When a title examiner encounters deeds to lots from a common grantor, some or all of which contain covenants regulating the use of the land conveyed, the title examiner must assess whether the covenants found in the chain of title differ from other deeds from the common grantor, and whether those covenants not found in the chain in title apply to the title being examined by virtue of inclusion in other deeds from the common grantor.
Comment 1. A common scheme of development occurs when a developer imposes covenants on the lots before the first lot is sold, or when the owners of the lots in the development agree to the imposition of the covenants.
Comment 2. Covenants shall be implied if a general plan is created evidence by 1) subdivision by common owner; 2) general scheme of development for subdivided properties; 3) majority of subdivided lots contain similar covenants; 4) actual or constructive notice is imparted. Patch v. Springfield, 2009 VT 117, 187 Vt. 21 (2009).
Comment 3. For the distinction between a common scheme and a common interest community, see generally Khan v. Alpine Haven Property Owners’ Assoc., 2016 VT 101, 203 Vt. 251 (2016).
September 2022: Standard and comments were added.