Escrow & TitleIntermediateDelaware Exam

What is a 'deed restriction' (restrictive covenant) in Delaware real estate?

AA government-imposed zoning rule
BA private limitation on the use of property placed in the deedCorrect
CA court order limiting property use after a lawsuit
DA lender's condition for approving a mortgage

Why A private limitation on the use of property placed in the deed Is Correct

Answer B: A private limitation on the use of property placed in the deed

A deed restriction (restrictive covenant) is a private limitation on the use or improvement of property that is inserted into the deed. It runs with the land and binds all future owners.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

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