What is a deed-restricted community?

If you find yourself asking, “What is a deed-restricted community?” at any time, you are probably curious about or already involved in the world of property developments within homeowners associations (HOAs). In this article, we’ll review crucial information that can help you better understand what deed-restricted communities are, how to identify them, and many more technical insights.
 

Understanding deed restrictions

To clearly understand what it means for a community to be deed-restricted, you will first need to understand deed restrictions. Deed restrictions, also known as restrictive covenants, are rules and regulations that govern the use and appearance of properties within particular communities or neighborhoods. Typically, these restrictions are recorded in each property’s deeds, which means they are legally binding for the homeowners in the community.

The primary purpose of deed restrictions is to maintain a standard of living to protect property values. This is beneficial to homeowners, as certain changes such as incompatible structures or unsightly features may alter this value. Due to their established guidelines, they also help create a much more cohesive and attractive neighborhood environment by preserving its appearance, aesthetic, and character over time. These guidelines can affect various developments, such as architectural design, landscaping, property maintenance, and more. Even though homeowners are required to comply with these established rules and regulations, they can also seek approval from the community’s HOA or architectural review board if they are interested in making any future changes. This way, not only can they review grounds prior, but they can also be informed of these regulations in the first place.
 

Four common examples of deed restrictions include limitations on:

• Fence sizing
   
• Number of pets allowed
   
• Exterior paint color
   
• Parking of recreational vehicles or boats

Identifying deed-restricted communities

If you are interested in a property but you’re unsure if it is a deed-restricted community, there are signs you can use to find out. One of the main ways is to check if there is a presence of an HOA, as they put the rules and regulations set forth in the deed restrictions in the first place. You could also watch for physical signs, such as a neighborhood entrance sign that indicates the community’s name and the presence of restrictions. These do not verify the existence, though. Therefore, we recommend you request a copy of the deed from the seller or the corresponding authority to review the document and see it yourself. In this document, any restrictions applicable restrictions will be outlined. If you want to take the cautious route, you could consult an attorney who can provide guidance and clarification on the deed’s language and implications.

Once you begin the research process, there are multiple resources that can help with your search. Visiting the county recorder’s office can help if you are looking for property records, such as documents related to deed restrictions or community covenants. To facilitate this, online search efforts can be beneficial, as these county recorder’s office records could be accessed online for some regions. If you find out that the community has an HOA, you can see if that association has its own website. Often, you can find information regarding the deed restrictions on their page. There are additional websites that can aid in this search, but it is always vital that you reach the correct point of contact to receive accurate and up-to-date information.
 

Living in a deed-restricted community

Like many other property types, living in a deed-restricted community has pros and cons. Yes, living in these communities means adhering to specific rules and regulations. These regulations in question can vary, but as previously mentioned, they often cover aspects such as home exterior appearance, landscaping, and sometimes the types of vehicles and parking allowed in the neighborhood. Conversely, there is a much more significant benefit to these rules and regulations: they can help preserve property values, as they are implemented to maintain certain standards that help your home investment retain its value over time!

You might have read that HOAs play a crucial role in managing and enforcing these rules and regulations, but the extent of their contributions goes beyond what you think. In the same way, they are responsible for collecting fees from residents to maintain common areas; they also help keep the rules in place and resolve disputes that can occur within your community. Once you are familiar with these touchpoints, complying with deed restrictions can help maintain harmony within the community. If a resident fails to comply with them, the HOA has the authority to enforce the rules in many ways. These enforcement methods can range from issuing warnings and fines to taking legal action against the resident. Nevertheless, understanding the HOA's responsibilities in your community is vital, as they can significantly impact your living experience.
 

How to change or modify deed restrictions

With deed restrictions being legal documents that dictate how a property can be used and what is allowed within a specific community, there may be times when homeowners may wish to change or modify these restrictions. If you find yourself in this situation, whether as the homeowner in question or a board member, knowing the process and requirements for modifications can help with a smooth transition.

To begin, homeowners should follow a formal process to make the modifications they seek. These include:

1. Proposing the changes
    
2. Obtaining approval from the HOA
    
3. Securing necessary legal documentation

Before any changes are initiated, the requirements outlined in the original deed restrictions should be reviewed, as some communities may have specific conditions or limitations when modifying the limits. Some can include obtaining a certain percentage of homeowner support, presenting a detailed plan for the changes, or seeking legal advice in order to comply with applicable laws. It is out of the question that throughout this entire process, it is crucial to involve the HOA and other community members. If you gather support from both, the changes can be brought on efficiently where cooperation and collaboration are encouraged, as collaboration and open communication can help build consensus and allow for the proposed modifications to align with the community's best interests.

If you are to go forward with any changes, you must remember that changing deed restrictions can have legal implications. If you seek counsel, an attorney can review the proposed changes, ensure compliance with local, state, and federal regulations, and guide homeowners through the necessary legal procedures.

When asking yourself, “What is a deed-restricted community?” again, we hope you reflect on these insights. Buying a home in this type of community can have advantages, such as maintaining property values and preserving the neighborhood's overall look and feel. However, it is highly suggested that you thoroughly evaluate the restrictions and consider your long-term goals and lifestyle preferences before making your decision.

To learn how FirstService Residential can support your community's vision, contact a member of our team.