We often encounter prospective Florida residents who ask, “What are deed-restricted communities?”
Here’s a brief discussion that will answer your questions about deed restrictions.
Deed-restricted neighborhoods are common in Venice and almost all of Florida, for that matter. This fact often seems strange to people who are moving to Florida. Deed restrictions are based on developers noticing that neighborhoods with certain restrictions sell and resell more easily. This is due to the positive effect of prohibiting owners from allowing their properties to become run-down in one form or another.
What Buyer would rather have a lovely home surrounded by disreputable-looking properties? Would you rather have neighbors who kept their homes neat and orderly or had a junk truck up on concrete blocks in the front yard and never mowed the grass?
A deed-restricted community, also known as a deed-restricted neighborhood or deed-restricted development, is a residential area where property owners are bound by certain restrictions outlined in the property deeds. These restrictions are typically established by the developer or the homeowner’s association (HOA) and are legally enforceable. They are designed to maintain specific standards for the community and protect property values.
The communities are called deed-restricted because the original developer creates a non-profit legal entity, the neighborhood association, and all properties within the community are members of the association. Members must abide by the covenants and restrictions listed in the association’s founding documents. Florida State Law states that each property’s deed must clearly state that these restrictions bind the property.
Once the community is fully built out, the developer turns the association over to the residents, who then elect a board of directors to oversee the administration of the neighborhood. This includes enforcing the covenants and restrictions, common area maintenance, and possible approval of rentals, new owners, and other items as specified in the documents.
In Florida, property owner association laws are derived from Statute 720. Commonly referred to as HOA laws, Statute 720 encompasses all activities of homeowner associations, from dues to board meetings and regulations.
Deed restrictions cover various aspects of property use, appearance, and behavior. Common restrictions may include:
Architectural Guidelines: Specifications for the style, size, and materials of buildings within the community to ensure consistency in appearance and quality.
Land Use Restrictions: Limitations on the types of activities allowed on the property, such as commercial use or certain types of farming.
Maintenance Requirements: Property owners must maintain their homes and landscaping to specified standards.
Use of Common Areas: Regulations governing shared amenities and common areas, such as parks, pools, and recreational facilities.
Homeowner Responsibilities: Guidelines for behavior and responsibilities regarding noise, pets, parking, and other aspects of community living.
Home Owners Associations usually enforce deed restrictions in their community and often have the authority to impose fines or take legal action against violators. Homeowners in deed-restricted communities often pay regular dues to the HOA to cover the costs of maintaining common areas, enforcing rules, and providing amenities.
While deed restrictions can help preserve property values and enhance the quality of life in a community, they also limit the freedom of property owners. Prospective buyers should carefully review the deed restrictions before purchasing a home in a deed-restricted community to ensure they are comfortable with the neighborhood’s rules and regulations.
It is a Florida State requirement that all contracts for the sale and purchase of a property must include a disclosure that the property is subject to a community association if one is present. If the Buyer does not sign this disclosure before they sign the contract for sale and purchase, the Buyer has the right to cancel the sale up to three days from the closing.
Failure to receive the disclosure does not exempt the Buyer from their obligation to abide by the deed restrictions.
People usually gravitate to deed-restricted communities because such communities present a uniformly well-cared-for appearance and often sell and resell more efficiently and for more money than homes in non-restricted areas.
Questions? Contact Sally and Eric Martell – Medway Realty, Inc.
407-947-3617 or 407-947-3618
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