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Licker v. Harkleroad

Amendments to a subdivision's restrictive covenants which allowed for the commercial use of less than all of the lots were invalid without the consent of the adversely affected property owners because the covenants where intended to form a uniformly residential community.

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Covenants and restrictions applicable to the residential real-estate development at issue in this case provide that they can be amended if 90 percent of the lot owners agree. Ninety percent of the lot owners, who wanted to allow commercial use of the property, attempted to amend the covenants and restrictions so that they no longer applied to the voting owners’ lots. Ten dissenting residents claim that these amendments are invalid because they do not apply uniformly to all lots in the development, they exceed the power to amend provided by the covenants, and the majority did not actually get 90 percent of the vote. We hold that because the amendments did not have uniform application, they are void.

Surrey Farms located in Snellville adjacent to the Ronald Reagan Parkway, was planned as a subdivision with over 100 homes, a swimming pool, and tennis courts. But, as of 2000, twelve years after it was chartered, only 18 homes had been built, there was no homeowner’s association or amenities, and the pool and clubhouse had been closed. The developer has abandoned the project and investors have purchased the undeveloped lots. 1

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