Property Law and Real Estate Commons^™

Running Covenants And Public Policy, Olin L. Browder

Michigan Law Review

When first encountering covenants running with the land, one may react against the very idea. Why should any person be able to enforce a promise not made to him or be bound by a promise he did not make? Modern contract law, particularly the rules about the assignment of contract rights and the rights of third-party beneficiaries, may answer the first question, but does not explain how anyone can be bound by a promise neither expressly nor impliedly made or consented to by him.

On the other hand, persons_ familiar with easements, liens, or mortgages understand that land ownership can …

Unmarried Couples And Unjust Enrichment: From Status To Contract And Back Again?, Robert C. Casad

Michigan Law Review

In recent years, litigation over property arrangements between unmarried cohabitants has posed some old questions in a new light and has yielded some new answers. One of the most intriguing of these questions is whether a cohabitant has a right, upon dissolution of the relationship, to remuneration for household services rendered during the relationship. A spouse who contributed household services in an actual marriage, of course, may upon divorce receive a share of the property acquired by the other spouse during the marriage or may receive a monetary award as compensation for the contributions made to the other during the …

Reflections On Stare Decisis In Michigan: The Rise And Fall Of The "Rezoning As Administrative Act" Doctrine, Roger A. Cunningham

Michigan Law Review

In an earlier article in this law review, I discussed the new doctrine that in certain municipalities a decision by the local governing body to rezone or not to rezone land should be deemed an "administrative" or "quasi-judicial," rather than a "legislative," act. This doctrine was introduced into Michigan law several years ago in a series of opinions signed by only three justices of the Michigan Supreme Court. The earlier article dealt principally with the merits of the new "rezoning as administrative act" doctrine. The present article discusses troublesome aspects of the Michigan Supreme Court's attitude toward the principle of …

Helpless Giants: The National Parks And The Regulation Of Private Lands, Joseph L. Sax

Michigan Law Review

While intrusive private activities have increased all around them, park managers have stood by nervously, sensing that they were caring for helpless giants. The Park Service is aware that Congress has given it very little explicit authority to regulate private lands, but underlying Park Service hesitancy to act is a more profound concern about the constitutional power of the federal government to control private land uses near and within the parks. These constitutional doubts, though largely misconceived, arise out of a complex set of issues that need to be clarified. This article first describes current administrative practice and existing legislation …

Condemnation Blight And The Abutting Landowner, Michigan Law Review

Michigan Law Review

This note will discuss the plight of abutting landowners, and explore various legal theories that may provide them with some recovery against the government units involved. Because most of the theories offer only limited possibilities of recovery, the final section of the note will argue for the creation of a more appropriate remedy.

Cases And Materials On Property: An Introduction To The Concept And The Institution, Lillian R. Bevier

Michigan Law Review

A Review of Cases and Materials on Property: An Introduction to the Concept and the Institution by Charles Donahue, Jr., Thomas E. Kauper, and Peter W. Martin

Conversion Of Apartments To Condominiums And Cooperatives: Protecting Tenants In New York, Charles M. Cobbe

University of Michigan Journal of Law Reform

In recent years, the number of conversions of rental apartments to cooperative and condominium ownership has increased dramatically. Such conversions often result in extreme hardships for tenants in the buildings affected. Those who are unable or unwilling to pay the purchase price of an apartment are generally forced to seek other rental accommodations at a time when these are increasingly difficult to find -a problem which becomes especially severe for elderly tenants and those with low incomes. In addition, tenants who purchase apartments may suffer the abuses which often accompany sales of condominium and cooperative units. A further problem in …

To Tell The Truth, The Whole Truth, And Nothing But The Truth - Help For Florida's Frazzled Condominium Buyers?, Elizabeth Snider

University of Michigan Journal of Law Reform

The condominium has become an increasingly familiar arrangement in the United States. In 1972, some 235,000 condominium units were built; this number swelled to about 420,000 in 1973, an increase of almost 79 percent. Accompanying this tremendous increase in building and selling has been an increasing awareness of the need for regulation of this multi-million dollar industry. This note explores the legislative background of condominium regulation; examines the recent Florida Condominium Act amendments, focusing on the Act's disclosure requirements, what they mean, and what their impact will be on developers and purchasers; and offers alternatives to the Florida scheme.

Preferential Property Tax Treatment Of Farmland And Open Space Under Michigan Law, Ronald Henry

University of Michigan Journal of Law Reform

This note will attempt to explain the new Michigan statute and evaluate the effectiveness of this type of legislation as a means of preserving open space and farmland from conversion to more intensive use.

Transactions Subject To Gift Tax, Douglas A. Kahn, Earl M. Colson

Articles

The gift tax is imposed on the "transfer of property by gift." The term gift is not expressly defined either in the Code or in the Treasury Regulations. However, section 2512(b), dealing with the valuation of gifts, states that "where property is transferred for less than an adequate and full consideration in money or money's worth," the difference between the value of the property transferred and the consideration received constitutes a gift. Thus, for gift tax purposes, the determination of whether a gift was made does not turn so much on the intent of the transferor as it does on …

Gimme Shelter: Reform Of Real Estate Tax Shelters, Farrell C. Glasser

University of Michigan Journal of Law Reform

Of the many different kinds of tax shelter investments that are available to high bracket taxpayers, the most commonly encountered device is the real estate tax shelter. This article describes the way a tax shelter operates, from both a business-economic and a tax viewpoint, and examines the real estate tax shelter from the standpoint of possible tax reform to correct the abuses that stem from real estate syndications.

Real Property Tax Relief For The Elderly, Edsell M. Eady Jr.

University of Michigan Journal of Law Reform

This article focuses on the elderly person's problem of coping with real property taxation. Although property taxes vary in intensity from place to place, the elderly bear a particularly heavy burden. The property tax generally does not reflect a taxpayer's ability to pay, since it is usually levied in proportion to the value of real property rather than in relation to a homeowner's income. Thus people with low incomes may have to pay a greater percentage of their incomes as real property tax than people with higher incomes. The real property tax can be a formidable problem for an elderly …

Religious Corporations And The Law, Paul G. Kauper, Stephen C. Ellis

Michigan Law Review

This article will attempt to present a picture of the legal status of religious organizations, with particular reference to the enjoyment of the corporate privilege. Necessarily, this will involve at the outset an historical review tracing the development of that status, beginning with the practice of granting special charters to churches and culminating in the now familiar general incorporation statute. Special attention will be paid to distinctive problems that arose in Utah, Pennsylvania, and Virginia concerning corporate status. The historical review is followed by a summary survey of the current state laws relating to the incorporation of churches. The last …

The Real Estate Investment Trust: State Tax, Tort, And Contract Liabilities Of The Trust, Trustee, And Shareholder, Michigan Law Review

Michigan Law Review

This Comment will attempt to alert potential investors in and trustees of REITs to the full extent of the liabilities that they could suffer for contract debts incurred in the name of the trust and torts committed by trust personnel. Since state tax considerations also play a significant role in investment decisions, the manner in which each state taxes the REIT and its shareholders on income derived from property and business in that state will also be investigated. Finally, a rational path out of the morass created by current state law will be articulated in order to prompt renewed discussion …

The Interrelationship Between Excusionary Subdivision Control - A Second Look, Roger A. Cunningham

University of Michigan Journal of Law Reform

The thesis of this article is that the conclusion set out above is both oversimplified and inaccurate. Contrary to the author's contention in his Journal article, there are "viable distinctions between zoning and subdivision control," and consequently the major exclusionary techniques available to suburban communities through "zoning" are simply not available in connection with "subdivision control." Dramatic attempts at racial exclusion through subdivision control are likely to be infrequent. Although subdivision regulations, like zoning ordinances and building codes, require expenditures by land developers which increase the cost of housing and thus tend to exclude the poor, the effect of subdivision …

Interstate Land Sales Regulation: The Case For An Expanded Federal Role, Robert R. Maxwell

University of Michigan Journal of Law Reform

Public awareness of the need for protection from fraudulent vendors of undeveloped land recurs periodically and has led to brief flurries of legislative and journalistic attention since the Florida land boom of the 1920s. Despite the rush of state and federal legislation enacted in recent years to combat sharp practices in the land development field, the need for stronger regulation has been revealed by testimony at public hearings held by the Office of Interstate Land Sales Registration as well as by numerous news accounts of questionable tactics employed by some land development promoters. The recent actions of the Federal Trade …

Exclusionary Zoning: A Wrong In Search Of A Remedy, Leonard S. Rubinowitz

University of Michigan Journal of Law Reform

This article discusses affirmative approaches to providing effective relief in two types of exclusionary zoning cases: (1) remedies specific to a particular proposed development or a given site and (2) regional remedies, which provide a generalized framework for meeting what courts are increasingly identifying as a regional problem: the need for decent housing for all families. In the first instance (the "single-site" case) a court would remove obstacles in order to facilitate development of low- and moderate- income housing on a particular suburban site. In the second case (the regional approach) a court would specify the obligation of the municipalities …

The Interrelationship Between Exclusionary Zoning And Exclusionary Subdivision Control, Robert E. Hirshon

University of Michigan Journal of Law Reform

This article will examine both exclusionary zoning and subdivision control with a view toward analyzing the assumptions common to both types of laws. The operative differences between exclusionary zoning and subdivision control may be non-existent. If this is truly the case, the judicial response to each practice should be the same.

Residential Tenants And Their Leases: An Empirical Study, Warren Mueller

Michigan Law Review

Of particular interest is the application of this theory to residential leases, a classic example of the standard long-form contract. An abundance of traditional legal research and commentary has been devoted to the problem of disparity of bargaining power between the parties to a standard-form residential lease. The commentators have consistently called for reform measures to combat this problem. In order to adopt sensible and effective reform measures, however, it is first necessary to obtain factual data with which to test and clarify the reformers' underlying assumptions. Such data is virtually nonexistent, since, prior to the study described in this …

The Walz Decision: More On The Religion Clauses Of The First Amendment, Paul G. Kauper

Michigan Law Review

The principal thrust of this Article is to determine the contribution made by the Walz decision to the body of ideas that has been developed by the Court in its application of the interdependent free exercise and establishment limitations of the first amendment, to point up any distinctively new emphases, and to suggest the implications of these new ideas and emphases for important cases coming before the Court at its 1970-1971 term.

Bankruptcy--Stay Of Bankruptcy Proceedings Denied To Creditor Seeking Lien On Exempt Property--Harris V. Hoffman, Michigan Law Review

Michigan Law Review

The appellants, husband and wife, executed a promissory note to the appellee-bank. Thereafter, they purchased real property which they occupied as a homestead. Acting pursuant to an Iowa statute which subjects a homestead to debts contracted before the homestead was acquired, the bank commenced a suit on the note in state court, but this proceeding was stayed when appellants filed a voluntary petition in bankruptcy. After the trustee in bankruptcy set the homestead apart as property exempt under Iowa law, the bank sought a stay of discharge in bankruptcy for a reasonable period of time so that it could obtain …

Income Tax--Listing Abandoned Residence For Sale And Not For Rent Considered Sufficient To Convert To "Property Held For The Production Of Income"--Hulet P. Smith, Michigan Law Review

Michigan Law Review

Since 1941, Hulet Smith and his wife had lived in a large house in Arcadia, California, where Smith had been actively engaged in a real estate loan business. In 1959, Smith decided to retire and move to Pebble Beach, a distance of about 400 miles from Arcadia. He purchased a parcel of land in Pebble Beach and built a large expensive home, with the avowed intention of making this his permanent personal residence. In 1961, after severing all business and social connections in the vicinity of their old residence, Smith and his wife moved into their new home, taking virtually …

Joint Tenancies And Tenancies By The Entirety In Michigan—Federal Gift Tax Considerations, Douglas A. Kahn

Articles

The establishment of joint tenancy' ownership of property, or the termination of such a tenancy, may have federal gift tax consequences to the co-owners of the property. Consequently, the gift tax is a factor to be weighed before embarking on either of these ventures. The gift tax consequences are determined by the nature of the property rights enjoyed by the joint tenants under the controlling state property law, and accordingly it is desirable, where Michigan property law is applicable, to consider the Michigan law and the significance of that law to the operation of the gift tax. However, before discussing …

Public Control Of Land Subdivision In Michigan: Description And Critique, Roger A. Cunningham

Michigan Law Review

Michigan seems to be unique in having three separate subdivision control statutes. The Plat Act of 1929, like the Subdivision Control Act of 1967 which will soon replace it, is largely mandatory, prescribing standards and procedures required in all cases of land subdivision (as defined in the statute), whether the municipality in which the land is located has a planning commission or not. The Municipal Planning Act, on the other hand, is simply an enabling act, permissive both with respect to establishment of a planning commission and with respect to the exercise by that commission, once established, of the power …

Leach: Property Law Indicted, Olin L. Browder Jr.

Michigan Law Review

A Review of Property Law Indicted by W. Barton Leach

Gifts-Lnformal Writing As Substitute For Delivery, Michigan Law Review

Michigan Law Review

Traditionally, three requirements must be satisfied in order to make a valid inter vivos gift of personal property: (1) the donor must demonstrate his intention to make such a gift; (2) there must be a delivery to the donee of the property itself or of an instrument or deed of gift; and (3) the donee must accept this delivery. If the subject matter of the gift is not susceptible of immediate delivery, a question arises as to the means by which the delivery requirement may be satisfied. Although a donor in such a situation commonly delivers an informal writing which …

Security Aspects Of The Abc Transaction, John T. Schmidt

Michigan Law Review

In recent years, investments in subterraneous oil and gas have become a common addition to the investment portfolios of national financial institutions. Relying on the assurances of reputable geological studies, traditionally conservative financers have invested amounts ranging up to several hundred million dollars against collateral once accepted only by speculators and a few adventurous oil-country bankers. The increased interest in these investments is in part attributable to the development of the ABC method of financing the purchase of producing oil and gas properties. This method offers unique tax advantages, which have been discussed elsewhere, but also creates problems for the …

Gilmore: Security Interests In Personal Property, Jerry P. Belknap

Michigan Law Review

A Review of Security Interests in Personal Property 2 vols. By Grant Gilmore

Evolving Judicial Attitudes Toward Local Government Land Use Control, Terrance Sandalow

Articles

The year 1967 begins the second half-century of zoning in the United States. The first comprehensive zoning ordinance was adopted by New York City in 1916. In the fifty years that have elapsed, zoning has become, notwithstanding a growing disenchantment with it on the part of planners, the most widely employed technique of land use control in the United States. At the present time only Houston, of all the major cities in the United States, lacks a zoning ordinance. And, though I have not obtained precise figures, we are all familiar with the increasingly large per centage of small municipalities, …

Toward Uniform Guardianship Legislation, William F. Fratcher

Michigan Law Review

The Model Probate Code, part IV of which covers guardianship of the persons and property of infants and mental incompetents, was published in 1946 under the auspices of the University of Michigan Law School. It was prepared for the Probate Law Division of the Section of Real Property, Probate, and Trust Law of the American Bar Association by its Model Probate Code Committee in cooperation with the research staff of the Law School. No state has adopted the Model Probate Code in its entirety, but parts of it have been enacted in Arkansas, California, Colorado, Delaware, Hawaii, Illinois, Indiana, Missouri, …