How is a deed restriction best defined?

A deed restriction is best defined as an encumbrance because it places limitations on the use of property in order to ensure that it is used in a manner consistent with the goals established by the original seller or grantor. These restrictions can dictate how the property can be developed, determine what types of activities are permissible, and guide the maintenance of aesthetic standards.

As an encumbrance, a deed restriction does not transfer ownership of the property; instead, it is a binding agreement that affects the property’s title. It is recorded in the property’s deed and remains in effect until it is lifted or modified, thereby ensuring that future owners adhere to the specified conditions. This can serve various purposes, such as maintaining a certain character within a community or protecting property values.

The other choices do not capture the essence of a deed restriction. While it is a contractual obligation, referring to it solely as such overlooks the real property context and implications. A legal easement pertains to the right to use another person's land for a specific purpose, which is distinctly different from restrictions imposed on the use of one's own land. The right of way is often associated with easements but signifies passage over another's property, rather than limitations on how a property can be used. Hence