Basics of Property Management: Screening Potential Tenants

Understanding Deed Restrictions During Home Purchases

3 March 2023

Jesse Obrien

Once you buy a home, you may assume that you can use the home or do whatever you please with it. That assumption is generally true, but it is not true in deed-restricted communities. Below are some things you should know about deed-restricted communities.

Meaning of Deed Restrictions

A deed-restricted community prohibits property owners from taking certain actions. The restrictions mean you can only use your property in specific ways for specific actions. For example, a deed restriction might specify:

• The type and height of fence your home can have
• Your home's exterior appearance, such as siding color
• The number and types of pets you can have
• The modifications your home can have, such as additional detached structures
• Parking requirements, such as where you can park and the number of cars you can park on the driveway
• The size, number, and nature of rooftop installations, such as satellite dishes or solar panels

The restrictions vary by community, but they must not violate state laws.

Advantages of Deed Restrictions

Many people appreciate the benefits that come with living in deed-restricted communities. Below are some of the benefits.

Curb Appeal

Deed restrictions help to limit the number of eyesore objects or modifications on houses. For example, you won't have to worry about rusty cars on driveways or unkempt lawns if your community restricts them — as most of these communities do.

Safety and Security

Many deed restrictions help keep criminals at bay. For example, the absence of unkempt bushes or tall fences denies criminals hiding places.

Shared Expenses

Some deed-restricted communities do not leave maintenance services to individual homeowners — they handle the services as a community. For example, a community can hire a maintenance company to care for its residents' lawns and snow. In such a community, you will likely have lower maintenance expenses than you would if you handled the services alone.

Property Values

The benefits above help to maintain property values in deed-restricted communities. For example, you don't have to worry about buying a home in a great community, only for the neighborhood to be derelict a few years later.

Dispute Resolution

Lastly, deed restrictions also mean that you don't have to face your neighbor alone if they violate one of the restrictions. For example, you don't have to force your neighbor that their additional structure blocks your view — the community will do that on your behalf.

Deed restrictions are mostly good, but they vary widely, and you should know what you are getting into before making a home purchase. The realtor helping you with the purchase will explain the restrictions and their significance.

For help with buying a home, contact a real estate agent in your area.

Share