USA – ALABAMA Law and Practice Contributed by: Adam J. Sigman, Crystal H. Walls, Nathan Stotser, Katie Sinclair and Courtney Bradshaw, Dentons
department before applying for a building per - mit. Depending on the project, a developer may be required to obtain approval from various munici - pal departments before obtaining building per - mits. If a project requires a change to the zoning code, vacation of road, etc, public hearings are held, and third parties are permitted to com - ment and object. Local professionals, such as civil engineers, may be able to provide guidance on local customs to help navigate this process. 4.5 Right of Appeal Against an Authority’s Decision The process of appealing will differ based on the project and jurisdiction, and interested parties should consult the relevant state and local laws. 4.6 Agreements With Local or Governmental Authorities The process for obtaining permits and approv - als varies between different local governmental authorities and utility companies. Planned unit developments are sometimes used or required by a local government to facilitate the develop - ment of a project. Interested parties should con - sult the relevant local authority for further details. 4.7 Enforcement of Restrictions on Development and Designated Use The first governmental enforcement mecha - nism for restricting development or designated use of a specific property is for a local planning department to refuse to issue a building permit. After issuance of a building permit, restrictions on development or designated use are enforced by an inspector named by the designated zoning official/administrator. Private parties may also restrict the development or use of real property by creating a restrictive
covenant that runs with the land. The Alabama Supreme Court defines a covenant as “an agree- ment or promise of two or more parties that something is done, will be done, or will not be done. In modern usage, the term covenant gen - erally describes promises relating to real property that are created in conveyances or other instru - ments” . See Collins v Rodgers, 938 So 2d 379, 385 n 15 (Alabama 2006). In the real property context, restrictive covenants are generally memorialised by: • restrictive language in a conveyance instru - ment; • an express declaration of covenants, condi - tions and restrictions created by a single property owner; or • an agreement for covenants, conditions and restrictions, agreed to by two or more prop - erty owners, all of which may be recorded in the probate office of the county of the encum - bered property. Such private restrictive covenants may be enforced by the parties to the covenant or by the successor in title to such a party. However, Alabama does follow “general rule that restric - tive covenants are not favoured in the law and, therefore, that they will be strictly construed, with all doubts resolved in favour of the free and unre - stricted use of land and against the covenants” . See Whaley v Harrison, 624 So 2d 516, 518 (Ala - bama 1993). 5. Investment Vehicles 5.1 Types of Entities Available to Investors to Hold Real Estate Assets Alabama law authorises the formation of corpo - rations, general partnerships (GPs), limited part -
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