Covenant Clearinghouse, LLC Announces Summary Judgment Victory Preserving Recorded Declaration of Covenant

AUSTIN, Texas, Jan. 20, 2026 /PRNewswire/ -- Covenant Clearinghouse, LLC announced today that a New Mexico District Court rejected an opposing party's motion for summary judgment seeking to invalidate a Declaration of Covenant imposing a capital recovery fee. The court rejected every one of the opposing party's arguments and expressly found that the Declaration was supported by consideration, touches and concerns the land, does not impose an unreasonable restraint on alienation, and does not violate public policy.  

The Court's ruling leaves the Declaration fully intact and enforceable and comes on the heels of a similar ruling from an Illinois court earlier in the year.  

"We are extremely pleased with the Court's decision," said Matthew T. Kennedy, General Counsel of Covenant Clearinghouse, LLC. "Judge Fitch's work in this case was genuinely impressive. This is an area of New Mexico property law with little directly on-point authority, yet he approached the issues with remarkable diligence—studying the underlying doctrines closely, examining its historical foundations, and conducting thoughtful, independent research. His ruling reflects a deep understanding of the legal framework and the economic realities of the arrangement."  

Kennedy continued, "This outcome reaffirms what we have consistently maintained: these Declarations were lawfully recorded, supported by consideration, are firmly grounded in long-standing principles of property law, and validly run with the land. We appreciate the Court's careful attention and its commitment to faithfully applying New Mexico law."  

Covenant Clearinghouse, LLC remains dedicated to supporting property owners, preserving the stability of real-property rights, and ensuring the enforceability of legitimate covenants across the country. 

About Covenant Clearinghouse: For over a decade, Austin, Texas-based Covenant Clearinghouse has acted as trustee in the administration of assessment rights – also called capital recovery fees or transfer fees – created in connection with hundreds of billions of dollars of planned and existing commercial and residential real estate projects in order to fairly and equitably apportion development costs, lower the burden of home ownership, and provide long-term sustainable funding for non-profits. For more information, visit www.covenantclearinghouse.com 

Contact: 
Covenant Clearinghouse, LLC 
Media Relations 
[email protected]

SOURCE Covenant Clearinghouse LLC