Privity of estate


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PRIVITY OF ESTATE. The relation which subsists between a landlord and his tenant.
     2. It is a general rule that a termor cannot transfer the tenancy or privity of estate between himself and his landlord, without the latter's consent: an assignee, who comes in only in privity of estate, is liable only while he continues to be legal assignee; that is, while in possession under the assignment. Bac. Ab. Covenant, E 4; Woodf. L. & T. 279; Vin. Ab. h: t.; Hamm. on Part. 132. Vide Privies.

A Law Dictionary, Adapted to the Constitution and Laws of the United States. By John Bouvier. Published 1856.
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In an analogous situation, where an assignee of a leasehold is obligated to pay rents to the landlord only by "privity of estate," and not by "privity of contract," law professors have long taught that the assignee's obligation for future rent terminates on subsequent assignment, even to an insolvent assignee.
The doctrinal reason is that privity of estate exists between the landlord and whoever occupies the status of tenant.
To impose real covenant liability on a title owner, a plaintiff must establish privity of estate connecting its claim with the defendant's obligation.
CERCLA: convey to a pauper and avoid cost recovery under section 107(a)(1)?
In such cases, because there is no contract (i.e., no assumption agreement) between the lessor and the successor lessee, the successor is in "privity of estate" with the lessor, but is not in privity of contract."
POSSIBLE PITFALLS WITH SUCCESSOR LESSEES

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