n addition to zoning, some buy gone wrong because of a
properties have covenants protective covenant.
recorded at the courthouse
that "run with the land." These A protective covenant may
"protective covenants" can put a restrict the number of parcels
serious pinch in your plans for a into which the property can be
piece of property. subdivided. Thus, you could find
yourself in a situation in which
Protective Covenants you buy a one hundred acre parcel
with an eye toward subdividing
A protective covenant remains in it. Upon researching the issues,
effect as the property is sold you discover the zoning laws
from owner to owner. The allow the parcel to be cut into
covenants are designed to quarter acre lots. Visions of
maintain a certain aspect of the profit swirl before your eyes.
area in question. The covenants Your development dreams, however,
may require a particular could turn to nightmares if there
architectural style or use for is a protective covenant.
the land to mention only a few
areas of restriction. Assume you go ahead and purchase
the parcel. While showing it to a
Land in a scenic area may have a friend, a neighbor from down the
protective covenant that prevents road walks up and introduces
certain types of development for himself. You excitedly explain
the land or properties on it. you plans for subdividing only to
Importantly, these restrictions be shocked when he tells you
may not show up in the zoning there is a protective covenant
laws, so make sure you research that prevents the creation of any
the issues before buying. Let's lots under ten acres. What if the
consider an example of a great covenant restricts ANY
subdividing of the parcels? That should ask the seller whether any
great deal you got on the parcel exists for the property. Second,
may not look so hot when the make sure you buy title insurance
protective covenant is factored as the title company will
in. certainly look for any protective
covenants before issuing a
So, how should you deal with policy.
protective covenants? First, you
About the Author:
Raynor James is with http://www.fsboamerica.org - providing FSBO homes for sale by owner. Visit our "sell my home" page at http://www.fsboamerica.org/seller.cfm to list and sell your home for free for one month. Visit http://www.fsboamerica.org/buyer.cfm to see homes for sale by owner.
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