Restrictive Covenant auto renewal?

[J2W]

State: North Carolina
Question regarding wording in neighborhood covenants:
In one section of the covenants it states the covenants are to initially run for 25yrs and then automatically renew for consecutive 10yr periods. Why not just say they run forever? Or does something have to happen for them to renew? Or does it mean they can only be changed at the end of each 10yr period?

Below is the whole section:

"These covenants are to run with the land and shall be binding on all parties and all persons claiming under the maker hereof for a period of 25 years from the date these covenants shall be recorded, after which time said covenants shall be automatically extended for consecutive periods of ten years each, unless an instrument signed by a majority of the owners of the lots shall be recorded agreeing to change said covenants in whole or in part".

 

[adjusterjack]

They renew automatically "unless an instrument signed by a majority of the owners of the lots shall be recorded agreeing to change said covenants in whole or in part."

What's not clear about that?

 

[J2W]

They renew automatically "unless an instrument signed by a majority of the owners of the lots shall be recorded agreeing to change said covenants in whole or in part."

What's not clear about that?

Why not just say they run forever "unless an instrument signed by a majority of the owners of the lots shall be recorded agreeing to change said covenants in whole or in part."? Why add the "renew" wording? Seems unnecessary.
It just made me wonder if there was some other intent that I was missing.

 

[adjusterjack]

My own deed restrictions are written in a similar manner.

I just remembered something that might explain it. It's called the Rule Against Perpetuities.

https://en.wikipedia.org/wiki/Rule_against_perpetuities

Could explain why such documents cannot use the word "forever."

 

[J2W]

My own deed restrictions are written in a similar manner.

I just remembered something that might explain it. It's called the Rule Against Perpetuities.

https://en.wikipedia.org/wiki/Rule_against_perpetuities

Could explain why such documents cannot use the word "forever."

Thanks for this. Could very well explain it.

 

[zddoodah]

In one section of the covenants it states the covenants are to initially run for 25yrs and then automatically renew for consecutive 10yr periods. Why not just say they run forever?

I think "adjusterjack" is on the right track, although I suspect it's something other than the rule against perpetutities.

Or does something have to happen for them to renew? Or does it mean they can only be changed at the end of each 10yr period?

The language you quoted seems pretty clear about these questions: "said covenants shall be automatically extended for consecutive periods of ten years each, unless an instrument signed by a majority of the owners of the lots shall be recorded agreeing to change said covenants in whole or in part."

 

[adjusterjack]

I suspect it's something other than the rule against perpetutities.

I'm beginning to think so too.

This article reveals an alarming trend of special interest groups that are attempting to legislate "forever" deed restrictions into existence.

https://independentamericancommunities.com/2018/03/08/should-neighborhood-covenants-and-hoas-last-forever/

It also explains that a consequences of "forever" deed restrictions are the abrogation or erosion of property owners' rights.

 

[Mass_Shyster]

I did not research this thoroughly, and do not intent do. But from what I've found, some restrictive covenants expire after 30 years.

See Real Property Marketable Title Act, in Chapter 47B of the North Carolina General Statutes

"Subject to the matters stated in G.S. 47B-3, such marketable record title shall be free and clear of all rights, estates, interests, claims or charges whatsoever, the existence of which depends upon any act, title transaction, event or omission that occurred prior to such 30-year period "

If the restrictions renew, that would (might?) constitute an event NOT prior to such 30-year period. If they were written to last forever, they might expire in 30 years.