Florida Broker Practice Exam

How do deed restrictions differ from restrictive covenants?

1. Deed restrictions apply to entire neighborhoods, while restrictive covenants apply to individual properties.

2. Restrictive covenants apply to the entire subdivision, while deed restrictions are specific to a property.

3. Deed restrictions can be changed at any time, while restrictive covenants are permanent.

4. Restrictive covenants restrict the use of commercial properties only, while deed restrictions apply to residential properties.

The correct answer is: Restrictive covenants apply to the entire subdivision, while deed restrictions are specific to a property.

The correct choice highlights that restrictive covenants typically apply to entire subdivisions or communities, establishing uniformity in development and land use within those areas. They are usually enforced by a homeowners' association or other governing body that ensures compliance among all property owners in the subdivision. This creates a common set of rules that govern the properties as a whole, promoting a cohesive standard for aesthetics, maintenance, and usage. On the other hand, deed restrictions, also known as covenants running with the land, are more specific. They are included in the deed of a property and apply directly to individual parcels of land. Deed restrictions are specifically tailored to outline limitations or guidelines for specific properties, which can include various factors such as building modifications, types of allowed structures, or usage restrictions. This distinction underscores how both terms interact in real estate but serve different purposes within the framework of property development and ownership. Understanding this differentiation is crucial for navigating property rights and obligations in residential communities and subdivisions.