Commercial Deed Restrictions, To Be or Not to Be Understanding deed restrictions & their impact on deals Sonya Rarey Birchway Title Agency, LLC
T
here is nothing like asking someone in the title industry to write something about the business that would be “interesting to readers.” We title folks think it is all interesting, we always say with a smile. I did not want to guess what would be informative, timely and interesting to readers, so I went out and asked a few. tion as a whole. A knowledgeable title examiner can also make decisions as to what items found are still applicable and relevant.
We asked and you answered. The responses were varied but shared a common theme related to deed restrictions, including questions on how they impact perception of value, use, focused growth and how they have impacted prior deals we have closed.
Tales from the trenches
The art of title research
One responder also asked “How do you do it? The research, that is?” Simple, when you graduate from title school the instructor gives you a magic wand! Title personnel receive training on what to ask and where to direct the wand and then, like magic, the answers appear on the page. Okay, don’t grow impatient with this whimsical answer because we like to have a little fun, but we also like to leave a bit of mystery.
On a serious note, it takes careful application of both experience and intuition by a title examiner to follow the chain of title back the required number of years as well as attention to detail when reading legal descriptions and other records to accurately gather enough facts to discover restrictions that could impact title and the transac-
We have all heard the stories of how an encumbered title has caused a ripple effect of grand proportions. For example, the nowowner that must obtain approvals for current exterior modifications from a previous owner years back in the title chain, there might be a prohibition found as to a specific use or the requirement of a particular use, or, more commonly, a set-back or minimum frontage requirements that just don’t align with “today’s standards,” and the list goes on. If you have been in commercial real estate for long, you are probably familiar with these
Making a way for a superior transaction. Discover the future of title insurance with our cutting-edge technology and unwavering commitment to customer satsifaction. Specializing in commercial transactions, we deliver a custom experience for each client, and we can tackle your residential properties too.
866-838-0321 | birchwaytitle.com | info@birchwaytitle.com www.propertiesmag.com 55