Facts:

• Petitioner-spouses Eliseo Fajardo, Jr. and Marissa Fajardo purchased Lot No. 33, Block 14 of De La Costa Homes in Barangka, Marikina, Metro Manila from respondent Freedom to Build, Inc.
• The Contract to Sell and the Transfer Certificate of Title included a Restrictive Covenant.
• Petitioners extended their roof to the property line and expanded the second floor beyond the original front wall, violating the covenant despite warnings.
• Respondent filed an action with the Regional Trial Court, Branch 261, Pasig City to demolish the unauthorized structures.
• The trial court ruled against the petitioners, and this decision was affirmed by the Court of Appeals.
• Petitioners sought review by the Supreme Court.

Issue:

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Ruling:

1. Yes, the petitioners violated the Restrictive Covenant.
2. Yes, the respondent has the legal standing to enforce the covenant.
3. Yes, the penalty of demo...(Unlock)

Ratio:

• The Supreme Court held that the Restrictive Covenant is valid and binding on the petitioners.
• The covenant was clearly stated in the Contract to Sell and annotated on the Transfer Certificate of Title, making the petitioners aware of their obligations.
• Restrictive covenants are enforceable when reasonable, not contrary to public policy or law, and not in restraint of trade.
• The covenant aimed to promote aesthetics, health, privacy, and prevent overcrowding in the subdivision.
• Immediate neighbors' lack of opposition was irrelevant; the covenant benefits the entire subdivision.
• The necessity of expansion to accommodate children was not a valid defense.
• The homeowners' association authorized the respondent to enforce the c...continue reading