{"id":745,"date":"2019-09-16T08:00:38","date_gmt":"2019-09-16T12:00:38","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=745"},"modified":"2024-04-25T23:20:33","modified_gmt":"2024-04-26T03:20:33","slug":"deed-restrictions-how-they-impact-homeowners-and-communities","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/deed-restrictions-how-they-impact-homeowners-and-communities\/","title":{"rendered":"Deed Restrictions: How They Impact Homeowners and Communities"},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"alignright is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2019\/09\/deed-restrictions-1024x538.jpg\" alt=\"Image of road signs denoting wrong way and one way with trees in the background. Captioned: Deed Restrictions: How They Impact Homeowners and Communities\" class=\"wp-image-746\" width=\"512\" height=\"269\" srcset=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2019\/09\/deed-restrictions-1024x538.jpg 1024w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2019\/09\/deed-restrictions-300x158.jpg 300w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2019\/09\/deed-restrictions-768x403.jpg 768w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2019\/09\/deed-restrictions.jpg 1080w\" sizes=\"auto, (max-width: 512px) 100vw, 512px\" \/><\/figure><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Your home is\nyour castle. But language in your deed just might&nbsp;keep you from installing\na pool, constructing&nbsp;a basement apartment and&nbsp;renting it out, or\nusing a non-neutral shade of paint on your exterior walls. Here is a brief\nexplanation of deed restrictions and how they impact&nbsp;individual homeowners\n\u2014 and entire&nbsp;communities.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\">Deed\nRestrictions: Separate From Zoning Rules<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Zoning laws\ncontrol&nbsp;land use in a given area. They&#8217;re&nbsp;enacted by the county,\ncity, or municipality. Zoning laws can be changed or amended by those same\ngovernment bodies.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Deed\nrestrictions are placed on deed by the developers&nbsp;or owners. Deed\nrestrictions can impact individual homes, groups of homes,&nbsp;and units\nsubject to homeowners&#8217; associations. Often called restrictive covenants, they\nrein in&nbsp;changes to the uses and the structures of a&nbsp;property.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The issue of\ndeed restrictions has taken on heightened relevance today. Two examples stand\nout:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Restrictions on short-term rentals.<\/strong>\u00a0The\u00a0<a href=\"https:\/\/www.realtor.com\/advice\/buy\/deed-restrictions-can-limit-home\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">rise of Airbnb has prompted some developments<\/a> to place covenants on deeds. Developers and associations may require, for example, a minimum length for any rentals of a house. So, if you think you&#8217;ll be renting out part of your property to someone else, better check the deed.<\/li><li><strong>Restrictions to preclude high-density housing.<\/strong> Some cities are seeking new ways of allowing for gentle high-density development, including the addition of accessory dwelling units (&#8220;ADUs&#8221;) such as in-law cottages. First, the town&#8217;s <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.strongtowns.org\/journal\/2017\/8\/14\/strength-test-accessory-dwelling-units\" target=\"_blank\">zoning rules must allow the addition of ADUs<\/a>. But because deed restrictions are separate from local zoning ordinances, in areas where deed restrictions are common, changing zoning may not be enough.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Unlike\nzoning restrictions, deed restrictions are difficult if not just about\nimpossible to remove.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">If\nDeed Restrictions Limit Choice, Why Have Them?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">When\nassociations and developers create restrictions, the rationale is typically\nthat the&nbsp;whole community will benefit&nbsp;from maintaining the social,\naesthetic, and physical traits of a&nbsp;development.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To this end,\ncommonly restricted elements are:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The number of bedrooms and bathrooms a property can have.<\/li><li>Maximum size for accessory dwelling units.<\/li><li>Architectural styles.<\/li><li>Home expansion and height limits.<\/li><li>Types and number of cars that can be parked at a home.<\/li><li>Tree planting or removal.<\/li><li>Type and style of construction materials used for fences, renovations, and other improvements.<\/li><li>The use of the home for running a business.<\/li><li>Types and numbers of animals permitted on the property.<\/li><li>Lot\u00a0<a href=\"https:\/\/www.useful-community-development.org\/deed-restriction-setbacks-stricter-than-county.html\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">setbacks<\/a> and waterfront use restrictions.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">In some\ncases, the restrictions came from an owner who divided up land and sold some to\nother&nbsp;people, and did not want the new next-door owners making noise,\nengaging in commercial activities, and so forth.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Antiquated,\nIrrelevant and&#8230;Enforceable?&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Before\npurchasing any property, the buyer should do a search for<em> deed restriction <\/em>and <em>restrictive covenant<\/em>&nbsp;in&nbsp;the&nbsp;county\nclerk&#8217;s online public records index.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Additionally,\nthe buyer is well advised to have a title search completed, or obtain\na&nbsp;title insurance company&#8217;s statement on whether&nbsp;deed restrictions\nexist, and, if they do exist, what they disallow. This is important because\nonce a properly recorded deed restriction exists, is still&nbsp;in the chain of\ntitle of that property \u2014 even if the property&#8217;s&nbsp;later deeds&nbsp;neglect\nto mention the restriction.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Will courts enforce these restrictions? They sometimes do. An association may\u00a0impose fines on homeowners for violations, or\u00a0<a href=\"https:\/\/www.berkeleyside.com\/wp-content\/uploads\/2019\/02\/Complaint-for-Breach-of-Restrictive-Covenant-etc.-08-29-18-00845163xA4507-1.pdf\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">sue to have courts compel\u00a0homeowners to stop or remove home improvements<\/a>, including\u00a0sheds, stairs, patios, and so forth,\u00a0that violate\u00a0deed restrictions.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On the other\nhand, when individual homeowners&nbsp;and investor buyers discover&nbsp;deed\nrestrictions, they may be looking at limitations&nbsp;that are&nbsp;decades\nold. Perhaps they were&nbsp;created by now-defunct&nbsp;associations. If there\nis no one to enforce them, and they are irrelevant to the surrounding\ncommunity,&nbsp;they will have no effect. Still, deed restrictions surface\nduring title searches.&nbsp;They are limitations that run with the land, meant\nto bind&nbsp;any future buyer. This could be off-putting to a buyer, or worse.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the last century, associations, owners, and developers\u00a0often created deed restrictions to racially segregate towns. These covenants expressly barred\u00a0people from buying parcels on account of race. We explain more about\u00a0<a href=\"https:\/\/www.deeds.com\/articles\/is-a-hurtful-deed-restriction-lurking-in-your-deed\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">hurtful deed restrictions<\/a>\u00a0here.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Alas.\nUnlike&nbsp;homeowners&#8217; associations&#8217;&nbsp;rules or municipal zoning\nrestrictions, deed restrictions are not easily amended.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If the\nassociation that created the covenant still exists, it may allow an owner to\ncarry out&nbsp;modifications despite the deed restriction.&nbsp;The deed\nrestriction itself might provide&nbsp;time limits on the provision, or lay out\na process for termination. Otherwise, state law might include certain&nbsp;processes\nthat allow residents to modify problematic deed restrictions.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ultimately,\nyou will likely&nbsp;need to go to court and petition for invalidation of an\nillegal, harmful, or senseless&nbsp;deed restriction.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Turnabout&#8217;s\nFair Play: Deed Restrictions as Inclusion Measures<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The town of\nFrisco, Colorado&nbsp;has adopted a new initiative called Frisco Housing Helps.\nThe idea? To have the town offer&nbsp;cash incentives to homeowners and buyers\nwho will agree to put an occupancy restriction on the&nbsp;properties. The\ngoal? To keep and increase workforce-friendly housing offerings.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Basically,\nthe town is&nbsp;purchasing&nbsp;deed restrictions to preserve affordable homes\nfor working people who live in town. Building new housing is resource-costly.\nNow, some cities are&nbsp;preserving&nbsp;already-existing housing in\nperpetuity for locals.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This took\noff with&nbsp;<a href=\"http:\/\/www.vailindeed.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Vail InDeed<\/a>.&nbsp;It\ngained further&nbsp;traction with&nbsp;<a href=\"https:\/\/www.summitdaily.com\/news\/breckenridge-to-launch-workforce-housing-program-that-would-pay-homeowners-to-place-deed-restrictions-on-their-units\/\" target=\"_blank\" rel=\"noreferrer noopener\">Breckenridge\u2019s Housing Helps<\/a>, which has reserved about\n1,000 deed-restricted rental and ownership units in its&nbsp;Upper Blue Basin.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For Frisco, the plan will\u00a0allow\u00a0employees to live in the county\u00a0\u2014 a goal set forth in the\u00a0town\u2019s\u00a0strategic plan. Once Frisco <a href=\"https:\/\/www.summitdaily.com\/news\/frisco-adopts-housing-helps-program-which-would-pay-homeowners-to-add-deed-restrictions-to-their-units\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">implements the new initiative<\/a>,\u00a0owners, investors, businesses, and\u00a0buyers will have the chance to receive cash for placing a restrictive covenant on the property that\u00a0requires\u00a0occupancy by individuals who work\u00a0locally, 30 hours a week.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Frisco&#8217;s\nvoluntary initiative will be&nbsp;available to:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>New buyers, to increase their ability to put a down payment on a home. <\/li><li>Investor buyers looking to use current housing stock for rentals.<\/li><li>Current owners of market-rate homes, who can use the funding to stay in their family homes, make home repairs, or cover their homeowners&#8217; association payments.<\/li><li>Property owners willing to build deed-restricted ADUs, such as backyard cottages, on their home properties.<\/li><li>Local businesses wishing to acquire housing for employees.<\/li><li>The town itself, which can use the incentives to buy and resell the properties, now with the deed restriction.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">And this is\nhow&nbsp;the latest trend in deed restrictions is pursuing locally integrated\neconomies and the preservation of&nbsp;community ties. Deed restrictions have\nlong been used to promote a certain character&nbsp;in a community. In this\ncase, that character is one of inclusion.&nbsp;&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Your home is your castle. But language in your deed just might&nbsp;keep you from installing a pool, constructing&nbsp;a basement apartment and&nbsp;renting it out, or using a non-neutral shade of paint on your exterior walls. Here is a brief explanation of deed restrictions and how they impact&nbsp;individual homeowners \u2014 and entire&nbsp;communities.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[100,60],"tags":[],"class_list":["post-745","post","type-post","status-publish","format-standard","hentry","category-covenants","category-deed-restrictions"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Deed Restrictions: How They Impact Homeowners and Communities - Deeds.com<\/title>\n<meta name=\"description\" content=\"Deed restrictions are placed on deed by the developers or owners. 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