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 - providing homes for sale by owner, "FSBO", properties. Are you thinking, "Should I sell my home?" Visit to sell your home sale for free for one month.



CFO says Sterling needs sale for debt
LOS ANGELES -- The chief financial officer of Donald Sterling's properties said Monday that the billionaire may be forced to sell a large portion of his real estate empire to cover $500 million in loans if he persists in refusing to sell the Los ...
Sterling may have to sell $500M in real estate holdingsAllentown Morning Call
Sterling on Hook for $500M for Real Estate Loans, His CFO

all 361 news articles »


Fypio Aims at Online Real Estate Industry with Buyer-Centric Focus
When Michael Koh moved to San Diego in 2010, he expected to start a real estate business focused on luxury residential properties, much like the one he had created and sold in Argentina over the previous 11 or 12 years. Instead, he came up with an idea ...

Real estate heir accused of urinating on candy in store
The Journal News |
HOUSTON – A New York City real estate heir and Scarsdale native who admitted killing his neighbor a decade ago in Texas is facing a new charge that accuses him of urinating on candy at a drugstore. Authorities say 71-year-old Robert Durst was arrested ...

Recent Commercial Real Estate Transactions
New York Times
A French investor has bought this five-story building with three full-floor duplexes — with two, three and four bedrooms — in Murray Hill. The entire 6,250-square-foot building is being triple-net leased (tenant is responsible for taxes, insurance ...


Millionaire real estate heir accused of criminal mischief
KPRC Houston
New York real estate heir who was acquitted in Texas killing charged with ...U.S. News & World Report
Manhattan Real Estate Heir Accused of Urinating on Candy DisplayKFDX

all 141 news articles »

Howard Hughes Corporation: A Real Estate Development Play With Strong ...
Motley Fool
Howard Hughes Corporation (NYSE: HHC ) is determined to transform itself into one of the leading master planned community developers and operators in the country. The real estate development company has a solid track record ever since it became a ...

Tourism growth can help city's real estate growth
The Tennessean
The relationship between Nashville's tourism and commercial real estate industries is symbiotic — when one flourishes, the other benefits, as well. For example, new development, construction and leasing projects are up across the board for restaurant ...

Seattle real estate profile, July 22, 2014
It also has a quainter commercial district along Roosevelt Way, and several nice parks, including a new 16-acre one atop the now-lidded Maple Leaf Reservoir. This week's real estate profile presents three Maple Leaf homes listed between $500,000 and ...

'No end to the horizon' for multifamily real estate deals in Florida
South Florida Business Journal
Wilcox joined JLL's Florida capital markets group, specializing in multifamily real estate sales, debt and equity, in early July as a managing director. It's a move that will allow JLL to handle more deals statewide — and Wilcox, who's based in ...

and more »

Las Vegas real estate agent's conviction upheld
Las Vegas Sun
The conviction of former Las Vegas real estate agent Linda Kot, involved in a $10 million mortgage fraud scheme, has been upheld by the 9th U.S. Circuit Court of Appeals. The three-judge panel of the court Tuesday said there was “overwhelming evidence” ...

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 |

Web Reference - Business Directory - Sitemap   
© 2006