neighbors & neighborhoods

Vertical privity

Definition

1) In business law, the relationship between companies in a distribution chain. For example, a manufacturer and a distributor are in vertical privity. Those in vertical privity are jointly liable for product defects in the vertical chain.

2) The relationship between a party to a restrictive covenant and a person who later acquires the property burdened by the covenant from the party. The purchaser is bound by the covenant if he or she had sufficient notice of it at the time of purchase.

summary probate

A relatively simple probate proceeding available for "small estates," as that term is defined by state law. Every state's definition is different, and many are complicated, but a few states include estates worth $100,000 or more. Some states allow summary probate whenever the value of property in the estate doesn't exceed what is needed to pay a family allowance and certain creditors.

restriction

Any limitation on activity, by statute, regulation, or contract provision. In multiunit real estate developments, condominiums, and cooperative housing projects, the homeowners' associations or similar organizations that manage these developments are usually required to impose restrictions on use. The restrictions are part of the "covenants, conditions, and restrictions" ("CC&Rs") intended to protect and enhance the property. They are part of each owner's deed.

Homeowners' Association

An organization made up of neighbors concerned with managing the common areas of a subdivision or condominium complex. These associations take on issues such as garden, pool, and fence maintenance; noise abatement; snow removal; parking areas; repairs; and dues. The homeowners' association is also responsible for enforcing any covenants, conditions, and restrictions (CC&Rs) that apply to the property.

Encumbrance

Any claim or lien on real estate. Examples include mortgages, deeds of trust, tax liens, mechanic's liens, easements, and water or timber rights. Documents showing encumbrances are usually recorded in the local land records office (commonly called the county recorder or registry of deeds). Also called incumbrance.

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