Transfer of Title term

Deed Restriction

A private limitation on the use of property written into the deed, enforceable by other property owners or a developer.

Why Deed Restriction matters on the exam

This term belongs to Transfer of Title. The questions below are real items from Freehold's bank that use it - each one cites its source.

Exam questions using Deed Restriction

Every Freehold question shows why the right answer is right — and cites its source.

To qualify for a zoning variance, an applicant must generally show that:

  1. The neighbors have all unanimously voted to approve the request
  2. The property would generate substantially greater property tax revenue for the town if the variance were granted to the owner
  3. Strict application of the ordinance would create an unnecessary hardship unique to the property, not caused by the owner
  4. The zoning ordinance conflicts with a private deed restriction recorded on the lot
Show answer & explanation

Strict application of the ordinance would create an unnecessary hardship unique to the property, not caused by the owner — Variances are granted only when unique physical circumstances of the property create unnecessary hardship, the hardship was not self-created, and the relief will not alter the neighborhood's essential character.

Source: PSI National Real Estate Exam Content Outline §2 Land Use Controls

A city rezones a residential neighborhood to permit duplexes, but the subdivision's recorded deed restrictions still limit lots to single-family detached homes. As a result:

  1. The rezoning automatically voids the deed restrictions
  2. Owners must still comply with the private deed restrictions even though the zoning ordinance now allows duplexes
  3. The deed restrictions automatically become part of the zoning ordinance
  4. Owners may build duplexes because zoning always controls over private restrictions
Show answer & explanation

Owners must still comply with the private deed restrictions even though the zoning ordinance now allows duplexes — Public zoning and private deed restrictions operate independently; a change in zoning does not eliminate a recorded deed restriction, and property owners remain bound by the more restrictive private control.

Source: PSI National Real Estate Exam Content Outline §2 Land Use Controls

A zoning ordinance requiring that no structure be built within 25 feet of the front property line is imposing a:

  1. Setback requirement
  2. Variance
  3. Easement by necessity
  4. A private deed restriction
Show answer & explanation

Setback requirement — A setback establishes the minimum distance a structure must be located from a property line, such as the front, side, or rear boundary, as set out in the zoning ordinance.

Source: PSI National Real Estate Exam Content Outline §2 Land Use Controls

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