v.
Clements
NAHMIAS, Justice.
We granted certiorari in this case to consider the following two questions:
(1) Did the Court of Appeals err in “declin[ing] to follow Wardlaw v. Southern R. Co., 199 Ga. 97, 98 (1) (33 SE2d 304) (1945), for its statement that covenants running with the land bind subsequent owners thereof ‘with or without notice’”? McLeod v. Clements, 326 Ga. App. 840, 844 (755 SE2d 346) (2014). See Ga. Const. of 1983, Art. VI, Sec. VI, Par. VI.
(2) Was Wardlaw wrongly decided? We conclude that the answer to both questions is no. The statement from Wardlaw that the Court of Appeals declined to follow was dicta that does not govern this case, and Wardlaw was correctly decided based on the facts presented in that case. We therefore affirm the judgment of the Court of Appeals.
[*2]“Special Agreement” in which the Reeveses agreed to provide water to the house occupied by Appellant and Mrs. McLeod, Sr. as long as Appellant and Mrs. McLeod, Sr. occupied the benefited property and paid the Reeveses a reasonable monthly fee for electricity and well maintenance costs. No mention was made of the 1971 agreement.[1]
Some time later in 1996, Appellant recorded the 1971 agreement. The well property then changed hands a few more times before it was sold to Appellee in 2007. Appellee’s deed says that the property is “conveyed subject to that certain Special Agreement contained in a deed from Michael R. McLeod and Sally J. McLeod to Ryan Reeves and Melissa Reeves.” In his affidavit, Appellee avers that he was not aware of the 1971 water agreement when he purchased the property, but he was aware of the 1996 agreement that required him to provide water to Appellant and Mrs. McLeod, Sr. via the visible pipes on the burdened land. (Mrs. McLeod, Sr. is now deceased.)
It appears that for a short time, Appellee and Appellant operated under the 1996 agreement, but in 2008, after Appellant stopped paying and Appellee cut off the water supply, Appellant filed a complaint seeking to require Appellee to provide him with water. The trial court then entered several orders that were reversed or vacated on procedural grounds during four trips to the Court of Appeals.[2] Once the case was back in the trial court for a fifth time, Appellee moved for summary judgment, asking the court to find that he is not bound by either the 1971 or the 1996 water agreement. On September 7, 2012, the trial court granted Appellee summary judgment as to the 1971 agreement and denied him summary judgment as to the 1996 agreement.[3]
[*3]The Court of Appeals affirmed the partial grant of summary judgment, holding that even assuming the 1971 water agreement is a covenant running with the land, it is not enforceable against Appellee, a bona fide purchaser for value, because it was recorded outside his chain of title and Appellee did not have actual or constructive notice of it. See McLeod, 326 Ga. App. at 843-846. In reaching this decision, the Court of Appeals said, “[i]n the face of the well- developed law [we have] set forth above, we decline to follow Wardlaw v.
[*4]Southern R. Co., 199 Ga. 97, 98 (1) (33 SE2d 304) (1945), for its statement that covenants running with the land bind subsequent owners thereof ‘with or without notice.’” McLeod, 326 Ga. App. at 844. We granted Appellant’s petition for certiorari to consider the two questions set forth above.
[*5]since these were covenants running with the land, of which their grantees had at least constructive notice, it was not necessary to do so.” Wardlaw, 199 Ga. at 99 (3) (emphasis added). This holding comports with the basic doctrine that
a bona fide purchaser from the grantor without [actual] knowledge or constructive notice of the existence of the easement would take title free from the easement, and he may assume that there is no easement except as shown of record or by open and visible indications on the land itself . . . . Burk v. Tyrrell, 212 Ga. 239, 243 (91 SE2d 744) (1956). See also OCGA § 23- 1-19 (“If one with notice sells to one without notice, the latter shall be protected.”); Farris v. Nationsbanc Mtg. Corp., 268 Ga. 769, 771 (493 SE2d 143) (1997) (“A bona fide purchaser for value is protected against outstanding interests in land of which the purchaser has no notice.”); Rosen v. Wolff, 152 Ga. 578, 585-586 (110 SE 877) (1922) (“[I]n equity, covenants relating to land . . . are frequently enforced against subsequent grantees with notice . . . . It is only necessary that the covenant concern the land or its use, and that the subsequent grantee has notice of it.”); 20 AmJur2d Covenants, Conditions, and Restrictions § 50 (“Real covenants are enforceable against all grantees of the original covenantor, though a subsequent purchaser takes the property subject to the covenant only if it had actual or constructive notice that the covenant burdened the land.”).
[*6]Understood in its full factual and legal context, the pertinent statement in Wardlaw, although poorly articulated, is properly read as saying that covenants running with the land will bind subsequent purchasers who take the burdened property “with or without actual notice” or, more precisely, “with actual notice or constructive notice, but not with no notice at all.”4 Although Appellant argues that covenants running with the land should be given special treatment and enforced regardless of notice, Wardlaw offers no reason — and we see none — for allowing such covenants to stand as an exception to the well-settled rule protecting bona fide purchasers of land from being bound by restrictions of which they had no actual or constructive notice.
Thus, Wardlaw was correctly decided on its facts, and to the extent that the pertinent statement can be read to create an exception to the rule protecting bona fide purchasers with no notice, the statement was dicta, because Wardlaw did not involve such a purchaser. See Little v. Fleet Finance, 224 Ga. App. 498, 501 (481 SE2d 552) (1997) (“‘[S]tatements and comments in an opinion concerning some rule of law or legal proposition not necessarily involved nor essential to determination of the case in hand are obiter dicta, and lack the force of an adjudication.’” (citation omitted)). To be crystal clear, we hereby disapprove any such reading of Wardlaw. And we conclude that the Court of Appeals did not err in rejecting Wardlaw’s imprecise statement, although it would have been preferable for the court to expressly identify that statement as dicta to make clear that in “declining to follow” it, the court was not deviating from a precedential holding of this Court. See Ga. Const. of 1983, Art. VI, Sec. VI, Par. VI (“The decisions of the Supreme Court shall bind all other courts as precedents.”).
[*7][*8]chain of title and of which he admits knowledge. And the 1971 agreement was recorded outside Appellee’s chain of title to the burdened property, so unlike the purchasers in Wardlaw, Appellee had no constructive notice of that agreement. See Gamble, 170 Ga. at 662 (“A deed lying outside of a purchaser’s chain of title is not constructive notice of the instrument.”); Jenkins, 74 BR at 448 (“Under the Georgia recording statutes, even if a deed is recorded, in order to operate as constructive notice to a bona fide purchaser, the deed must not lie outside the purchaser’s chain of title.”).5
For these reasons, the trial court did not err in holding that Appellee is not bound by the 1971 water agreement, and the Court of Appeals did not err in affirming that judgment.
Judgment affirmed. All the Justices concur.
[*9]Decided June 29, 2015. Certiorari to the Court of Appeals of Georgia – 326 Ga. App. 840.
R. Jerry McLeod, pro se. The Sullivan Firm, Stephen R. Sullivan, Bree O. Sullivan, for appellee.
[*10]