Privity of estate

Privity of estate

Privity of estate is the concept in property law that there is a legal relationship between a landlord and a tenant, with shared rights and responsibilities. this relationship does not arise out of contract but connected through possession of the property on the land.

The landlord and tenant share an interest in the same property. When the tenant transfers his interest in the property to another person, called the assignee, all covenants in the original lease "that touch and concern the land" are binding on the assignee. Privity of estate flows to that person, allowing the assignee to sue the landlord.

Generally, there are three types of privity:

  • Horizontal, which requires that a covenant arises from a transfer of estate.
  • Mutual, in which both parties involved have stake in the land.
  • Vertical, which requires that the person currently claiming the benefit, or being subject of the burden, is a successor of the original person so benefited or burdened.

See Gallagher v. Bell, 69 Md. App. 199, 516 A.2d 1028 (1986).

See Privity of contract

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