[WSBARP] 3 story house meets 2 story CCR restriction

[marc holmeslawgroup.com]

We have a client set to buy a brand new 3 story house and, lo and behold, the builder didn't notice or ignored a CCR restriction limiting homes to no more than 2 stories.  Title company says the ALTA Homeowner's policy covers this and points to a "covered risk" provision that reads:

You are forced to correct or remove an existing violation of any covenant, condition or restriction affecting the Land, even if the covenant, condition or restriction is excepted in Schedule B.  However, You are not covered for any violation that relates to:

  1.  Any obligation to perform maintenance or repair on the Land; or
  2.  Environmental protection of any kind, including hazardous or toxic conditions or substances.
unless there is a notice recorded in the Public records, describing any part of the Land, claiming a violation exists.  Our liability for this Covered Risk is limited to the extent of the violation stated in that notice.

We're not aware of any publicly recorded notice of that the 3rd story is a violation.  Does this seem like adequate protection for the buyer or a recipe for disaster?



Marc Holmes
Holmes Law Group PLLC
2303 W. Commodore Way, # 306
Seattle WA 98199
HolmesLawGroup.com<http://holmeslawgroup.com/>
marc at holmeslawgroup.com<mailto:marc at holmeslawgroup.com>
Ofc: 206-357-4224
Cell: 206-849-0853

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