A deed-restricted community is a development where all property comes with conditions put into place, typically focused on upkeep and usage. Deed restrictions are provisions in a deed that limit how property owners can use their property. These restrictions are rules and regulations that govern the legal use of a property and are usually stated in the property purchase agreement. The buyer is expected to be aware of these restrictions before agreeing to them, and once the deal is signed, these terms are legally binding on the buyer.
Deed restrictions place conditions on the deed to a property setting out certain limits or acceptable uses. The conditions, also known as covenants, "run with the land" and as a result bind current and future homeowners. Deed restrictions have been used for years by developers and condominium associations, typically to place limits on home size or aesthetic choices, for example, limiting the choices of acceptable exterior paint colors of homes within a subdivision.
Deed-restricted communities are typically governed by a private entity known as homeowners associations. These associations follow a set of governing documents, which includes the Declaration of Covenants, Conditions, & Restrictions (CC&Rs) . Most deed-restricted communities are run by a set of board members with the help of an HOA management company.
