Deed Restrictions are the pesky rules that stop you from customizing your house. You might own the property deed, but, in some cases, that doesn’t mean you have complete right.
What are Deed Restrictions?
If you’ve ever wondered what is a deed restricted community, you can spot them whenever you pass through a neighborhood that has eerily identical homes. These are restrictions set on the house deed. Deed restrictions are the rules that regulate the use of land and the look of a house.
Neighborhoods often use these regulations to maintain a similar, cookie cutter look.
This specific real estate terminology has to do with the look and usage of the house – not just how easy a property is to access.
This odd form of encumbrance will prevent homeowners from creating the personalized home they’ve always wanted.
Unless, of course, they’ve always wanted to live in a house similar to the one next door. The feelings behind deed restrictions are mixed. Some people prefer the template home, whereas other seek to strut their individuality.
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You Have the Control in a Freehold Estate
If your client is the type to stray from the herd, you may want to search for freeholder estates. A freehold estate gives a person full reign over the land.
The homeowner can customize the property to their liking, and the only person they have to answer to is their creative spirit.
A freehold estate gives the deed holder complete right to the land.
For example, if someone lived in a freehold estate, they could choose to paint their home green, if they wanted.
However, homeowners, who live in a deed restricted house, would be subjected to covenants, conditions, and restrictions (CCR.)
How Covenants, Conditions, and Restrictions Affect You
The covenants, conditions, and restrictions are also known as the CCR’s of a deed restricted property. These are the rules the homeowner must live by when occupying a property.
These rules don’t just randomly exist. They are drafted and enforced by the Homeowners Association (HOA.)
The CCR’s will vary from dictating the color of a home, to even what kind of lawn decorations the owner can lay out on the property. For the rule follower, CCR’s are the perfect way to live.
For others, it could be a dealbreaker when purchasing a property.
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How to Check If A House Has Deed Restrictions
Knowing if a property has deed restrictions is important to closing the deal.
If your client discovers they have to live in a fixed set of rules, they could be turned off from buying the home.
Checking to see if a house has deed restrictions is something every real estate agent can do. Here’s how:
Conducting a title search will give you insight on the title of a property.
You will learn everything you need to know about a piece of land, so you can inform your client about any kind of encumbrances, such as deed restrictions, encroachments, and easements.
There’s plenty of title companies that will help you conduct your title search.
You can also visit your local county clerk office, if you’re wanting the full scoop on the title of a property.
The county clerk office will provide you with a deed abstract that lists the encumbrances and regulations on any given property.
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