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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?

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Question & Answer

Review the question and all answer choices

A

Yes, so long as none of the neighbor notice.

Neighbor notice is irrelevant to deed restriction compliance. Even if neighbors don't object, the buyer would still be violating the deed restriction by using the property for business purposes.

B

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

HOA permission cannot override deed restrictions, which are contractual obligations running with the land. HOAs enforce restrictions but cannot grant exceptions to fundamental deed limitations.

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.

This is too absolute. The restriction prohibits using the property AS A BUSINESS, which may not include occasional, limited business activities from within the home that don't change its residential character.

Why is this correct?

The restriction prohibits using the residential property AS A BUSINESS, not conducting business FROM the property. A home-based business that doesn't change the property's residential character and doesn't involve external traffic or customers may comply with the restriction if limited to within the subdivision.

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