Restrictive covenants play a significant role in California real estate, shaping how properties can be used and maintained. Here’s a breakdown of their function and legal context:
What are Restrictive Covenants?
Essentially, restrictive covenants are agreements that limit how a property owner can use their land. These restrictions are typically written into the property’s deed or recorded in a separate document, such as a Declaration of Covenants, Conditions, and Restrictions (CC&Rs).
These covenants “run with the land,” meaning they bind not only the original property owner but also all subsequent owners. Common examples include restrictions on:
• Building height or size
• Permitted uses (e.g., residential vs. commercial)
• Architectural styles
• Maintenance requirements
• Landscaping
• Whether or not a home can be used as a rental property.
• Purpose and Function.
Restrictive covenants are often used to maintain the character and value of a neighborhood or planned community. They can help ensure uniformity and prevent property uses that might negatively impact surrounding properties. Homeowners’ associations (HOAs) frequently use CC&Rs to enforce these restrictions.
California law provides mechanisms for removing unlawful discriminatory covenants from property records. Key points regarding discriminatory covenants:
The Supreme Court’s 1948 decision in Shelley v. Kraemer deemed racially restrictive covenants unenforceable. California has legislation that allows for the modification of property records to remove discriminatory language. Assembly Bill 1466, for example, gives people the ability to record a Restrictive Covenant Modification document to have illegal restrictions removed. County recorders have the obligation to create plans to identify and redact discriminatory language.
Restrictive covenants are generally enforceable in California, provided they are reasonable and do not violate public policy. HOAs are typically responsible for enforcing CC&Rs within their communities. Individual property owners can also take legal action to enforce restrictive covenants. Courts may consider factors such as:
• The clarity of the covenant’s language
• Whether the covenant is being applied fairly
• Whether there have been significant changes in the neighborhood that make the covenant obsolete.
Important Considerations
When purchasing real estate in California, it’s crucial to carefully review the property’s deed and any associated CC&Rs. Understanding the applicable restrictive covenants can help prevent future disputes and ensure that you can use your property as intended.
If you have questions about restrictive covenants, it’s advisable to obtain a qualified consultation with a qualified attorney. In short, restrictive covenants are a vital aspect of California real estate law, serving to regulate land use and maintain property values. However, it’s essential to be aware of the legal limitations on these covenants, particularly regarding discriminatory practices.
