Before You Buy: How Land Use Restrictions Could Limit Your Property Plans

Aerial view of suburban houses with digital location icons and green field overlays showing zoning boundaries and land use demarcations

You have found the right property. The price fits. The location works. But before you get too far ahead, there’s one layer that could quietly derail your plans: land use restrictions.

Unlike surface-level considerations like square footage, finishes, or curb appeal; land use rules are often buried in zoning codes, deed restrictions, or municipal plans. And yet, they dictate what you can and cannot do with the property. Whether you are planning to add a backyard rental unit, run a home-based business, or simply build a fence, these limitations could shape your ownership experience in ways many buyers overlook until it’s too late.

This guide breaks down the most common types of land use restrictions, how to identify them, and what to look for before closing the deal.

1) What Are Land Use Restrictions?

Land use restrictions are legal rules that govern how a piece of land can be used or developed. They are set by various entities like city governments, counties, homeowners associations (HOAs), or even private individuals through deed covenants.

These rules exist to promote orderly development, protect property values, and align with community planning goals. But they can also be frustrating when they clash with a buyer’s intended use.

2) Common Types of Land Use Restrictions

Zoning Regulations

Every municipality zones land into categories: residential, commercial, industrial, agricultural, or mixed-use. These designations limit what types of structures or activities are allowed.

Example:

A lot zoned single-family residential may prohibit you from building a duplex or operating a daycare.

Deed Restrictions (Covenants)

These are private agreements that run with the land, often recorded in the property’s deed. They’re usually established by developers or HOAs and can be more restrictive than city zoning laws.

Example:

Even if local zoning allows short-term rentals, a deed restriction could prohibit them in your neighborhood.

HOA Rules and CC&Rs

If you are buying in a planned development or condo complex, the homeowners association may have its own set of covenants, conditions, and restrictions (CC&Rs). These can limit things like paint colors, additions, or parking.

Environmental Protections

Some properties fall under environmental overlays that restrict building near wetlands, flood zones, or wildlife habitats. You may need special permits or face outright denial for changes to the land.

Easements and Right-of-Ways

An easement grants others the right to use a portion of your property for utility access, drainage, or roadways. That space may be off-limits for construction or landscaping.

3) How to Research Land Use Restrictions

Start with Zoning Maps

Most city or county planning departments have zoning maps and codes available online. Look up the property’s parcel number and cross-check its zoning classification.

Review the Title Report

During escrow, your title company will provide a preliminary title report. This document outlines any existing deed restrictions, easements, or liens that affect the property.

Read the CC&Rs Carefully

If the home is in an HOA, request a full copy of the community’s CC&Rs, bylaws, and architectural guidelines. Skimming won’t cut it; pay attention to clauses about remodeling, rentals, pets, and landscaping.

Consult Local Planners or Land Use Attorneys

For complex properties or development goals, speak with a city planner or real estate attorney. They can help you interpret the fine print and identify any conditional use permits (CUPs) that may be required.

4) Red Flags to Watch For

  • ‘As-is’ language without supporting documentation

This may signal unresolved zoning or code compliance issues.

  • Out-of-date or missing permits

 A prior unpermitted addition could be flagged during appraisal or resale.

  • Multiple overlapping restrictions

A property could be zoned for one use but governed by stricter deed or HOA rules.

  • Environmental overlays

These often limit your buildable area and increase compliance costs.

5) Can Restrictions Be Changed?

Sometimes, but not easily. Rezonings, variance approvals, or covenant amendments require formal applications, public hearings, and (often) legal representation. Success depends on local politics, community support, and the specific rules involved.

If your intended use conflicts with existing restrictions, don’t assume you can ‘work it out later.’ It’s far easier and less expensive to buy a property that already allows your plans than to challenge the rules after purchase.

Conclusion: Ask First, Buy Later

Land use restrictions don’t just shape what a property looks like today, they define its future potential. Whether you are a first-time buyer or a seasoned investor, it’s essential to move past the photos and price tags and investigate what lies beneath the surface.

Taking the time to understand zoning laws, deed limitations, and HOA rules can save you from costly surprises and dashed expectations. Before you commit, ask the right questions, consult local experts, and make sure the property fits; not just your wishlist, but the rules on record. Because in real estate, what you don’t know can cost you more than what you do.