Watch out for restrictions on your property

Buying a home is exciting – but, if you failed to ask the right questions before you bought, it can be terribly disappointing to discover that you cannot build your dream deck or open your boutique coffee shop because of certain property restrictions or zoning laws.

READ: Know before your buy! A practical guide to understanding zoning laws

Before you fall head-over-heels for a property, Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa recommends that buyers check for restrictions in the title deed and find out about the local zoning rules. “Knowing this upfront ensures that your purchase remains exciting without any unwanted surprises that could throw your plans off course,” he notes.

To help buyers understand what to look out for, RE/MAX of Southern Africa explains some of the common restrictions that might impact a homeowner’s future plans…

Title Deed Conditions

Before purchasing a property, it's crucial to review the title deed for any such restrictions. Common restrictive conditions include:​

• Prohibitions on subdividing the land
• Limitations on building heights (e.g., no more than two storeys)
• Requirements for specific architectural styles or roof types
• Mandates on exterior colours and materials (especially in complexes governed by a Body Corporate or HOAs)
• Coverage limits, such as only 50% of the stand may be built upon​

READ: Know before your buy! A practical guide to understanding zoning laws

Zoning Regulations

Zoning laws categorize land into zones like residential, commercial, industrial, agricultural, and open space. Each zone has specific regulations concerning land use, building types, densities, and other development parameters. Municipalities maintain zoning maps and schemes that detail these regulations. If you are hoping to change the home into a business or attempt to create a sectional title out of a large stand, it's advisable to consult the local municipality or a town planner to understand the zoning applicable to your property and how this might impact your plans.

Servitudes

Servitudes are registered against the property's title deed and are binding on successive owners. It's essential to be aware of them, as they can greatly affect property use. A servitude is a legal right granted to a third party to use a portion of your property for a specific purpose, such as:​

• Right of way for access
• Installation and maintenance of utility lines
• Water extraction rights​

In some cases, the restrictions can be altered or removed. For title deed conditions, an application can be made to the High Court to have restrictive conditions removed or amended. This process requires demonstrating that the removal won't negatively impact the surrounding community. For zoning changes, applications can be submitted to the local municipality and involve public participation. Approval is not guaranteed and depends on various factors, including compliance with municipal development plans.

“When purchasing a property, you can include a clause in the Offer to Purchase that makes the sale contingent upon the successful removal or amendment of specific restrictions,” Goslett states.

Whether you choose to go ahead with the purchase or not, the important thing is that you do not enter into a property transaction blindly. “Understanding the various restrictions that may apply to a property is crucial for any buyer. Consulting with legal professionals, town planners, and your local RE/MAX agent can provide clarity and will hopefully help to avoid buyer’s remorse later down the line,” Goslett concludes.

READ: Tap into your property's zoning value

Arnold Maritz, Co-Principal for Lew Geffen Sotheby’s International Realty in Cape Town’s Southern Suburbs explains that these laws determine how land within specific areas can be used, directly impacting property use and value. Understanding zoning laws is essential for property owners, prospective buyers, and real estate professionals, especially in relation to property development and investment.

The Purpose of Zoning Laws

Zoning laws are designed to segregate land uses into different categories to promote orderly growth and prevent conflicts between incompatible uses. Common zoning categories include residential, commercial, industrial, agricultural, and mixed-use. Each category comes with specific regulations that dictate the types of buildings that can be constructed, their height, density, and the activities permitted within them.

The primary goals of zoning laws are to ensure public safety, preserve the character of communities, protect natural resources, and enhance the overall quality of life for residents.

Impact on Property Use

1. Designated Use and Restrictions: Zoning laws restrict the use of property to specific purposes. For example, a property zoned for residential use cannot be used for commercial activities without obtaining a variance or rezoning. This ensures that residential neighbourhoods remain quiet and safe, free from the disruptions that businesses might bring.
2. Development Guidelines: Zoning regulations include guidelines on building height, lot coverage, and setbacks, which influence the physical characteristics of development. These rules help maintain a uniform appearance and prevent overcrowding, preserving the aesthetic appeal and functionality of neighbourhoods.
3. Special Zoning Districts: Some areas are designated as special zoning districts with additional rules. Historic districts, for instance, have strict guidelines to preserve the architectural integrity of buildings, in line with heritage legislation.

Impact on Property Value

1. Desirability and Marketability: Properties located in towns or cities where zoning is strictly regulated are often more desirable and valuable. Residential properties in quiet, well-maintained suburbs tend to have higher market values. Conversely, properties near industrial zones or areas with lax zoning regulations may suffer from lower values due to noise, pollution, or unsightly development.
2. Investment Potential: Zoning laws can influence the investment potential of a property. Commercial properties in thriving business districts benefit from high foot traffic and visibility, leading to increased rental and resale values. Mixed-use zoning, which allows for a combination of residential and commercial uses, can enhance property value by providing convenience and boosting local economies.
3. Flexibility and Variances: While zoning laws set strict rules, there is a process to apply for departures or rezoning but it’s lengthy and complex so successfully rezoning a property before putting it on the market can significantly increase its value.
4. Supply and Demand: Zoning laws affect the supply of developable land. Restrictive zoning can limit the availability of land for certain uses, driving up prices. For instance, in cities with stringent residential zoning, the limited supply of land for housing can lead to higher property prices and rents.

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