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Updated over 1 year ago, 03/19/2023

User Stats

5,680
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Chris Martin
  • Investor
  • Willow Spring, NC
3,422
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5,680
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deed restrictions - remain as one parcel

Chris Martin
  • Investor
  • Willow Spring, NC
Posted

I have a tree-stand parcel, held in a trust (Equity Trust Company), that I am going to clear-cut and replant, roughly 90% with loblolly pines. My plan is to do pre-development work then transfer this parcel out of the trust via Special Warranty Deed to me as an individual (a taxable event). I will then transfer the parcel to a new special-purpose entity, an LLC, that will have new membership interests that reflect the intent to develop roughly 10% of the parcel with the remaining parcel held for potential future development. The current deed has this sentence: "It is the parties [Sic] intent that the property remain [Sic] as one parcel of land for taxation, identification, zoning and planning purposes." When I establish personal ownership and have an attorney draft the new deed, I believe (but am not 100% positive (see example at end)) I am obligated to retain the above (italicized) sentence as a Restrictive Covenant. The reality is that the new ownership would not have the intent that the property remains a single parcel for development purposes.  So, here's the question: As long as the parcel remains a single parcel, I should be able to get Special Use permits to develop the parcel over time as I please, correct? 

This parcel zoning is classified as General Use District Zoning, described as (page 54):

The General Use District is established as a zoning district in which the principal use of land is for uses that are in harmony with residential, agricultural, and commercial development in Columbus
County. Any use not discussed in Section 2 is a permitted use in the (G-U) district if it can be properly identified and determined to be a classified land use by the Planning Director. 

Put another way, it seems that following the literal definition of the deed restriction would allow development of the parcel as long as the parcel is not divided. Is that how others see it? 

On a related topic, I reviewed this 13-year-old post, Deed Restriction?, that goes in depth on deed restrictions. On the first try I found a Fannie Mae imposed "restrictive covenant which shall attach to and run with the land" that disappeared after the first deed transfer. Here's a link to the first deed on 10/6/09, clearly showing the restrictive covenant, and a link to the second deed on 1/28/2010 with the restrictive covenant gone. So much for "attach to and run with the land."