River Heights Association v. Batten

Circuit Court of Albemarle County, Virginia · Property

PropertyRestrictive covenantsChanged conditionsrestrictive covenantsresidential use onlycommercial developmentchanged conditionsgeneral plan

Facts

The respondents owned undeveloped lots in the rear of Carrsbrook Subdivision fronting Route 29, and complainants introduced deeds showing those lots were subject to recorded residential restrictive covenants prohibiting commercial use. Respondents argued that a later plat note stating that Lots 1 and 2 were restricted to non-access on Route 29 if used for residential purposes implied that commercial use was allowed, and they also argued that Route 29 and surrounding property had become heavily commercialized while the lots were zoned commercial. Respondents further contended that, because their lots lacked residential access and were more valuable commercially, enforcing the covenants would make the property effectively unusable. The evidence showed significant change along Route 29 but no evidence of change within Carrsbrook itself.

Issue

Do the residential restrictive covenants apply to respondents' lots despite the later plat note about Route 29 access, and, if they do, have changed conditions become so radical that enforcing the covenants against commercial development would be inequitable?

Rule

A restrictive covenant will not be denied enforcement based on changed conditions unless the changes are so radical as practically to destroy the essential objects and purposes of the agreement. In assessing changed conditions, the relevant inquiry is whether there has been a radical change in the whole neighborhood that defeats the covenant's purpose; increased value for business use, conflicting zoning, or commercial development outside the subdivision alone do not suffice. A plat note limiting Route 29 access for residential use does not by itself eliminate a residential-use restriction or create ambiguity negating the covenant.

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One of 10 multiple-choice questions for this case. Pick an answer to see why.

Maple Crest is a residential subdivision in Roanoke, Virginia, where every lot is subject by deed to a recorded covenant limiting use to residences. Nina Patel owns an undeveloped edge lot bordering a six-lane arterial road that, over the last 20 years, has filled with pharmacies, restaurants, and office buildings, but the subdivision itself remains entirely single-family homes.

If Nina proposes to build a small medical office on her lot and argues the covenant is unenforceable because the bordering road has become commercial, what is the strongest likely result?

Explanation. A residential restrictive covenant is not defeated unless changes are so radical as practically to destroy the essential objects and purposes of the agreement. The relevant inquiry is the whole neighborhood, not just an adjoining corridor. If the subdivision itself remains residential, external commercialization and traffic on the bordering road are insufficient. (Derived from River Heights Association v. Batten (n.d.).)