Real Estate Information

Protective Covenants - Buying A Home


In addition to zoning, some properties have covenants recorded at the courthouse that "run with the land." These "protective covenants" can put a serious pinch in your plans for a piece of property.

Protective Covenants

A protective covenant remains in effect as the property is sold from owner to owner. The covenants are designed to maintain a certain aspect of the area in question. The covenants may require a particular architectural style or use for the land to mention only a few areas of restriction.

Land in a scenic area may have a protective covenant that prevents certain types of development for the land or properties on it. Importantly, these restrictions may not show up in the zoning laws, so make sure you research the issues before buying. Let's consider an example of a great buy gone wrong because of a protective covenant.

A protective covenant may restrict the number of parcels into which the property can be subdivided. Thus, you could find yourself in a situation in which you buy a one hundred acre parcel with an eye toward subdividing it. Upon researching the issues, you discover the zoning laws allow the parcel to be cut into quarter acre lots. Visions of profit swirl before your eyes. Your development dreams, however, could turn to nightmares if there is a protective covenant.

Assume you go ahead and purchase the parcel. While showing it to a friend, a neighbor from down the road walks up and introduces himself. You excitedly explain you plans for subdividing only to be shocked when he tells you there is a protective covenant that prevents the creation of any lots under ten acres. What if the covenant restricts ANY subdividing of the parcels? That great deal you got on the parcel may not look so hot when the protective covenant is factored in.

So, how should you deal with protective covenants? First, you should ask the seller whether any exists for the property. Second, make sure you buy title insurance as the title company will certainly look for any protective covenants before issuing a policy.

Raynor James is with http://www.fsboamerica.org - providing homes for sale by owner, "FSBO", properties. Are you thinking, "Should I sell my home?" Visit http://www.fsboamerica.org/seller.cfm to sell your home sale for free for one month.


MORE RESOURCES:

Huffington Post Canada

Cooling Real Estate Dents Canadian Consumer Confidence
Bloomberg
Canadians became less confident this month about housing and prospects for the economy amid the troubles of a Toronto mortgage lender, according to telephone polling. The Bloomberg Nanos Canadian Confidence Index fell to 58.5 in the week ending ...
Canadians' Faith In Real Estate Fizzles As Toronto Sales PlungeHuffington Post Canada

all 11 news articles »


Bloomberg

Three Chinese Real Estate Tycoons Gain $5.4 Billion In a Day
Bloomberg
A rally for Chinese property stocks added a combined $5.4 billion to the fortunes of three tycoons alone on Monday. None fared better than Hui Ka Yan, the richest of them all, whose China Evergrande Group has built him a net worth of nearly $21 billion.

and more »


Los Angeles Times

John Burns, real estate guru, joined the industry by 'accident'
Los Angeles Times
John Burns is chief executive of John Burns Real Estate Consulting, an Irvine company that provides research and business advice to home builders across the country. The firm has hundreds of clients nationwide. Burns describes his job as running around ...



Chicago Sun-Times

President Barack Obama library's real estate buzz
Chicago Sun-Times
Real estate brokers say the buzz about the library has grown exponentially since it was announced Jackson Park would host it. Sale prices have ticked up too, they say, from about $226,000 in July 2016 to $255,000 this month. Hasani Steele, whose Steele ...



Slate Magazine

How Does a Baltimore Real Estate Concierge Work?
Slate Magazine
In this episode of Working, which you can listen to via the player above, we spoke to Damon Walker, who describes himself as a “concierge” to real estate investors. As he puts it, “Whatever needs an investor has, I try to fit the bill,” whether they're ...



Los Angeles Times

Is the real estate market about to crash? No way, says this CEO — and here's why
Los Angeles Times
With corporate headquarters on Bunker Hill downtown, CBRE Group Inc. — the world's largest real estate services firm — is one of only a handful of Fortune 500 firms based in Los Angeles. And it's riding high after a long real estate boom. The company ...



Real estate: A national system that actually works
Herald-Mail Media
So I've become convinced that real-estate agents should be in charge of everything. Imagine if you called Microsoft and instead of some opaque, condescending techie, you got a Realtor: “OK, I want you to restart your laptop and then hit alt shift — oh ...

and more »


CNNMoney

Who's having a good 2017? One Chinese tycoon is $10B richer
CNNMoney
The net worth of Hui Ka Yan, chairman of real estate developer China Evergrande, has jumped roughly $10 billion since the start of the year to around $21.3 billion, according to a CNNMoney calculation based on data from Hurun Report, a Shanghai-based ...

and more »


Miami Herald

Israel-Miami real estate connection stronger than ever
Miami Herald
And as a veteran real estate broker, I have witnessed and experienced Israeli interest in Miami real estate — which has always been strong and consistent — increase dramatically in recent years. In this column, I will attempt to explain the reasons ...



RisMedia.com (press release)

How to Build a High-Performance Real Estate Team
RisMedia.com (press release)
Building and managing a real estate team is not a go-alone endeavor. You need to find top talent, and achieve heightened productivity across the board. In the latest RISMedia ACE webinar titled “Building a High-Performance Real Estate Team,” we brought ...

and more »

Google News

home | site map | Blog |
Portland Oregon Real Estate Listings | real estate investing | real estate in greece | for sale by owner in atlanta | House for sale: Louisville KY
Exchange Links Here | Links page |
© 2006