What are Deed Restrictions ?

Deed restrictions are generally written limitations, often noted on a deed, that have been placed in public records.  The restrictions or limitations remain on the property and "run with the land," or from one owner to the next.  Deed restrictions are often place on property to preserve the uniform nature of a subdivision.  Covenants, Conditions & Restrictions (CC&R's) are developed for subdivisions in an attempt to control the activity of owners.  Deed restrictions can be used for a number of purposes, they can restrict the use of a property by now allowing specific activities like mining, the use of the property as a bakery, an auto service center or some other use.

Deed restrictions can run for many years, but the restrictions cannot violate the law and they can not run "in perpetuity."  The party or parties that placed a restriction on the property can generally release it from said restriction.

It is important to research past deeds to discover if deed restrictions affect the property that you intend to purchase or sell.  Thus title insurance and a review of the title documents by competent counsel is advised.

Since deed restrictions can limit the usefulness of a property, they can affect the opinion provided in a real estate appraisal.  Real property appraisers consider the impact that deed restrictions have on the market value of a property as part of the appraisal process.  If the deed restrictions hinder of exclude a use which is the highest and best use, a property could suffer a significant loss due to the restriction.  As an example, some properties lose their accessibility from adjoining roadways due to deed restrictions agreed upon by previous owners.  The accessibility loss could significant reduce the value of a parcel under this scenario. 

Contact us with your questions or concerns regarding your specific appraisal assignment in Nevada at 1-702-568-6699.  We can also be e-mailed at grigdon@cox.net.  

Commercial Real Estate Appraisals in the Las Vegas & Henderson, Nevada Area.