New to Real Estate · Corbin, KY · Member since 2020 · 6 posts · 7 votes
When we bought our house a couple of years ago, I never had the thought of renting it out rather than selling it. My only roadblock is there is a deed restriction that states "No use of said property pursuant to rental agreement (oral, written, or otherwise) or other landlord - tenant relationship. Is there any way around this? How can this be enforced if I own the property? Would the bank get involved?
Generally, if there is a single deed restriction, only the individual
or body who created it can enforce it. For example, if a state enacts a
law that prohibits individuals from having boats on their property, the
state would then enforce that restriction.
If the restrictive covenant governs an entire condominium building or
a subdivision, they are enforceable by one or all of the property
owners in that community. For example, if an HOA establishes a rule
regarding exterior paint covers, deed restriction enforcement would be
with that HOA.
It is important to be aware that liability for breaking a covenant
rests with the titleholder to the property, even if that individual is
not the one who technically engaged in the deed restriction violations.
It is also important to note that not all deed restrictions are
enforceable.
A deed restriction may be illegal if they violate the Constitution.
For example, if there is an old restriction on a deed which limits the
property ownership only to caucasians, it would not be enforceable
because the Constitution forbids this type of discrimination.