Restrictive covenants

sharpstick · #1 06-13-2018, 10:03 PM

I was wondering if the Restrictive Covenants is a community are worth the paper they are written on? Rocky view county has their rules etc and then most communities (acreage developments) have restrictive covenants written within that development. One of the rules in out community is no business can be ran out of our properties.
I have a neighbour that is building a house ( the last house to be built in a 18 year old development and he has a gravel truck and bobcat business. He has been 2 1/2 years building it (doing a lot of the work himself and hiring the trades as he goes or as he can afford it) he is getting close on the inside I think but the yard is a ways from being done. Anyways, his intentions are he is going to build a shop and run his business out of it. I have had 2 conversations with him to confirm this and reminded him of the rules in our community. He doesn't seem to care about them and says he will fight us if need be.
I realize this will be for a judge to decide at the end of the day and I foresee our community hiring a lawyer but I was just wondering if anyone has any experience with restrictive covenants and if they will hold up?

I know of 2 other dwellings that were running their business out of their place and were told they can't do it and they did the right thing and pulled their business out of the community. (one was a landscaping company and the other was a highway hauler that parked his commercial truck in his yard on hid days off.)

Anyways, thanks for any info.

Cheers,

SS

CritterCommander · #2 06-13-2018, 10:08 PM

Restrictive covenants are only enforceable by those that are party to it. Most aren't worth the paper they are printed on, but it's possible the original developer had a decent lawyer who did a good job and put some teeth in it. You will have to hire a lawyer and get the matter in front of a judge for a decision. Good luck.

sharpstick · #3 06-13-2018, 10:19 PM

Thanks Critter, those were my initial thoughts too. I guess first I need to talk to all the neighbour and see how many are willing to pay up if a lawyer is needed or if they are going to be happy with a gravel truck business in our community. I feel my property value is going to sink because of this guy if we can't stop him.

jstubbs · #4 06-13-2018, 10:54 PM

Depends on the wording of the restrictive covenant, as to hold up in court one of the most important elements is that the RC is negative in substance (cannot force expendentiure to do something).

Thus essentially if it says something along the lines of “property must contain a residential household”, a judge may dismiss the RC, but if worded more like “cannot operate a commercial business upon this property”, a judge may accept the RC.

Good luck.

sharpstick · #5 06-15-2018, 09:31 AM

Thank Jstubbs, it clearly states that you cannot run a commercial business. I will dig it up and get the exact wording.

Cheers,
SS

TROLLER · #6 06-15-2018, 04:07 PM

I hope you have started with the county, they are the ones who ultimately will either grant or refuse a license. They should be involved now rather than after the fact.

nitro · #7 06-15-2018, 04:31 PM

Start with the county and see what the zoning says first.I think those have a lot more teeth to them and if I remember Rocky view was pretty strict and that was 13 years ago when we where looking at property.

Albertadiver · #8 06-15-2018, 05:11 PM

Just call 311. If he's not zoned for a business the City will shut him down.

They love to shut people down.....

coreya3212 · #9 06-15-2018, 05:40 PM

Geez fellas. Does parking a gravel truck and bobcat constitute running a business? I think if someone has customers, vendors, employees etc coming and going ,ok, but if it’s a guy who parks his equipment at his residence each evening after a days work, that sure doesn’t sound like running a commercial operation from a residential property. BWTFDIK.

AB2506 · #10 06-16-2018, 02:50 AM

There are 2-3 types of documents that can be attached to a real estate title. Some people built extravagant sheds and patio pads right up to or over the drainage swale (violation of the drainage bylaw). They were also in violation of their covenant which said no structure can be built with in the overland drainage right of way.

The remedial orders were issued to the 3 owners. All 3 owners appealed the orders. They had to plead their case in front of the subdivision and appeal ( a quasi judicial hearing) board. The board sided with Water Services and Bylaw. However, the 3 owners were given 9 months to move their sheds and patios out of the overland drainage right of way.

In my opinion, real estate agents and real estate lawyers to not place enough emphasis on the attachments to the title when the purchasers are signing the documents. Most owners are clueless or willfully ignorant of the restrictions on their property.

Call the county and report the business when it is operating. Remind the officer of the covenant.

R3illy · #11 06-16-2018, 09:10 AM

Quote:

Originally Posted by coreya3212

Geez fellas. Does parking a gravel truck and bobcat constitute running a business? I think if someone has customers, vendors, employees etc coming and going ,ok, but if it’s a guy who parks his equipment at his residence each evening after a days work, that sure doesn’t sound like running a commercial operation from a residential property. BWTFDIK.

I agree with you mostly except if it was me ignoring the covenant i would be a bit more diplomatic. I wouldnt be challening my neighbors or discussing lawyers.

The guy building sounds like an idiot who didnt read his title. Its like a person buying into an area with an hoa or condo and doesnt realize he has rules he must follow.

TROLLER · #12 06-16-2018, 10:11 AM

We had a neighbor parking his gravel trucks in his yard and after huge complaints the county (Rocky View) passed a bylaw against parking trucks over 1 ton. IF you are in RV then you should be able to simply call enforcement and get the truck removed. The bob cat I doubt because lot's of guys have them for working around the yard and snow removal. I am having issues now with people parking up to 8 trailers on their property. Have been after the county but so far not much. Our new councillor is as effective as boobies on a boar.

Bellero · #13 06-16-2018, 10:32 AM

Thank you all for reminding me why I don't live in towns or cities.

R3illy · #14 06-16-2018, 11:22 AM

Quote:

Originally Posted by Bellero

Thank you all for reminding me why I don't live in towns or cities.

Would you be ok with your neighbors building anything they want that contravenes what their land is zoned for?? Maybe they build a highrise.. an airport... maybe they turn your neighboring land into a dump.

Since its no big deal im sure you wouldnt mind.

coreya3212 · #15 06-16-2018, 03:00 PM

Quote:

Originally Posted by R3illy

Would you be ok with your neighbors building anything they want that contravenes what their land is zoned for?? Maybe they build a highrise.. an airport... maybe they turn your neighboring land into a dump.

Since its no big deal im sure you wouldnt mind.

Funny you put airport in the list. Municipal and provincial governments can not stop an aerodrome from being built. There laws simply don’t apply to aviation.

I took the original post as building on a acreage type small subdivision, but maybe that isn’t the case.

coreya3212 · #16 06-16-2018, 03:06 PM

Quote:

Originally Posted by R3illy

I agree with you mostly except if it was me ignoring the covenant i would be a bit more diplomatic. I wouldnt be challening my neighbors or discussing lawyers.

The guy building sounds like an idiot who didnt read his title. Its like a person buying into an area with an hoa or condo and doesnt realize he has rules he must follow.

Of course we only have one side of this story from a guy trying to stop another guy from doing something...so who really knows. I liken a guy with a bobcat and gravel truck, to the plumber with his van of tools, or the guy who works as a a consultant with a pick up truck and his briefcase. They may all have there own business and simply bring there tools and transport home each evening after work...now if it’s five gravel trucks and the employees come each morning and park there cars to take the gravel trucks to work for the day and return them later and go home, that’s running a commercial operation from a residence...

One guys opinion.

R3illy · #17 06-16-2018, 04:56 PM

"IF" the guys running a business when theres a restrictive covenant i can see the issue.. Again ill say "IF". You seem to be offended by a guy who wants the rules followed.

If someone is stupid enough to buy into an area with rules/restrictions then he has no one to blame but himself.

I deal with similar issues with some investment condos. People buy into them thinking they can do as they please then they want to blame everyone else for their stupidity.

coreya3212 · #18 06-16-2018, 05:06 PM

Nevermind

Desert Eagle · #19 06-16-2018, 08:18 PM

Quote:

Originally Posted by R3illy

Would you be ok with your neighbors building anything they want that contravenes what their land is zoned for?? Maybe they build a highrise.. an airport... maybe they turn your neighboring land into a dump.

Since its no big deal im sure you wouldnt mind.

I don't get it... the land is OWNED by this guy. He should be able to do whatever he wants on his land.

No wonder we are turning into a nanny state...

R3illy · #20 06-16-2018, 11:27 PM

Quote:

Originally Posted by Desert Eagle

I don't get it... the land is OWNED by this guy. He should be able to do whatever he wants on his land.

No wonder we are turning into a nanny state...

doesnt seem you understand what a restrictive covenant is... nor do you seem to understand that you cant do anything you want with the land you own.

Dont let simple facts get in the way of things tho.

amosfella · #21 06-17-2018, 11:30 AM

Quote:

Originally Posted by Desert Eagle

I don't get it... the land is OWNED by this guy. He should be able to do whatever he wants on his land.

No wonder we are turning into a nanny state...

Sorry, you only bought the use of the land and property. You didn't buy the land and property. The only exception is if you have the Crown Grant to the property. In most cases, unlikely as it's rezoned land.

Whoever holds the Crown Grant owns the property.