MBE Rules · Real Property
Common Scheme Doctrine
Implied reciprocal servitude
The rule
When a developer sells lots under a general scheme of restrictions, buyers with notice — including inquiry notice from neighborhood uniformity — are bound by an implied reciprocal servitude even if their deeds omit the restriction.
In plain English
The Common Scheme Doctrine holds that when a developer creates a neighborhood with specific restrictions on how properties can be used, all buyers who are aware of these restrictions must adhere to them, even if their individual property deeds do not explicitly include the restrictions. This is meant to maintain uniformity and uphold the developer's original intent for the community.
Worked example
A developer creates a subdivision with a restriction that no homes can be painted bright colors. Jane buys a lot in the subdivision, and while her deed does not mention the color restriction, she notices that all her neighbors have muted colors. Later, she paints her house bright pink. The homeowners' association successfully sues her for violating the restriction, as she had inquiry notice of the common scheme.
Memory hook
Buyers beware: if you see uniformity, you might be bound by community rules!
The trap
Exams often present scenarios where a buyer claims ignorance of restrictions, but students must remember that notice, especially through neighborhood patterns, can bind them regardless of their deed.
How examiners test it
Questions typically involve a fact pattern where a buyer purchases property in a neighborhood with visible restrictions and later attempts to disregard them, testing the buyer's notice and the enforceability of the restrictions.
Drill this rule until it can't fail you.
Vrenberg generates unlimited questions on this exact rule, tracks your mastery of it, and brings it back until it sticks.