How Do Property Covenants Affect New Owners?

Question from Unique, How Do Property Covenants Affect New Owners?

Answer from AI:

When purchasing property that comes with existing covenants, it’s crucial to understand how these legal obligations may continue to affect the property and its new owner. In the scenario described, the property purchased by Husbands from Holder includes several covenants that were originally agreed upon between Holder and the previous owner, Jordan. These covenants have significant implications for Husbands as the new owner.

Understanding the Impact of Covenants

Covenants are legally binding promises written into the deed of a property by which the owner agrees to do or not do something. These are often intended to enhance the property’s value or quality of life within a community. Here’s how they impact the new owner:

1. Binding Nature: Covenants are generally binding on the property, not just the original owner who agreed to them. This means they “run with the land” and are enforceable against subsequent owners if certain conditions are met.
2. Enforcement: The original party to the covenant, in this case, Jordan, can enforce these covenants against Husbands if they are deemed to run with the land.

Specific Covenants and Compliance

• Upkeep of the Private Road: Husbands may be responsible for contributing to the maintenance costs of the private road as this is a typical covenant that benefits all who use the road and is likely intended to run with the land.
• Maintenance of the Meadow: The covenant to maintain the meadow as an open space is also likely to be enforceable to preserve the aesthetic or environmental quality of the area.
• Residential Use Only: Converting the cottage into a hotel directly violates the covenant restricting the use to residential only. This could lead to legal actions from Jordan or other affected parties.
• External Appearance: Any changes to the external appearance of the cottage that deviate from the covenant could similarly be challenged.
• Fencing: The requirement to maintain and repaint the fence, especially if it affects neighboring properties like Jordan’s, is enforceable. Jordan’s claim for damages due to the fence’s disrepair seems valid.

Legal Steps and Considerations

Husbands should consider the following steps:

1. Review the Deed: Confirm all covenants listed and understand their specific terms and implications.
2. Legal Consultation: It is advisable to consult with a real estate attorney who can provide guidance specific to the jurisdiction and the details of the covenants.
3. Negotiation: Husbands might negotiate with Jordan or other interested parties to release or modify the covenants, though this may require compensation or other legal adjustments.
4. Compliance: If negotiation is not possible, complying with the covenants or facing potential legal consequences for breach should be considered.

Legal advice is crucial in navigating the complexities of property covenants, especially when they potentially restrict the intended use of the property or lead to significant financial obligations. Consulting a legal professional can help clarify these issues and suggest possible legal remedies or actions.