Restricted vs. Unrestricted Land: Which One Is Right for You?

This is one of the topics I talk about most with buyers.

Some places have strict rules about everything. Camping, RVs, burning trash, even how tall your grass can get. Other places have no restrictions at all.

So why would anybody choose land with a bunch of rules attached?

What restrictions are

Restrictions usually come in two forms.

• Deed restrictions or covenants. Rules written into the property records that go with the land when it's sold.
• A property owners association (POA) or HOA. A group that sets and enforces rules for the subdivision, and usually charges a yearly fee.

They can control things like the minimum house size, whether mobile homes are allowed, how long an RV can stay and what you can store in your yard.

Why people pick restricted land

Here's the real reason. In unrestricted areas, some people use their freedom to build their own personal junkyard. And if your neighbor decides his piece of heaven should look like a landfill, there's really nothing you can do about it.

We sell properties in unrestricted subdivisions all the time. Some buyers don't mind it at all. Some people hate the sight of it.

Restrictions protect what's around you. They also limit what you can do on your own land. That's the trade.

What "no restrictions" really means

When a listing says no restrictions, it means there are no deed restrictions or POA rules on that lot. It doesn't mean there are no county rules. You may still need a septic permit, a building permit or a well permit.

If you're not sure what the county allows, call them. They'll tell you.

How to check

• Ask the seller for the recorded restrictions or POA rules.
• Ask what the yearly dues are.
• Look at what neighbors are doing. If there are mobile homes all over the street, there's a good chance they're allowed.

Every listing of ours says what's allowed and what isn't, right on the page.

So make sure you know what you're getting into, and pick the side of the fence that fits you.

Heads up. I'm not a lawyer, a Realtor, a title agent or a financial advisor. I'm just a guy who buys and sells a lot of land. This post is general information from my own experience, not legal, tax or financial advice. Every state, county and deal is different, so talk to a qualified professional about your situation before you make a decision.