Property OwnershipIntermediateCalifornia Exam

A developer places a deed restriction on a subdivision prohibiting any lot from being used for commercial purposes. This type of restriction is called:

AA public restriction, as typically recorded in a California deed
BA private restriction or deed covenantCorrect
CA zoning ordinance, consistent with common law property ownership principles
DAn easement in gross, per standard California real property conventions

Why A private restriction or deed covenant Is Correct

Answer B: A private restriction or deed covenant

Private deed restrictions (also called CC&Rs — Covenants, Conditions, and Restrictions) are limitations placed in deeds by private parties, such as developers. They run with the land and bind future owners.

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

Key Property Ownership Terms in This Question

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