Homeowners' Rights and Remedies Against Unscrupulous Land Developer, Exams of Property Law

Download Homeowners' Rights and Remedies Against Unscrupulous Land Developer and more Exams Property Law in PDF only on Docsity! EXAM #: ____________________ Special Problems: Property LS1 LSN La Puma Spring 2011 Final Page 2 of 2 ESSAY QUESTION Ollie owned an un-zoned 55-acre tract which was unimproved. He divided it into 45 one- acre lots with access roads and left 10 acres unimproved. Ollie offered the 45 lots for sale and told each prospective purchaser of the purely residential nature of the entire 55- acre tract. He sold 30 of the lots to 30 different purchasers and retained ownership of a block of 15 contiguous lots located on the eastern edge of the tract. The deed delivered to each purchaser contained the following language: The grantee agrees for him/herself and his/her successors in title that the land hereby conveyed shall be used only for residential purposes and no structure other than a single- family residence together with appropriate out-buildings shall be constructed thereon. Within 5 years of the first of Ollie’s sales, all of the 30 purchasers had recorded their deeds from Ollie and had built substantial single-family residences on their lots. Within 15 years of the first of Ollie's sales, land surrounding the 55-acre tract was substantially developed and was now mixed residential and commercial in character. This resulted in a great increase in the value of Ollie's 15 remaining lots for commercial use and Ollie decided to sell them. Bell, prior to purchasing Ollie’s lots, asked him if there were any restrictions on these lots and Ollie told her there were none. Bell also examined Ollie’s direct chain of title and discovered no indications of the restrictions. Bell then bought the remaining lots from Ollie and commenced construction of a shopping center on them. The owners of the original 30 lots (Homeowners) learned of the sale by Ollie to Bell and Bell's intended use of the 15 lots only when the shopping center construction began. Homeowners promptly objected to Bell about her construction contending that she is restricted to using the 15 lots she purchased from Ollie for single-family residence purposes. They also contend that the shopping center will generate excessive traffic, exhaust fumes, and noise near their homes. What are Homeowners’ rights and remedies against Bell? Discuss. END OF ESSAY QUESTION END OF EXAM