Property OwnershipIntermediateNorth Carolina Exam

A 'covenant running with the land' in a NC deed restricts future owners because:

AIt applies only to the original buyer who agreed to the covenant, in general

BIt is attached to the title and binds all subsequent owners of the propertyCorrect

CIt must be renewed every 20 years

DThe local government enforces it as a zoning regulation

Why It is attached to the title and binds all subsequent owners of the property Is Correct

Answer B: It is attached to the title and binds all subsequent owners of the property

A deed restriction (covenant running with the land) is an encumbrance that passes to successive owners of the property. All future purchasers are bound by the restriction as long as it is valid and recorded in the chain of title.

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

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Encumbrance

Any claim, lien, charge, or liability attached to real property that affects its value or limits its use.

Chain of Title

The sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.

Zoning

Local government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.

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