What does a "deed restriction" entail?

Study for the Certified General Appraiser Exam. Explore flashcards and multiple-choice questions with hints and explanations to prepare effectively. Get ready for your certification!

A deed restriction involves limitations imposed on the use of a property, typically established by a previous owner. These restrictions are legally binding and restrict the actions that can be taken with the property. They are often included in the property deed and aim to maintain certain standards or uses within a community. For instance, a deed restriction might prevent the property owner from conducting commercial activities, building structures that exceed a certain height, or altering the property’s landscape in a specified manner.

The other options involve different concepts related to property but do not accurately define what a deed restriction entails. For instance, a temporary hold pending appraisal relates to the transaction process and does not imply permanent limitations on property use. Guidelines for property development issued by a municipality pertain to zoning laws and regulations that govern how land can be developed, which is separate from a deed restriction that originates from a private property agreement. Restrictions based on the aesthetics of the neighborhood could relate to homeowner association guidelines or local zoning codes, but these are not classified as deed restrictions unless they are specifically outlined in a property deed.

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