What You Should Know Before Purchasing A House With Deed Restrictions

When you’re house hunting, you may come across a deed-restricted community. This means specific rules have been established within the community to limit the actions that property owners can take with the house and the land it’s built on. But what exactly are deed restrictions, and how do they work?

Let’s walk through some of the most common deed restrictions – and what they might mean for you if you buy a home with one.

A deed restriction is a limitation on how you can use your property. Deed restrictions can limit what you build and certain other activities you might pursue on your land. These restrictions often involve a homeowners association (HOA), which is a type of deed-restricted community.

HOAs institute these standards to keep property values high. A deed restriction violation may result in anything from a fine to foreclosure, depending on the severity of the broken rule.

Here are some of the deed restrictions you’re most likely to see on a property:

• Vehicles allowed: Your community or 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 is intended to 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 common household pets like dogs. A deed restriction might specify that property owners can’t have a dog over a certain weight or one that makes an excessive amount of noise.
• Backyard property that obstructs a neighbor’s view: You may see a restriction limiting 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 deed-restricted 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 requiring you to get approval from your HOA before you can build a new structure or renovate your house. This restriction keeps the homes within a development looking uniform.
• Exterior color palettes allowed: You may be limited on siding color options. 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.

It’s important to research each house you’re interested in while house hunting to see if the property has any deed restrictions. This information can help you decide whether to make an offer on a home, and it can prepare you for the potential limitations of living there.

If you’re thinking about making an offer soon, be sure to start the mortgage approval process first. An initial approval letter in hand shows sellers you’re ready to make a serious offer, so it’s best to have one ready when you find the house you want.

Deed restrictions can impact how you can use, decorate and enjoy your home. Before you make an offer on a home, be sure you read and fully understand any deed restrictions you’ll encounter before buying. Here are a few ways you can find out whether the home has any deed restrictions:

• Talk with your real estate agent. Your real estate agent or REALTOR^® can look at previous listings of your property. These listings may note if the land has restrictions. Agents can also pull property records to see if any noted restrictions exist.
• Ask a title company to do a search. Deed restrictions will always show up on a title search. When doing a title search, you might need to specifically ask if the home has restrictions. To be protected from any legal repercussions, you may also want to consider obtaining title insurance after putting an offer on a home.
• Talk with 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 with someone from 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 is built. On the other hand, public records might put an unlimited timeline on the restriction. HOA rules typically stick around until a resident tries to change them.

Deed restrictions “run with the land,” meaning 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 a specific expiration date is in place.

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, you can undergo processes to try to change or remove a deed restriction.

Steps To Changing Deed Restrictions

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 that may be necessary to change or remove a restriction:

Step 1: Get A Copy Of The Covenant

A restrictive covenant is a contract detailing 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.

Step 2: Read The Covenant

Once you obtain the covenant, read the terms of the restriction. The restriction might have an expiration date that’s passed. If so, you may be able to safely ignore the deed restriction and continue with your purchase or building plans, if you can confirm the rules no longer apply. If the covenant doesn’t include an expiration date, it may include information on the governing body responsible for the restriction. It may also highlight specific steps you must take to alter or remove the deed restriction.

Step 3: Speak With The Governing Body

You might need to talk with your HOA, city council or community association to alter the restriction. Consult the covenant and contact the governing body directly. You may be able to get permission to ignore the deed restriction.

Step 4: Talk With Your Neighbors

Some deed restrictions include clauses indicating your neighbor(s) 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 potentially 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.

Step 5: 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 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. It’s best to tread cautiously before buying a home with deed restrictions.

If you still have questions about deed restrictions, here are a few frequently asked questions to review.

How do I research deed restrictions?

Because most states require the seller to disclose any deed restrictions, you will often have knowledge of these before putting an offer in. However, 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 or local government. Generally, the person or entity who created the restriction is the only one who can enforce it. To have a full understanding of the property, do your research so you’re aware of any restrictions and who set them in place.

Deed restrictions are clauses on your home’s deed that limit how you can use your property. A deed restriction might say you can’t build a shed in your yard or 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 by speaking with a real estate agent, title company or HOA head. Many deed restrictions have expiration dates limiting how long they’re valid. If you find that your home does have an up-to-date 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.

Whether you’re still considering a deed-restricted house or ready to look for other options, it’s critical to get the mortgage approval process started early in the house-hunting process. Apply online so you can house shop with confidence.