Caselli v. Messina
Appellate Term of the Supreme Court of New York
193 A.D.2d 775 (1993)
The Casellis (plaintiffs) contracted to buy the Messinas' (defendants') home under a contract making the sale subject to covenants and restrictions of record, provided those covenants weren't violated by the property's current structure or use and didn't render title unmarketable; after discovering recorded covenants and restrictions in a title search, the Casellis demanded return of their down payment, and when refused, sued claiming the Messinas failed to deliver marketable title. The civil court denied both sides' summary judgment motions, and both parties appealed.
Whether the mere existence of recorded covenants and restrictions on a property automatically renders title to that property unmarketable.