Legal Question in Real Estate Law in Nebraska

real estate restrictive covenants

Can a buyer enter into a legally binding covenant with someone that is not the owner of the land being purchased?


Asked on 8/29/07, 8:39 pm

1 Answer from Attorneys

Duke Drouillard Drouillard Law, LLC

Re: real estate restrictive covenants

Your question isn't very clear. It would be easier if you just posted the details of your problem. There are a number of ways you may find yourself in a legally binding covenant with one or more parties that you have never seen or met. It relates to a term known as "privity". There can be horizontal privity and vertical privity. Most commonly, the developer of a residential subdivision will create deed restrictions known as covenants or equitable servitudes on the entire tract of land. He then divides the large piece of land into home-sized lots. The restrictions will apply to the smaller lots through vertical privity. Someone may buy the lot and then sell it to someone else. The new buyer is subject to the same restrictions through horizontal privity. Buyers should know what the covenants are before they agree to buy the property, but the law will say they had "constructive knowledge", even if they didn't actually know about them, because the covenants are a public record open to anyone who takes the time to visit the courthouse and research the records. So the answer is yes, you may be bound by covenants that you didn't know about to someone you don't know and have never met. That is one of the many reasons you should always consult your attorney when buying or selling property. As to your specific situation, I don't have enough information to provide a definite answer. You should consult with an attorney if you have a problem.

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Answered on 8/29/07, 9:34 pm


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