Shalimar Ass'n v. D.O.C. Enters., Ltd.
Court of Appeals of Arizona
688 P.2d 682 (Ariz. Ct. App. 1984)
A developer of the Shalimar Estates subdivision built the community around a central golf course, advertised the golf course as an integral feature to attract buyers beginning in 1960, and imposed restrictive covenants on the surrounding home lots (though never formally recording any restriction on the golf-course parcel itself) while personally assuring buyers the course would remain a golf course for 40 years, extendable another 25 absent majority homeowner agreement otherwise. In 1978, a group of Canadian purchasers (whose entity, D.O.C. Enterprises, is the defendant) bought the golf-course land intending to develop it, having visited the site multiple times and having notice the developer intended the land to remain a golf course; the Shalimar Association (plaintiff), representing the homeowners, sued to enforce the implied restriction, and the trial court found an implied restriction existed, of which the Canadians would have learned through reasonable inquiry, barring development until the 40-year period expired. The Canadians appealed.
Whether the purchaser of a servient estate is bound by restrictions that do not appear in government records but that are evident upon an inspection of the estate.