TOPIC #3: Private Restrictions on Ownership

A private restriction on the ownership of property is always a privately arranged agreement made between two or more parties often covered in contract that is overseen by an expert in real estate law, and can be enforced by the government once that agreement has been made by all involved parties. There are many examples and legal terms that have been created for various situations, but we will cover the basics that are often made in a contract or agreement involving real estate.

The first and often most common are deed restrictions. These agreements are made by residential owners who must obey rules made by neighborhood associations to keep order and uniformity among all the properties of that particular neighborhood. There are no particular boundaries or trends that are addressed in such agreements, they are simply tailored to the needs and wants of that neighborhood and its residents.

Here is an example of Deed Restrictions in The Woodlands, TX:

http://www.thewoodlandstownship-tx.gov/DocumentCenter/Home/View/891

Another example of a private ownership restriction is a lien. A lien is a private agreement between the current owner of the property and the other parties that share a financial interest in the property. The other parties are often mortgage lenders who can claim a portion or the whole property in the case of missed payments by the property owner. A lien in the contract gives the parties with any financial interest a certain backing or guarntee that their investment will be returned to them through other means such as a foreclosure, if the property owner cannot make their payments.

Here is an example of a sample lien:

http://www.luxuryhomesandproperties.com/_public/_files/forms/lien.htm

A third example of a private restriction on the ownership of a property would be an easement. This is agreement between two or more different parties that states one party may use the property for a specific economic purpose without the permission of the current landowner that has possession of the property. Easements are often common in the contracts of property owners who do not have mineral rights of the land that they currently own. When an exploration firm discovers oil or natural gas underneath these types of properties, the owner is not entitled to royalties from those firms who use the resources that are beneath the property.

An example of an easement involving mineral rights can be found in the link below:

http://www.ballascreative.com/wsmt-beta/assets/downloads/pdf/CHAINED-GATES-AND-NO-TRESPASSING-SIGNS.pdf

 

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a comment