4.7 Conflict with Governmental Regulation

• Jurisdiction: Arizona

§ 4.7 Conflict with Governmental Regulation

Restrictive covenants, because they are contracts, are enforceable even when a governmental regulation may allow a particular use. The Arizona Supreme Court first confronted this question in Condos v. Home Development . ³⁵⁶ In Condos, the party violating the restrictive covenant argued that the violation was legally permissible because a liquor license had been issued by the state. In affirming the enforceability of the restrictive covenant, the court held:

A restrictive covenant which runs with the land is a property right in the nature of an easement and is controlling when it comes into conflict with a license granted by an administrative officer of the state. [Citation omitted.] This is so fundamentally sound that

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