This Actual Example Sample Clauses

This Actual Example. A couple signs a PA for the purchase of a new home on a small pond, intending that Spouse A relocate her highly profitable day care business from their former home. State regulations will require a fence enclosing the yard and prohibiting the children’s access to the pond. Spouse B intends to erect an architecturally tasteful, high quality storage shed immediately adjacent to the home. Buyers also intend to construct a deck off the dining room sliding glass doors. The good news is that there are no zoning restrictions on any of the intended uses. Documents of record, however, include restrictive covenants prohibiting any home business occupation, fencing, or the construction of outbuildings, as well as an electrical easement prohibiting construction of a deck in the intended area. Xxxxx had no attorney (“they cost too much”), and therefore no one calls these encumbrances to buyers’ attention. After closing, buyers erect the fence, construct both the deck and the outbuilding, and re-open the day care business. Two weeks later, the next door neighbor, armed with a copy of the restrictive covenant, demands closure of the business, and removal of the fence and shed. The neighbor also reports the violation of the easement to the electrical company. Spouses A and B angrily complain, “Nobody ever told us about this. Yeah, we saw the title commitment, but thought everything was OK because the lender approved our loan. We’re now going to consult an attorney…admittedly after the fact.” You, of course, know what advice you will give, to your clients’ great dismay.