Glossary

Deed Restriction

A limitation on the use, development, or transfer of real property that is written directly into the deed conveying title, binding the grantee and typically all subsequent owners.

Deed restrictions are a specific mechanism for creating a restrictive covenant, often used by a seller to permanently constrain a buyer's future use of the parcel as a condition of sale — for example, a hospital system selling excess land might deed-restrict it against use by a competing healthcare provider. Because deed restrictions are recorded in the chain of title, they run with the land and bind future purchasers even if those purchasers were unaware of the restriction at the time they contracted to buy, making a thorough title search essential before acquiring any parcel with an unusual sale history. Removing a deed restriction generally requires either the consent of the party holding the benefit of the restriction (often the original grantor or its successors) or a court determination that changed circumstances have rendered the restriction obsolete or unenforceable.