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MBE Real Property Practice Test

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A covenant to maintain a stone retaining wall between two adjacent parcels was created in 1959 and later abandoned when owners dismantled the wall. How is the covenant terminated?
Correct Answer:
Abandonment
Explanation:
Abandonment is how a covenant that runs with the land can end. When the party who benefits from a promise stops enforcing it and acts in a way that shows they don’t intend to keep it, the covenant can be treated as terminated. Dismantling the stone wall is a clear, tangible act that signals an intention to abandon the obligation to maintain it. Once abandonment is established, the covenant stops binding future owners. Long periods of nonuse alone don’t automatically terminate a covenant; there must be evidence of an intent to relinquish the burden and take actions consistent with that intent. Here, the owners’ dismantling of the wall demonstrates that intent, making termination by abandonment the best match.

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