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

By
Real Estate Broker/Owner with Veritas Prime, LLC dba Veritas Prime Real Estate CT, NY, FL
https://activerain.com/droplet/56Wx

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

 

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For Quality Solutions and Intellegent Answers to Your

Real Estate Needs or for Referrals, Consult With Olga

 

   

OLGA SIMONCELLI

Consultant

Real Estate Risk Management

203-482-2009 Cell

consultwitholga@gmail.com 

Visit My Website: www.thegoodrealestateagent.com

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

Candlewood Lake Real Estate

 

 

 

 

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Debbie Reynolds 03/22/2017 12:00 PM
Topic:
Home Buying
Tags:
deed restrictions
home buying advice
what are deed restrictions
real estate deed restrictions

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Rainmaker
3,156,005
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Good morning Olga.  All good points for one to consider before signing on the dotted line.

Jan 14, 2017 02:55 AM #1
Rainmaker
768,442
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

James Dray - good morning James - too many people are unaware of what might be hidden in the deed somewhere before they commit.

Jan 14, 2017 06:54 AM #2
Rainmaker
4,313,411
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Olga, great post, and so true, if a buyer has a truck labeled with his company name, many HOAs say they cannot be parked in the drive or on the street.  Better to know this upfront.

Jan 21, 2017 08:30 AM #3
Rainmaker
768,442
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Joan Cox - thank you Joan. These can be important issues and many consumers as well as agents are simply not aware of deed restrictions.

Jan 21, 2017 09:16 AM #4
Rainmaker
1,555,939
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, Blackstone Realty Group - brokered by eXp Realty - Kalispell, MT
The House Kat

It is definitely important to know what the deed restrictions are, as well as the town ordinances. Some of our towns have specific restrictions on how many dogs or cats can be owned at a residence, even in areas without HOAs/etc. 

Jan 24, 2017 06:55 AM #5
Rainmaker
768,442
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Kat Palmiotti - exactly! Good listing agents should research this and post it; good buyer agents should ask the right questions. 

Jan 24, 2017 06:59 AM #6
Rainmaker
2,173,896
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

You've put together a very educational and informative post which is so important to prospective buyers! I am thankful that you put this together because I know it will be of value to many people.

Thank you, Olga!

Jan 30, 2017 07:05 PM #7
Rainmaker
768,442
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management


Patricia Feager  - thank you Patricia! Too many agents are unaware, not to mention the general public.

Jan 30, 2017 07:42 PM #8
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Home buyers need to know what they are buying before they buy. After the sale, the homeowner needs to make sure he is in compliance, Olga.

Mar 21, 2017 06:44 AM #9
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Jeff Dowler, CRS
eXp Realty of California - Carlsbad, CA
The Southern California Relocation Dude

Hi Olga

This is such an important part of the due diligence buyers should do so they are aware of any issues. You can't and shouldn't make assumptions  about what can and cannot be done, about pets, etc. Some HOAs also impose their own restrictions!

Jeff

Mar 22, 2017 12:08 PM #10
Rainmaker
768,442
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Debbie Reynolds - Exactly! Thanks for re-blogging.

Mar 22, 2017 06:41 PM #11
Rainmaker
768,442
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Jeff Dowler - well put, Jeff.

Mar 22, 2017 06:41 PM #12
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Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Locally CCRs aren't referred to in the deed, but can be enforced by the HOAs. We also have some deed restrictions that can control if a permit can be obtained or not. 

But in any case, best to find out and in GA while you are in your buyer option period.

Jun 11, 2017 06:41 PM #13
Rainmaker
2,133,723
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good Morning Olga - I know them well as president of a homeowers association some time ago.

Jul 05, 2017 06:34 AM #14
Rainmaker
3,339,561
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

We always tell our clients to Read the Preliminary Title Report as well as the CC  &R's the ones that do are grateful later... I had a client who read the Preliminary Title Report and the listing agent miss spoke and she ended up give up a lot of her commission because of it...Endre

Jul 05, 2017 06:53 PM #15
Rainmaker
768,442
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Tammy Lankford, - yes, good to know what you're getting into, no matter the area.

Grant Schneider - oh yes, HOA's are big on all kinds of restrictions, often for good reason.

Endre Barath, Jr. - Ouch! mind what you say, Mrs Agent!

 

 

Dec 20, 2017 11:53 AM #16
Rainmaker
1,555,542
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

This was really good information and you brought up some good points about doing your due diligence.

Mar 15, 2018 07:14 PM #17
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