A developer in California records a set of deed restrictions (CC&Rs) for a new subdivision that prohibit any lot from being used for commercial purposes. Twenty years later, the surrounding area has become entirely commercial, and the subdivision is the only remaining residential area. A lot owner wants to open a retail store. Under California law, what doctrine might allow the court to refuse enforcement of the restriction?
Correct Answer
A) Changed conditions doctrine, because the neighborhood has fundamentally changed character
Under California law, the changed conditions doctrine allows a court to refuse enforcement of a restrictive covenant when the neighborhood has changed so substantially that the restriction no longer serves its original purpose. If the surrounding area has become entirely commercial, a court may find that enforcing the residential-only restriction would be inequitable and serve no purpose.
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