Real Estate Appraisal Practice Exam

Which of the following is an example of a deed restriction?

1. Property tax rate

2. Building height limit

3. Fence height

4. Use of the property

The correct answer is: Fence height

A deed restriction is a provision in a deed that restricts the ways in which a property can be used. It is typically put in place by the property developer or a previous owner to maintain a certain standard or character in a neighborhood or community. The option regarding fence height is indeed an example of a deed restriction, as it directly pertains to property use and modifications. Restrictions on fence height can help maintain uniformity in appearance and contribute to the overall aesthetic and harmony of the neighborhood. Such rules dictate how high a fence can be built, which can affect privacy, security, and the overall look of the property. While a property tax rate reflects governmental policy and financial obligations, it does not pertain to how the property can be used or modified. The building height limit may also seem relevant, but it is generally regulated by zoning laws rather than a private deed restriction. Similarly, the use of property could encompass a variety of activities and is often governed by zoning laws or local ordinances rather than specific restrictions outlined in a deed. Therefore, the option regarding fence height accurately captures the essence of a deed restriction, which applies directly to the limitations placed on property modifications for maintaining order and uniformity within a specific area.