A Homebuyer’s Guide to Deed Restrictions: What You Need To Know

It’s time to move, and you’ve found your dream home. You’ve found the perfect neighborhood. Everything is falling into place. But, wait…what?

Here come the limitations: deed restrictions. It is important to know what to expect when it comes to what you can do on your property after you sign the dotted line. There may be something in the title to your home that you may not be comfortable with over time. Whether it has to do with home improvements or what kinds of things you can store on your property, make sure you know any limitations of its use.

Here is what buyers need to know about deed restrictions:

What Are Deed Restrictions?

The deed on a home is a legal document that describes what and where it is, who owns it, and what the property is zoned for — and any limitations of its use and what can be altered physically on the property. These limitations can be listed as covenants, conditions, or restrictions (CC &Rs). All of these fall under the basic term of “deed restrictions.”

Deed restrictions can be placed on a property by several individuals or groups including neighborhood, condo, or homeowner’s association; the property’s original, past, or current owner; or even the builder or developer.

What Do They Do?

There are a few reasons they are placed on homes. These include:

Examples of what deed restrictions can do are preventing homes from being torn down, keeping your neighbor from building an unusual structure on their property, or doubling the size of their existing home. Limitations can get quite detailed depending on the deed.

What Are the Different Types of Deed Restrictions?

Along with many other types of legal documents, deed restrictions can cover a wide range of areas — from basic appearance to construction limitations, as well as what you can put in your yard and what you can do with it.

Some common types are:

• Style of home allowed in a neighborhood (Craftsman, Victorian, Cape Cod, etc.)
• Number and size of add-on rooms or structures
• Density of buildings per acre
• Type of material the structures are composed of
• Location (proximity) of structures to street, properties, or other structures
• Exterior paint colors
• Landscaping

For example, a neighborhood association may not allow you to plant a large vegetable garden in your front yard, paint your home a “strange” color, or build a storage structure close to a street.

Other typical deed restrictions may include:

• Ability to rent out your property
• Certain types of home-based businesses
• Neighborhood amenity fees
• Pets (what breed, how many, size, etc.)
• Yard maintenance restrictions
• Storage (placement of boats, trailers, work trucks, cars with no license plates, etc.)

Often, condo boards or neighborhood associations will have set parameters for keeping your yard and any flower gardens maintained. Another example that would be included under these types of restrictions could be running a children’s daycare out of your home, or renting out rooms/ homes in coordination with a company like Airbnb.

How Can I Find Out if I Have Them?

Get a title search and title insurance from a reputable title company. Bay National Title Company has a reputation of unsurpassed customer care, delivering exceptional services to Florida home buyers, as well as individuals and families across the country.

It is important to have a thorough search prior to purchase so you know what you are getting into. You want to be clear on any potential issues that you would not be happy with after you move in and protect your interests prior to making the final commitment.

What Happens if I Don’t Comply with Deed Restrictions?

Since deed restrictions are a civil matter, you won’t be breaking the law. But — it may get expensive. It is quite likely that you could, at the least, get fined. Also, the individual or group may also file a lawsuit if you ignore what is in the contract. That can lead to a lengthy legal battle that can cost you a lot of expenses that could have been avoided.

What Else Do I Need To Know?

Most deed restrictions are permanent and are not up for negotiation. In rare cases, they may be able to be removed after the contract is signed, but it is typically an arduous, lengthy, and expensive process and often requires a judicial ruling in your favor.

The best thing that you can do is to be aware of any deed restrictions on a home prior to signing on the dotted line. If you do happen to have any, make sure you are comfortable with them for the duration of the time that you are planning to live there.

Many deed restrictions are simple and reasonable for most potential homebuyers. Don’t let them keep you away from your perfect home. Being clear on expectations prior to moving in will give you the peace of mind to know what type of home improvements you can make and any limitations you may have in regards to usability. Clarity is key to a successful home buying process. If you know for sure that you won’t be happy abiding by a restriction, move on to your next choice.

Contact Bay National Title Company today for national REO and title insurance services and the information you need about your new property. Having all the information you need to make a good decision will not only give you a better closing experience, but it will also help you enjoy your home for many years to come.