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:

Real Estate in Denmark
New York Times
This two-bedroom apartment has about 850 square feet of living space, including a wraparound balcony that overlooks the city's harbor. It is on the fourth floor of a development called the Lighthouse, which opened in 2012 as the first residential ...

and more »


Dallas Morning News (blog)

2015 forecast: D-FW will be among top real estate markets
Dallas Morning News (blog)
The Dallas-Fort Worth area is forecast to be one of the top commercial real estate markets in the country in 2015, according to a respected industry forecast. Three Texas cities made it onto the annual list of best markets in the Emerging Trends in ...
Houston rises to top of national real estate reportChron.com (blog)
Denver ranks 4th for likely commercial real estate investment in 2015Denver Business Journal (blog)
Houston named No. 1 real estate market to watch in 2015Houston Business Journal
Austin Business Journal (blog) -Crowdfund Insider -Fort Worth Business Press
all 16 news articles »


Fox News

6 real estate mistakes that can cost you
Fox News
One of the toughest pieces of any real estate puzzle is setting the right price. If you price it too low, you potentially leave money on the table. Price it too high, and it will sit on the market for too long, causing buyers to will wait until you're ...



NPR

Unrest In Ferguson May Speed Up Decline Of Real Estate
NPR
Neikirk, who's a real estate agent here, says in the initial weeks of the protests, his phone didn't ring at all. Neikirk allowed some of his clients to withdraw their homes from the market. Some buyers were concerned that the properties they were ...

and more »


New York Life Backs Ex-Zell Partner in Real Estate Bet
Bloomberg
New York Life Insurance Co. is turning to billionaire Sam Zell's former partner to make bets on emerging-market real estate. The insurer took a stake in Jaguar Growth Partners and plans to commit as much as $100 million to the first fund at the firm ...

and more »


Connecting the Dots: 5 Warning Signs Point to Real Estate Market Downturn
Gold Seek
That's why the headline below from Bloomberg made my investment antennae stand up and motivated me to look for either confirmation that the real estate market was indeed slowing down or contrary evidence to explain if the weak summer sales numbers ...
Better Homes and Gardens Real Estate Expands Franchise Network in FloridaRisMedia.com (press release)

all 2 news articles »


MIT News

At the intersection of real estate and urban economics
MIT News
Albert Saiz uses big data to understand real estate dynamics. As a professor in the Department of Urban Studies and Planning and director of MIT's Center for Real Estate, his work is at the confluence of urban policy and city-making and the factors ...



Real Estate Roundup: Cocktail manufacturer relocating to Austin from San ...
Austin Business Journal (blog)
Here is a roundup of deals and announcements in the Austin real estate market during the past week that weren't included in other Austin Business Journal real estate online coverage. • An Austin-based entity named 6808 S IH 35 LLC purchased the 176 ...

and more »


21640 real-estate deals (worth $2.4 billion) were registered in Erie County in ...
Buffalo Business First
A total of 21,640 real-estate transactions were recorded in Erie County during the past four quarters, according to a new Business First analysis of deals filed with the Erie County Clerk's Office. The collective value of all transactions between Oct ...



Palm Beach County posts tepid showing in real estate investment survey
Palm Beach Post (blog)
The nation's commercial real estate investors aren't especially keen on Palm Beach County as a place to put their money, according to a new survey by PricewaterhouseCoopers and the Urban Land Institute. Palm Beach County ranks 45th of 75 U.S. markets.

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 | Invalid Request - Error A109
© 2006