Before you sign the contract to build your dream home, better check with your builder or real estate agent first to see if there are any restrictive covenants attached to the lot. These limitations can affect everything from your ability to build a fence to how many bedrooms you can include in your building plans.
Just because you bought a lot and plan to build doesn’t necessarily mean that you will be able to do whatever you want on the property. Restrictive covenants are deed restrictions that dictate how you can and cannot use the property. They are typically added to the deed by the developer of a subdivision to protect property values. Restrictive covenants are meant to give the particular development a more uniform appearance and control the types of activities that can take place within its boundaries. Those restrictions are spelled out in the deed and will apply to all future owners, not just the person who owns the land when the property is built. So before you break ground, it is important to find out about any deed restrictions that may apply.
The scope of the restrictions can be quite shocking. For example, some deeds may restrict the height of your home. Neighbors can get mighty touchy if the home going up next door will obstruct their panoramic view. Some deed restrictions come with limitations on agreements not to block views. Some deeds also contain restrictions against the type and number of vehicles allowed on the property. You might not be able to park that big pickup truck in your driveway, if it clutters up the appearance of the neighborhood. This also may apply to motor homes, motorcycles and boats. Fences are also another common provision found in these covenants. Some deeds restrict the style and type of fence you can erect, so make sure you have the right to erect that tall privacy fence beforehand. Adjacent structures are another common restriction.
Your deed may limit or prohibit you from building an extra garage, shed workshop or pool-house. Other common restrictions include a ban on home businesses, color restrictions and even restrictions on pets. This can be anything from backyard chickens to the number and breed of pets allowed to inhabit the property.
So before you build or buy a certain piece of property, make sure you inquire as to pre-existing restrictive covenants and obtain a copy of those before you build. Restrictive covenants are legal and binding. They can be tough to remove and may incur costly legal fees to challenge.
Some homeowner associations are stricter than others and you may be able to get a variance, but if not you’ll most likely end up fighting it out in court, which could prove a financially draining experience. So make sure you know what you are getting into before you build. Restrictive covenants could certainly hinder enjoyment of your dream home, if you don’t read them ahead of time.