Investment in Development Prevented by Developer - Posted by james

Posted by Nate(DC) on July 12, 2002 at 21:57:49:

You probably can’t. It’s like any other restrictive covenant such as those restricting lawns, flagpoles, parking, etc. If the developer places the covenants on the property, they will run with the land and must be respected by subsequent purchasers. If you don’t want to abide by them, your choice is not to purchase that property.

Sorry to say, but you’re out of luck there.

Do you have any idea how strictly that covenant is enforced? I would certainly not advocate knowingly and willingly violating restrictive covenants, but if you thought you could get away with it, I guess one could look at it as a calculated business risk.

Good luck,
NT (not a lawyer)

Investment in Development Prevented by Developer - Posted by james

Posted by james on July 11, 2002 at 23:54:22:

My wife and I would like to purchase an investment home in a new community in Southern California. The problem that we are facing is that the developer (THE IRVINE COMPANY) requires buyers to live in the property for the first year of ownership. Since we have no desire to move to this community but would like to invest there, this has become a real stumbling block for us. We have a lender that does not require occupancy. How can we buy in this development without relocating to it?

Please help!