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Saturday September 23rd 2017

If you purchase land from the bank who foreclosed on the contractor, does property fall unde their covenant?

I purchased land that is in a subdivision in Georgia. The contractor had only built four homes from 1990 to 1995. The land was forclosed on by the bank and I and others bought the lots. We did not receive any covenants but know that most subdivision has them. Would we have to abide by those covenants although we didnt purchase the land from the contractor? When we purchased the land the bank said they have nothing to do with it for we bought the land as is.



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One Comment for “If you purchase land from the bank who foreclosed on the contractor, does property fall unde their covenant?”

  • sterno73 says:

    Was governance turned over to the neighborhood, or was the contractor still in charge of those matters? Either way, you should have been presented with the covenants. They are in place for the benefit of your neighbors, not the contractor. If you plan on deviating from the covenants, at least be a good neighbor and talk with your neighbors about it. If what you are planning carries any real risk that you might have to incur a significant cost for your planned deviation, then check with a lawyer to see if the covenants are even enforceable. I know that if they are not worded correctly and handled in the proper way, they may not even be enforceable. Even so, the good neighbor factor should weigh on your decision.


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