Deed restriction Information
What is a deed restriction?
A deed restriction for a below-market-rate (BMR) home is a legal agreement attached to the property's deed that imposes specific limitations and obligations on the property owner. These restrictions typically ensure that the home remains affordable for future buyers by capping the resale price and limiting who can purchase the home based on income eligibility criteria.
Each Deed Restriction is unique, but will generally include restrictions regarding:
Resale Price: Limits on the maximum resale price to ensure the home remains affordable for future buyers.
Primary Residence Requirement: A mandate that the property must be the buyer's primary residence and cannot be used as a rental or investment property.
Transfer Restrictions: Conditions under which the property can be sold or transferred, often requiring approval from a housing authority or nonprofit organization.
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Maintenance and Repairs: Requirements for maintaining the property in good condition, ensuring it remains habitable and does not deteriorate.
Equity Sharing: Provisions that determine how any appreciation in property value is shared between the homeowner and the housing program, if applicable.
Deed Restrictions can last either a certain number of years after a home is built (for example, 45 years) or can have an unlimited timeline. Deed restrictions are connected to the land, not the homes. Anyone who purchases a home on a deed-restricted property must comply with the deed restrictions for the entire duration of the timeframe specified in the deed restrictions.
Consult your deed restrictions for specific information about your home’s program restrictions. If you need a copy of your deed restriction, fill out the Formstack request below.