Drafting Covenants
Webster v. Ocean Reef Community Assoc., Inc., 994 So. 2d 367 (Fla. Dist. Ct. App. 2008).
A Florida district court of appeals held that an Association's covenants that regulated sales of property could not be used to regulate gifts of property. The governing documents of the Association provided that a lot purchaser had to be approved as a member of the Association to be able to buy the lot.
Plaintiff was the beneficiary of a trust created by an Association member and her husband. The Association member conveyed its lot to the trust by quitclaim deed. The trial court held that the transfer to the trust was a gift because no value was given in return. While the governing documents of an Association create a contractual relationship between the Association and its members, the provisions of the documents in question were inapplicable in this case. The Association could not present any express provision that required approval by the Association of anyone who took property through a donation.
Covenant interpretation is crucial to their enforcement. Associations should therefore be cautious when drafting their governing documents to ensure that their plans and wishes will be met.
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Posted by Ryan McCabe at 3/10/2009 2:17 PM 
Categories: Homeowners Association, Common-Interest Community Association, Covenant Enforcement, Covenant Creation
Categories: Homeowners Association, Common-Interest Community Association, Covenant Enforcement, Covenant Creation
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