Jasper, TN asked in Real Estate Law for Tennessee

Q: Can a developer charge you a large fee to build your own house on your own property in TN ?

Property was bought in 2015 with covenants that had no fee. In 2018 the covenants were modified to charge a 5% cost of home fee to the builder. Obviously the builder passes that on to customer (lot owner). The fee is different for each builder and some owners have had the fee waived. Fee would be over $20,000. This is not for any actual work or connections.

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1 Lawyer Answer
Leonard Robert Grefseng
Leonard Robert Grefseng
Answered
  • Columbia, TN
  • Licensed in Tennessee

A: I would not pay this fee without going to court. If you bought the property before the restrictions were changed, you should be able to rely on the restrictions- the change to add the fee may have required some notification to you. Also , the restrictions should be applied consistently so if some get it waived, that's not fair to the one who do pay it. Consult an experienced real estate lawyer.

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