What Effect Does A Deed Restriction Have On The Sale Or Purchase Of A Property In New York?
A deed restriction, also known as a restrictive covenant, is a provision in a deed that limits what can be built on a property, or how that property can be used. These restrictions run with the land and apply to all future owners of the property. Historically, deed restrictions were common in residential properties but are rarely used today except in the case of a property that is part of a homeowners association or structured as a condominium. These deed restrictions are enforceable if they are reasonable at the time of purchase. For example, in New York you may come across old deed restrictions that impose a minimum lot size or square footage for houses or that prohibit certain businesses and trade such as slaughterhouses or tanneries.
Today, the municipalities control the use and construction by imposing zoning and building codes. This is the case in modern day New York City, as well as surrounding areas like Long Island or Westchester County.
A title search always has the potential to uncover interesting covenants and restrictions, so it is important to conduct a thorough title search, including a careful review of all agreements, covenants, and restrictions that are filed in the land records and effect the subject property. Given the obscurity of some of these restrictions, you will want to have an experienced real estate attorney to guide you through the process, to ensure you are making an informed decision, and to ensure that any restrictive covenant will not negatively affect your intended use or enjoyment of the property.
Will I Have To Pay Any Special Assessments After Purchasing A Property In New York?
Most of the time the term “special assessment” refers to a charge imposed by Coop or Condominium Boards on the unit owners. These types of assessments are quite common when it comes to condominiums and cooperative apartment units. They are usually imposed to cover an expense that falls outside of the building’s regular operating budget. For example, replacing or repairing roofing for an entire condominium complex may entail an assessment that is charged to the unit owners on a monthly basis for a period of time determined by the board.
In addition, a local municipality is permitted to impose an additional property tax on property owners to pay for local projects and this is also referred to as a special assessment. Just like a homeowner’s association or a coop board can vote to collect assessments, local governments in need of emergency funds can do the same. In general, special assessments are rare but you should be aware of the possibility that the property you are purchasing may be subject to this surtax. If you are looking to buy or sell, and have questions about purchasing a coop unit, condominium unit, or special assessments, please give our office a call at (800) 619-3570 to get the answers you need before taking next steps.
For more information on Impact Of A Deed Restriction On A Transaction, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (800) 619-3570 today.
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