**Title: Understanding Restrictive Covenants in Real Estate: What You Need to Know**
**Introduction**
In real estate, restrictive covenants are rules that limit how homeowners or tenants can use a property. These covenants are common in communities with a homeowners association (HOA). While they offer certain benefits, they also come with drawbacks. This article will explore what restrictive covenants are, the types you might encounter, and how they can affect you.
**What Is a Restrictive Covenant?**
A restrictive covenant is a clause in a property deed that outlines limits on an owner’s use of a property. Often, these agreements are made with homeowners associations. In the case of an HOA, restrictive covenants are general rules that members of your HOA vote on, which all property owners in the area must follow.
**Types of Restrictive Covenants**
Here are some common types of restrictive covenants you might encounter when shopping for a home:
1. **Limitations on Home Color**
– HOAs can be very particular about paint color. Most paint limitations specify a list of acceptable home colors and ban all others. If youre looking at a home with a covenant on paint colors, expect to choose from neutral shades.
2. **Rent and Lease Restrictions**
– Many HOAs severely limit your ability to rent or lease out your home. You may only be able to rent out your home for a few months of the year, or you may not be able to rent your home out at all.
3. **Restrictions on Home Businesses**
– Your CC&R may include a covenant that prohibits you from operating a business out of your home. This can be problematic if youre self-employed. While most HOAs wont mind if you turn a spare bedroom into a home office, anything that increases traffic for your neighbors may lead to fines.
4. **Limitations on Permissible Pets**
– Some HOAs place limitations on the types and sizes of pets you can have. For example, your HOA could tell you that you can only own a small- or medium-sized dog. Some covenants also ban certain dog breeds deemed highly aggressive.
5. **Requirements for Exterior Maintenance**
– Your CC&R will likely specify the type of maintenance you need to perform on your property. This could include mowing your lawn regularly, removing holiday lights after a certain date, or only placing your trash outside on trash day.
6. **Restrictions on Exterior Constructions**
– CC&Rs may include restrictions on modifications and buildings you make on your property. You may not be able to build a shed, fence, or detached garage without first getting the design approved by the HOA. Some CC&Rs ban additional construction altogether.
7. **Required Maintenance**
– In addition to rules on what you cant do with your home, restrictive covenants can include things you need to do. Maintenance standards may dictate rules like how often you need to repaint your home or fix a fence. Depending on your HOA and your agreement, the cost of maintenance might come out of your HOA fees.
**Are There Limits on Restrictive Covenants?**
There are limits on the specific covenants your HOA can place on the development. For example, they cant use restrictive covenants for discriminatory purposes based on religion, race, and sexuality. Nor can they implement covenants that violate state or federal laws.
**History of Restrictive Covenants**
In the past, restrictive covenants were used to maintain the demographic conditions of certain neighborhoods. For example, in the 1940s, it was common for covenants to bar home sales to Black families. However, this practice is illegal today, outlawed as part of the Fair Housing Act passed in 1968.
**FAQs About Restrictive Covenants**
1. **Are restrictive covenants in real estate legal?**
– Yes, but only to an extent. HOAs cant use restrictive covenants to enforce discriminatory practices. Any covenants restricting who can live in the neighborhood or discriminate against an individual based on a protected class are illegal and unenforceable.
2. **How can I tell what covenants my HOA will enforce?**
– Your HOAs CC&R should outline which covenants theyll enforce. If your HOA enforces a rule thats not explicitly outlined in their CC&R document, you may want to consult an attorney.
3. **Can condominium associations have restrictive covenants?**
– Yes. Many condo associations have covenants in place to maintain the look and feel of their common areas. Violating those covenants will likely result in a fine, just as it would in a traditional HOA.
4. **Can I find out if a home has restrictive covenants before I buy it?**
– Yes. If the homeowner doesnt disclose the existing covenants, the title search process should uncover them for you. You can also ask your real estate agent to find out if the home is subject to restrictive covenants before making an offer.
5. **What happens if I violate a restrictive covenant?**
– It depends. Many HOAs will ask you to correct the violation as soon as possible without fining you. Others will fine you and expect you to correct the violation immediately. If the situation escalates, your HOA may even have the right to force you to sell the property.
**The Bottom Line**
Be sure to ask about restrictive covenants before you close on a property. If you violate the covenants you agreed to when you move in, your HOA can fine or sue you to correct the issues. Regardless of whether youre interested in a home with an HOA or one without one, you may need a mortgage to finance the purchase. Start an application online with O1ne Mortgage Inc. today.
**Keywords:** restrictive covenants, homeowners association, HOA, property deed, home color limitations, rent restrictions, home business restrictions, pet limitations, exterior maintenance, exterior constructions, required maintenance, legal limits, Fair Housing Act, real estate FAQs, O1ne Mortgage Inc.
For more information or to request a mortgage quote, visit [O1ne Mortgage Inc.](https://o1nemortgage.com) or call us at 888-372-8820.
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