Deed Puts Restrictions on Investor in New Jersey
Deed Puts Restrictions on Investor in New Jersey
When we hear restrictions, we probably think of the Declaration of Covenants, Conditions and Restrictions (CCRs) generally found in subdivisions which outline the bylaws of living in that area. But, that’s not the only time that real estate transactions may be bound by certain limitations.
Here is an example of deed restrictions on a property in Burlington county, NJ. Luckily the title of the deed contains eye-catching verbiage: “Deed with Restrictions on Transfer and Refinancing, To State Regulated Property with Covenants Restricting Conveyance and Mortgage Debt.” Don’t rely on the title of the document, though. It’s not uncommon for that language to be excluded from the title and for the
Here is an example of deed restrictions on a property in Burlington county, NJ. Luckily the title of the deed contains eye-catching verbiage: “Deed with Restrictions on Transfer and Refinancing, To State Regulated Property with Covenants Restricting Conveyance and Mortgage Debt.” Don’t rely on the title of the document, though. It’s not uncommon for that language to be excluded from the title and for the
Below are the actual restrictions, outlined in the Affordable Housing Covenants. Section A notes “the property may be conveyed only to a household who has been approved in advance.” This property can only be sold to a low income family who has been approved in advance of the sale by HUD. Section B notes “no sale of the property shall be lawful, unless approved in advance,” and “no sale shall be for a consideration greater than maximum permitted price” as determined by HUD. Lastly, section C asserts “no refinancing, equity loan, secured letter of credit, or any other mortgage obligation or debt secured by the property, may be incurred except as approved in advance.”
While this example took place in New Jersey, deed restrictions can be found in any state and county. One of ProTitleUSA’s QC checks is to review deeds for such restrictions and alert our clients accordingly. Should we find verbiage that puts limitations on the sale, our title search report will contain a flag to bring the matter to your attention.
ProTitleUSA covers and checks for deed restrictions in all counties in New Jersey: Atlantic, Bergen, Burlington, Camden, Cape May, Cumberland, Essex, Gloucester, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Salem, Somerset, Sussex, Union and Warren.
ProTitleUSA covers and checks for deed restrictions in all counties in New Jersey: Atlantic, Bergen, Burlington, Camden, Cape May, Cumberland, Essex, Gloucester, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Salem, Somerset, Sussex, Union and Warren.