Shane R. Hayslip, et al. v. U.S. Home Corporation

Summary

The Supreme Court of Florida held that a deed covenant requiring arbitration of disputes arising from construction defects runs with the land and binds a subsequent purchaser who was not a party to the original deed. The court concluded that the arbitration covenant touched and concerned the land, the original parties intended it to run with the land, and the subsequent purchasers had constructive notice because the deed was recorded. The court answered the rephrased certified question in the affirmative and approved the Second District Court of Appeal's decision.

Holdings

1. A deed covenant requiring arbitration of disputes arising from a construction defect runs with the land and is binding on a subsequent purchaser who was not a party to the deed, when the covenant touches and involves the land, the original parties intended it to run with the land, and the successor had notice of it.

Questions Presented

1. Whether a deed covenant requiring arbitration of disputes arising from a construction defect runs with the land and binds a subsequent purchaser who was not a party to the deed.
2. Whether the recorded arbitration provision satisfied the requirements for a valid and enforceable covenant running with the land: touching and involving the land, intent that it run with the land, and notice to the successor purchaser.

Disposition

approved