Wednesday, September 12, 2012

Private Restrictions on Ownership

Private restrictions, also known as private encumbrances, are restrictions and limitations on the fee simple ownership rights that generally run with the land. There are several types of private restrictions including covenants, conditions, and restrictions (CC&Rs), liens, easements, profit a prendre, adverse possession, and encroachments. 

The article Residents of Eastern Travis County Taking Advantage of New Easement Program is a good example of how an easement can work. Farzad Mashhood reports that residents in Travis County, Austin are being paid by the government to permanently restrict development on certain lots. The main goal is to protect some of the land in Travis County so that it isn't all developed.  This type of easement is known as a conservation easement which prevents specific uses of the real estate by the owner. 

In the article Restrictions-What you can't see can affect you, author Rona Fischman explains how many home buyers will 
move into a property expecting that they can do that every they want with it. She give two specific examples of private restrictions that can stop homeowners from doing what they wish with their property-zoning and deed restrictions. Zoning can restrict owners from expanding or modifying their homes. It can stop you from doing something as simple as putting up a fence. The other example Fischman mentions is deed restrictions. Deed restrictions are placed by sellers to make sure the property they are selling is used or certain way or not used a certain way. For example, if you buy a large lot with the intent to build several houses on it, but the deed restriction says that it is to remain one lot with one house, then your plans are ruined and you can no longer use the land as you planned. 

So how can private restrictions affect real estate owners? Well they can sometimes surprise owners, and they are usually never good surprises. It's very important to know before hand how you can and can't use your property and what you can do with it. You don't want your plans for some property to get ruined because you didn't bother to ask about restrictions a head of time. 

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