La Esperanza Townhome Ass'n v. Title Security Agency

689 P.2d 178, 142 Ariz. 235, 1984 Ariz. App. LEXIS 467
CourtCourt of Appeals of Arizona
DecidedMay 24, 1984
Docket2 CA-CIV 5001
StatusPublished
Cited by15 cases

This text of 689 P.2d 178 (La Esperanza Townhome Ass'n v. Title Security Agency) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
La Esperanza Townhome Ass'n v. Title Security Agency, 689 P.2d 178, 142 Ariz. 235, 1984 Ariz. App. LEXIS 467 (Ark. Ct. App. 1984).

Opinion

OPINION

HOWARD, Judge.

This action relates to a subdivided town-home development in Tucson and the effect of a revision to the original subdivision plot and amendment to the declaration of covenants, conditions and restrictions.

In 1973 Tom Kennedy and his wife purchased from Ted Bloodworth some land in Tucson which had frontage on East Broadway, a main east-west traffic artery. The Kennedys subdivided the land into townhouse lots and recorded a Declaration of Covenants, Conditions and Restrictions (the Declaration) with the office of the Pima County Recorder. This purchase was secured by a land trust agreement which made Bloodworth the first beneficiary. The declarations contained the following pertinent provisions:

WHEREAS, Declarant is the owner of certain property in Tucson, Pima County, Arizona, which is more particularly described as
La Esperanza, lots 1 through 35, as shown on the plat as recorded in the Pima County Recorder’s Office, Book 25, page 1.
NOW THEREFORE, Declarant hereby declares that all the properties described above shall be held, sold and conveyed subject to the following easements, restrictions, covenants, and conditions, which are for the purpose of protecting the value and desirability of, and which shall run with, the real property and be binding on all parties having any right, title or interest in the described properties or any part thereof, their heirs, successors and assigns, and shall insure to the benefit of each other thereof.
* $ * * *
Section 3. Amendment. The covenants and restrictions of this Declaration shall run with and bind the land, for a term of twenty-five (25) years from the date this Declaration is recorded, after which time they shall be automatically extended for successive periods of ten (10) years. This Declaration may be amended during the first twenty-five (25) year period by an instrument signed by not less than ninety per cent (90%) of the Lot Owners and thereafter by an instrument signed by not less than seventy-five percent (75%) of the Lot Owners ____”

The agreement between Bloodworth and the Kennedys provided that when construction would begin with respect to individual lots, those lots would be conveyed by the trustee, Stewart Title and Trust, to Kennedy personally and upon completion of construction of each townhome, the lot would be conveyed by Kennedy to the purchasers.

The original subdivision plat created 30 townhome lots,' four detached garages which were to be considered one unit and sold concurrently with four of the town-home lots and lot 35 which constituted the common area of the townhome development.

Because of financial difficulties, the Kennedys decided to turn the project back to *237 Bloodworth in 1975 but Bloodworth was unwilling to take it without certain modifications. Primarily, the south 223-foot portion of the subdivision, the part which fronted on Broadway, was determined by Bloodworth and Kennedy to be unsuitable for townhouse development but, instead, suitable for multiple unit and multi-story unit development.

Accordingly, the Kennedys had Stewart Title & Trust file an amendment to the Declaration which excluded the southerly 223 feet of the subdivision from its terms.

At the time that Stewart Title executed the amendment to the covenants, it owned 22 of the 30 townhouse lots within the subdivision, the Kennedys owned four lots and four lots were owned by third persons. In conjunction with the amendment, the Kennedys filed and signed with Stewart Title their authorization and direction that Stewart Title & Trust record the amendments.

At the same time that the Kennedys instructed Stewart Title to execute and record the 1975 amendment, they also instructed Stewart Title to prepare a conveyance of lot 6 within the subdivision from Kennedy to a party by the name of Baker. It was Kennedy’s intent that the amendment be executed and recorded prior to the conveyance of lot 6 to the Bakers, however, these transactions and recordings were accomplished in reverse order. After the recording of the amendment, the Bakers and the owners of lot 17, Kenneth and Anne Ludeke executed affidavits stating that they approved and ratified the 1975 amendment.

Subsequently, Bloodworth transferred his interest in the property to Lou Beck and Doug Marshall, and this group then transferred the property to the defendant Ostlund who acquired title to 15 of the townhome lots, three of the detached garages and lot 35, the common area. In February 1980 Ostlund conveyed these 15 lots, three detached garages and the common area to defendant Title Security as trustee under T-285.

In May 1980 Title Security executed and recorded a revised plat to the La Esperanza Townhomes which resubdivided portions of the property. This revision purportedly eliminated the seven townhome lots which had existed within the south 223 feet of the property and also revised the boundaries of eight lots previously plated on the eastern portion of the property replacing those eight lots with nine lots. On the revised plat, the south 223 feet of the property which formerly contained seven townhome lots were converted to what is referred as Block 1. The May 1980 revision to the subdivision plat was approved and executed only by Title Security which, at that time owned 15 townhome lots or 50 percent of the lots within the subdivision.

This case was then filed by the plaintiffs seeking a declaration that the revision to the plat and the amendment to the Covenants were void and of no force and effect. The defendants counterclaimed seeking a declaration that the plat revision and amendment to the Declaration were valid and enforceable.

The case was tried to the court, sitting without a jury, which entered judgment dismissing plaintiff’s complaint and in favor of defendants on their counterclaim. The trial court’s judgment declared that the amendment to the Declaration was valid and in full force and effect and that the revision to the original subdivision plat was valid and binding upon the real property in question. Plaintiffs contend that the trial court erred since the amendment and plat revision were null and void. We agree.

As for the amendment of 1975, although there was a question below as to whether the amendment was signed by the requisite number of landowners, we believe the case turns on the fact that the amendment purports to affect only part of the lots in the subdivision.

In Riley v. Boyle, 6 Ariz.App. 523, 434 P.2d 525 (1967) we were faced with a case which had the following provision in the covenants and restrictions:

“The owner or owners of 51% of the lots in this subdivision shall have the *238 right to amend or change these conditions, reservations and restrictions for the beneficial improvement and interest of WESTRIDGE ESTATES.” 6 Ariz.App. at 524, 434 P.2d 525.

The restrictive covenant in Riley,

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Bluebook (online)
689 P.2d 178, 142 Ariz. 235, 1984 Ariz. App. LEXIS 467, Counsel Stack Legal Research, https://law.counselstack.com/opinion/la-esperanza-townhome-assn-v-title-security-agency-arizctapp-1984.