Covenants

Covenant restrictions are legally binding rules attached to a property deed, which regulate how the property can be used. These covenants are designed to maintain the overall character, appearance, and value of a neighborhood or community.

For a property owner, this means that they must comply with specific guidelines, such as restrictions on building types, property modifications, or land use.

Property owners collectively hold the power to modify or repeal them by achieving a majority consensus among all current property owners within their Unit. This provision gives the community control over whether the existing rules continue, or whether adjustments should be made to reflect evolving needs and preferences of the neighborhood.

Restrictive covenants convey with the deed to your property. They are permanently affixed to your property, which means they can be considered a cloud on a property title because they create legal restrictions that limit how the property can be used.

In the case of a restrictive covenant, it could limit the ability of the property owner to modify, sell, or use the property in certain ways. For example, covenants might restrict the type of structures that can be built or prohibit certain activities on the property. These restrictions can create uncertainty or complications for potential buyers, sellers, or lenders, as they may need to navigate these limitations or face legal consequences for violating them. As a result, the presence of a restrictive covenant could make the title less attractive, impacting the property's market value or making it more difficult to sell, thus creating a "cloud" on the title.

This is particularly problematic if the covenant's terms are outdated or overly burdensome, or if the property owner is unaware of the covenant and unknowingly violates it, leading to potential legal disputes. To clear a cloud on a title, the property owner might need to go through legal steps such as seeking a release of the covenant or filing a quiet title action in court.

Links to covenant documents are further down on this page.

Units

Our neighborhood is divided into approximately 20+ separate "units," with each unit consisting of varying numbers of individual property lots.

These units are essentially subgroups within the larger community, each governed by its own set of covenants, which outline specific rules and restrictions that apply only to the properties within that unit. This structure means that while we all share a common neighborhood, the covenants that apply to one unit may differ from those in another. Any changes to the rules, such as amendments to covenants, must be voted on and agreed to by the majority of property owners within each individual unit, rather than the entire neighborhood voting as one. This ensures that each unit has the ability to manage its own property guidelines in a way that suits its specific needs and preferences.

The naming scheme for our units is inconsistent and lacks standardization due to the fact that multiple developers were involved in the filings, without coordination to ensure a uniform naming convention. This does make navigating the documents confusing. :(

Changing Covenants

In our neighborhood, each of the approximately 20 "units" operates under its own set of covenants, as the restrictions are tied to the specific unit rather than the entire neighborhood. To make changes to the covenants across the entire neighborhood, a majority vote would need to be obtained within each individual unit. This means that for any amendments to be implemented community-wide, a majority of the property owners in each unit must agree to the changes. Since the covenants apply separately to each unit, a single majority vote in the neighborhood as a whole would not be sufficient; the decision must be made on a unit-by-unit basis.

Example:

Unit 7 has 60 lots.

Unit 7-C has 8 lots.

34 property owners in Unit 7 vote to change the covenants. 2 property owners in Unit 7-C vote to change the covenants. Total Voting Yes = 36, which is more than a majority of the total of all 68 lots.

However, a majority vote was only obtained in Unit 7 (34 out of 60) while Unit 7-C (2 out of 8) failed to obtain a majority vote. The amendments could proceed in Unit 7, however the covenants to Unit 7-C would remain unchanged. EXAMPLE ONLY. NOT REAL DATA.

MajorityVote

What Does This Mean?

The neighborhood being divided into units is actually a significant advantage for homeowners because it allows each unit to have more control over the rules that govern their specific area.

Neighbors within a unit can collectively agree to amend the covenants based on their unique preferences and needs, making the process more flexible and responsive to the desires of smaller groups.

This setup empowers residents to shape their environment in a way that reflects their collective priorities.

Additionally, for those living in smaller units, such as units with only 1-4 lots, each homeowner wields considerably more influence, as their vote carries more weight in reaching a majority.

This gives residents in smaller units substantial power to drive changes that align with their vision for their community.

Some property owners have their own unit! They can change their covenants as they please. Others have units as small as 2 to 4 lots and have the ability to confer with their immediate neighbors to obtain a simple majority and change their covenants.

If your unit only has 3 people, you would only need to obtain the agreement of one other person to obtain a majority vote and change the restrictive covenants for your unit.

CLICK HERE TO VIEW A MAP OF UNITS