Property Ownership

What is a 'deed restriction' (restrictive covenant) and how does it affect Illinois property ownership?

AA government zoning regulation limiting property use
BA private limitation placed in a deed that restricts how the property can be used, running with the land✓ Correct
CA lender requirement limiting the property's sale price
DA restriction placed by IDFPR on licensed brokers' property ownership

Explanation

A deed restriction (restrictive covenant) is a private limitation on land use imposed by a grantor and recorded in the deed. Unlike zoning (public regulation), deed restrictions are private agreements that run with the land and bind all future owners. Common examples include architectural standards in subdivisions, prohibitions on certain uses, and building setbacks. They are enforceable by other property owners in the subdivision.

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