Search Site

The Friendly Neighborhood Scheme

You have lived happily in your home for years, content with the fact that all the houses on your street appear the same from the outside. A deed restriction that applies to all the homes on the street, helps make sure the neighborhood looks consistent and uniform throughout. But then, a new neighbor comes in, and decides to try to break up the property to squeeze in another home. Can you enforce the deed restriction? The answer is likely yes.

On October 29, 2021, the Appellate Division in an unpublished decision affirmed the enforceability and concept of the neighborhood scheme. Cherry v. Hadaya, Docket No. A-0384-19, slip op. at 2 (App. Div. October 29, 2021).

Usually, only the parties to a deed restriction can enforce the restriction. In other words, only the person who established the deed restriction could enforce the deed restriction against the person who agreed to the restriction. However, the concept of a neighborhood scheme allows all neighbors who are subject to the same restriction the ability to enforce the deed restriction.

A neighborhood scheme is where a deed restriction (1) applies to all lots of like character within the scheme, (2) are a benefit to all lots involved that are subject to the restrictions, and (3) are reasonably uniform as to the restrictions imposed. Olson v. Jantausch, 44 N.J. Super. 380, 386 (App. Div. 1957).

If these elements are met, a neighbor would then have standing to enforce the deed restrictions on another neighbor even if there was no other relationship between the two parties.

In this case, the plaintiffs sought to enforce a deed restriction on defendants. The defendants purchased a property and applied for two subdivisions that would have allowed them to build three homes instead of one. However, the subdivision would have resulted in three properties that had smaller street frontages than the deed restriction permitted.

The court found that the plaintiffs who were subject to the same deed restrictions had standing to enforce the deed restriction against defendants. In doing so, the court found that the deed restriction established a clear intent to establish uniformity in frontage requirements. The court further held that complete uniformity is not required, as long as the restrictions vary in accordance with the design of the original grantor.

In addition, the court noted that the successor property owners in the neighborhood had all continued to abide by the deed restriction. Therefore, it was evident that the neighborhood scheme had not been abandoned. As a result, the court entered an order enforcing the deed restrictions and reversing the subdivision approval.

If the properties in your neighborhood are subject to the same deed restriction, you too may have an enforceable neighborhood scheme.

Our Attorneys

In The Media

  • On the Run: Runner/lawyer DeBord out to protect the environment she loves

    Bucks County Herald, January 4, 2024

    When Brittany DeBord runs along the Delaware River canal towpath or on the trails of Tyler State Park, she doesn’t just appreciate the natural beauty of the...

    Read More
  • Gulf Coast Town Center facing foreclosure

    Naples Daily News, September 16, 2015

    Wells Fargo filed a lawsuit Sept. 8 against an affiliate of CBL & Associates, the owners of the decadeold, 1.2 million-square-foot mall in south Fort Myers for a $190.9 million unpaid loan. The center has 94 stores on 204 acres, with such anchors as Super Target, Belk, Best Buy, Dick’s Sporting Goods, Marshalls and Costco...

    Read More
  • Town liable for private company's leaking underground tanks, court rules Jul 26, 2017

    CRANFORD -- A couple that owned a businesses in town and became sick from leaking underground tanks owned by an adjacent business can sue the township for damages because the tanks were partially ...

    Read More
  • Dark Waters: How a Class Action Catapulted NJ to Forefront of 'Forever Chemicals' Battle

    NJ Law Journal Jan 09, 2020

    As property owners become increasingly aware of PFAS contamination, and as individuals exposed to PFAS learn of the health risks associated with exposure, liability will likely affect entire supply chains.

    Read More
  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
Contact Our Firm

Quick Contact Form