A home I have listed has a view of the bay (very desirable in the Pacific North West), original covenants that limit its height and the height of its neighbors, and a view covenant/height restriction placed on it by another home.

 

While the home has been for sale, a house across the street has gone from one story to two stories. This home has obstructed part of the view that the home I have listed has. The difference in value between a home with a view and a home without a view is significant--it could be in the hundreds of thousands. There is an original covenant for the neighborhood that limits all homes on that block to one story. The City, when issuing a permit, does not review the covenant. It is up to neighbors to challenge changes in a home, or new construction. The decision is made by a judge. if neighbors don't challange the construction, it goes ahead. Then a precedent is set for the neighborhood. It becomes more difficult for the next challenge to prevail.