A deed restriction—also known as a restrictive covenant—is a limitation on how a piece of property can be used. Deed restrictions may limit activities on a property, uses of a property, and the type of home or building that can be built on a property.
Deed restrictions are essentially contractual promises or agreements (covenants) regarding the use of property and a buyer agrees to the deed restrictions when purchasing the property.
Homeowners’ associations (HOAs), residential subdivisions, and neighborhood and community associations often have deed restrictions on what can be placed, stored, or done on the property. Deed restrictions commonly address:
• fences (height, material)
• home businesses
• exterior colors
• motor vehicles without current license plates
• recreational vehicles (RVs)
• mobile homes
• boats and trailers
• farm animals
• yard signs
• dividing lots (for resale)
• short term rentals (Airbnb)
• setbacks (from the street)
• house sizes
• architecture (with approval required by committee)
• pets
• dues and assessments
• single-family residential dwellings only
• obstruction of neighbors’ views
• planting trees, shrubs, bushes
• other buildings and structures
Deed restrictions may be volunteered by a residential or commercial property owner in connection with a zoning change application. In that context the volunteered deed restrictions are intended to address specific conditions on the property to make the proposed zoning classification more appropriate.
Deed restrictions are usually enforceable if they are (1) reasonable; (2) not immoral or illegal; and (3) not contrary to public policy.
In Michigan, deed restrictions, also known as restrictive covenants, are legally enforceable limitations on the use of property that are attached to the deed. These restrictions can dictate various aspects of property use, such as the type of structures that can be built, the materials used for fences, the presence of home businesses, and the storage of vehicles or trailers. Homeowners' associations (HOAs) and neighborhood associations commonly establish such restrictions to maintain a certain aesthetic or character within a community. When purchasing a property with deed restrictions, the buyer agrees to abide by these covenants. For a deed restriction to be enforceable in Michigan, it must be reasonable, not violate any laws or moral standards, and not be contrary to public policy. Additionally, property owners may voluntarily impose deed restrictions in exchange for zoning changes, aiming to make a proposed zoning classification more suitable by addressing specific property conditions. It's important for property owners and potential buyers to review any deed restrictions carefully before entering into a real estate transaction to understand the limitations they may face.