Table of Contents
Section Page
Project Status at a Glance ....................................................................................................................... xx
Foreword ................................................................................................................................................ xxii
Reporters’ Memorandum ....................................................................................................................... xxiii
Projected Overall Table of Contents ....................................................................................................... xxv
Volume 4. Divided and Shared Ownership
Division III. Leases
Introductory Note ....................................................................................................................................... 1
Chapter 1. Basic Provisions
§ 1.1. Definition of a Lease ........................................................................................................................ 4
§ 1.2. Comparison of Leases and Rentals .............................................................................................. 10
§ 1.3. Leases as a Hybrid of Property and Contract Elements ................................................................ 18
Chapter 2. Forms of Leases
§ 2.1. Permissible Forms of Leases ........................................................................................................ 23
§ 2.2. Term of Years ................................................................................................................................. 27
§ 2.3. Periodic Lease ............................................................................................................................... 30
§ 2.4. Lease at Will .................................................................................................................................. 35
§ 2.5. Lease Determinable on Some Event Other Than Breach or Default by One of the Parties .......... 40
§ 2.6. Lease Not to Begin Until Occurrence of an Event ......................................................................... 42
Chapter 3. Formalities Required for Creating a Lease Relationship
[To Come] ................................................................................................................................................ 46
Chapter 4. Illegal Leases
§ 4.1. Property Leased for Illegal Use ..................................................................................................... 47
§ 4.2. Lessee’s Rights When Intended Use Becomes Illegal .................................................................. 51
§ 4.3. Lessee’s Rights When Governmental Action Frustrates Intended Use ......................................... 59
§ 4.4. Lessee’s Use of Leased Property for an Illegal Purpose ............................................................... 64
Chapter 5. Lessee’s Right to Possession
Introductory Note ..................................................................................................................................... 70
§ 5.1. Lessor Action that Deprives Lessee of Physical Access to Leased Asset ..................................... 71
§ 5.2. What Constitutes a Paramount Title .............................................................................................. 74
§ 5.3. Breach of Lessee’s Right to Possession by Paramount Title ........................................................ 82
§ 5.4. Third Party Improperly in Possession of Leased Property on Date Lessee Entitled to
Possession .............................................................................................................................................. 96
§ 5.5. Effect of Taking by Eminent Domain on Lease ............................................................................ 106
§ 5.6. Amount of the Condemnation Award Lessee Entitled to Receive ................................................ 112
§ 5.7. Destruction or Damage of Property by Force of Nature or Act of Third Party ............................. 121
Chapter 6. Interference with Lessee’s Right to Use: Residential Tenancies
Introductory Note ................................................................................................................................... 128
§ 6.1. Lease for Residential Use—Implied Warranty of Habitability ...................................................... 129
§ 6.2. Remedies for Breach of Implied Warranty of Habitability ............................................................ 138
§ 6.3. Residential Leases—Obligations of Repair and Maintenance .................................................... 144
§ 6.4. Residential Leases—Lessor’s Violation of Antidiscrimination Laws ............................................ 151
Chapter 7. Interference with Permissible Use
Introductory Note ................................................................................................................................... 154
§ 7.1. Lessor’s Interference with Permissible Use ................................................................................. 155
§ 7.2. Remedies for Lessor’s Interference with Permissible Use .......................................................... 165
Chapter 8. Procedures for Invoking Lessee’s Remedies
Introductory Note ................................................................................................................................... 173
§ 8.1. Termination of Further Performance Under Lease ...................................................................... 173
§ 8.2. Damages ..................................................................................................................................... 180
§ 8.3. Rent Abatement ........................................................................................................................... 193
§ 8.4. Rent Withholding ......................................................................................................................... 204
Volume 5. Title and Transfers of Ownership
Introductory Note ................................................................................................................................... 211
Division I. Title
Chapter 1. Foundations
§ 1.1. Right to Transfer an Interest in Property (Nemo Dat) .................................................................. 212
§ 1.2. Bona Fide Purchaser ................................................................................................................... 214
§ 1.3. Transferee’s Status When Transferor Has Priority (Shelter Principle) ......................................... 221
§ 1.4. Encumbrance Defined ................................................................................................................. 225
§ 1.5. Doctrine of After-Acquired Title .................................................................................................... 227
Division III. Deeds of Conveyance
Chapter 1. Effect and Types of Deeds
Introductory Note ................................................................................................................................... 235
§ 1.1. Effect of Deed .............................................................................................................................. 236
§ 1.2. General Warranty Deed ............................................................................................................... 238
§ 1.3. Special Warranty Deed ................................................................................................................ 240
§ 1.4. Quitclaim Deed ............................................................................................................................ 242
Chapter 2. Delivery and Acceptance
§ 2.1. Delivery Required ........................................................................................................................ 244
§ 2.2. Delivery into Escrow .................................................................................................................... 257
§ 2.3. Acceptance Presumed ................................................................................................................. 259
Chapter 3. The Doctrine of Merger by Deed
Introductory Note ................................................................................................................................... 267
§ 3.1. General Rule ............................................................................................................................... 269
§ 3.2. Exceptions ................................................................................................................................... 272
Chapter 4. Present Warranties of Title
Introductory Note ................................................................................................................................... 278
§ 4.1. Meaning of Present Covenant ..................................................................................................... 279
§ 4.2. Covenant of Seisin ...................................................................................................................... 280
§ 4.3. Covenant of Authority to Convey ................................................................................................. 285
§ 4.4. Covenant Against Encumbrances ............................................................................................... 287
Chapter 5. Future Warranties of Title
Introductory Note ................................................................................................................................... 292
§ 5.1. Meaning of Future Covenant ....................................................................................................... 292
§ 5.2. Covenant of General Warranty .................................................................................................... 294
§ 5.3. Covenant of Quiet Enjoyment ...................................................................................................... 298
§ 5.4. Covenant of Further Assurances ................................................................................................. 300
Chapter 6. Remedies for Breaches of Warranties of Title
Introductory Note ................................................................................................................................... 302
§ 6.1. Remedies for Breaches of Covenants of Seisin and Authority to Convey ................................... 303
§ 6.2. Remedies for Breach of Covenant Against Encumbrances ......................................................... 310
§ 6.3. Remedies for Breaches of Covenant of General Warranty and Covenant of Quiet
Enjoyment .............................................................................................................................................. 313
§ 6.4. Remedies for Breach of Covenant of Further Assurances .......................................................... 317
Chapter 7. Deed Requirements
Introductory Note ................................................................................................................................... 319
§ 7.1. Identification of Grantor and Grantee .......................................................................................... 321
§ 7.2. Words of Grant ............................................................................................................................ 330
§ 7.3. Sufficient Description of Property ................................................................................................ 332
§ 7.4. Signature of the Grantor .............................................................................................................. 342
§ 7.5. Notary Unnecessary Unless Recording ....................................................................................... 344
Division IV. Recording
Chapter 2. Types of Recording Acts
Introductory Note ................................................................................................................................... 348
§ 2.1. Race Statute ................................................................................................................................ 348
§ 2.2. Notice Statute .............................................................................................................................. 356
§ 2.3. Race-Notice Statute .................................................................................................................... 362
Chapter 3. Types of Notice
§ 3.1. Actual Notice ................................................................................................................................ 367
§ 3.2. Constructive Notice ..................................................................................................................... 371
Chapter 4. Recording Errors Affecting Constructive Notice
§ 4.1. Chain of Title ................................................................................................................................ 384
§ 4.2. Incorrectly Indexed Documents ................................................................................................... 392
§ 4.3. Deeds Recorded Too Early .......................................................................................................... 397
§ 4.4. Deeds Recorded Too Late ........................................................................................................... 399
§ 4.5. Wild Deeds .................................................................................................................................. 403
Chapter 5. Forgeries, Frauds, and Incapacities Affecting Validity of Record Title
Introductory Note ................................................................................................................................... 405
§ 5.1. Void Title ...................................................................................................................................... 406
§ 5.2. Voidable Title ............................................................................................................................... 409
§ 5.3. Forged Deeds .............................................................................................................................. 411
§ 5.4. Deed Procured by Fraud in the Execution ................................................................................... 413
§ 5.5. Deed Procured by Fraud in the Inducement ................................................................................ 419
§ 5.6. Deed Obtained by Duress or Undue Influence ............................................................................ 421
§ 5.7. Deed Executed by Mentally Incapacitated Grantor ..................................................................... 425
§ 5.8. Deed Executed by Intoxicated Grantor ........................................................................................ 428
§ 5.9. Deed Executed by Minor Grantor ................................................................................................ 432
§ 5.10. Deed Executed by Legally Disabled Grantor ............................................................................. 433
Volume 7. Public Local Land-Use Regulation
Division I. Zoning
Chapter 6. Flexibility Tools
Introductory Note ................................................................................................................................... 437
§ 6.1. Rezonings .................................................................................................................................... 437
§ 6.2. Rezonings—Spot Zoning ............................................................................................................. 439
§ 6.3. Rezonings—Contract Zoning ...................................................................................................... 444
§ 6.4. Variances ..................................................................................................................................... 450
§ 6.5. Variances—Undue Hardship ....................................................................................................... 453
§ 6.6. Special Zoning Districts ............................................................................................................... 458
§ 6.7. Incentive Zoning .......................................................................................................................... 462
Chapter 7. Nonconformities
Introductory Note ................................................................................................................................... 464
§ 7.1. Nonconformity Defined ................................................................................................................ 464
§ 7.2. Protection of Nonconformities ..................................................................................................... 465
§ 7.3. No Expansion or Substantial Alteration ....................................................................................... 472
§ 7.4. Runs with the Land ...................................................................................................................... 475
§ 7.5. Nonconforming Accessory Uses .................................................................................................. 476
Appendix A. Black Letter of Tentative Draft No. 5 ............................................................................ 478
Appendix B. Black Letter of Sections Approved by Membership ................................................... 507