Deed Restrictions versus Home Owners Associations in Colorado

Deed Restrictions versus Home Owners Associations in Colorado

Deed restrictions and homeowners associations kind of do the same thing...they tell you how a property may be used. In the case of both...the requirements are usually in place to protect a property and it's value. While the effect may be seen as the same, there is a difference. Both tend to have negative connotations with people, but they shouldn't. 

Deed restrictions are just that...restrictions written on the deed that place requirements on how a property can be used. Deed restrictions often only affect a single parcel of land. In some cases this may be done to protect the integrity and value of that property or of the neighboring properties.

I've recently seen a case where the owners of a higher end subdivision bought the surrounding land and restricted, on the deed, setting a mobile home on those surrounding properties, and the size of the house was also restricted and had to be at least 1700 square feet. For most people, those types of requirements aren't a big concern.

Deed restrictions come with the property and usually can't be removed, but sometimes they can be considered unenforceable. Here are the most common examples of unenforceable deed restrictions:

• There's an expiration date that has passed.
• The restrictions violate fair housing laws. 
• The restrictions are illegal. 
• The reason for enforcement is no longer valid. 
• The original creator changes the restriction. 

A homeowners association puts covenants and conditions into place for basically the same reasons as a deed restriction...to protect the integrity and value of a neighborhood. While a deed restriction is often limited to one parcel of land, an HOA covers an entire subdivision and the regulations can be pretty detailed. The rules and regulations put forth by an HOA can easily be changed with a majority vote of the HOA board of directors. 

Just because a property is deed restricted doesn't mean you shouldn't buy it. Look at the restrictions closely. Have an attorney go over them as well. There could be a very logical explanation for why the restrictions are in place, and you might actually appreciate the effect of them. These types of requirements are usually there for a good reason. The same goes with an HOA. A lot of people find living in a community governed with certain rules and regulations makes for great living. For example...they know their neighbor won't start using old cars as lawn ornaments. The bottom line is to examine deed restrictions and HOA documents carefully. 

I've lived on Colorado's Western Slope for over 24 years. I love this area and all it has to offer, and I enjoy sharing what I know about my home. As a REALTOR®, I also love to share my expertise in this area as well. If you need any real estate information for Montrose County, or Delta County, Colorado...please give me a call.