Question

Any limitations or reservations that a grantor intends to make part of a conveyance of real estate should be?

1) Noted in a separate document that is conveyed with the deed.
2) Included in a document that is delivered to the grantee before issuance of the deed.
3) Noted in the deed by the phrase 'with certain reservations.'
4) Included in the deed.

Answer 1

Limitations or reservations a grantor intends to make part of a real estate conveyance should be included in the deed. This ensures they are legally binding and communicated to the grantee. Restrictive covenants are used to maintain development standards but cannot be discriminatory.

Step-by-step explanation:

Any limitations or reservations that a grantor intends to make part of a conveyance of real estate should be included in the deed. This is because the deed is the legal document that governs the ownership and use of the property, and including restrictions directly in the deed ensures that they are legally binding and clearly communicated to the grantee. Restrictive covenants, which are provisions limiting the use of the property and prohibiting certain uses, serve as restrictions to maintain certain standards within a development or community. These covenants are essential for land developers to establish guidelines such as minimum house sizes, setback lines, and aesthetic requirements. Exclusionary covenants have also been historically used in a discriminatory manner to limit the ownership of property by certain ethnicities, although such practices have been declared unconstitutional. It is imperative that any restrictions are fair, non-discriminatory, and serve a legitimate purpose.