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In addition to zoning, some homes have covenants registered at the court that work with the area. These protective covenants could put a critical pinch in your plans for a piece of property.

Defensive Covenants

A defensive agreement remains in effect while the property is sold from owner to owner. The covenants are made to maintain a certain part of the region in question. The covenants might demand a specific architectural style or use for the area to mention just a few aspects of restriction.

Land in a scenic place might have a protective agreement that prevents certain types of growth for the property or houses on it. Importantly, these restrictions may well not arrive in the zoning laws, therefore make sure the issues are researched by you before buying. Lets consider an example of a great buy gone wrong because of a protective covenant.

A protective covenant might limit the amount of packages into that your house can be subdivided. Hence, you could find yourself in times where a one hundred acre parcel is bought by you by having an eye toward subdividing it. Upon exploring the problems, you see the zoning regulations allow the package to be cut into quarter acre lots. Ideas of profit swirl before your eyes. Your growth goals, however, might turn to nightmares when there is a protective covenant.

Think you go ahead and purchase the parcel. A neighbor from later on presents himself and walks up, while showing it to a buddy. You desperately explain you plans for subdividing only to be shocked when he tells you there's a protective covenant that prevents the creation of any lots under twenty miles. What if the agreement limits ANY subdividing of the parcels? That great deal you got on the parcel might not look so hot once the defensive agreement is considered.

Therefore, how in case you handle protective covenants? First, you should ask the vendor whether any exists for the house. 2nd, make sure as the title company will definitely try to find any defensive covenants before issuing a policy you get title insurance.Borgelt Law 614 S. Capital of Texas Hwy Austin, TX 78746 512-600-3467 regulatory attorney austin