Elliston v Reacher [1908] 2 Ch 374

Chancery Division

Basic Facts: This case involved the enforceability of building schemes and restrictive covenants, focusing on whether the covenants could be enforced against subsequent purchasers.

Issue for the Court: When can restrictive covenants be obtained by schemes of development?

Held: The court held that where land is sold in parcels according to a common scheme, restrictive covenants can be mutually enforceable by all purchasers.

Parker J

• For a scheme of development to exist:

• C and D must derive title from a common vendor.

• The vendor must have laid out plots under a general scheme of development.

• Restrictions must be intended to benefit all plots involved.

• Purchasers must have bought with the understanding that restrictions would benefit other lots.