In a deed, a grantee may agree to do something or refrain from doing certain acts. This agreement will become a binding contract between the grantor and the grantee. An example would be an agreement to maintain fences on the property or that the property will only be used for residential purposes. This kind of covenant is binding, not only between the grantor and the grantee, but also runs with the land. This means that anyone acquiring the land from the grantee is also bound by the covenant of the grantee. A covenant that provides that the grantee will refrain from certain conduct is called a restrictive or protective covenant. For example, there may be a covenant that no mobile home shall be placed on the property.
A restrictive or protective covenant may limit the kind of structure that can be placed on the property and may also restrict the use that can be made of the land. For example, when a tract of land is developed for individual lots and homes to be built, it is common to use the same restrictive covenants in all of the deeds in order to cause uniform restrictions and patterns on the property. For example, the developer may provide that no home may be built under a certain number of square feet. Any person acquiring a lot within the tract will be bound by the restrictions if they are placed in the deed or a prior recorded deed. Also, these restrictive covenants may be placed in a document at the outset of the development entitled "Restrictive Covenants," and list all the restrictive covenants that will apply to the tracts of land being developed. Any subsequent deed can then refer back to the book and page number where these restrictive covenants are recorded. Any person owning one of the lots in the tract may bring suit against another lot owner to enforce the restrictive covenants. However, restrictive covenants may be abandoned or not enforceable by estoppel if the restrictive covenants are violated openly for a sufficient period of time in order for a Court to declare that the restriction has been abandoned.
Restrictive Covenants Without Hoa In Michigan
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Without an HOA, the responsibility falls squarely on the shoulders of individual homeowners. If someone's breaking the rules, it's up to their neighbors to notice and then do something about it.
In most cases, the HOA reserves the right to enforce penalties or compel the removal of unauthorized structures. Homeowners may face fines, legal action, or the obligation to dismantle the patio at their own expense. Such infractions can strain relations with the HOA and impact property resale value.
On July 8, 2024, the Governor signed the Homeowners' Energy Policy Act, MCL 559.301, et seq. (“HEPA”), which becomes effective on April 1, 2025. The HEPA is intended to limit a homeowners association's ability to restrict or prohibit an owner from installing solar panels and other energy-saving devices.
Answer: If there is no homeowner association to enforce the covenants, conditions and restrictions, each of the individual homeowners has the right to enforce them. Because of the time and expense, however, rarely do individual homeowners enforce covenants, conditions and restrictions.
A restrictive covenant runs with the land, affecting successive owners. It will not cease to be enforceable just because it was created a long time ago. However, the covenant may be unenforceable for another reason.
In Michigan, the standing to enforce a restrictive covenant can be quite broad. By statute, any third-party beneficiary of a contract has the right to bring an action in the circuit court where the property is located to enforce the covenant.
However, the absence of an HOA means that maintenance and upkeep of common areas are the sole responsibility of the homeowners. This can result in a less uniform appearance and potentially lower property values if neighboring properties are not well-maintained.
Without an HOA, the responsibility falls squarely on the shoulders of individual homeowners. If someone's breaking the rules, it's up to their neighbors to notice and then do something about it. That's right; your friendly (or not-so-friendly) neighbors actually have the legal standing to enforce deed restrictions.
While you can't refuse to join one, there are plenty of constructive ways to voice your concerns and seek change if you find yourself at odds with a mandatory HOA. Here's what you can do: Review Governing Documents: Start by pulling out the HOA's Covenants, Conditions, and Restrictions (CC&Rs) and other bylaws.
How do I challenge a restrictive covenant? Express release: It may be possible to negotiate the release or variation of a restrictive covenant. Indemnity insurance: It is possible to obtain indemnity insurance to protect against the risk of a person with the benefit of a restrictive covenant seeking to enforce it.