Buying a Home With Deed Restrictions

After a long search, you find the perfect home, but there’s a catch. It has deed restrictions. Is that a bad thing, and most importantly, should it be a deal-breaker? 

Deed restrictions often help maintain the look and feel of residential areas, specifically those with homeowners associations. So, in some situations, deed restrictions can be helpful to homeowners. They can also throw a wrench in your plans for your property. 

Learn more about deed restrictions, the different types that exist, and how to get them removed. 

What Are Deed Restrictions?

Also called restrictive covenants and CC&Rs, deed restrictions are provisions attached to the title of a home. They can restrict what you build and do on a particular piece of property. In many cases, they “run with the land,” which means that whoever buys the property must abide by the rules until they expire—if they have an expiration date. Deed restrictions are legally binding, so they can be enforced in court.

You can find the deed restrictions by performing a title search in the real property records of the county where the title is located. In addition, you can ask the homeowner, property agent, or someone from the homeowners association (when applicable) if any deed restrictions are present. However, it’s always good to double-check the title. 

Types of Deed Restrictions

When it comes to deed restrictions, there are many different types. Here are a few common examples:

Vehicles

A deed restriction may limit the types of vehicles you can keep on a piece of property. For example, you may only be able to have two personal-use vehicles in the driveway or front of your house. Or you may not be able to keep certain types of vehicles on your property like motor homes, RVs, boats, inoperable vehicles, or motorcycles. 

Commercial Use

A deed restriction may also prevent you from operating a business out of your home. This is often to prevent traffic from frequently coming and going through your neighborhood. 

Unattached Structures

Some deeds may limit what you can build on your property such as sheds, extra garage space, and pool houses. 

Primary Home Restrictions

In some cases, a deed may restrict how you can build your primary home in terms of height, weight, position, materials, style, and color. For example, a deed may prevent you from building in a way that will obstruct another property’s view. This is often the case in vacation home destinations where a property’s view is an important factor in its value. Style, color, and material limitations can also be put in place to ensure a neighborhood has the desired look. 

Fencing

You may face restrictions related to the type of fencing you can put up on your property. For example, you might be restricted from certain types like chain link fencing.

Animals

Deeds can also restrict the types of animals that can be kept on a piece of property. For example, in some residential areas, you may be prohibited from keeping chickens, goats, livestock, and certain breeds of dogs. You may also be limited in the quantities of animals you can have and they may need to be contained or leashed.

Leasing

Deed restrictions may limit leasing activities on your property. For example, you could be restricted from renting out your property for less than six months at a time. 

How To Change Deed Restrictions

Changing a deed restriction can be a lengthy and labor-intensive process that varies by state. If you want to take on the battle, you’ll often need to follow these steps:

1. Contact your county courthouse to get a copy of the covenant/restriction which can be found in the chain of title. 
2. Review it and look for instructions on how to modify it. 
3. If none exist, identify the governing body and contact the person in charge of managing the restriction(s). 
4. When there is no current governing body, you will often need to gain the agreement of anyone who is affected by the deed restriction, as they can bring you to court to enforce it. 
5. You typically need a notarized formal restriction release form that’s signed by all affected parties or the governing body to get the restriction release finalized.

A court order can also be used to remove deed restrictions that are found to be unfair, discriminatory, or otherwise illegal. This was the situation in the 1948 Supreme Court case of Shelley vs. Kraemer, which eliminated the enforceability of racist real estate covenants.

Deed Restrictions vs. HOA Rules

While similar in restricting property owners, deed restrictions and HOA rules have the following distinct differences:

Deed restrictions can apply to all properties, whether they are part of a community with a homeowners association or not. HOA rules, on the other hand, are rules beyond any CC&R’s that apply to a specific community governed by an HOA. 

While deed restrictions are attached to the title of a property, HOA rules are not. The HOA governing board will set the rules and provide them to you in a contract when moving into the community. If there is a contradiction between the two, a deed restriction typically takes precedence over an HOA bylaw or regulation. 

Frequently Asked Questions (FAQs)