Bill of Assurance
A Bill of Assurance is a legal term used primarily in certain states to describe a compilation of restrictive covenants governing a group of contiguous lots. These covenants are usually established by a property developer or subdivider to ensure that the overall development maintains a consistent and high-quality standard.
Detailed Definition
A Bill of Assurance serves as a formal agreement between the property developer and the lot purchasers, detailing specific guidelines and restrictions concerning the development. These guidelines can include architectural styles, minimum home sizes, exterior materials, types of permissible auxiliary structures, and other conditions pertaining to property use and development standards. By implementing such standards, a Bill of Assurance aims to preserve the aesthetic integrity, value, and uniformity of the subdivision.
Examples
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Example 1: In a newly developed residential subdivision, the subdivider issues a Bill of Assurance stating that all houses must have a minimum living area of 2,000 square feet, use brick as the primary exterior material, and maintain uniform fence designs. This assures prospective buyers that their investment is protected from future developments that might downgrade the neighborhood’s overall quality.
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Example 2: A property developer includes a Bill of Assurance in the sale of lots within a commercial business park. This document outlines that all buildings must conform to a particular architectural design, parking lot standards, and landscaping requirements ensures a cohesive and professional appearance throughout the park.
Frequently Asked Questions
Q: What is the primary purpose of a Bill of Assurance?
- A: The primary purpose of a Bill of Assurance is to enforce specific property use and development standards within a subdivision to maintain the integrity, aesthetic, and value of the area.
Q: Who enforces the restrictions listed in a Bill of Assurance?
- A: The restrictions in a Bill of Assurance are typically enforced by a homeowners’ association, property owners’ association, or the property developer themselves.
Q: Can the terms of a Bill of Assurance be modified?
- A: Modifying the terms of a Bill of Assurance usually requires approval from a specified majority of homeowners within the affected subdivision, or as stipulated in the document itself.
Q: Do all states utilize Bills of Assurance?
- A: No, the use of Bills of Assurance is more common in certain states. Other states may use different terms or documents to describe similar collections of restrictive covenants.
Related Terms
- Restrictive Covenants: Legal obligations imposed on landowners to do or not do something, usually included in a Bill of Assurance.
- Deed Restrictions: Clauses in a deed that limit how a property can be used, which may be a component of a Bill of Assurance.
- Homeowners’ Association (HOA): An organization in a subdivision or planned community that creates and enforces regulations and guidelines for properties within its jurisdiction.
- Property Owners’ Association (POA): Similar to HOAs, these associations enforce covenants and manage common interests in subdivisions.
Online Resources
References
- Real Estate Law (6th Edition) by Marianne M. Jennings
- The Language of Real Estate (7th Edition) by John W. Reilly
- Black’s Law Dictionary by Bryan A. Garner
Suggested Books for Further Studies
- “Real Estate Law” by Marianne M. Jennings: This book offers an in-depth understanding of the legal considerations in real estate, including restrictive covenants and Bills of Assurance.
- “The Language of Real Estate” by John W. Reilly: A comprehensive guide that covers essential real estate terminologies and concepts.
- “Property and Lawyering” by Robert C. Ellickson, Vicki L. Been, Bruce A. Ackerman: This book provides a detailed look into property law and its practical application.
