Hueg v. Sunburst Farms Mutual Water and Agricultural Co
In Hueg v. Sunburst Farms Mutual Water and Agricultural Co., 122 Ariz. 284, 594 P.2d 538 (App. 1979), homeowners argued that they were not bound by certain deed covenants and restrictions because they signed their purchase agreements before the declaration of covenants and restrictions was recorded. 122 Ariz. at 288, 594 P.2d at 542.
Because the deed restrictions were recorded before the homeowners' deeds "were accepted and recorded," however, the court held that the homeowners "were not relieved of the covenants and restrictions by the fact that their purchase agreements predated the recordings of the Declaration." Id.
The court reasoned that:
"The acceptance of a deed tendered in performance of an agreement to convey merges the written or oral agreement to convey in the deed, the agreement to convey being discharged or modified as indicated by the deed, and thereafter the deed regulates the rights and liabilities of the parties." Id.