Covenant Questions

**thom** · 12-10-2007, 01:01 PM

I am in the process of possibly making an offer on a vacant lot that has deed restrictions or convenants attached.
One such item in it states that the home that would be built there would have to be approved by the "Committee". Right now it is the property owner and their agent. I have given my broker a general determination of what I would like to build with photos from existing homes from magazines, colors, square footage range, etc. This info I was told is pretty much accepted, but they stated they need official contruction blueprints, etc. to decide on the subject.
I'm not going to build right away and feel that getting construction plans right now is an unwarranted expense, especially that the build date may be in 5 years and that minor changes may happen.
Would a contingency in my offer protect my investment in the property? I sure would not want to own a property where I could not build what I would like within reason.
Any thoughts would be welcomed.

**Sparks** · 12-18-2007, 10:07 PM

Make sure you check the CC&R's for time restrictions. Some places give you a certain amount of time to build. It also helps to have a great relationship with the board or join it yourself. They will need blue prints and more details before it gets approved though. Pretty standard.

**Greg** · 12-19-2007, 05:11 AM

The covenants should also have guidelines for the type of construction that the panel has to follow. If it solely up to their discretion I would be leery of letting anyone have that much control over what I do.

What they tell you now is what you want to hear so you don't walk away for the sale. What they say after the deal closes could be something completely different.

A

contingency

would not have any effect after the property closes.

**Mike Taylor** · 12-19-2007, 06:00 AM

Do the covenants spell out in more detail what is and what is not allowed? For example, the house must be a minimum of XX square feet, etc? If the committee is the property owner and the agent they have a vested interest in seeing homes being built so they can sell more land.

**thom** · 12-19-2007, 08:42 AM

Thanks for all of your replies.
The covenants spell out the type of home (log or timber) but not square feet, which is ok. They are very general. Things like no livestock, or commercial property use, vehicle type ( no commercial type) and that they be garage kept are also part of it.
The largest single stumbling block may be the home itself or the final design.
Is there any weight in a contingency clause that would set a minimum standard/design on the house I would like to build or does the convenant supercede things like that?

**BrooklynBroker** · 12-19-2007, 01:29 PM

Thom,
So you are saying you would need to provide approved plans BEFORE closing and even BEFORE the contract is signed in order to make sure you can build there what you want?

That does not seem reasonable to me.

Check the exact language of that restriction to build. Perhaps, as long as your future house meets certain requirements (log or timber, etc) - you are good.

My advice to any buyer - don't spend a cent on transaction (other than attorney's fee) until you see seller's signature on the contract (have fully executed contract that is).

**Greg** · 12-20-2007, 06:59 AM

A contingency in a contract dissolves when the contract goes to closing. In other words, once you buy the property the contingency would have no affect.

You would need to have the deed changed to reflect what you want. What is in the deed is what you have to live with. The deed already says you have to follow the covenants.