Smith, a resident of State X, grants an easement to Jones, a resident of State Y, for the use of a driveway across Smith's property located in State Z. A dispute arises regarding the terms of the easement. Which state's law governs the creation and interpretation of the easement?
The parties can choose any state's law to govern the easement
Real property disputes are governed by the law of the state where the property is located, known as lex situs. Therefore, State Z's law applies to the creation and interpretation of the easement. The laws of the parties' resident states (State X and State Y) are generally not applicable, and parties typically cannot choose another state's law for real property interests.
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What is lex situs?
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Can parties choose the governing law for an easement?
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Why do the laws of Smith and Jones's resident states not apply?