Opinion ID: 2056206
Heading Depth: 1
Heading Rank: 8

Heading: The Disputed Final Release

Text: Claggett submitted a building permit and request for final release in 2005. On June 7, 2005, the Foundation sent Claggett a Final Release and Agreement (Final Release) with a letter requesting that he return the signed document to the Foundation so that it could be signed on behalf of the Foundation and then recorded in the Kent County land records. The Final Release included the following language reflecting the 2004 amendment to Section 2-513(b)(2)(vi)(2): [I]t is the intent of this instrument to release the [Owner's Lot] for the personal residential use of the person named in the building permit[.] ... The parties agree that this right may not be transferred to any other person for five (5) years from the date of the final release, except on: (a) Approval by the Foundation; or (b) Notwithstanding any conditions on transfers imposed under item 1 of this subparagraph, a lender providing notice to the Foundation of a transfer pursuant to a bona fide foreclosure of a mortgage or deed of trust or to a deed in lieu of foreclosure. (emphasis added). Claggett refused to sign the Final Release. In a letter to the Foundation, Claggett's counsel questioned whether Claggett was subject to the Final Release requirement prohibiting a transfer of the Owner's Lot `to any other person for five (5) years from the date of final release[.]' In a September 12, 2005 letter, the Foundation responded: By [Chapter 498] Mr. Claggett is subject to the requirements described in... the final release, and by this law also, the Foundation does not have the authority to release his lot until this requirement is met.    As the easement grantor, only Mr. Claggett has the one time right to an owner's lot for the purpose of constructing a dwelling solely for his personal use. Before Chapter 498's enactment the law did not allow a released lot for a dwelling to be conveyed to any other person but restricted its use to the landowner who sold the easement. This left the released owner's lot in legal limbo with lenders and others that was corrected by the enactment of Chapter 498 (effective October 1, 2004) that now allows certain transfers.    Chapter 498 ... provides a benefit to landowners, such as Mr. Claggett, who make application for allowable lot releases after October 1, 2005; again, this benefit allows them to transfer owner's lots to others, whereas before, the law did not provide this opportunity. Lastly, the Foundation does not have the authority to waive the language release requirements of Chapter 498; Mr. Claggett applied for a lot release after Chapter 498's effective date and he is subject to its requirements.