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.

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The other property concept that Judge Chapmans initial ruling examined was whether Sabine was in horizontal privity of estate with each of the midstream companies involved.

In her final ruling, Judge Chapman acknowledged that there is some ambiguity under Texas law as to whether horizontal privity of estate remains a requirement for a covenant to run with the land.

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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.

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Since there is a mere privity of estate, the successor lessee's taking possession of the premises does not give rise to a legally implied agreement that the successor lessee is assuming the entire lease and all of its covenants.