DEED RESTRICTIONS - WHAT ARE THEY AND WHY ARE THEY IMPORTANT?

Reblogger Debbie Reynolds
Real Estate Agent with Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional TN Broker: 208698

I advise buyers to read the restrictions before they buy so there will be no surprises after the sale. This post shares what you are likely to find in the Deed of Restrictions. 

Original content by Olga Simoncelli

DEED  RESTRICTIONS - WHAT ARE THEY AND WHY ARE THEY IMPORTANT?

 

What are Real Estate Deed Restrictions and how can you find out about them?

 

Real estate deed restrictions are typically written right into a property's deed. Sometimes they are also called Conditions, Covenants and Restrictions (CC&R’s). They could be imposed by the developer, builder, neighborhood or homeowners’ association or the property’s past or present owners.

 

When considering a home for purchase, it may not be immediately apparent if there ARE any deed restrictions. As you get more serious about moving forward and placing an offer, it’s important to check, as deed restrictions can impose serious limitations on what you can do with your home. It’s best to know in advance!

 

How do you find out about the existence of deed restrictions? A good listing agent should research that information in the property deed before putting the home on the market and have it available upon request. A good buyer agent should make you aware of the possibility of deed restrictions and should advise you to ask the right questions when consulting you regarding your home purchase. I would recommend reviewing the deed restrictions yourself or asking your attorney to take a look.

 

WHY ARE DEED RESTRICTIONS NECESSARY?

 

At first  blush, deed restrictions may seem unduly “restrictive”, unreasonable, just plain annoying or even arbitrary (no satellite dishes, no clothes lines, no above-ground pools, no fowl, etc.). However, most are imposed based on previous bad experiences and are intended to preserve property values of the neighborhood, subdivision or condo complex.

 

CASE IN POINT: Commercial Vehicles

“No commercial vehicles to be left in driveways” in one subdivision arose out of the fact that the developer had previously lived next door to a man, who operated a large garbage truck, which he routinely parked in his driveway overnight and on weekends, to the chagrin of the neighbors, who considered it a huge eyesore, literally and otherwise. Clearly, it was not the best presentation for the area as far as being attractive, which in turn affected local property values; hence the restriction in the new subdivision, where the developer had control.

 

CASE IN POINT: Dogs

“Residents are limited to one dog” - my clients were interested in a home in a subdivision that had this restriction. They had one dog and one “on the way”, ordered from a special breeder in Switzerland, so this was a very important item for them, but it was not spelled out anywhere in the listing information. In fact, it took quite a bit of “digging” to discover this fact. Both the listing agent and the owners assured us that “it would not be a problem, others have more than one dog”. Well, would you take that risk? It’s not a problem until it is. What would happen if someone chose to enforce the rule after the new puppy arrived? Would the new homeowners have to give up the dog or sell their new home?

 

This leads to the issue of WHO ENFORCES DEED RESTRICTIONS? It’s usually the subdivision developer or a Homeowners Association that monitors and enforces real estate deed restrictions.

 

It might be true that some infractions might go “unpunished” for some time, unless someone notices and complains or takes action. It’s kind of like driving above the speed limit until you get nabbed and face a heavy fine. In the case of deed restriction violations, the costs might be steeper if it meant dismantling a forbidden pool for example, removing an unauthorized house addition or facing the prospect of having to give away a family pet.

 

It’s always best to be informed in advance. If you are pressed for time when making an offer and don’t have the opportunity to research or review the issue, you may want to include that as a contingency in your offer: “subject to review of deed restrictions, if any”. That way you would be protected in case of any clauses in the deed restrictions that you might find unacceptable.

 

Real Estate Deed RestrictionsAgain, a good real estate agent should guide you in that process as well as throughout your home buying journey. Choose well!

 

 

 

 

 

 

 

Note: Images courtesy of Stuart Miles of freedigitalphotos.net

 

 

 

  

For Quality Solutions and Intellegent Answers to Your

Real Estate Needs or for Referrals, Consult With Olga

 

   

OLGA SIMONCELLI

Broker-Owner

203-482-2009 Cell

consultwitholga@gmail.com 

Visit My Website: www.candlewoodgreenbroker.com

Your Local or Global Real Estate Consultant and “green broker. 

Candlewood Lake Real Estate

 

 

 

 

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Jeff Dowler
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Hi Debbie

This was a wise choice for a reblog. There could be all kinds of issues in the deed, or other documents C C & Rs), that could limit how a property can be used, among other things. This is important for buyers to understand and review early in the process.

Jeff

Mar 22, 2017 12:04 PM #1
Rainmaker
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Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Waxhaw/Fort Mill Area Realtor

Hi Debbie... great choice for a reblog. I'm often amazed by how many people don't take the time to even take a cursory look at deed restrictions before buying a home.

Mar 22, 2017 12:19 PM #2
Rainmaker
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Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

A great reblog Debbie Reynolds and such an important t ask for buyers before they buy. SO many do not

Mar 22, 2017 01:15 PM #3
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Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Hi Debbie, great one to reblog, I always advise my buyers to find out prior to moving forward with an offer.

Mar 22, 2017 01:29 PM #4
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Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Debbie

Great post on deed restrictions in a community.

Good luck and success.

Lou Ludwig

Mar 22, 2017 06:40 PM #5
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Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Hi Jeff Dowler, I have had many buyers lately concerned with parking RVs and adding swimming pools.

Mar 22, 2017 08:26 PM #6
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Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Hi Lou Ludwig, This is an important step to take before buying.

Mar 22, 2017 08:27 PM #7
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Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

You are vey samrt to do that, Beth Atalay.

Mar 22, 2017 08:28 PM #8
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Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Better safe than sorry, Scott Godzyk.

Mar 22, 2017 08:28 PM #9
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Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

They can't do anything about it after they have closed, Nina Hollander.

Mar 22, 2017 08:29 PM #10
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Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

This is an excellent selection for a reblog and important information to share with prospective home buyers.

Mar 23, 2017 03:34 AM #11
Rainmaker
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Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Good morning Debbie.  Excellent choice for a re-blog and all buyers in deed restricted communities should be aware of this.

Mar 23, 2017 04:11 AM #12
Rainmaker
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Christina Steinhaus
Coldwell Banker Residential Property - West Palm Beach, FL
Real Estate Agent serving the Palm Beaches

Good reminder, Debbie. I'm going to incorporate this into my offers, too. The HOA/Condo documents are not always easy to get your hands on, until the last minute. This is a good protection for the buyer. Thanks for reposting!

Mar 23, 2017 05:22 AM #13
Rainmaker
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Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Debbie - a very good choice for a re blog because many buyers don't do homework on this.

Mar 23, 2017 11:17 AM #14
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Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

I think as agents we should strongly encourage this, Grant Schneider.

Mar 23, 2017 08:01 PM #15
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Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

That sounds like a very smart and sound business practice, Christina Steinhaus.

Mar 23, 2017 08:02 PM #16
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Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

I agree Gabe Sanders. Have a good Friday.

Mar 23, 2017 08:02 PM #17
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Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

I so enjoy sharing good information with buyers and sellers, Roy Kelley.

Mar 23, 2017 08:03 PM #18
Rainmaker
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Beth Bromund
Coldwell Banker Weir Manuel - Rochester, MI
REALTOR (248) 651-3500

At my former home, the association would sue owners who left their RVs or boats in the driveway for more than the alloted 3 days.  It is incumbent upon the purchaser to understand these restrictions, rather than get upset with the association for enforcing the rules that have been in black and white since the beginning of the development.

Apr 21, 2017 08:36 PM #19
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