Property Valuation
What is a 'restriction' and how might it affect a Delaware property's value?
AA restriction always increases value by maintaining quality standards
BA legal limitation on property use — deed restrictions or easements — that may decrease value by limiting development potential or may increase value by protecting neighborhood quality✓ Correct
CA restriction has no legal effect on value once it is more than 10 years old
DOnly government-imposed restrictions affect value; private restrictions do not
Explanation
Restrictions can affect value positively (HOA restrictions protecting neighborhood aesthetics and property values) or negatively (deed restrictions limiting development potential). Appraisers must identify and consider all encumbrances when estimating value.
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