other improvements and upon the land belonging to the
owner or proprietor on which the building or improvements are situated,
to the extent of one acre, to be governed by the procedure applicable to
mechanics' liens.
Nebraska
L. B. 374: Amends 8-330 to provide for a charge not exceeding one per
cent or that allowed a federal savings association for a premature payment.
Any payment charge received or taken as an advance or forebearance which
is included in the calculation of interest, must be spread over the stated
term of the loan for the purpose of determining the rate of interest. Further
provides that "interest may be paid on escrow accounts held for the payment
of taxes, insurance and similar payments, if agreed to in writing by the
borrower and association."
Nevada
Ch. 224: Requires that the amount of any assumption fee must be
clearly set forth in the deed of trust.
Ch. 255: Amends the mechanics' lien law allowing 40 days for the
recording of the notice of lien after the recording of the notice of comple-
tion.
New Hampshire
Ch. 242: Provides that "any association which makes a loan whose
Spring 1972] REAL PROPERTY LAW, SURVEY
proceeds the borrower uses, or may use, to finance the design, manufacture,
construction, repair, modification or improvement of real property for sale
or lease to others, is not liable to third persons for (1) any loss or damage
resulting from any defect in the property; (2) or any loss or damage resulting
from the borrower's failure to use due care in any work for or on the prop-
erty, unless the loss or damage results from an act of the association outside
the scope of its business as an association or unless the association has
knowingly been a party to any misrepresentation concerning the property."
Ch. 483: Amends 479:4 relating to priority of future advances made
under a mortgage, to add the provision that "interest rate charged on such
readvance need not be the same as that set forth in the original note."
Ch. 513: Amends 393:18 to provide that limitations imposed by the
section on the amount of real estate loans and investments of cooperative
banks and savings associations shall not apply to loans secured or guaranteed
by a private mortgage guaranty insurance company licensed to do business
in New Hampshire and approved by the Bank Commissioner. The section
makes similar provisions for FHA, VA and New Hampshire insured or
guaranteed loans.
Ch. 517: Adds to 393.24 to permit assets of cooperative banks, building
and loan associations and savings and loan associations to be invested in fee
simple interests in real estate acquired by foreclosure by the acceptance of
a deed in lieu of foreclosure or by purchase. The book value of the invest-
ments and real estate acquired under this section may not exceed 5 per cent
of deposits.
New York
Ch. 1041: Amends Banking Law 393(2) to add to the provision that any
mortgage loan made by a savings association may be prepaid, that the loan
contract may expressly provide for a period during which prepayment may
not be made without incurring prepayment penalties. When such provision
is contained in the loan contract, the contract must also expressly provide
for prepayment penalties or no prepayment penalties may be collected when
the loan is prepaid. However, where a loan is secured by a mortgage on a
residence containing fewer than four housing units, which residence is or
will be occupied in whole or in part by the member, prepayment penalties
may not exceed: (a) interest for a period of three months on the principal
so prepaid; or (b) interest and premium for the whole year on the principal
so prepaid, if prepayment is made at any time within one year.
North Carolina
Ch. 487: Amends 54-22 to provide that upon prepayment of a loan
by a borrower he shall be charged interest at the rate agreed upon in the
note to date of settlement (formerly six per cent per annum) on all fines
and dues unpaid.
Ch. 1168: Adds to 24-10 new subdivision (d) which authorizes any
lender, including a savings association, to charge any person, firm or cor-
poration that assumes a loan, a fee not in excess of one per cent of the
principal amount due or $25, whichever is less, where the principal amount
assumed is not more than $50,000 and is secured by real property.
REAL PROPERTY, PROBATE AND TRUST JOURNAL [Vol. 7:68
North Dakota
Ch. 328: Amends 32-19.1-01 to provide that parties to a real estate mort-
gage upon property involving an area not to exceed ten (formerly three)
acres may make provision in such mortgage that upon default in its con-
ditions it may be foreclosed as is provided by the short-term mortgage
redemption act.
Texas
S. B. 432: Repeals Articles 1.26 and 1.26-1 of Insurance Code and sub-
stitutes Article 21.50 entitled "Mortgage Guaranty Insurance." Mortgage
guaranty insurance is defined as insurance against financial loss by reason
of nonpayment of the obligation which is secured by a lien or lease on real
estate. Only certain types of real estate loans are covered and only certain
companies which qualify to do business in a manner prescribed by the
article can write the insurance.
S. B. 733: Adds section to Article 5459 defining what constitutes the
time of the inception of certain liens, particularly mechanics' and material-
men's liens. The inception can be any of the following: (a) commencement
of construction; (b) delivery of materials on the realty; (c) recording of the
agreement in the mechanics' lien records; or (d) recording of an affidavit of
oral agreement in the mechanics' lien records.
H. B. 263: Adopts Uniform Federal Tax Lien Registration Act.
H. B. 967: Requires that the county clerks and justices of the peace
include in abstracts of judgment (1) the names of the parties; (2) birthdate
and driver's license number of the defendant; (3) number of the suit; (4) de-
fendant's address; (5) date of the judgment; (6) amount of the judgment;
and (7) interest rate.
West Virginia
H. B. 533: Amends 31-6-23 to provide that whenever any borrower on a
direct reduction basis or borrower on a loan secured by shares shall fail to
pay "dues, interest, premiums or fines" as provided by his mortgage for a
period of 30 days (formerly three months) or be in default in perform-
ance of any obligation imposed thereby, the whole indebtedness shall be-
come due and payable at the association's option.
Wyoming
Ch. 191: Enacts Wyoming UCCC, eliminating from Uniform Act the
division of consumer loans into "regulated loan" and "supervised loan"
categories, and provides that all loans with rates of interest over ten per
cent per annum are to be classified as "supervised loans."
B. Significant Decisions
Aims, Inc. v. Cedar Inn, Inc., 280 A. 2d 698 (Del. 1971).
Sale price of premises at mortgage foreclosure sale was $120,000. Un-
successful bidder who had bid $118,000 asked court below to set aside the
sale on the grounds that misleading announcements had been made to
prospective bidders prior to the commencement of auction.
Spring 1972] REAL PROPERTY LAW, SURVEY
claiming that it had never received notice to quit and that it is entitled to
damages for the six years intervening. Plaintiff Brunswick and landowners
cross-appealed and contended that (1) any oral lease could not give de-
fendants greater rights than it possessed under written lease and that
defendant's rights were terminated by mortgage foreclosure and the charter
forfeiture; and (2) defendant's rights of possession were terminated by the
November 1964 agreement with Banks.
HELD: (1) Damages upon breach of the covenant of quiet enjoyment
are the natural and direct consequences of the breach. A tenant-at-will is
restricted to damages between the actual value of the unexpired term and
the rent reserved; (2) defendant, who had possession under a written demise
without an express term, was a tenant on a month-to-month basis being
"in the nature of a tenancy-at-will." Therefore, he was entitled to damages
from the time of eviction to the end of the next term of one month; (3)
the statutory notice to quit may be waived and defendants waived notice
to quit by delaying too long to set up an oral demise inconsistent with a
prior written lease, by failing to assert right to notice under a monthly
lease, and by agreeing to remain out of possession while rights were liti-
gated. Defendant's appeal was denied for the above reasons. Cross-appeals
of plaintiff and intervening owner were granted for the following reasons:
(1) unexecuted lease of 1961 was not binding on defendant; (2) (a) to con-
stitute abandonment of a lease there must be an intent to abandon plus
conduct by which the intent is carried into effect. Failure of a tenant with
knowledge to object to a second lease by a landlord may, without other cir-
cumstances, constitute an abandonment of the lease, (b) rights of possession
of Colt Lanes were abandoned by its spokesman's (Banks) failure to object
to the November 1964 agreement with Banks which granted him separate
possessory rights; (c) it is not necessary for abandonment that the original
tenant be a party to the second lease or agreement or that the original
tenant be expressly released.
Estes v. Republic Nat'l Bank, 462 S.W. 2d 273 (Tex. 1970).
E, who borrowed $30,000 from a bank, giving as security a deed of trust
of 396 acres, then sold the land to G, subject to the $30,000 note. When G
tendered payment of the unpaid principal amount, pursuant to prepayment
terms of the note, the bank refused to release the deed of trust because it
claimed E owed the bank an additional $570,000 and, according to the
terms of the trust deed, the instrument was security for this debt as well.
The deed of trust contained a "dragnet" clause making it security for all
other debts of E to the bank.
HELD: Since G admitted he never read the terms of the deed of trust,
he could not show that this provision had been inserted in the deed of trust
by mutual mistake. A claimed agreement between E and the bank limit-
ing the deed of trust as security only for the $30,000 debt was, therefore,
meaningless.
First Granite City Nat'l Bank v. Champion, 268 N. E. 2d 35 (III. Ct.
App. 1971).
A builder, who applied to a commercial bank for a construction loan
REAL PROPERTY, PROBATE AND TRUST JOURNAL [VoL 7:68
he does not part with any value in reliance on the misleading state of the
debtor's title.
unpaid taxes for the year 1966. A tax title issued in 1969. Mortgagee Miles
Homes received no notice of tax deed proceedings. The mortgagee and the
Diehls brought an action to set aside the tax deed and to be permitted to
redeem. They appealed from an order of the lower court denying such
relief.
HELD: Affirmed. Recording of mortgage given prior to time of acqui-
sition of record title by mortgagor is not in chain of title and is not con-
structive notice to third persons. Hence, mortgagee Miles Homes, Inc. was a
stranger to the record chain of title and was not a "mortgagee of record"
entitled to notice of proceedings for issuance of tax deed.
controlling since the surviving spouse is now the sole owner of the property
which was the security for the debt.
HELD: Wife is entitled to contribution from the estate.
Ramsey v. Peoples Trust & Savings Bank, 264 N.E.2d 111 (Ind. 1970).
A no lien contract under Indiana law does not affect labor, material or
machinery supplied prior to the time that the contract is filed with the
recorder. Subcontractor moved his machinery to the site of the construction.
Prior to the use of the machinery, owner and principal contractor properly
executed, recorded and posted in compliance with Indiana law a no lien
contract. Thereafter, subcontractor performed work. Subcontractor filed to
foreclose mechanics' lien.
HELD: Since subcontractor did not use the machinery prior to the
compliance with the provisions of the no lien contract statute, subcon-
tractor was not entitled to mechanic's lien.
Case of first impression.
Robert Allen Associates v. Carver Federal Savings & Loan Ass'n, 319
N. Y. S. 2d 1009 (Sup. Ct. 1971).
A mortgage was recorded after improvements were commenced on real
property. Thereafter a mechanic's lien was filed for these improvements and
an action of foreclosure was brought to foreclose the lien, naming the mort-
gagee as a subsequent party defendant.
HELD: The mortagee has priority over the mechanic's lien by rea-
son of the inclusion in the mortgage of covenant (required in New York
by section 13 of the Lien Law) whereby the owner agrees that all advances
under the mortgage are to be applied first toward payment of the cost of
improvements.
Sapenter v. Dreyco Inc., 326 F. Supp. 871 (E. D. La. 1971).
To avoid foreclosure of an apartment building the owner gave a mort-
gage on his home to secure payment of the arrears of the apartment mort-
gage. In a suit to foreclose the mortgage on his home he claimed that the
mortgagee had not made the disclosures required by truth-in-lending.
HELD: The mortgage on the mortgagor's home comes within the ex-
press exemption of the statute "credit transactions involving... credit for
business or commercial purposes .... The mortgage in question was a
transaction to finance the business of owning and renting real estate for
a profit. It, therefore, fell squarely within the exemption. Whether or not
a particular credit transaction is a consumer credit transaction depends
upon the reason for which the debtor obtains credit, not the nature of the
collateral he puts up. Consumer credit is credit which the debtor will use
for personal, family, household or agricultural purposes. Thus, a mortgage
on one's home to secure a home improvement loan is a consumer credit
transaction subject to truth-in-lending. But a mortgage on one's home to
finance one's business is not.
In re San Francisco Industrial Pk., Inc., 307 F. Supp. 271 (N. D. Cal.
1970).
HELD: Though developer sold land to insurance company for less than
REAL PROPERTY, PROBATE AND TRUST JOURNAL (Vol. 7:68
its fair market value and took an option to repurchase at less than the fair
market value at the end of the twenty-five year lease term, the sale-leaseback
transaction was valid and the life insurance company had superior title as
against the developer's trustee in bankruptcy.
to adopt a rule more stringent than that deemed necessary by the Congress
in the importantfield of taxation.
State Fidelity Fed. Say. & Loan Ass'n v. Wehrly, 25 Ohio Misc. 221, 263
N. E. 2d 801 (1970).
Upon completion of a foreclosure and payment of prior liens, the sum
of $1,115 remained. This case involved a contest for said sum between a
land contracts vendee and federal tax liens. The vendee purchased on land
contract for $13,000 on June 1, 1967, on which date he paid $2,000 down
and immediately entered into possession. Thereafter, between August and
December of 1967, federal liens amounting to more than $4,000 were filed
against the vendor. The land contract was not recorded until January 31,
1968. Ohio statute provides that unrecorded land contracts ". . . are fraudu-
lent, so far as relates to a subsequent bona fide purchaser having at the
time of purchase, no knowledge of the existence of such... land con-
tract ......
HELD: Vendee has priority over the federal tax lien even though the
land contract was not recorded. His possession gave notice to third parties
of his rights. The statute is intended to protect subsequent purchasers and
not prior creditors.
Stowell Electric Co. v. Blue Valley Foundry Co., 467 S. W. 2d 955
(Mo. 1971).
Plaintiff filed a petition in circuit court of Jackson County at Independ-
ence, Missouri, to enforce mechanic's lien upon land located in Kaw Town-
ship of Jackson County contrary to the provision of the statute requiring
such suits to be field in circuit court of Jackson County in Kansas City.
Petition was dismissed and the lienor appealed, questioning constitutionality
of the statute.
HELD: The statute in question was not unconstitutional since it
affected equally all persons coming within its range and did not deny lienor
equal rights by creating unreasonable discrimination in lienor's selection
of a forum.
United States v. Thompson, 39 L. W. 2512 (Ark. 1971).
The owner of an apartment which was insured by F. H. A. defaulted
in payments on the mortgage. The government honored its insurance obli-
gation and then brought a federal district court suit to foreclose the mort-
gage. The foreclosure decree was entered and the appartment was sold to
the government, the only bidder. The former apartment owners filed this
motion to vacate the confirmation of the sale and set aside the sale on the
ground that it was in violation of an Arkansas statute which required that
any judicial sale be upon a credit of not less than three nor more than six
months and not for cash.
HELD: Motion denied. The Arkansas statute requiring foreclosure
sales to be for credit and not for cash need not be applied to federal fore-
closures.
White v. Turbidy, 227 Ga. 825 (1971).
Real estate installment note provided that in case of default in pay-
REAL PROPERTY, PROBATE AND TRUST JOURNAL [Vol. 7:68
One, the basic demand for new investment in real estate and for financing
that investment will steadily increase because of the increase in the number
and size of families. Two, the catch-up necessary to relieve the housing
shortage accumulated from the current housing recession.
Spolan, The Case for Variable Rate Mortgages, I REAL ESTATE REV.
15 (No. 1-1971). The VRM is examined in some detail and found to be a
useful tool for the thrift institutions in their fight against "monetary lag."
The author concludes that a variable rate mortgage is by no means the
panacea for all ills affecting the thrift business in times of tight money
and, in fact, many other corrective measures are employed to loosen cash
under such conditions. But such a debt instrument should be employed as
one more means of rectification whenever money becomes expensive. It
served many countries well. It should work well here too.
Withers, Surety v. Lender: Priority of Claims to ContractFunds, 10 WASH-
BURN L. J. 356 (1971). The competing claims of a defaulting contractor's
surety and a lender as assignee of the right to the contractor to funds with-
held on a construction contract has been and continues to be a prolific
source of litigation. The issue is essentially one of priority of claims. The
author points out that historically the battle has centered about the question
of whether a surety's subrogation rights are superior to rights of a lender
acquired by assignment. The courts have traditionally held a surety's rights
under the doctrine of subrogation are superior to the rights of the lender
acquired by a valid legal assignment.
Recently the lender has used the Uniform Commercial Code to assert a
priority claim. The contention of the lender is that the filing of a financing
statement on the assignment of contract rights creates a priority over the
surety. It is the author's contention that nothing could be further from the
truth. The article is devoted to the author's claim that the respective rights
of the surety and lender have been declared in case law and govern the
application of the Uniform Commercial Code.
Symposium on Commercial Law and Consumer Protection, 34 ALBANY
L. REv. 231 (1970). Bowman, Truth in Lending: A Look at Some Real Estate
Ramifications; Ward, A Bottleneck in Section 9-103; Schwartz, The Floating
Lien Under Sections 9-108 and 9-204; A Case Analysis; French, Unconscion-
ability.
Turner, Subordination Agreements, 37 LEGAL BULL. 449 (1971). A con-
sideration of the questions which should be asked and the facts which should
be investigated by a real estate mortgagee, construction or otherwise, who
intends to disburse the mortgage funds in reliance upon the validity and
enforceability of a subordination agreement.
B. Current Literature
Collie and Linden, The Effect of the Tax Reform Act of 1969 on Oil,
Gas and Mineral Properties,4 IND. LEGAL F. 187 (1970). An examination of
the changes made in the tax advantages for the natural resources industries.
Dam, Implementation of Import Quotas: The Case of Oil, 14 J. L. &
ECON. 1 (1971). This article discusses the most developed import quota
scheme of the United States, namely, the mandatory oil import control pro-
gram and its voluntary predecessor. The focus of the discussion is on what
happens after the policy decision is taken to introduce import quotas.
Dodge, The Gerhard Doctrine of Abandonment-Outlook for Califor-
nia's Oil and Gas Industry, IV LAND AND WATER LAW REv. 511 (1971). In
light of the holding of the California Supreme Court in Gerhardv. Stevens,
442 P.2d 162 (1968) that an incorporeal interest in oil and gas of fee simple
duration can be abandoned, the effect of this decision on the oil and gas
industry in California and possible steps to protect the industry's holdings
are examined. Conceding that the policy of clearing titles and promoting
development is advanced by the court's utilization of the rationale of the
common law doctrine of abandonment, the author suggests that the un-
certainty generated from this decision should be eliminated by legislative
measures to clear land titles of uncertain mineral rights.
Dugan, Jurisdiction of the Federal Power Commission Over Importa-
tion of Liquefied Natural Gas, IV NATURAL RESOURCES LAW. 276 (1971).
The article examines the question which has arisen in both rulemaking and
adjudicatory proceedings whether the Federal Power Commission has juris-
diction (and if so, to what extent) over the importation into the United
States from a foreign country of liquefied natural gas by tank ship. The con-
clusion reached by the author after a lengthy analysis of the question is
that the transportation of LNG from a foreign port to a United States port
and its sale to a U. S. buyer does not constitute a transportation or sale
"subject to the jurisdiction of the Commission" and that the jurisdiction of
the Commission over an import commences with the U. S.-based buyer of
the foreign natural gas.
Johnson, Petroleum in Perspective, 11 NATURAL RESOURCES J. 119
(1971). The author raises the questions whether or not we can supply our
future needs for petroleum and whether we have dipped too deeply into
our supplies of this nonrenewable resource. While he believes that we will
be able to supply all our needs in the foreseeable future, the author states
the real question as being the price required to make it profitable to pro-
duce this supply. The article explores the inter-relationships between eco-
nomics, technology and policy to place petroleum in perspective.
Jones, The Oil Operatorand Surface Damages, IV NATURAL RESOURCES
LAW. 339 (1971). One of the more annoying, perplexing and unpleasant
problems to the oil and gas operator is that of surface, crop and livestock
Spring 1972] REAL PROPERTY LAW, SURVEY
B. Current Literature
Halperin, Conservation, Policy and the Role of Counsel, 23 MAINE L.
REv. 119 (1971). A discussion of the tactics and strategy used in State v.
Johnson, 265 A.2d 711 (Me. 1970), the case which found Maine's Wetlands
Act to be unconstitutional.
A. Legislation
California
Ch. 150: Requires that the general plan shall also include an identifica-
tion and appraisal of seismic hazards.
REAL PROPERTY, PROBATE AND TRUST JOURNAL [Vol. 7:68
Ch. 306: Prohibits local government bodies from conditioning the is-
suance of building or use permits or zone variances on the dedication of
land for any purpose not reasonably related to the use of the property to
which the variance or permit is requested. Prohibits the requirement of post-
ing a bond to guarantee installation of public improvements not reasonably
related to the use of the property for which the variance or permit is
requested.
Ch. 1085: Requires protection of persons residing in vicinity of airports
from intrusions by unreasonable levels of aircraft noise and to achieve by
zoning compatible land uses in the vicinity of all new and existing airports.
Colorado
Ch. 167: Amends Housing Act of 1970 to remove from local govern-
ment regulation all factory-built housing which is approved by the Division
of Housing.
Ch. 261: Substantially amends the Land Use Act to shift emphasis from
development of state-wide land use map to development of guidelines for
local government land use planning.
Connecticut
P. A. 215: Amends 8-26(a) by providing that all approved subdivisions
of property are protected for a period of five years against future changes
in the subdivision regulations which existed at the time of the approval of
the particular subdivision plan.
P. A. 388: Amends 8-13(a) by reducing from five to three years the
period that a building must be located on a lot in violation of the zoning
setback lines before it will be deemed a nonconforming use.
Maine
Ch. 456: Creates the industrial housing law, the main purpose of which
is to give State Housing Authority right to oversee activities of people creat-
ing industrialized housing (fabricated residential structures).
Ch. 457: Provides that the jurisdiction of the Land Use Regulation
Commission shall extend to all of the unorganized territory of the state.
Ch. 532: Places a minimum frontage requirement on any lot abutting
a public road, lake, pond, river, stream or seashore, which minimum front-
age shall be 100 feet.
Ch. 535: Provides mandatory zoning and subdivision control in shore-
land areas, which are defined as those land areas any part of which are
within 250 feet of the normal high water mark of any navigable pond, lake,
river or salt water body. Municipalities are given until June 30, 1973, to
adopt zoning and subdivision control ordinances over these areas. If they
do not, the Environmental Improvement Commission and the Land Use
Regulation Commission may adopt these ordinances themselves.
Ch. 541: Gives the Wetlands Control Board authority to make orders
regulating, restricting or prohibiting dredging, filling, removing or deposit-
ing material in the coastal wetlands or otherwise polluting them.
Spring 1972] REAL PROPERTY LAW, SURVEY
Missouri
H. B. 145: Authorizes cities of more than 25,000 population to zone
areas up to two miles beyond the city limits with approval of the county
court. But, if the county creates a county planning commission that adopts
an official master plan for the county, the city's authority is terminated.
Oklahoma
Ch. 238: Provides for vacation by the City Council and, upon a showing
of nonuser by the public for 90 days after the passage of the ordinance
vacating the street or alley, any interested party may sue in district court
to quiet title thereto.
Ch. 239: Provides for the same relief without the benefit of a vacation
by City Council where parties have closed a street or alley, upon a showing
of nonuser by the public for 90 days.
B. Significant Decisions
Aunt Hack Ridge Estates, Inc. v. Planning Commission, 160 Conn. 109
(1970).
Subsequent to purchase of 275 undeveloped acres in 1958, the planning
regulations were amended to authorize the planning commission to require
a plan of subdivision to show an area for park or playgrounds at a rate
of not more than four per cent of the total approved area. When the pur-
chasers submitted a subdivision plan without complying with the above
regulations, the application was denied.
HELD:The test to determine whether a requirement that a developer
set aside land for park and playgrounds as a prerequisite to approval of a
subdivision plan is valid is whether the burden cast upon the subdivider
is specifically and uniquely attributable to his own activity. Where the
requirement is uniquely attributable to the subdivider's activity it has been
held to be a permissible exercise of the police power. It is clear that the
requirement cast upon the plaintiff by the regulation and statute is uniquely
and solely attributable to its activity in undertaking to establish a subdivi-
sion. Engaging in the activity is left to its own choice. When it undertakes
to subdivide, the population of the area is necessarily increased and the need
for open space for its people becomes a public one. In these days of bur-
geoning population, critical housing problems and the incentive which they
create for the activity of land developers, the need for parks, recreational
areas and open space for the welfare of the people looms large.
Case of first impression. Court distinguishes contrary holding in Hangen
v. Gleason, 226 Ore. 49, 359 P.2d 108, Coronado Development Co. v.
McPherson, 189 Kan. 174, 368 P.2d 51 and Gordon v. Village of Wayne, 370
Mich. 329, 121 N.W.2d 823.
Berlani v. Zoning Board of Appeal, 160 Conn. 166 (1970).
The Zoning Board of Appeals granted a variance to permit owner to
erect a building to house a bailing machine in order to permit him to re-
main competitive as regards the cost of doing business.
HELD: Financial considerations are relevant only in those exceptional
situations where a board could reasonably find that the application of the
REAL PROPERTY, PROBATE AND TRUST JOURNAL [Vol. 7:68
East Diamond Head Ass'n v. Zoning Board of Appeals 479 P.2d 796
(Hawaii 1971).
Review of the grant of variance was sought. The lower court held that
owners of adjoining land were not entitled to judicial review and they
appealed.
HELD: An owner whose property adjoins land subject to a zoning
variance is a person aggrieved within the statute and was entitled to judicial
review of the grant of variance by the Zoning Board of Appeals where each
had comported with all procedural dictates at the public hearing even
though none had intervened in the hearing.
Gagne v. Inhabitants of City of Lewiston, 281 A.2d 579 (Me. 1971).
Owners of land on which a crushed stone operation was conducted
maintained a garage located largely within an industrial zone, but a small
part of which was within residential A zone, as was also the yard used prin-
cipally by the owner for moving and storing large trucks and other heavy
construction equipment. This present use of the property in a residential
zone was a lawful nonconforming use. Owners proposed to demolish
present garage and erect a new and larger one on the same lot. The zoning
ordinance provides "A building or nonconforming use may be enlarged or
altered or additional buildings may be erected... provided the Board of
Appeals shall rule that such additional (sic) or alteration is not substantially
more detrimental or injurious to the neighborhood." The board voted to
issue a permit for the construction of the new building but did not make
any finding. Shortly thereafter plaintiffs appealed. The board voted to
REAL PROPERTY, PROBATE AND TRUST JOURNAL [Vol. 7:68
grant the petition and stated in writing that the change or extended use
would not be substantially more detrimental or injurious to the neighbor-
hood. The state enabling act gives a local Board of Appeals power to
grant an exception to an ordinance "only when the terms of the exception
have been specifically set forth by the municipality."
HELD: The reference to "additional buildings," along with "enlarged
or altered," does not indicate an intention to permit replacement of an
existing building with a new one. The policy of the law with respect to
nonconforming use is to effect the gradual elimination of nonconforming
uses as speedily as justice will permit. Accordingly, provisions in a zoning
ordinance allowing the continuation of such uses should be strictly con-
strued and provisions limiting nonconforming uses should be liberally
construed.
With respect to the effect of the second ruling of the Board of Appeals
on the action commenced by plaintiffs, the general rule is that the filing of
an appeal removes the cause from the administrative tribunal to the court.
Thus the appeal terminates the authority of the tribunal to modify its
decisions unless the court remands the matter to the tribunal for its further
action, thereby reviving its authority.
Gates Mills Investment v. Parks, 25 Ohio St. 2d 16, 262 N. E.2d 859
(1971).
Planning commission of a village refused to approve a plat submitted
by a land developer for the reason that the plat did not comply with a
village zoning ordinance providing for rules and regulations for subdivid-
ing land within the village. A state statute provides that the legislative
authority of a village is precluded from adopting a plan or rules and regula-
tions governing plats and subdivisions of land where such village has a duly
elected or appointed planning commission.
HELD: Under such statute a planning commission acts unreasonably
and unlawfully in refusing to approve a plat for the reason that said plat
does not conform to provisions of a village ordinance. Under such a statute
the legislative authority of a village can adopt a plan for streets and public
parks only if there is no planning commission.
Golden v. Board of Selectmen, 265 N. E.2d 573 (Mass. 1970).
Golden applied to the Board and also to the Director of Marine Fish-
eries under the Coastal Wetlands Act for a special permit to dredge through
his coastal tidal marshland. While Director gave his authorization, the
Board refused the permit.
HELD: The Act set out minimum standards for the whole state but the
municipality had not lost its power under the zoning enabling legislation
to set more stringent standards which could not be overruled by the Director
of Marine Fisheries.
Holt-Lock, Inc. v. Zoning and Planning Commission, 161 Conn. 182
(1971).
The plaintiff's application for a permit to remove sand and gravel
from its flood plain land was denied. The plaintiff claimed the trial court
erred (I) in not concluding that a letter from the secretary of the local board
Spring 1972] REAL PROPERTY LAW, SURVEY
J&M Realty Co. v. Board of Zoning Appeals, 161 Conn. 229 (1971).
Plaintiff applied for a building permit to construct a scrap-processing
plant in a heavy industrial zone. The plant was to receive frames of auto-
mobiles which had been stripped, burned and compressed into virtual sheets
of steel so that their identity as motor vehicles had dissappeared and, by its
manufacturing process, to convert them into fist-size pellets of steel for use
in steel mills. Plaintiff's application was denied on the ground that the
zoning regulations prohibited, in that zone, the use of premises for a junk
yard, motor vehicle junk business or motor vehicle junk yard.
HELD: The proposed manufacturing process does not come within
terms of that part of definition of "motor vehicle junk yard" and, since
the plaintiff will be neither buying nor selling the raw crushed metal on
its premises, its manufacturing plant does not fall within the common under-
standing of "junk yard." Nor do the historic reasons for licensing junk
yards and the operation of a junk business apply to the proposed factory
use. The purpose of the statutes relative to motor vehicle junk yards is not
served by applying their provisions to a business like that of the plaintiff.
purposes. The plaintiff claimed that the commission, in granting the special
permit, acted invalidly by conditioning it on the effectuation of certain off-
site highway and traffic changes and improvements by other town agencies
not under its control. The trial court distinguished this case from other Con-
necticut cases which held that where a grant of an exception or special per-
mit is made conditional upon favorable action of another agency over which
the zoning authority has no control, its issuance will be held invalid because
this particular case differs in the material respect that the commission itself
determined precisely what on-site and off-site changes should be effectuated
so that the health, safety and general welfare of the municipality were pro-
tected. The commission then made the issuance of the permit conditional
upon the effectuation of those changes.
HELD: The commission had no jurisdiction over the other public
agencies involved and could not order or require any of them to do any-
thing so as to comply with these specified conditions. But unless these other
public agencies did take the necessary action to comply with the off-site
conditions, then, under the provisions of the conditional permit, the appli-
cant could not make the contemplated use of the property. Where an ex-
ception or special permit is granted and the grant is otherwise valid except
that it is made reasonably conditional on favorable action by another agency
or agencies over which the zoning authority has no control, its issuance will
not be held invalid solely because of the existence of any such condition.
Two of the live justices dissented because the decision is a departure
from Connecticut'ssettled rule most recently stated in Stiles v. Town Coun-
cil, 159 Conn. 212, 268 A.2d 395 (1970) to the effect that a change of zone
or the granting of a special use which is dependent for its proper function-
ing on action by other agencies over which zoning commission has no
control cannot be sustained unless the necessary action appears a probability.
Palo Alto Tenants Union v. Morgan, 321 F.Supp. 908 (N.D. Cal. 1970).
Zoning laws limiting to four the maximum number of unrelated per-
sons who may live together in a single family house in residential areas was
challenged because it was a denial of equal protection to impose a limitation
on number of unrelated persons living together without a similar restriction
on traditional families.
HELD: Voluntary families or communes have only emotional ties
without the legal responsibilities of support and cohabitation. The legisla-
ture had the right to recognize the role of the traditional family. Communal
groups tend to have an adverse impact on the character of the neighbor-
hood in that noise, traffic and parking problems increase.
REAL PROPERTY, PROBATE AND TRUST JOURNAL [Vol. 7:68
PeninsularPoint Inc. v. So. Ga. Dairy Co-Op Inc., 251 So.2d 690 (Fla.
Ct. App. 1971).
Original subdivider of waterfront property brought action against a
subsequent grantee to enjoin obstruction of a plotted street which had been
abandoned. After the county had formerly abandoned the public right to
the streets the subsequent grantee proceeded to construct a fence blocking
off the entire area in front of the street lying between his two lots. The
subdivision plot was executed and recorded before any lots were sold and
bore on its face a dedication of the street in question as follows: "... and
does hereby dedicate the perpetual use of the public as public highways, the
streets herein, reserving unto itself, its heirs, successors, assigns or legal
representatives, the reversion or reversions of the same whenever abandoned
by the public or discontinued by law."
HELD: The rule of Smith v. Horn, 70 Fla. 484, which provides that
title of the grantees abutting on dedicated streets in a subdivision extends
to the center of such highways is not applicable where the owner indicates
a contrary intent. Here the language of the reversion contained on the face
of the recorded plot is sufficiently clear to meet the "clear intent" necessary
to avoid the application of the rule.
Slevin v. Long Island Jewish Medical Center, 319 N.Y.S.2d 937 (Sup. Ct.
1971).
Neighbors sought to enjoin a church and hospital from maintaining a
drug center on the third floor of the parish house.
HELD: The drug center which was designed to reach nonaddicted
youngsters in early stages of experimentation with marijuana and so-called
"soft drugs," to the exclusion of addicts, users of "hard" drugs and pro-
longed drug users, and which was not a residential facility, with medications
or drugs for detoxification, withdrawal or maintenance, but a facility for
helping early troubled drug users to find their way while still functioning
acceptably at home and in society, was a "religious use" of church property
and a valid extension of a religious institution for zoning purposes. Whether
the drug center presented such a danger to public health and safety as
would require its discontinuance was question of fact precluding summary
judgment in favor of either party. Further, while religious uses cannot be
entirely excluded, religious uses are nonetheless subject to reasonable regu-
lation weighed in relation to total safety, health and morals of community.
State v. Murray, 471 S.W.2d 460 (Mo. 1971).
Mandamus to compel issuance of a permit to locate and occupy a house
trailer as a residence. Property owners contended the zoning ordinance
which denied such use was a denial of the due process and equal protection
provisions of the United States and Missouri Constitutions.
HELD: Mobile homes are residential uses which possess special char-
acteristics warranting their separate regulation. They may be confined
to mobile home parks, or may be excluded from residential districts on the
ground that they tend to stunt the growth of the land, or on the ground that
they involve potential hazards to public health. Absent exceptional cir-
cumstances, the exclusion of this use is not unreasonable.
Spring 1972] REAL PROPERTY LAW, SURVEY
Respectfully submitted,
THOMAS F. GALLIVAN, JR., Chairman,Suffield, Conn.