Is a Deed-Restricted Home Right for Your Needs?

Posted on: 2 June 2021

You've probably heard of deed restrictions since they have been common for a while now. It's safe to say that most people live in non-deed restrictive neighborhoods, though. To find out what a deed-restricted neighborhood is and how it can affect you, your family, and even visitors to your home, read on.

Understanding the Need for Deed Restrictions

A deed is like a title to a home. On the deed, you can find things like the legal address of the property, the full names of all the owners, who owned the property previously, etc. Also on the deed, in some cases, are deed restrictions. Deed restrictions can be placed on a deed by the state, county, city, neighborhood association, or condominium association. 

Be Aware of Deed Restrictions

In most cases, buyers find out about deed restrictions on a home when they show an interest in purchasing it. The owner must disclose restrictions to the real estate agent and they then are supposed to disclose them to buyers. You can also find out about deed restrictions by accessing a copy of the deed filed in the county courthouse or online. If a neighborhood association exists, the bylaws should be required reading for buyers. To gain an even better understanding of deed restrictions, talk to your real estate agent.

The Purpose and Scope of Deed Restrictions

Deed restrictions are an effort to honor property values by encouraging certain behaviors and discouraging others. Take a look at few common deed restrictions for a better idea:

  • Homes must have a minimum square footage on a minimum size lot.
  • Homes must be constructed of only certain materials.
  • Homes may only be painted in certain colors.

The above are common, but requirements can get more detailed and restrictive in some neighborhoods. These are a few more unusual but possible restrictions:

  • You may only park in the garage and not on the lawn or in your driveway.
  • No pick-ups or other types of trucks may park overnight.
  • No lawn signs are allowed.

Deed restrictions should not be considered either a good or bad thing. They vary far too much in their requirements to make that determination. Rather, buyers are encouraged to understand what these requirements mean in regard to each home and buying situation specifically. Speak to a real estate agent to find out more about deed restrictions.

If you're a buyer looking for single family homes for sale in your area, consider a deed-restricted home.