Deed Restriction
A limitation on property use recorded in the deed or a separate declaration. Deed restrictions control what owners can and cannot do with their property, such as architectural standards, permitted uses, and prohibited activities.
Understanding Deed Restriction
Deed restrictions (also called restrictive covenants or CC&Rs) are private agreements that limit how property can be used. They're typically established when subdivisions are created and apply to all lots. Common restrictions address: building setbacks, minimum square footage, architectural approval requirements, permitted uses (residential only), and prohibited activities (no commercial, no certain animals).
Restrictions run with the land—they bind all future owners regardless of whether they agreed to them. Enforcement is typically by other lot owners in the subdivision or by a homeowners association. Violations can result in lawsuits seeking to compel compliance.
Restrictions expire based on their terms or state law. Some states automatically terminate restrictions after a certain period (often 20-30 years) unless renewed. Understanding whether restrictions are still enforceable requires examining both the restrictions and applicable state law.
For curative title investors, deed restrictions matter most when they affect planned use. Buying a property to develop commercially only to discover residential-only restrictions is a costly mistake. Always review restrictions before acquisition.
Real-World Example
A buyer purchases a lot intending to build a small rental property. After purchase, they discover deed restrictions requiring minimum 2,000 square foot homes with all-brick construction and prohibiting rental properties. The buyer's plans are now impossible without restriction modification or expiration.
Texas-Specific Information
Texas Property Code Chapters 201-211 govern deed restrictions. Texas restrictions in subdivisions are presumed to expire after 20 years unless renewed, but this varies by when they were created. Texas doesn't have statewide zoning, making deed restrictions particularly important for controlling development. Texas courts generally enforce restrictions as written.
Related Terms
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