CDAL Covenant Modification and Subdivision Strategies

Analysis of Financial Commitments and Service Obligations

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Key Takeaway

CDAL's practice of selectively modifying covenants during subdivision transfers may be legally challengeable. Property owners should be aware that attempts to create subdivisions exempt from financial obligations while benefiting from communal services could violate principles of fairness and equity under both Antiguan law and British Common Law.

Introduction

Following the recent change of ownership of Caribbean Development (Antigua) Limited (CDAL), evidence has emerged that certain parcels transferred to related business entities, often subsidiaries of CDAL's parent company, have had their covenants altered or removed entirely. This analysis examines whether a developer can legally:

  • Subdivide a master title and selectively impose financial commitments for communal services (e.g., security, grounds maintenance, infrastructural upkeep)
  • Create additional subdivisions lacking these financial commitments, despite utilizing the same communal services

This raises potential concerns regarding fairness, the proper allocation of maintenance costs, and the protection of freeholders' interests.

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