Legal Question in Real Estate Law in Colorado

Deed restrictions in Telluride, CO

We have purchased a few lots in a deed restricted sub-division in Telluride Mountain Village. The deed restriction basically limits the property in that whoever lives in the house must be employed/pay taxes in Telluride or Mountain Village.

There has been a recent Colorado State Supreme Court ruling stating that rent control imposed on developers so that a percent of their development must be "employee housing" is unconstitutional.

Our property was designated as "employee housing" and we purchased it under these terms. Does this recent ruling affect us and if so how does it change our deed restriction?


Asked on 8/14/00, 7:43 pm

2 Answers from Attorneys

Peter W. Thomas, Esq. PETER WILLIAM THOMAS, PLLC

Re: Deed restrictions in Telluride, CO

It is very interesting case and is going to result in some very interesting litigation. We represent three different clients in Aspen who now, like you, similarly seek to challenge vested deed restrictions that purport to run with the land and survive in perpetuity. Not all rent-controlled deed restrictions fall within the ambit of the new ruling, however, and thus you do not have a per se actionable challenge to the restriction. I certainly would have an attorney look at your situation in more detail, however, as the successful challenge and recission/voiding of that deed restriction will have quite an impact on the value of your property.

We are busy and probably not able to take on another client matter at this time; I would, however, be more than happy to chat with you on the phone and, if unable to assist you ourselves, I certainly can refer you to several other excellent firms and attorneys.

Very truly, Peter W. Thomas, Jr., Esq.

Petersen, Thomas & Slade, PLLC

616 E Hyman Avenue

Aspen, Colorado 81611

(970) 544-0898

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Answered on 10/06/00, 12:17 am
Stanley Spring Stanley A. Spring, Attorney at Law

Re: Deed restrictions in Telluride, CO

The case voids the ordinance that your deed restrictions are based on. It would be necessary to compare the ordinance and your deed as well as the covenants then try to apply the case to your situation. PLease contact if you wish to consult an attorney.

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Answered on 9/20/00, 7:03 pm


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