Under the general scheme doctrine, the implied equitable servitude is applicable to which holder?

• A. Holder bound by written covenant
• B. Holder not bound by written covenant
• C. Holder in privity with grantor
• D. Holder only if there is actual notice

Answer: (B)

The general scheme doctrine creates an implied equitable servitude that binds buyers who purchase land within a subdivision developed under a common plan of restrictions, even if they didn’t sign the covenants. Because the plan runs with the land, a purchaser who is not bound by the written covenant is still subject to the implied servitude, provided their property lies within the area covered by the plan and there was notice of the plan (often by a recorded plat or public recording). In other words, the implied restriction applies to holders who did not sign the written covenant, ensuring uniform development within the subdivision. This binding doesn’t require privity with the grantor, and actual notice isn’t always required if the plan was recorded and thus constructively notice is provided.