What is a deed restriction?
A deed restriction defines specific limits regarding allowable uses and development of a property. It is established by a landowner on a property’s title, typically when the landowner is selling the land and wishes to exert some influence over its use, usually to benefit adjacent lands to which he or she intends to retain title. State law presently limits enforceability of deed restrictions to 30 years (with exceptions defined in MN Title Standard No. 91A). They are subject to interpretation and nullification by the courts, and are most practical in situations where the original landowner or the landowner’s heirs own adjacent land and are in a position to observe and enforce any violation. There are generally no tax benefits. Why choose a deed restriction?An Alternative when an Easement is not an Option For properties that do not qualify for a conservation easement, a deed restriction can provide land with a degree of protection. Previous Section — Chapter 4: Options that Guide the Us
Otherwise known as a restrictive covenant, a deed restriction is an agreement between a property buyer and seller not to use said property in a specific way. For example, if you buy a home in a brand new subdivision, you usually will have to agree to a deed restriction that prohibits you from using your lot for commercial purposes. A deed restriction can be found in the deed itself or in a separate filed document to which the deed refers. Generally, deed restrictions run with the land, meaning all future owners will have to adhere to the deed restriction. Note, certain deed restrictions are invalid, including restrictions prohibiting sale and concerning race.
