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Saxon Estates Is a Subdivision of Single-Family Homes

Question 89

Multiple Choice

Saxon Estates is a subdivision of single-family homes. All of the homes in Saxon Estate are the same color on the outside stucco with the same flat-tile roofs. When the real estate market experienced a downturn in 2008, the builder went bankrupt and 27 lots remained in Saxon Estates with no houses on them. As individuals began to buy the lots from the bankruptcy trustee and build homes on those lots, they were using colors different from the one color and not all were installing tile roofs. The existing homeowners are concerned about the effect these homes with different external components will have on the value of their homes. Which of the following best describes their situation?


A) Unless there were CCRs requiring the external design elements there is nothing the homeowners can do
B) Unless the buyers from the bankruptcy trustees were told about the pattern on the external appearance, they need not comply
C) The doctrine of equitable servitudes provides the homeowners with protection for the consistency of their development
D) The homeowners have no protections when a ghost development is turned over to a new developer

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