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Developer purchased a large tract of undeveloped land, and subdivided the tract into twenty five lots on which Developer built large homes.  Developer hired Salesco, a real estate company to advertise and sell the homes.  Salesco advertised the homes for sale as “Lovely Spacious Luxury Homes.”   Within a few days after the advertisement, Salesco sold home number 1 to Thomas, and thereafter sold the remaining homes.


As the homes were sold Developer placed in each deed the following:


Purchaser(s) hereby covenant and agree on their own behalf and on

behalf of their heirs, successors, and assigns


(1) To pay an annual fee of $1,500 for the next twenty (20) years to

County, for the installation and maintenance of the sewer line.


(2) A homeowners association is to be created and the homeowners will

abide by all of the CCR’s and regulations adopted by the association.


Developer promptly and properly recorded all twenty five deeds.


After several months the homeowners association was created.  The homeowners association’s board voted for and approved a regulation that required that the home owners were not allowed to hang, post or display any flags of any kind that were visible from the street.


One year later, Thomas built a brick wall around his property. Although his neighbor, George suspected that Thomas was building the wall over the lot line, encroaching on George’s property, he did not say anything to Thomas.


After living in his home for five years, Thomas decided to sell his house and move to Oregon to retire.  He placed his house up for sale and sold it to Carrie.  Thomas properly executed and delivered a quitclaim deed granting the property to Carrie.  Thomas’ deed to Carrie

did not contain the clause of the annual fee for the sewer line. Carrie refuses to pay any fee to County.


At about the same time Janet, who also purchased a home at the same time as Thomas, placed a flag pole in her front yard with the American flag flying high for all to see form the street.  The Homeowner’s associate has asked her to remove the flag, and she has refused.


George, the next-door neighbor of Carrie has engaged the services of a surveyor. George’s fears that the wall Thomas built was on his property was confirmed when the surveyor reported that the wall encroached onto his property by twelve inches.


George asked Carrie to move the wall off his property.  Carrie has refused, and George has threatened to sue Carrie and obtain an injunction forcing her to remove the wall from his property.


  1. On what theory or theories might Carrie reasonably be sued for her refusal to pay the annual $1,500 fee to County? Discuss.
  2. On what theory or theories might the Homeowner’s association sue Janet for her refusal to remove the flag? Discuss.


  1. On what theory or theories might Carrie reasonably be sued for her refusal to remove her wall? Discuss.

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