Post edited 11:15 am – August 11, 2010 by maxxbuster

First, some general information about deed restrictions and the subdivisions that they are alleged to benefit…..and then my answer to your questions may make more sense.

The law in this state requires that the rules and regulations of each new "subdivision" be filed at the COUNTY CLERK'S office.

The rules affecting each lot in a subdivision/neighborhood are originally set up by the subdivision developer and are commonly referred to as the "Deed Restrictions". Each lot purchased is automatically subject to whatever "valid" restrictions are on file at the county clerk's office (though finding them there can be a challenge). As long as they have not yet expired, deed restrictions pass with the title of the land from one owner to the next.

Once filed, however, a statutory clock starts ticking on the validity/enforceability of the restrictions. Last I looked, the stautory time was twenty five years and then the restrictions EXPIRE. Expired deed restrictions must be "renewed" or the land is then categorized as "unrestricted".

Renewing about-to-expire deed restrictions involves getting signatures of a specified percent of a majority of the property owners and then duly filing the new document.

Many older subdivisions don't have enough property owners who are willing to share the legal costs associated with renewing deed restrictions so the original ones are allowed to expire and all the lots become "unrestricted" property (the sometimes-hidden jewel of Texas real estate).

Like you, an ever-growing number of people will only buy a home on "unrestricted" property. Property that has no active homeowner's association (with a duly elected Board), no homeowner's dues, no management company (to collect the dues and enforce the deed restrictions) and no "use" restrictions (just like our ancestors when they bought land).

These independent, freedom-minded people don't buy into the (scare tactic) myth that "deed restrictions" result in stable/higher subdivision "values". It is completely foreign to their way of thinking to give up the right to live free of interference from outsiders dictating what they can and cannot do on their own property.

Don't get me wrong……there are, of course, myriad examples of entire "unrestricted" neighborhoods (where the deed restrictions have been allowed to expire) that are quite "seedy" and most people would never choose to live in those particular areas. But there are strategically located, older subdivisions that are merely in the process of "transitioning" from being originally "restricted" to being now, "unrestricted", and the property values are about to double, triple or even quadruple as once restricted residential land has become MUCH higher valued "UNRESTRICTED" COMMERCIAL property! Check out Rayford Forest, Rayford Ridge and the subdivision known as Oak Ridge North as examples in MoCo and Northwood Farms, Spring Mont or Oaks of Spring Creek in North Harris County for good examples of residential subdivisions letting their deed restrictions expire and now they are able to sell their properties as "unrestricted" property for a much higher price then if they remained restricted residential land.  And surprisingly everyone of these examples is a nice family neighborhood.

Then there are the much more upscale "unrestricted" subdivisions…….look at McDonald R D – West subdivision in Montgomery County and see how the wealthy live on their "unrestricted" land right in the middle of the Woodlands! Million dollar mansions and I think not one of the owners is worried about falling property values, eh? Wonder why they aren't concerned with there being NO restrictions to help maintain the values in the neighborhood. There are several of these "unrestricted" upscale areas where people are opting to build (or buy) literal mini-mansions on large lots that all have NO RESTRICTIONS. So don't believe all you hear about unrestricted neighborhoods all being "tobacco road" trailer trash areas. Many are not.

The system makes it amost a necessity though for potential property buyers to ascertain not only "if" there are indeed valid use restrictions upon the land they want to buy but also what the specific restrictions are so they can make an informed decision as to whether they want to buy or not.

Being able to identify "unrestricted" property "gems" is right up a neighborhood realtor's alley. So, if you are lucky enough to know a local realtor who specializes in the subdivision you are looking at property in, they would be a first good choice to be able to help identify the current status of its' deed restrictions and any HOA there might be.

If you are not working with an agent but are finding your HUD owned homes on some other list then you can go to the har.com website, click on "Find A Home"and then type the street name (only) in the search box at the top of the page of whatever particular property you might be interested in from the HUD list.

Identify any listing that is on the same street that is either for sale right now or has been recently sold by clicking on the line for current sale properties or on the line that shows the recently sold ones. You will be able to then click on the "details" of each listing in order to find out the name of the subdivision and whether there is an amount entered in the "Maintenance Fee" field of the listing. If there is a yearly or monthly "fee" listed then you will know that there is an active HOA in that subdivision. Unrestricted neighborhoods don't have any yearly fees or dues or HOA or management company.

CAUTION:  Be aware that if you do NOT find a "fee" entered in the sales listing that is NOT  definitive as to whether there is an active HOA in that subdivision because many realtors leave that info out on their listings.  I am only saying that "IF" there is an amount in the "fee" field then you can "assume" that there IS an active HOA and should look further into it. 

On each listing page you'll also be able to see the name of the realtor who listed the property and their contact info so you could simply call that realtor and ask them if they know about the HOA in that particular subdivision and are there current deed restrictions.

Realtors are supposed to know which subdivisions have deed restrictions in place and which do not. Not all realtors know about every subdivision but those who "specialize" in each neighborhood will usually have access to a copy of that subdivision's restrictions.

I have found that some agents will not give you a copy of a subdivisions deed restrictions unless they are working with you as their client. You may want to offer to pay for a copy if it is that important to you to get your hands on. Most realtors will be happy to answer your question about whether a subdivision has deed restrictions or not, even if they are not working with you.

Each listing on har.com also has a field titled "Subdivision" so you can learn the subdivision name in case you want to look up the actual deed restrictions at the County Clerk yourself.

If you decide to search at the County Clerk and you find deed restrictions for a particular subdivision be sure to first verify whether they are still valid or whether they have expired and been "renewed". The people at the clerk's office should be able to help you find what you are looking for.

I hope this gives you enough information to start your own research into the items you want to learn about before making an offer on those HUD deals. Good luck and if I can be of any further help let me know right here.

Maxxbuster

"The BANE of Our Society……Ill-Gotten Gain and Arrogant Public Servants".