Interesting case. There is a similar one here in my neck of the woods, though much smaller.

I was contact by a Realtor who had a client that wanted to sell his house.  The catch was that it was built in violation of the restrictive covenants.  This guy had split his large corner lot into two lots, and proceeded to build a home on the new parcel.  The restrictive covenants, however, only permitted one residence per lot as originally platted.  The other homeowners took this guy to court when he started construction, and won.  The judge told him he could not build the home.  But, he kept right on building and he finished it. It is still vacant, nobody lives there, and nobody is allowed to live there.  Apparently, the building has not been torn down (nor was it required to be), it remains to be used for "storage." 

As I understand it, the owner filed bankrtupcy and left the state.  The house now sits there, empty, and cannot be sold.