Maine Real Estate License Practice Exam

Who typically creates a deed restriction?

1. DEP

2. Planning board

3. Grantor

4. Lessee

The correct answer is: Grantor

A deed restriction is a provision in a deed that limits how the property can be used. Typically, the grantor, or the party conveying the property, establishes these restrictions as part of the sales agreement or transfer of ownership. This is done to ensure the property is used in a specific manner, reflecting the wishes of the grantor. When the grantor creates a deed restriction, it is recorded in the property’s title documents, making it legally binding for future owners. This could pertain to factors such as the types of structures allowed, the types of activities permitted on the property, or maintaining certain aesthetic standards. In contrast, while entities such as a planning board may impose zoning regulations or approve developments within a municipality, these are broader land-use controls rather than specific deed restrictions that an individual property owner can create. Similarly, the Department of Environmental Protection (DEP) may regulate certain environmental aspects but does not create deed restrictions. A lessee, being a tenant or renter, does not have the authority to impose restrictions on the property; their rights are typically defined by the lease agreement rather than the deed itself.