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Restrictive Covenants
What are restrictive covenants and how do they affect me?
A restrictive covenant is a clause in a recorded document which
dictates what can be done to or on a piece of property. When a
homebuyer purchases a piece of property governed by restrictive
covenants, they agree to abide by the terms of those restrictions.
Deed Restriction: A deed restriction is a covenant contained
in a deed which imposes limits on the use or occupancy of the real
estate. A deed restriction is a restrictive covenant. A deed
restriction or restrictive covenant in a deed (which is the document
by which the ownership of land is transferred to another) restricts
the land conveyed. There are exceptions but typically enforcement of
a deed restriction is by the grantor or the person conveying the
property.
Restrictive Covenants In A Planned Development: We typically
see blanket restrictive covenants in a planned development or
neighborhood. The restrictions are imposed on each lot within the
planned neighborhood. The enforcement of those restrictions can be
an owner of a lot within the development or the homeowners’
association.
What are some examples of restrictive covenants:
Examples: Standard clauses regulate a home's minimum size and
architectural design (often with the requirement that your plans be
submitted and approved by an architectural committee prior to
building). Others regulate walls, fences, removal of tress and the
parking of RVs , boats and non-running vehicles on the property.
Condominium owners often face even more rigid restrictions.
Restrictions should not be confused with local zoning and government
regulations. Some covenants and zoning regulations overlap but
typically restrictive covenants tend to exert greater control over
the homeowner's lifestyle.
What happens when a violation occurs?
It's up to the homeowners’ association or individual property owners
to enforce a covenant. Local authorities cannot enforce contractual
agreements. Instead, it's likely that a committee would review the
complaint, then notify the homeowner. If the homeowner ignores the
initial notice, he or she might receive a notice from an attorney.
Legal action would be a last resort.
What to do?
Our office has on file the restrictive covenants for the majority of
the neighborhoods in York County and other surrounding counties and
often the owner or agent contacts our office for a copy of the
restrictive covenants.
Specific instances of where a buyer would want to review the
restrictive covenants prior to signing the contract or placing a
contingency in the contract are as follows:
a. Vacant Lot: In many cases, the purchaser may be required
to take their plans to the architectural review committee and get
approval prior to building the home they have chosen. Architectural review approval
may be listed as a contingency
in the contract and approval may be obtained prior to the closing if a
specific plan has already been chosen by the purchaser. This is not
always feasible depending on the rules of the review committee.
b. An unusual homebuyer requirement: For example, the buyer
may be planning to place horses on the property or is planning on
renting a portion of the property or maintaining some type of home
business from the home. In those cases particularly, the
restrictions need to be reviewed to verify that those actions are
not prohibited by the covenants.
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