RE Agent required to disclose Covenants?

[Dawndan92]

What is the name of your state? North Carolina

We purchased our home about 3 years ago and specifically asked the realtor about the woods that backed up against our property. We were told that it was part of the National Forest and no one could build back there. Okay, great.

We have decided to bring in some live stock (pygmy goats for milk and chickens for food and eggs) on our property in order to help offset the inflation and cost of living here. We spoke with our immediate neighbors and they were encouraged by the idea as we offered them some of our eggs and milk.

Prior to our purchases I check with the County Clerk's Office and found nothing to made sure we were not voliating any town or country laws either by getting these animals.

Then, one neighbor last week, asked if we had gotten a letter, I told him no. He said he spoke to a neighbor and he had mentioned to him in passing that this "used to be called" Cedar Creek Woods. So again, I contacted the County Clerk's Office, nothing under Cedar Creek Woods.

We have now received a letter stating that we are in voliation of Covenants and Restrictions for Cedar Creek Woods Development. Um, we didn't know we lived in a development. The documentation is listed under the original land owners' names, by the way we didn't even know since we purchased from someone else.

We purchased property along a street with various other sized trailers (single and double wides). I've look through our paper work from the purchase of the house and there is no place that says we live in a development nor is there any sign anywhere indicating such development.

We've also found out the property behind us in indeed owned and the owner is planning on developing the area. They've owned this land forever.

Now we are in a bind. We have these animals and someone we never heard of threatening to take us to court. We'd love to move, but houses here have been up for sale for over a year. I'm not seeing that happening really fast.

What are you rights? Can we sue the Real Estate company that sold us the house for not disclosing that this was a "development" and it had Coventants and Restrictions?

Thank you for your help with this matter. I'm truly sick over the course of these events.

 

[divgradcurl]

Can we sue the Real Estate company that sold us the house for not disclosing that this was a "development" and it had Coventants and Restrictions?

The covenants should be part of the title to your property. Were you give a copy of the title when you purchased?

 

[Dawndan92]

No we recieved copies of Offer to Purchase and Contract plus our mortgage paper work. No title, we are under the impression that the mortgage company holds the title is that not correct?

 

[divgradcurl]

No we recieved copies of Offer to Purchase and Contract plus our mortgage paper work. No title, we are under the impression that the mortgage company holds the title is that not correct?

Look through your documents again. If you own the property, you had to have at least signed off on the title. In any event, the title is public record, you can get a copy from the county recorder's office, and it will include any easements of restrictive convenants that will apply to your property.

Do you own the property? Did you purchase the underlying property, or did you purchase a mobile home without purchasing the underlying property (hard to tell from your description)?

 

[seniorjudge]

Q: What are you rights? Can we sue the Real Estate company that sold us the house for not disclosing that this was a "development" and it had Coventants and Restrictions?

A: No; the covenants were listed on your owners' title policy. (You did get title insurance, didn't you?)

In any event, you are assumed to know of something that is recorded at the courthouse.

It's a legal fiction, of course, but that's the law.

 

[FlyingRon]

The covenants should be part of the title to your property. Were you give a copy of the title when you purchased?

Around here the covenants are typically mentioned only by reference to whatever previous document (usually the one that came from the subdivision) established them.

In Virginia, it is state law that the seller (usually through the agent) submit the CC&R's as well as the HOA (if any) articles and by-laws to the buyer during the purchase. I can't find a similar law in NC (the disclosures seem to end on the developers first sale).

 

[Dawndan92]

The covenants should be part of the title to your property. Were you give a copy of the title when you purchased?

Went through all the paper work again and have no copy of a title and yes I know we had a title search done because there were some issues that had to be cleared up regarding the previous property owners, but I don't see a copy anywhere.

Also, we did find one sheet that references the County Clerk's book and page number, but when we use that to do a search there is no such page, in fact, the numbers aren't even close to what the copy we received are so there was no switching of numbers. So we called the Clerk and nope no such page.

We've contacted a lawyer in any case, as I look out my window and laugh at all the neighbors who apparently didn't receive any information themselves because they too are voliating the Convanent themselves for various things. My husband went down the street and counted 28 homes out of 34 are in some voilation(s).

Thanks for all your input.

 

[Dawndan92]

Sorry missed that point. We purchased everything, land and double wide which is has been placed on a foundation.

Thanks again.

 

[nextwife]

Look through your documents again. If you own the property, you had to have at least signed off on the title. In any event, the title is public record, you can get a copy from the county recorder's office, and it will include any easements of restrictive convenants that will apply to your property.

Do you own the property? Did you purchase the underlying property, or did you purchase a mobile home without purchasing the underlying property (hard to tell from your description)?

Correction: The DEED copy is public record, not the title. Additionally, a deed does NOT always contain all the applicable E&Rs. That is why one needs title insurance. And needs to READ it.

Determination of TITLE requires a search and exam of the records. There is no one document that comprises the "title" to real property.

Many owners don't themselves know all the applicable E&Rs, certainly the RE agent doesn't. That is why everyone needs to obtain a title insurance policy and review all the Schedule B exceptions BEFORE closing.