Eliseo Fajardo, Jr. v. Freedom To Build

Summary

This case involves the enforcement of restrictive covenants in a low-cost housing development. Freedom To Build, Inc. sold a house and lot to the Fajardo spouses with explicit building restrictions, including limitations on front extensions and second storey expansions. When the homeowners violated these restrictions by extending their roof and second floor beyond permitted limits, the developer filed for demolition. The Supreme Court affirmed lower court decisions ordering demolition, establishing that restrictive covenants in housing developments are valid and enforceable when reasonable and aimed at promoting community welfare. The Court applied Article 1168 of the Civil Code, requiring violators to undo prohibited acts at their expense. This decision reinforces the binding nature of property restrictions and developers' rights to enforce covenants even after property transfer, provided proper authority exists.