National Real Estate Exam (PSI)Property OwnershipHard
A homeowners association's recorded covenants limit fence height to four feet in a subdivision. A new buyer purchases a lot and later wants to install a six-foot privacy fence. Which statement best describes the buyer's obligation?
- AThe covenant only applies to the original developer, not future lot owners
- BThe buyer is bound because the restrictive covenant runs with the land and binds subsequent owners
- CThe buyer is not bound because they did not personally sign the covenant
- DThe buyer may ignore the covenant since it was created before their purchase
Show answer & explanationAnswer & explanation
Correct answer: B. The buyer is bound because the restrictive covenant runs with the land and binds subsequent owners
Recorded restrictive covenants 'run with the land,' meaning they automatically bind all future owners of the property regardless of whether they personally signed or negotiated the original agreement, as long as proper notice was given through recording.
Why the other options are wrong
- A. Covenants are intended to bind all future lot owners in the subdivision, not just the developer.
- C. Personal signature is not required; covenants attach to the land itself once properly recorded.
- D. Timing of creation doesn't exempt later buyers; recorded covenants remain enforceable.
Restrictive Covenant Running with the Land
A private agreement recorded against a property that limits use and automatically binds all future owners, functioning as an encumbrance on title.
- Must be recorded to give constructive notice to future buyers
- Enforced through injunctions or HOA action, not necessarily as a monetary lien
- Differs from an easement because it restricts use rather than granting access rights
Memory trick: Rules recorded in the deed follow the land like a shadow.