The North Carolina Court of Appeals in Figure Eight Beach Homeowners' Association v. Parker, rejected the defendant property owner's interpretation of several earlier decisions. The property owner claimed the earlier decisions required affirmative covenants to contain some ascertainable standards by which the court could objectively determine the amount and purposes of the assessments. The Court of Appeals claimed, however, it was applying the same standards set forth in the earlier decisions regarding the enforceability of similar covenants. In essence, the court's adoption of a broader interpretation of the earlier case law validates stricter enforcement of assessment covenants by property owners' assocations which seek revenues to provide services to the residential development. Why the court took this position in light of the language of its earlier decisions, as well as the impact of the decision on residential development in North Carolina, will be the subjects of this note. An examination of the earlier decisions interpreting similar covenants, along with similar decisions from other jurisdictions, will give a proper framework for analysis of the Figure Eight decision.
Ernest Rawls Carter Jr. and Monty Beck, Restrictive Covenants - Enforceability of Assessments Against Property Owners in Residential Developments - Figure Eight Beach Homeowners' Association, Inc. v. Parker, 7 Campbell L. Rev. 33 (1984).