Needle v. Clifton Realty Corp.

Delaplaine, J., delivered the opinion of the Court. This is a suit for specific performance brought by Clifton Realty Corporation to compel Philip I. Needle to comply with his contract to purchase seven building lots on the southwest side of Reisterstown Road in ReisVilla, a development in the City of Baltimore. The contract was executed on July 8, 1949. Complainant alleged that it agreed to sell the seven lots to ⁵⁵⁶ defendant for $14,000, and defendant made part payment of $1;500 and agreed to pay the balance on or1 before September 8, 1949, but defendant refused to comply with the contract.

Defendant alleged in his answer that the lots have been classified under the Baltimore City Zoning Ordinance in a First Commercial Use District, and that he agreed to buy the lots with the intention of erecting commercial property thereon; but upon examination of the title he discovered that the land was subject to the restriction that it may be used for residence, but not for commercial purposes. For that reason he refused to consummate the transaction.. The chancellor held that complainant has a good and marketable title to the property, and ordered defendant, upon receiving a deed for the property, to pay complainant the balance of $12,500, with interest from September 8, 1949. From that decree defendant appealed.

It appears that Reis-Villa was developed in 1922. In that year A. J. Watkins Realty Corporation divided its tract of land into 344 lots. During the next ■ thirteen years from June, 1922, to April 1, 1935, the corporation sold 287% lots. Among these were the lots in question, lots 7, 8, 9, 10, 11, 12 and 13 on block 4 of the plat, which were conveyed to Hyman Brothman and wife on December 17, 1923, and are now owned by Clifton Realty Corporation.

All of the lots sold during the period from 1922 to 1935 were conveyed subject to substantially the same restrictions. The basic covenant is that no building other than a dwelling shall be erected, except a stable or .garage pursuant to a waiver signed by the vendor, or its successors, which waiver will not be granted until the dwelling is completed. • The additional covenants include the following restrictions : ' (1) No dwelling'shall - be erected except upon plans and specifications first ^approved by the vendor. No hóüse of the flat roof type shall be erected. The minimum cost‘ of any dwelling erected south of -Maple Street'shall ⁵⁵⁷ be $2,500; on lots facing Holbrook Avenue, Kensington Avenue, Sherbrook Avenue, Maple Street and Villa Place, $3,500; and on lots facing Reisterstown Road, $5,000.

(2) The vendor reserves the right to enter upon the premises at any time prior to the erection of a dwelling to cut grass, remove weeds, and plant flowers and trees, and also to enter along the back line thereof to install electric light or telephone wires. (3) No lot or building thereon shall be sold, leased or transferred to or occupied by any Negro or person of Negro descent, this provision not to include occupancy by any servant or employee of owner or occupant. (4) No cattle, swine, horses or other live stock shall be kept on the property, and chickens shall be enclosed on the property of the owner. It is undisputed that these restrictive covenants were included in the deed to Hyman Brothman and wife, and that the seven lots now in question were included among the lots conveyed by that deed.

However, this development, which was originally intended for a residential section, grew into a thriving business district. In 1932, ten years after the