Deed restrictions are best described as clauses that...

Deed restrictions are best described as clauses that...

• A. Limit the future uses of the property
• B. Govern property taxes
• C. Define a mortgage interest rate
• D. Set zoning categories

Answer: (A)

Deed restrictions describe private limits placed in the deed that bind future owners and control how the land can be used or developed. They are covenants written by the grantor (often a developer) and recorded to run with the property, so they stay with title regardless of who buys it. This is why they’re best described as limiting future uses of the property—setting rules like whether commercial activity is allowed, the type of dwelling, setbacks, or other developmental constraints. They aren’t about property taxes, which are determined by government authorities; they aren’t about mortgage interest rates, which are loan terms set by lenders; and they aren’t the same as zoning, which is a public regulation that applies broadly to areas rather than being private promises attached to a specific parcel.

Deed restrictions describe private limits placed in the deed that bind future owners and control how the land can be used or developed. They are covenants written by the grantor (often a developer) and recorded to run with the property, so they stay with title regardless of who buys it. This is why they’re best described as limiting future uses of the property—setting rules like whether commercial activity is allowed, the type of dwelling, setbacks, or other developmental constraints. They aren’t about property taxes, which are determined by government authorities; they aren’t about mortgage interest rates, which are loan terms set by lenders; and they aren’t the same as zoning, which is a public regulation that applies broadly to areas rather than being private promises attached to a specific parcel.