Things You Should Know Before Purchasing A Deed-Restricted House
Victoria Araj6-minute read
October 11, 2021
Disclosure: This post contains affiliate links, which means we receive a commission if you click a link and purchase something that we have recommended. Please check out our disclosure policy for more details.
A deed restriction is a limitation on how you can use your property. Deed restrictions can limit what you do on your property, as well as what you can build on your land. They often involve a homeowners association or deed-restricted community.
HOAs institute these standards to keep property values high. A deed restriction violation may mean you face everything from a fine to foreclosure, depending on the severity of the broken rule.
In this article, we’ll introduce you to some of the most common deed restrictions – and what it might mean for you if you buy a home with one.
What Are Common Deed Restrictions?
Here are some of the most common deed restrictions you might see on a property:
- Vehicles allowed on your property: Your HOA might limit the number or type of vehicles you can have on your property. Motor homes, boats and travel trailers are all commonly banned vehicles. This restriction helps conserve street parking and keep homes from looking too cluttered.
- Pets and animals you can keep: HOAs commonly use deed restrictions to limit the type of animals you can keep on your property. Chickens, pigs and other livestock are often banned in residential areas. Restrictions may also apply to everyday pets like dogs. A deed restriction might specify that property owners cannot have a dog over a certain weight or a dog that makes an excessive amount of noise.
- Backyard property that obstructs a neighbor’s view: You may see a restriction that limits your ability to tamper with your neighbor’s view. This restriction can prevent you from building sheds or fences on your property. It can also stop you from planting tall trees or shrubbery. View obstruction restrictions are common in resort areas and popular vacation destinations.
- The type of fencing you can build: You may also see a restriction on certain types of fencing. Many communities ban chain-link fencing and very tall privacy fences. Fencing restrictions are one of the most common deed restrictions.
- Limitation on home-run businesses: Deed restrictions on home businesses are also common. Most HOAs introduce these restrictions to prevent excessive traffic. This can be a major issue if you’re a small-business owner who works from home.
- Types of structures or renovations you can complete: Some homes have restrictions that require you to get approval from your HOA before you can build a new structure or renovate. This restriction keeps the homes within a development looking uniform.
- Exterior color palettes allowed: You may be limited to siding color choices. Your HOA might provide you with a list of approved colors to choose from, or a list of colors that are against the rules. Stricter HOAs may not allow you to change your home’s color at all.
- Other property you may keep in your front yard or driveway: You might run into a deed restriction that prohibits certain items in your front yard or driveway. Some common examples of banned items include cars without license plates, boats and boat trailers, work trucks and storage sheds. Like vehicle-specific restrictions, this restriction keeps your yard from looking too cluttered.
Find out what you can afford.
Use Rocket Mortgage® to see your maximum home price and get an online approval decision.
How Do I Know I’m Looking At A Deed-Restricted Home?
Deed restrictions can impact how you can use, decorate and enjoy your home. Before you make an offer on a home, you should make sure you read and fully understand any deed restrictions you’ll encounter before you buy. Here are a few different ways you can learn if there are any on the home:
- Talk to your real estate agent: Your real estate agent or REALTOR® can look at previous listings of your property. These listings may note if there are restrictions on the land. They can also pull property records and see if there are any noted restrictions.
- Ask a title company to do a search: Deed restrictions will always show up on a title search. You might need to specifically ask if there are any on the home when you do a title search. You may also want to consider obtaining title insurance after putting an offer on a home to protect you from any legal repercussions.
- Talk to the head of the HOA: Many deed restrictions come from HOAs. The head of your HOA may be able to show you any restrictions on the home’s property records.
- Speak to your local government: Municipal clerks and urban planning departments keep public property records on file. You might be able to find your home’s restrictions by visiting your local clerk’s website and doing a search.
It’s important to note that deed restrictions and HOA rules are similar but not the same. It’s possible that a home might be subject to both a deed restriction and HOA rules. Read all limits on your property before you buy.
How Long Do Deed Restrictions Last?
A deed restriction might expire a certain number of years after the home’s construction. On the other hand, public records might put an unlimited timeline on the restriction. In contrast, HOA rules typically stick around until a resident tries to change them; deed restrictions can vary in length.
Deed restrictions “run with the land.” This means that they’re connected to the land itself – not the structure built on it. In theory, this means that everyone who buys the home must obey any restrictions unless there’s a specific expiration date in place.
Can You Change A Deed Restriction?
Changing a deed restriction is more difficult than changing an HOA rule. For example, an HOA can decide one day that no one living in the development can have a chihuahua as a pet. However, if enough Chihuahua enthusiasts living in the community complain about the new rule, the HOA may reverse its decision.
As a result, HOA rules develop and change much more often than deed restrictions. However, there are processes you can undergo to try to change or remove a deed restriction.
Steps To Changing A Deed Restriction
Deed restrictions can be a hassle to change and very rarely get updated to meet modern laws. If you’re hoping to take whatever means necessary to change one, you’ll need to go through a formal process with the governing body of the restriction. Here are a few basic steps you’ll have to take to change or remove a restriction:
- Get a copy of the covenant: A restrictive covenant is a contract that details a deed restriction’s full set of terms. Your real estate agent or title company might be able to get you a copy of the covenant. You may also need to visit your local clerk’s office or courthouse to obtain it.
- Read the covenant: Once you obtain the covenant, read the terms of the restriction. The restriction might even have an expiration date that’s passed. If this is the case, you can safely ignore the deed restriction and continue with your purchase or building plans. If the covenant doesn’t include an expiration date, it may include information on the governing body. It may also include specific steps you need to take to alter or remove the deed restriction.
- Speak to the governing body: You might need to talk to your HOA, city council or community association to alter the restriction. Consult the covenant and contact the governing body directly. You might be able to get permission to ignore the deed restriction.
- Talk to your neighbors: Some deed restrictions include clauses that indicate your neighbor must agree to any alterations. In a few rare instances, your neighbor might also be the governing body on the restriction. Reach out to your neighbor and ask for permission to ignore or void the deed restriction. If your neighbor agrees, you’ll need to get a formal release from the deed restriction. You can usually use a form called a Restriction Release to void the agreement. Work together with your neighbor to fill out the Restriction Release. Be sure to have the document notarized.
- Consult the court: If you can’t get an approval to alter or remove the deed restriction from the governing body, you can try petitioning a court to void it. A judge’s order will override any decision from the HOA, your neighbor or whomever owns the restriction. However, this usually only works if the restriction is illegal, discriminatory or so outdated that it’s no longer reasonable.
Deed restrictions are difficult to remove by design. Searching for a new property is often much easier than convincing a court to void a legal restriction. You should think very carefully before you buy a home with deed restrictions in place.
FAQ: Other Deed Restriction Questions You May Be Wondering
How do you research deed restrictions?
Because most states require the seller to disclose any deed restrictions, you will oftentimes have knowledge of these before putting an offer in. However, as previously mentioned, it’s never a bad idea to reach out to your real estate agent or local government to confirm any restrictions.
Who enforces a deed restriction?
Deed restrictions are typically enforced by an HOA. Generally, the person or entity who created the restriction is the only one who can enforce it. Do your research to be aware of any restrictions and who set them in place to have a full understanding of the property.
Get approved to buy a home.
Rocket Mortgage® lets you get to house hunting sooner.
The Bottom Line: Consider Your Options Before Buying A Deed-Restricted Home
Deed restrictions are clauses on your home’s deed that limit how you can use your property. A deed restriction might state that you cannot build a shed in your yard, or that you cannot own a certain breed of dog. Deed restrictions can come from an HOA, the builder of the home or a local governing body.
You can find out if your home has a deed restriction in place by speaking with a real estate agent, title company or HOA head. Many deed restrictions have expiration dates in place that limit how long they’re valid. If you find that your home does have a current deed restriction, you’ll need to go through a lengthy process to get it removed. Voiding or altering a deed restriction can be a time-consuming process, and it’s often easier to continue house hunting.
Still considering your options as a home buyer? Check out our other home buying tips to help you along the way.
See What You Qualify For
Deed Of Trust: A Definition
Mortgage Basics - 4-minute read
September 10, 2021
Do you have a mortgage or a deed of trust? Did you know there’s a difference? Here’s what you need to know.
What Is A Warranty Deed And How Does Getting One Protect Home Buyers?
Victoria Araj - October 06, 2021
When you buy a home, you want to be sure that no one but you and your mortgage lender hold any claim to the property. Find out how a warranty deed protects you.