Selling a House With a Restrictive Covenant

A restrictive covenant recorded against a property can limit how the land or home may be used. Because those restrictions may matter to buyers, lenders, and title companies, understanding the covenant early can help prevent surprises during a sale.

Find the Recorded Documents

Review the deed, title commitment, subdivision records, and any declarations or amendments referenced in them. The complete recorded language matters, so avoid relying only on a summary from an old listing or neighborhood rule sheet.

Identify What the Covenant Controls

Restrictions may address property use, building size, setbacks, exterior materials, rentals, parking, or other matters. Confirm whether the covenant applies to your parcel, whether it has been amended, and which person or organization may have enforcement rights.

Check for Existing Concerns

Compare the restriction with the property's current condition and use. Keep copies of permits, approvals, correspondence, surveys, and other records that may explain an addition, outbuilding, rental arrangement, or similar issue a buyer could question.

Ask the Right Professionals

A title company or real estate attorney can help interpret the recorded documents and explain how they may affect closing. If a waiver, release, consent, or correction appears necessary, ask who must approve it and how much time the process could require.

Compare an As-Is Cash Sale

An as-is cash buyer still needs to evaluate valid deed restrictions, but the sale may involve fewer financing and repair conditions. Compare the offer, closing requirements, timing, possible resolution costs, and expected net proceeds before choosing a path.