Also known as: privy in estate · privies in estates · privity of estate
Written by attorneys · grounded in primary & secondary sources — see below
A class of parties who share successive or mutual interests in the same estate in land. This relationship arises when one party succeeds to the interest of another through conveyance, lease, or assignment, allowing covenants that touch and concern the land to bind or benefit successors.
Paul Peterson leases property to Pearl Porter under a written agreement containing maintenance covenants. Paul then conveys his reversion to Patricia Patel. Paul remains obligated to Pearl on the covenants because his obligation rests on privity of contract, which survives the conveyance of the reversionary interest.
Peak Performance leases space to Prosperity Investments under a lease with an express continuous-operation covenant. Prosperity assigns its entire leasehold to Pacific Bank. Pacific Bank becomes obligated on the covenant because the assignment places it in privity of estate with Peak Performance.
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Precision Tools leases land to Paige Porter with a promise by the landlord to maintain a buffer zone. Paige assigns her leasehold to Penelope Price. Penelope receives the benefit of the promise because the assignment brings her into privity of estate with Precision Tools.
An assignee becomes obligated when the covenant touches and concerns the leased interest, the original parties intended the burden to run, the assignee is not released, and the assignment creates privity of estate with the party entitled to enforce the promise.
An original tenant remains liable on express lease covenants that touch and concern the land unless the landlord affirmatively releases the tenant, because the tenant's obligation rests on privity of contract even after privity of estate ends.
Privity of estate arises from the transfer of the leasehold interest itself and supports enforcement of covenants that run with the land against the current holder, while privity of contract arises from the original agreement and continues to bind the original promisor absent a release.
…of property, and privies are distributed into several classes, according to the manner of this relationship. Thus, there are privies in estate, as donor and donee, lessor and lessee, and joint tenants; privies in blood, as heir and ancestor, and co-parceners; privies in representation, as executor and testator, administrator and…