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Questions and Answers on: Residential Subdivisions and Planned Communities

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As North Carolina becomes an increasingly urban state, more and more people are purchasing homes and lots in residential subdivisions and planned communities. In these subdivisions and communities, there is usually a homeowners association that may be responsible for maintaining the common areas of the development and the enforcement of “restrictive covenants.” Many purchasers seek residential subdivisions and planned communities with restrictive covenants (sometimes referred to as “restrictions”) because they believe the covenants will help ensure consistency in the neighborhood and the preservation of property value. Restrictive covenants may address everything from whether single or multi-family housing is permitted to the type, size and color of construction.

This publication is intended as an introduction to issues affecting residential subdivisions and planned communities (other than condominiums) that are subject to restrictive covenants. (For information on condominium ownership and townhouse properties, see the Commission publication, Questions and Answers on: Condos & Townhouses, or contact your attorney.)