You Can’t Do That! Common Deed Restrictions that Limit Property Use

You found your dream home. You love the house. You love the neighborhood. You love the limitations. Wait. What?

Homebuyers need to be aware of a term called “deed restrictions.” Deed restrictions are rules or regulations that pertain to your new home or the plot of land it resides on. Deed restrictions are commonly recorded in the property’s deed. They may have been added by a homeowners’ or condo association, a previous owner, the neighborhood, builder, or township, but they in some way restrict something about the property or its use. Most common deed restrictions are permanent and are not up for negotiation.

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Common Deed Restrictions

Not every property has deed restrictions, sometimes referred to as CC&Rs (for conditions, covenants, and restrictions). Often restrictions are imposed in an attempt to maintain property value. Below, you’ll find some of the most common and what they mean for you as a homeowner:

Keep Your Stuff Elsewhere

Often neighborhoods and associations want to keep property values high. One of the easiest ways to do this is to tell homeowners what they can, and can’t, keep in their front yards.

Common items listed are:

• Mobile homes or RVs
• Boats and trailers
• Outdoor storage
• Work trucks
• Pole barns
• Farm animals
• Cars without license plates or cars that don’t run

These restrictions generally don’t make stipulations based on condition of the item either. If you’re not allowed to park an RV in your driveway, it doesn’t matter if it’s a luxury, top-of-the-line rock star-esque tour bus, or a broken down jalopy.

Business is Business

Some common deed restrictions prohibit running a business out of your home or erecting signs in your yard (even “for sale” signs when you decide to move). Others limit your ability to parcel off your land and sell it to others. The growing popularity of companies like Airbnb, have brought into question a homeowner’s ability to rent out his/her home for a day at a time. Knowing what can and can’t be done in your new home is important to not facing fines and possible litigation.

Details Matter

Some deeds limit how large home additions can be, what style they’re in, or the house to property density (you might have to give up that dream of building mini-houses all over the property). Some communities require each home be on a minimum size plot (so that homes aren’t clustered together). Most of these restrictions were put in place to safeguard property value.

How Do I Know the Limitations on My Property?

When you’re ready to buy a property, obtain a title search and title insurance from a reputable title company . A title company will explain the deed restrictions on your property and what it means for your use. Some restrictions may already be known to you, like a homeowners’ association, but having the information before you sign the documents will help you understand any limitations you might face as owners.

If you’re in the market for a new home, don’t go into the process unaware. When you find the home of your dreams, work with a title company to ensure you know everything about it. Call Bay National Title Company today for REO title insurance services and all the information you need about your new property.