# Can someone explain a deed restriction question?



## ChanceTheRapids

I'm looking at a property. The property is not in city limits, and has no zoning restrictions.

The property (online) was updated with this information:

_ Restrictions: 1-A mobile home allowed for no more than one year while building. 2-No breeding, raising or keeping of swine or dogs. 3- Land cannot be used as a junkyard or have junk cars._

I don't really understand how a property owner can set up restrictions, and then sell the property, and those restrictions are kept intact? I mean, seeing that there are no city/county restrictions in this area, what gives the owner the right to tell me what to put on the property after they have sold it to me?

I don't understand...

(I also think it's incredibly stupid that someone can restrict swine or dogs, but allow cows/goats/chicken/sheep...but whatever). 

This is in Johnson County, Texas.


----------



## painterswife

ChanceTheRapids said:


> I'm looking at a property. The property is not in city limits, and has no zoning restrictions.
> 
> The property (online) was updated with this information:
> 
> _ Restrictions: 1-A mobile home allowed for no more than one year while building. 2-No breeding, raising or keeping of swine or dogs. 3- Land cannot be used as a junkyard or have junk cars._
> 
> I don't really understand how a property owner can set up restrictions, and then sell the property, and those restrictions are kept intact? I mean, seeing that there are no city/county restrictions in this area, what gives the owner the right to tell me what to put on the property after they have sold it to me?
> 
> I don't understand...
> 
> If you purchase with those deed restriction in place than there is a legal
> 
> (I also think it's incredibly stupid that someone can restrict swine or pigs, but allow cows/goats/chicken/sheep...but whatever).
> 
> This is in Johnson County, Texas.


Yes, they can. Done all the time. It will be recorded on the deed.


----------



## ChanceTheRapids

I know they can, literally do so, but I'm not sure how they can legally do so. I guess I am not experienced enough in this.

So in theory, the house I own now, I could put a deed restriction in that says no future homeowner may paint this house blue or red. Even though I'm selling the house, and will no longer own it.

It doesn't make sense. Can these restrictions be removed by anyone?


----------



## ChanceTheRapids

I should also clarify, this isn't anything like an HOA, where you pay membership dues to a community organization. This is just property out in the country.


----------



## Forty Acres

Fee Simple ownership of real estate is often described as a bundle of sticks with each stick representing "something". Individual sticks can be mineral rights, water rights, hunting rights, timber, pasture, crops, etc. - you get the idea..... Land can be transferred with or without all of the "sticks". Deed restrictions are simply a way that the seller can limit the use of a property. If you buy this property, you will be one stick short. LOL.


----------



## po boy

ChanceTheRapids said:


> I know they can, literally do so, but I'm not sure how they can legally do so. I guess I am not experienced enough in this.
> 
> So in theory, the house I own now, I could put a deed restriction in that says no future homeowner may paint this house blue or red. Even though I'm selling the house, and will no longer own it.
> 
> It doesn't make sense. Can these restrictions be removed by anyone?


Of course it's legal, if you agree to it. It's a binding contract.


----------



## edcopp

It is a lawyers game. Lawyers can make a ton of money on such things.

If you have a junk car in your back yard (a parts car) and some neighbor a few miles away or so decides that you are causing him damage by violating the deed restrictions on your property, he can retain a lawyer ($) and sue you for damages (real and not) inconvenience and legal fees. When he gets the judgement against you it will be recorded against your property. Usually due with interest ($) when you die or sell your property.

There are many companies that buy up these judgments for collection later. Almost always they are owned by lawyers ($), who make tons of money collecting these judgments that they bought for pennies on the dollar.

Once a suit is filed there is almost no way to avoid payment of some money to one or more lawyers ($).

Your neighbors will not help you, even if they could; nobody wants to get involved.

If I was looking at a property i would require that the deed restrictions be removed at the sellers expense as a condition of sale.


----------



## ChanceTheRapids

What a racket!

Thanks everyone for the replies. I appreciate the suggestion edcopp. I'll request it, and if they cannot, then I will just pass on the property. The entire reason I'm moving from my current house is deed restrictions (an HOA, blech), and I won't move into a similar situation.

Thanks!


----------



## karenp

We have deed restrictions on our property, they were put on when the original farm was subdivided. They state no junk cars, limit the number of animals that can be on the property, that sort of thing, Also that the house must be of a certain size. They can only be enforced by a property owner in the subdivision (not any neighbor who wants to) and can be changed if 6 of the 8 current property owners agree.


----------



## ChristieAcres

Often Sellers add Deed Restrictions due them, friends, or family owning a neighboring property. In other cases, adding a Timber Clause, is done to protect the timber until the property is paid off by the new Buyer. This is common with Seller Contracts, as Buyers would log the properties without the Timber Clause, and walk away...

Absolutely, wise not to even consider purchasing a property unless you can retain the full bundle of rights (as full as it gets where you live). Where we live, you can buy Fee Simple, owning even the Mineral Rights.


----------



## Gray Wolf

We have 60 acre property and house for sale and there will be several deed restrictions that will apply UNTIL the last payment has been made. As long as it is my property it will be maintained my way. When it's the buyers I could care less. We and others quite reasonably do this to protect the value of the property should the buyer default. For instance, we will keep timber rights so the buyer doesn't clearcut it and then walk away. Same for unlicensed cars and dead washing machines, etc. As long as they all self destruct when you make the last payment, who cares unless the buyer plans on doing things devaluing the property.


----------



## ChristieAcres

Gray Wolf said:


> We have 60 acre property and house for sale and there will be several deed restrictions that will apply UNTIL the last payment has been made. As long as it is my property it will be maintained my way. When it's the buyers I could care less. We and others quite reasonably do this to protect the value of the property should the buyer default. For instance, we will keep timber rights so the buyer doesn't clearcut it and then walk away. Same for unlicensed cars and dead washing machines, etc. As long as they all self destruct when you make the last payment, who cares unless the buyer plans on doing things devaluing the property.


It is obvious you are Seller Financing. In that case, you are wise to have Deed Restrictions.

If a property is being sold "Cash-Out," it is a different matter as it would be Lender Financed unless purchased with cash. Hence, my last post. 

I should add, that if I was to purchase on a Seller Contract, then I would expect some sort of Deed Restrictions protecting the property until it was paid off (i.e. Timber, for example).


----------



## Evons hubby

ChanceTheRapids said:


> I'm looking at a property. The property is not in city limits, and has no zoning restrictions.
> 
> The property (online) was updated with this information:
> 
> _ Restrictions: 1-A mobile home allowed for no more than one year while building. 2-No breeding, raising or keeping of swine or dogs. 3- Land cannot be used as a junkyard or have junk cars._
> 
> I don't really understand how a property owner can set up restrictions, and then sell the property, and those restrictions are kept intact? I mean, seeing that there are no city/county restrictions in this area, what gives the owner the right to tell me what to put on the property after they have sold it to me?
> 
> I don't understand...
> 
> (I also think it's incredibly stupid that someone can restrict swine or dogs, but allow cows/goats/chicken/sheep...but whatever).
> 
> This is in Johnson County, Texas.


A seller can indeed restrict property usage by writing those restrictions into a deed. I once ran up on a deed where the property could never be sold to a member of a particular family! If it was sold to any member of that family, ownership of the property would automatically revert to the rightful heirs of the original owners. These restrictions do "run with the land" once they are placed in a deed. The reason they work is that the buyer agrees to those restrictions when they buy the property. This being said... quite often there is only a list of restrictions... but there is no penalty mentioned for not following them, making enforcement of the restrictions difficult, if not impossible.


----------



## wharton

For what I have seen, Yvonne's Hubby's post is a pretty good review of how things work in reality. I have seen other builders and developers shoot themselves in the foot over excessive deed restrictions, things like no wash lines, fences, or sheds, no more that two pets, etc..... The writer of the restrictions though that it was a good idea, as it would preserve the character of the neighborhood. The potential buyers told him that they had no interest in being told how to live.

OTOH, I have watched a developer who went from marketing the deed restrictions, when he started pushing the lots, to not following his own rules as he neglected the last handful of tough to sell pieces, he was sitting on. Once he had no skin in the game, he responded to complaints about deed restriction violations with, "sorry, it's out of my hands, I am no longer involved in the situation" The local township had zero interest in discussing anything that wasn't a clear violation of their much less restrictive rules, and homeowners who though they would "lawyer up" found out it would be $3-5K, out of pocket to, to pursue a case in the county courts. 

As for the fear of any neighbor dragging you into court, it is probably pretty unlikely. One GIANT exception to all this is if there is a homeowner's association. It doesn't matter if it is a development with six 40 acre lots in the middle of nowhere, or a townhouse project. If you have an HOA, or even deed language that allows the possibility of creating a HOA if the residents desire one, you can never be completely free of the possibility of some "officer" on the HOA board, deciding that it is their life's mission to wreck yours. The first weapon they reach for will be the deed restrictions.


----------



## farmerj

Check for previous court issues with previous owners and pack rat conditions.

It's not as easy as just writing a restriction and say "here put this in". Legal and binding changes to deeds have to be signed off in district court.


----------



## countryfied2011

This happened to both of MIL properties when they were auctioned off. DH and I couldn't understand it...but we said what the heck we weren't buying it, so if the new owners wanted to agree--that was their problem..lol

I would never buy a property that had those type of restrictions~


----------



## sisterpine

When we were originally looking for land back in the early 90's we could not find anything suitable that did not have many major deed restrictions and sub division rules. Some even called themselves country clubs LOL. We finally found land in MT in the middle of nowhere that did not have any restriction other than no logging till paid in full.


----------



## fordy

ChanceTheRapids said:


> I'm looking at a property. The property is not in city limits, and has no zoning restrictions.
> 
> The property (online) was updated with this information:
> 
> _Restrictions: 1-A mobile home allowed for no more than one year while building. 2-No breeding, raising or keeping of swine or dogs. 3- Land cannot be used as a junkyard or have junk cars._
> 
> I don't really understand how a property owner can set up restrictions, and then sell the property, and those restrictions are kept intact? I mean, seeing that there are no city/county restrictions in this area, what gives the owner the right to tell me what to put on the property after they have sold it to me?
> 
> I don't understand...
> 
> (I also think it's incredibly stupid that someone can restrict swine or dogs, but allow cows/goats/chicken/sheep...but whatever).
> 
> This is in Johnson County, Texas.


................I understand the "No Swine" , but a "no dog" restriction is a first ! If the seller is the originator of those restrictions , I'd ask him to remove the No dog one , OR I wouldn't purchase the property ! , fordy


----------



## TnAndy

I sold 27ac next door to me and put deed restrictions on it.

No further subdivision of the land
No cutting more than 10% of the timber until paid off (15yr note held by me)
No manufactured housing
No business activity other than farming

I was going to put a 30 year limit on them but the buyer said "make it forever if you want, I'm fine with all of that".....which was sorta stupid on his part, as he might want to sell it someday and those conditions not be fine with somebody else.....even the closing attorney pointed that out to him.

Deed restrictions aren't REALLY worth all that much unless the seller goes to court to enforce them if the buyer goes ahead and does it. 

The only other catch is a bank loan.....for example, if my buyer split off couple acres and sold/gave it to one of his kids, for example, and they tried to borrow money to build a house, the title search would come back with a big red flag, and no bank would lend them money on the property, since it violated the deed restriction on the original property. The title on the couple acres would always have a cloud.


----------



## fordy

TnAndy said:


> I sold 27ac next door to me and put deed restrictions on it.
> 
> No further subdivision of the land
> No cutting more than 10% of the timber until paid off (15yr note held by me)
> No manufactured housing
> No business activity other than farming
> 
> I was going to put a 30 year limit on them but the buyer said "make it forever if you want, I'm fine with all of that".....which was sorta stupid on his part, as he might want to sell it someday and those conditions not be fine with somebody else.....even the closing attorney pointed that out to him.
> 
> Deed restrictions aren't REALLY worth all that much unless the seller goes to court to enforce them if the buyer goes ahead and does it.
> 
> The only other catch is a bank loan.....for example, if my buyer split off couple acres and sold/gave it to one of his kids, for example, and they tried to borrow money to build a house, the title search would come back with a big red flag, and no bank would lend them money on the property, since it violated the deed restriction on the original property. The title on the couple acres would always have a cloud.


................I always use to advise anyone who was going to sell a piece of property and carry the paper themselves , to make the Buyer take out a Decreasing term life ins. policy that would pay off the loan and direct the proceeds directly to the seller so it wouldn't get entangled up in probate ! , fordy


----------

