What's the Difference Between Restricted and Unrestricted Land?
Many people looking to buy large pieces of land constantly hear the words "restricted" and "unrestricted." And most people would prefer unrestricted land because who wants rules and limitations on their property?
But there are two problems with that assumption:
● There is little unrestricted land available for sale anywhere.
● Most restrictions don't create significant obstacles to how you use your land.
Let's cover the differences in more detail.
What is Unrestricted Land?
Just as it sounds, unrestricted land doesn't have any rules or requirements for how you can use or develop the land. That means that there aren't:
● Zoning laws
● Deed requirements
● Not within a city, town, or municipality
● Doesn't belong to an HOA or POA
And while not having any restrictions may seem ideal, it can come with unexpected tradeoffs like:
● The land likely is far from many amenities like stores, schools, or jobs.
● It isn't easy to understand the property details.
● It's not commonly available.
It's not necessarily a dealbreaker either way– but don't assume that unrestricted land is always better for what you want to do.
Common Types of Land Restrictions
Most land has at least some restrictions. And while these rules and laws can create hurdles for development and land use, most are easy to work with.
Here are some of the most common land restrictions:
Zoning
Zoning laws determine how land can be used or developed. These laws intend to create harmony within the city, allowing for single-family suburbs, denser apartment areas, open farmland, and commercial regions.
So an area zoned as residential can't have land developed into a store or business park. But residential zoning doesn't necessarily allow condo development.
City or Municipality
Not the most common, cities or towns may have local laws requiring specific ways you can use your land. For example, some cities have sewage per acre requirements or other items.
Ensure you understand if there are any restrictions before updating or changing the land.
Deed
A standard restriction class, Deed Restrictions, describes the types of buildings you can have on the property, where the buildings are located, and if livestock can live on the land.
Some deed restrictions go as far as to limit the kind of floor plan you can build down to the number of bedrooms and cars you can have on the property.
HOAs and POAs
Home Owner Associations and Property Owner Associations can have limitations as well. Sometimes these are included in Deed Restrictions, but plenty have separate documentation.
From clearing snow to mowing lawns to types of fences, HOAs and POAs can have authority over much of your home's exterior and land.
The Bottom Line?
Don't buy in too much to unrestricted land being the ultimate parcel. Many regulations do more to protect you from current or future neighbors than to stop you from running a legitimate business.
At AltaTerra Realty and Auction, we work with fellow local Texans to complete the best real estate transactions for their business. And that includes helping you through all the muddy wording around land restrictions.
Call us today to set up an appointment and find you the perfect land for your family or business!