When you purchase a piece of land, you might think that you have complete control over how you use it. However, in some cases, there may be private agreements in place that restrict your ability to develop or use the land as you please. These agreements can have a significant impact on the value and potential uses of your property.
Private agreements, also known as covenants, are legal agreements between two or more parties that outline specific terms and conditions related to the use of a property. These agreements are usually recorded in the property’s deed and are enforceable by law. Private agreements can be used to restrict specific activities on the land, such as building a certain type of structure or using the land for a particular purpose.
One common use of private agreements is to create homeowners’ associations (HOAs) for residential developments. HOAs typically have rules and regulations that homeowners must follow, such as maintaining their property or adhering to specific architectural guidelines. These rules are often enforced by a board of directors and may include fines for non-compliance.
Private agreements can also be used to restrict the use of land for commercial purposes. For example, if a landowner wants to build a shopping center on their property, they may need to obtain approval from neighboring landowners who have private agreements in place that prohibit commercial development.
Private agreements can also impact the value of a property. If a property has restrictive covenants that limit its potential uses, it may be less attractive to potential buyers. On the other hand, if a property has private agreements in place that protect its value, it may be worth more on the market.
It’s essential to carefully review any private agreements that may impact the use of your land before purchasing a property. If you’re unsure if any private agreements exist, consult with a real estate attorney or title company who can conduct a title search. If you’re already a property owner and are considering making changes to the use of your land, review any existing private agreements and seek legal guidance before proceeding.
In summary, private agreements can significantly impact the use of your land. These agreements can restrict specific activities, create homeowners’ associations, and limit the potential uses of your property. Be sure to carefully review any private agreements before purchasing a property, and seek legal guidance if you’re considering making changes to the use of your land.