A deed restriction—also known as a restrictive covenant—is a limitation on how a piece of property can be used. Deed restrictions may limit activities on a property, uses of a property, and the type of home or building that can be built on a property.
Deed restrictions are essentially contractual promises or agreements (covenants) regarding the use of property and a buyer agrees to the deed restrictions when purchasing the property.
Homeowners’ associations (HOAs), residential subdivisions, and neighborhood and community associations often have deed restrictions on what can be placed, stored, or done on the property. Deed restrictions commonly address:
• fences (height, material)
• home businesses
• exterior colors
• motor vehicles without current license plates
• recreational vehicles (RVs)
• mobile homes
• boats and trailers
• farm animals
• yard signs
• dividing lots (for resale)
• short term rentals (Airbnb)
• setbacks (from the street)
• house sizes
• architecture (with approval required by committee)
• pets
• dues and assessments
• single-family residential dwellings only
• obstruction of neighbors’ views
• planting trees, shrubs, bushes
• other buildings and structures
Deed restrictions may be volunteered by a residential or commercial property owner in connection with a zoning change application. In that context the volunteered deed restrictions are intended to address specific conditions on the property to make the proposed zoning classification more appropriate.
Deed restrictions are usually enforceable if they are (1) reasonable; (2) not immoral or illegal; and (3) not contrary to public policy.
In North Carolina, deed restrictions, also known as restrictive covenants, are legally enforceable agreements that dictate the use of a property. These restrictions are often established by homeowners' associations (HOAs), neighborhood associations, or by property developers and are attached to the property's deed. They can regulate a wide range of activities and aspects of property use, including but not limited to the type of structures that can be built, the appearance of properties, the presence of certain types of vehicles, the operation of home businesses, and the keeping of animals. When purchasing a property with such restrictions, buyers are agreeing to abide by them. Deed restrictions must be reasonable, legal, and not against public policy to be enforceable. In some cases, property owners may voluntarily impose deed restrictions on their property in connection with a zoning change application to address specific conditions and make a new zoning classification more suitable. Violations of deed restrictions can lead to legal action by the HOA or other interested parties to enforce compliance.