What remedies are available if a builder refuses to comply with protective or restrictive covenants?

Full question:

There is a new builder in our neighborhood who is not following the protective covenants and subsequently decreasing the value of our existing homes. Do we have recourse? Can we require him to follow the existing covenants legally?

  • Category: Real Property
  • Subcategory: Homeowner's Association
  • Date:
  • State: North Carolina

Answer:

Purchasers, including any builders who purchase a lot in a subdivision, take title to the property subject to the restrictions and covenants and are bound to follow them, even if they did not actually know the property was subject to restrictive covenants. Once restrictions are properly imposed upon a property, they "run with the land" and are binding on the owner and all subsequent purchasers. No owner or purchaser can use the property for any purpose that violates the restrictions.

If a property owner does not follow the covenants, the remedy is to sue the association and/or the offending property owners in court for an order compelling them to abide by all lawful covenants and bylaws. But remember, these are private rights of action that you must assert on your own. No state agency, other than the court system, can determine or enforce an owner's rights. You would have to bring the lawsuit yourself and pay your own attorney and/or experts such as appraisers.

However, if successful, damages may be awarded based on the loss of property value suffered (as proven through experts).

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Getting around a homeowners association (HOA) typically involves understanding the rules and regulations set by the HOA. While you cannot simply ignore them, you can seek modifications or exceptions by petitioning the HOA board. Engaging in open dialogue with the board and other homeowners may help address your concerns. However, any changes must comply with the covenants and bylaws in place. If you believe the HOA is acting unfairly, you may need to consult legal advice to explore your options.