Why is it important for you as a buyer to go over Deed Restrictions when doing your due diligence under contract for a home?

Reviewing deed restrictions—also known as CC&Rs (Covenants, Conditions, and Restrictions)—is a critical part of your due diligence when buying a home. Here’s why it’s so important:

1. Deed Restrictions Legally Control How You Can Use the Property

• Deed restrictions are rules recorded against the property that can limit how you use it, what you can build, parking, home-based businesses, types of vehicles, pets, landscaping, exterior colors, and even whether you can rent out your home.

• By purchasing a property, you agree to be bound by these restrictions, and they are enforceable by the homeowner’s association (if there is one), your neighbors, or even previous developers.

2. Surprises Can Be Costly or Disappointing

• If you have plans—like adding a pool, running a business from home, or parking an RV—you may find these are not allowed.

• Some restrictions can require you to maintain the home a certain way, pay association fees, or follow strict architectural guidelines.

3. Restrictions May Be Permanent

• Deed restrictions “run with the land,” meaning they stay with the property, not just the current owner.

• Even if you disagree with a restriction, you’re still legally obligated to comply.

4. Enforcement and Penalties

• Violating deed restrictions can result in fines, forced removal of improvements, legal action, or even foreclosure in extreme cases.

5. You Have a Short Window to Object or Cancel

• In most purchase contracts, you have a set number of days to review and disapprove of deed restrictions after receiving them. If you don’t review them promptly, you could lose your right to cancel the contract based on their content.

6. Protect Your Future Plans and Enjoyment

• Reviewing CC&Rs ensures you won’t face unpleasant surprises that limit your enjoyment or future use of the property.

• If you have any uncertainties, it’s wise to consult legal counsel before the end of your due diligence period.

Key Takeaway:Always carefully read the deed restrictions (CC&Rs) as soon as you receive them during your contract’s due diligence period. This protects you from legal trouble and ensures the property fits your needs and lifestyle.

If you need help understanding any specific restriction, I can help you review it or connect you with an expert.