Question

A subdivision declaration reads, "No property within this subdivision may be further subdivided for sale or otherwise, and no property may be used for other than single-family housing." This is an example of ____.

Answer 1

Restrictive covenant is the correct answer.

A restrictive covenant is any kind of agreement that demands that the buyer either take or abstain from taking an specific action. Through these covenants sellers bind legal obligations to the deed of a property that can be either simple or complex and levy penalties against buyers who do not obey them.  Sometimes, these types of covenants can be removed through payments to sellers. These sellers can pertain to basically everything from the color you are allowed to have your house painted and what type of roof you are allowed to have on your house to how many people are allowed to live in the apartment.