Restrictive covenants. Indeed, restrictions limit the use or development of land or property for specific purpose or period, and binds the owner of the property and subsequent owners of that property to adhere to those promises. These restrictions may be put in place by the seller, developers, government agencies, or property owners associations. When purchasing property in Texas, there are many things to consider. One of the most important is the presence of restrictive covenants or deed restrictions. Simply put, these restrictions limit the use or development of land of property for specific purpose or period. These restrictions might prohibit certain types of agricultural operations, types of construction, limit the number or size of buildings on a property, dictate what type of businesses can operate in the area and even restrict things like fertilizers and pesticides. If you’re considering purchasing property in Texas, it’s essential to review any restrictions that may be filed in the real property records or in the warranty deed that applies to your property.
Some may help prevent pesky inconveniences, protect our natural resources, or ensure a high quality of life for property owners while others could have a significant impact on your ability to enjoy the use and develop the property as you see fit. Imagine buying a property with the intention of building a large addition or starting a business only to find out later that there are restrictions that prohibit commercial activities. It’s not uncommon for people to be surprised by the restrictions placed on their property by a previous owner or a developer. In addition, these restrictions can have a real impact on agricultural property. They might put a limit on how many animals you can raise or restrict the use of certain chemicals. This can be a big deal for farmers and even impact their profits and productivity. That’s where Texas Farm Credit comes in. We know the ins and outs of these restrictions and can help guide you through them. Our team of experts can assist your due diligence before you purchase the property. It’s always better to know about any restrictions upfront so you can make an informed decision about whether the property is right for you and your family. As always, we’re just a phone call away and would be honored to partner with you during your purchasing journey. Give us a call anytime.