Asymmetric Information and the Law of Servitudes Governing Land
AbstractThe legal doctrine on servitudes has long been viewed as a Byzantine tangle of doctrine emanating from property law, contract law, and courts of equity. This paper explains the structure of the law governing servitudes on land using key ideas from the economics of information, focusing on easements and covenants and the rules governing their formation and application. We develop a model of land markets that incorporates asymmetric information (adverse selection) and specialization in ownership and use this to offer a rationale for the seemingly ad hoc limits on the use of servitudes. We stress the inability of sellers of land credibly to assure buyers that land is not encumbered by servitudes. Our model explains variations in legal doctrine over time and across jurisdictions, particularly comparing servitudes in the United States and in England. (c) 2009 by The University of Chicago. All rights reserved..
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by University of Chicago Press in its journal The Journal of Legal Studies.
Volume (Year): 38 (2009)
Issue (Month): 1 (01)
Contact details of provider:
Web page: http://www.journals.uchicago.edu/JLS/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Benito Arruñada, 2012.
"Property as an Economic Concept: Reconciling Legal and Economic Conceptions of Property Rights in a Coasean Framework,"
614, Barcelona Graduate School of Economics.
- Benito Arruñada, 2012. "Property as an economic concept: reconciling legal and economic conceptions of property rights in a Coasean framework," International Review of Economics, Springer, vol. 59(2), pages 121-144, July.
- Benito Arruñada, 2012. "Property as an economic concept: Reconciling legal and economic conceptions of property rights in a Coasean framework," Economics Working Papers 1308, Department of Economics and Business, Universitat Pompeu Fabra.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division).
If references are entirely missing, you can add them using this form.