Legal Question in Real Estate Law in California

Re: covenants

You need to have the covenant reviewed by a real estate attorney. Typically, covenenants running with the land must have a beneficiary such as a neighboring property owner. If there is no beneficiary, then there won't be anybody to enforce the convenant.

Re: covenants

To be as safe as possible, the deed should be reviewed by a real estate attorney who has specific and recent experience in distinguishing between real covenants, equitable servitudes and conditions. Breach of a condition when the grantor conveys a "fee simple determinable" or "fee simple subject to condition subsequent" could trigger a forfeiture of your ownership.

The question as to whether it (whatever it is) runs with the land is of interest here, but probably isn't an issue (yet), because you still own the house and the original owners, although paid off, are still alive and could assert some kind of claim if they felt so inclined (they might not win, however).

The biggest issue is that this is a kind of cloud on title. Even though you might get away with renting, you might not. Also, if you ever wanted to sell, having this odd restriction on the public record would be a detriment.

This was an odd restriction to put in a deed, without any time limit. Sometimes people do things for a short-run benefit without considering the long-term problems created.

I'm doing some research on WestLaw to see what can be done by way of an action to remove cloud on title. If I find anything, I'll post another reply.