Be Aware of All Restrictions
It's important to be aware of any and all restrictions when purchasing a property. Watch the video to find out why. If you'd prefer to read the information, it can be found below the video.
I had a client who learned the hard way about deed restrictions. It was an out-of-state company that wanted to buy a house to use for a high-end alcohol and drug rehab facility. Right from the start I told them most deed restrictions would prevent using a house as a business. They told me they were exempt because of the Americans with Disabilities Act. I was clear that I didn’t think the ADA would help them against deed restrictions, but the company attorneys assured me I was wrong. We eventually found them a gorgeous home on acreage that was exactly what they wanted. It had deed restrictions, but no HOA. They renovated the property to use as a rehab center and hired staff. Just a few days before opening, a neighbor sued to block my client from using the property as a business. When there is no HOA, the deed restrictions are enforced by filing suit in court. In short, my clients couldn’t find a Texas attorney who thought they’d win. They decided to cut their losses and I put the house on the market. While they sold the property for more than their purchase price, they still lost a fair chunk of money on the thwarted endeavor. If only they had listened to me from the start, we would have only viewed properties without deed restrictions.