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Land Use ControlsHARDFREE

A deed restriction prohibits a subdivision from using a residential property as a business. A buyer interested in purchasing a property in the subdivision tells their broker they intend to use one room of their house as a dog grooming service. Can the buyer do so?

2:24
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Audio Lesson

Duration: 2:24

Question & Answer

Review the question and all answer choices

A

Yes, so long as none of the neighbor notice.

B

Yes, if the homeowners’ association (HOA) grants them explicit permission.

C

Yes, so long as they only groom dogs from within the subdivision.

Correct Answer
D

No, the deed restriction prohibits the use of a residential property to conduct business.

Why is this correct?

A broker can operate independently and supervise salespersons.

Podcast Transcript

Full conversation between instructor and student

Instructor

Hey there! What brings you to the podcast today?

Student

Hi! I'm really concerned about a question on the real estate license exam that I'm studying for. It's about land use controls and deed restrictions.

Instructor

Oh, that's a big topic. What's the question you're struggling with?

Student

It goes like this: A deed restriction says a subdivision can't use residential property as a business. A buyer wants to use one room in their house for a dog grooming service. Can they do that?

Instructor

That's a great question, and it's quite tricky. The key concept here is the enforceability of deed restrictions. It's important to understand that these restrictions are typically part of the contract when you buy a property.

Student

So, what does that mean for the buyer's dog grooming service?

Instructor

Well, the restriction is about using the property as a business, not necessarily conducting business from the property. The buyer could potentially comply with the restriction if their dog grooming service doesn't fundamentally change the property's residential character.

Student

I see. So, the correct answer isn't just "yes" or "no" based on the restriction?

Instructor

Exactly. The correct answer is "C" – yes, the buyer can use one room for dog grooming as long as it's limited to within the subdivision. It's about the scope of the restriction and whether the activity fits within the exception.

Student

Oh, I see! I was thinking that since it's a home-based business, they could do it. But the restriction sounds pretty strict.

Instructor

It is strict, but the key is in the interpretation. Many students think deed restrictions are absolute or that an HOA can override them, but that's not the case.

Student

So, what about the other options? Why are they wrong?

Instructor

Option A is wrong because neighbor notice is irrelevant. Even if neighbors don't object, the buyer would still be violating the deed restriction.

Option B is incorrect because an HOA can enforce the restriction but cannot grant exceptions to it. It's a contractual obligation that runs with the land.

Option D is too absolute. The restriction is about using the property as a business, not just about whether it's technically 'business'.

Student

That makes sense. I think I understand better now. How do I remember this?

Instructor

Great! Use the analogy of a 'no shoes, no shirt, no service' sign. Just like the sign doesn't prevent you from wearing a jacket indoors, the deed restriction doesn't prevent you from conducting limited business activities from home as long as they don't fundamentally change the property's character.

Student

That's a clever way to remember it. Thanks for the help!

Instructor

You're welcome! Always remember to focus on the specific language of the restriction and how the activity affects the property's character. Keep up the great work, and good luck on your exam!

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