Malcolm Dowden unravels the complexities of enforcing restrictive covenants in building schemes
Building schemes arise where land has been developed by being laid out in plots and then sold to different buyers. Each buyer enters into restrictive covenants with the common seller restricting the use of the particular plot for the benefit of the estate generally.
Their purpose is to preserve the value of the estate and to prevent, for instance, business use in a residential area. The owner for the time being of each plot is bound by the scheme and he can enforce its rules against all other owners governed by the scheme. Restrictive covenants contained within the scheme are also enforceable by owners of sub-divisions of land within the scheme (Brunner v Greenslade [1970] 3 All ER 833).
A building scheme requires: an intention to impose mutually enforceable restrictions in the interest of all the buyers and their successors; and a clearly defined area affected by the scheme, and known to the buyers.
A building scheme constitutes a local law, binding the
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