Deed information and restrictions
Deed information
Unbeknownst to a lot of homebuyers, deed restrictions and restrictive covenants can dictate how you can and can’t use the property. These often apply to a group of homes, or property that’s part of a subdivision or development. They are often instituted by the original developer and vary from home to home. In a condominium environment, a homeowners association enforces the rules.
Restrictive covenants
Some are very simple and are meant only to protect a neighborhood from homeowners destroying landscapes or history or otherwise directly affecting property values. Some go to an extreme and try to dictate what a homeowner can do to the exterior, including the number of non-familial tenants one may have, or needing permission to re-paint. Other extremes include dictating exactly when holiday decorations are allowed up, prohibiting the raising of a hood on any car (even to check it for safety), even prohibiting any car from being parked outside a garage at all. Many communities also forbid amateur radio or outdoor television antennas.
A restrictive covenant differs from a zoning regulation in that its creation and enforcement is a matter of contract between the landowners whose properties are affected by it, rather than an exercise of the governmental police power.
Deed restrictions
Don’t assume a property doesn’t have any restrictions just because it isn’t in a development. A good rule of thumb is to go to the courthouse and read the current deed before you make an offer. Make sure to watch for wording that limits how the property can be used and language that gives others the right to use your property, such as easement rights. Some statements may reference a prior deed, so make sure you look at those as well.
If there are any questions about language or what a deed is actually saying, your real estate attorney can answer any questions you might have about complicated clauses in the deed or covenant.
If the deed is not available, insert a contingency clause in order to protect your interests in the event that you do not have the opportunity to read the deed before making your offer. It should allow you to back out of the contract with no penalties if you do not approve of the restrictions set forth in the deed or covenant.
