Hey investor friend, we’re not going to insult your intelligence by mansplaining what a deed is. But! We are gonna share helpful info about something you might be less familiar with: deed restrictions.
See, deed restrictions are like that nosy neighbor who loves rules — they’re always watching, rarely flexible, and definitely not shy about telling you what you can’t do with a property.
So, whether you’re eyeing a fixer-upper or building your dream tiny home empire, understanding these sneaky clauses is key.
Let’s break down 10 common deed restrictions you’ll encounter, from the obvious to the “wait, that’s a thing?!”
1. Architectural Aesthetics: A House Can’t Look Like a UFO 🛸
Deed restrictions often dictate what a home can resemble.
Think approved paint colors, roofing materials, or bans on neon-green siding.
Get this: In Houston, a developer learned this the hard way after copying another subdivision’s rules without legal review — resulting in unenforceable chaos. Eek.
So if you want to paint the door flamingo pink… better check the deed restrictions first. And, if there’s an HOA, well, it might have stronger opinions than your teenagers.
2. Use Restrictions: No Goat Yoga Studios Allowed 🐐
Certain clauses in deeds limit how you use a property.
Residential-only zones?
No home businesses (sorry, Etsy side hustle).
Since Michigan’s Marketable Record Title Act (MRTA) deadline looms in September 2025, now’s the time to double-check if that “no commercial activity” rule still applies.
Not so fun fact: Avon, Colorado, just updated its deed restrictions to address remote workers and inherited properties. Even Zoom calls aren’t safe from scrutiny!
3. Vehicle Rules: Boats, RVs, & the Great Driveway Debate 🚤
Deed restrictions love to hate your toys…
Many ban parking RVs, boats, or work trucks in driveways. One Texas community even barred cars without license plates.
Pro Tip: If your dream is to host a vintage Airstream AirBnB, read the fine print. Or just park it at your in-laws’.
4. Pet Policies: No Velociraptors (Probably) 🦖
Some deed restrictions limit pets by size, breed, or noise level.
Chickens?
Banned in many suburbs.
Emotional support peacocks?
Good luck.
Here’s a doozy — deed restriction in Maine once accidentally outlawed all dogs over 20 lbs. The HOA later clarified—they meant living dogs, not lawn statues7.
5. Rental & Home Biz Bans: “No You Can’t Turn This Into a Taco Truck Hub” 🌮
Short-term rentals? Home bakeries?
Forget it. Many deed restriction rules protect neighborhoods from becoming Fyre Fest 2.0. Violating them can tank a mortgage approval.
Look, if your neighbor’s kombucha startup keeps you up at night, thank deed restrictions.
6. Affordability Covenants: The 95/5 Nightmare 💸
Jersey City’s infamous “95/5 deed restriction” traps homeowners: sell your house, and 95% of appreciation goes to an affordable housing fund.
Ouch.
And now, states like Vermont allow perpetual affordability clauses. Translation: generations down the line might still be stuck with these rules.
7. Aesthetic Jail: Fences, Trees, & the Neighbor’s View 🌳
Love 10-foot privacy fences?
Too bad.
Many deed restrictions cap fence heights or ban trees blocking views.
Once again, in Avon, Colorado, new policies even regulate yard storage bins.
8. HOA Enforcement: When Karens Get Legal Power ⚖️
Deed restrictions let HOAs fine you for violations.
In one Texas case, a community had to terminate poorly written rules after residents rebelled.
Here’s hoping an HOA president you might have to deal with for an REI deal isn’t a lawyer.
9. Expiration Dates: Like Milk, But Less Smelly 🥛
Some deed restrictions expire after 30–45 years…
But in Michigan, you’ve got until September 2025 to preserve old covenants under the MRTA update.
Better not miss the deadline!
10. Legal Landmines: Copy-Paste Disasters 📋
Using generic deed restrictions?
1 word: Don’t.
A Houston developer’s copy-paste blunder led to unenforceable rules and neighbor wars.
Lesson: Hire an investor-friendly lawyer.
Why Should You Care?
Deed restrictions aren’t just about paint colors or RV parking — they’re binding forever (or until a judge says otherwise).
Since Colorado’s Mountain Village YES Program now pays homeowners to adopt deed restrictions, even cash incentives won’t save you from bad rules.
The Bottom Line
Deed restrictions can protect property values or turn your investment into a legal sitcom. Always:
- Read the fine print
- Consult an investor-friendly real estate attorney
- Bribe your HOA with cookies (kidding… mostly)
Still confused?
If your next deal’s deed restrictions sound like a Taylor Swift breakup song — “We Are Never Ever Allowing Sheds” — maybe keep looking for another REI deal. 🏡✨