328 Owners Corp. v. 330 West 86 Oaks Corp.

Summary

The New York Court of Appeals held that land-use restrictions imposed under the Urban Development Action Area Act and reflected in a deed could run with the land and bind a successor purchaser. The court concluded that the deed, read as a whole with the related statutory and municipal approvals, demonstrated intent to impose continuing restrictions and satisfied the requirements for a covenant running with the land. The court reversed the Appellate Division and reinstated the amended order and judgment of Supreme Court.

Holdings

1. Land-use restrictions contained in the deed and mandated by article 16 of the General Municipal Law run with the land and are enforceable against the successor grantee under the circumstances presented.
2. The requirements of intent, touch and concern, and privity of estate were satisfied, making the restrictions enforceable against 330 West.
3. The property was not limited to conservation purposes alone; the applicable restrictions included rehabilitation or conservation of the existing building and construction of one- to four-unit multiple dwellings without a change in land use permitted by existing zoning.

Questions Presented

1. Whether land-use restrictions referenced in the recitals of a deed and mandated by article 16 of the General Municipal Law can be enforced against a successor grantee.
2. Whether the deed and surrounding transaction demonstrated the intent, touch-and-concern, and privity requirements for a covenant to run with the land.
3. Whether the property should be restricted to conservation purposes only, rather than to the broader uses identified in the deed and UDAAP documents.

Disposition

reversed