Covenant in a failed development

Started by ChristopherB7 • 4 replies • 462 views

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ChristopherB7 (Wisconsin)
Posts: 3

Posted:

To what extent is a covenant in a failed development legally binding? The development in question has failed in all of their grand plans and can not even provide roads that are passable to two wheel drive cars. IF the purpose of a covenant is to enforce certain standards then it suggests that certain standards already exist. For legal clarity the original developer has gone bankrupt and a second development effort appears to have failed as well. Thanks in advance.

AugustinD
Posts: 5,144

Posted:

Unless you post the declaration of covenants (and possibly other documents) here, I do not think the answers to your interesting question will count for anything. The owners of the site ask that you redact the name of the community.

AugustinD
Posts: 5,144

Posted:

Here's a site that claims that, with some caveats, the covenants remain in effect: https://www.lawyers.com/ask-a-lawyer/bankruptcy/do-the-covenants-remain-in-effect-after-the-developer-defaulted-1549273.html

To help confirm the status of the covenants, I would still want to see your CC&Rs.

ChristopherB7 (Wisconsin)
Posts: 3

Posted:

I did not name the community. I will look for the CCRs

GeorgeS21 (Florida)
Posts: 3,808

Posted:

Christopher,

Have you read the CCRs and Bylaws?

Will also need to know if the community is still developer controlled and under what circumstances, with what voting rights, etc.

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