Deed Restrictions on Land: How to Find Them and What They Can Stop

Zoning gets all the attention, but on rural land the rule that stops a deal is often a few lines in an old deed. Deed restrictions bind every owner, and nobody at the county will warn you about them. Here is how to find them and what to look for.

What Is a Deed Restriction?

A deed restriction is a recorded rule that limits how land can be used, and it usually binds every future owner.

A past owner or the developer of a subdivision writes the restriction, records it, and it then "runs with the land," so it applies to you even though you never agreed to it. In a subdivision the restrictions are often a set of covenants, sometimes called CC&Rs, that cover every lot and may create a property owners association with dues.

What Do Deed Restrictions on Land Usually Limit?

Mobile homes, home size, livestock, business use, and splitting the land are the most common.

How Do You Find Deed Restrictions Before You Buy?

Ask the title company for a copy of every restriction listed in the title commitment, and read each one.

1. Order title early. Restrictions show up as exceptions in the title commitment, usually in Schedule B.
2. Get the documents, not the list. The commitment names each restriction by book and page. Ask the title company for copies and read the full text.
3. Check the plat. If the land is in a recorded subdivision, the plat can carry its own notes and restrictions.
4. Ask about an owners association. Find out whether there are dues, unpaid assessments, or rules beyond the deed.
5. Match them to your plan. If you plan to subdivide, sell to mobile home buyers, or run a business, confirm the restrictions allow it before your due diligence period ends.

How Are Deed Restrictions Different From Zoning?

Zoning is a government law; deed restrictions are private rules recorded against the land, and they can be stricter.

The county or city writes zoning and can change it. Deed restrictions are written by past owners and enforced by other owners or an association. Land can be unzoned and still carry tight deed restrictions. When zoning and a deed restriction disagree, plan for the stricter one.

Do Deed Restrictions Affect a Land Loan?

They can. We read every restriction in the title commitment, and one that blocks your plan can stop the loan.

Most restrictions only change value and who will buy the land, and our valuation reflects that. Some are deal breakers, because they block the way you plan to sell. Tell us your exit when you ask for a quote and send the restrictions early, so a problem shows up before you pay for more due diligence. Our terms:

• $30,000 to $1,000,000, interest only, 14% on loans of $100,000 and up and 16% under $100,000, for 24 months
• Up to 65% of value (our own valuation, not an appraisal; closer to 50% of value in slower markets), never more than 80% of the price
• $600 closing fee, 2% exit fee at payoff, no points, no appraisal
• Business purpose loans to LLCs and corporations, on land of 2 acres or more

See legal vs. physical access for the other title issue to check, and land loan requirements for the full list.