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Real Estate Restrictions Exhibit

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REAL ESTATE RESTRICTIONS EXHIBIT

This Real Estate Restrictions Exhibit ("Exhibit") is attached to and made a part of the Agreement between the parties identified below concerning the Property described herein. The parties acknowledge the existence of the recorded or unrecorded restrictions, covenants, conditions, easements, and use limitations set forth in this Exhibit and agree that such restrictions shall be binding upon and enforceable against the Property and successors in interest as provided herein.

Parties

Agreement Effective Date:

Property Identification

Recorded and Proposed Restrictions

The following categories identify restrictions affecting the Property. Check each item that applies and provide instrument references or descriptive detail where indicated.

Applies Instrument:
Applies Type/Holder:
Applies Front/Side/Rear Setbacks:
Applies
Applies
Applies
Applies
Applies Review Body:
Applies Maximum Term:
Applies
Applies
Applies
Applies

Additional Restrictions and Attachments

Enforcement, Remedies and Indemnity

Enforcement: The restrictions set forth in this Exhibit shall be enforceable by any person or entity with express enforcement rights in the recorded instruments, the owner of the Property, and successors in interest. Remedies available include injunctive relief, damages, and recovery of reasonable attorneys' fees and costs incurred in enforcement actions.

Indemnity: Each party covenanting to any use or improvement pursuant to this Exhibit shall indemnify, defend and hold harmless the other party and its successors and assigns from and against any claims, liabilities, damages, losses and expenses (including reasonable attorneys' fees) arising from a breach of any restriction, covenant or obligation described in this Exhibit that is caused by such party or its invitees, contractors, tenants or agents.

Duration; Run with the Land; Severability

Duration and Run with the Land: Unless otherwise specified in a recorded instrument identified herein, the restrictions set forth in this Exhibit shall run with the land and be binding upon and enforceable against the Property, the owner, and all successors and assigns for the period specified in the recorded instrument or, if none, in perpetuity to the extent permitted by law.

Severability: If any provision of this Exhibit is held invalid or unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect and shall be enforceable to the fullest extent permitted by law.

Governing Law and Integration

Governing Law: This Exhibit shall be governed by and construed in accordance with the laws of the state in which the Property is located, without regard to conflict of law principles.

Integration: This Exhibit, together with any recorded instruments referenced herein, constitutes the entire agreement between the parties with respect to the subject matter of this Exhibit and supersedes all prior negotiations, representations, or agreements, whether written or oral, concerning the restrictions described herein.

Acknowledgment

The parties acknowledge receipt of a copy of this Exhibit, acknowledge the existence of the recorded instruments and restrictions described above, and agree to comply with all applicable restrictions. The parties further acknowledge that they have had the opportunity to review the recorded instruments and to seek independent legal advice regarding these restrictions.

Seller / Grantor:

By:

Date:

Buyer / Grantee:

By:

Date:

Enter text✕

What the Real Estate Restrictions Exhibit Is and when it appears

A Real Estate Restrictions Exhibit is an attachment to a real property contract or deed that lists encumbrances, covenants, easements, and use limitations affecting a parcel. It supplies the precise legal description, parties bound, effective dates, and any exceptions or carve-outs. The exhibit clarifies permitted and prohibited activities, building setbacks, access rights, environmental limitations, and maintenance obligations so buyers, title companies, and lenders can assess risk. The exhibit may be recorded with the county clerk or referenced in closing documents to provide public notice and to ensure enforceability against successors in interest.

Why a clear Restrictions Exhibit matters for transactions

A well-drafted exhibit reduces title risk, improves underwriting clarity, and limits post-closing disputes by making rights and obligations explicit. It protects future purchasers and lenders by providing written, recordable notice of limitations on use, access, and alteration.

Why a clear Restrictions Exhibit matters for transactions

Typical users and stakeholders for this exhibit

Professionals on transactions rely on the exhibit to confirm encumbrances and to advise clients during due diligence.

  • Title companies and escrow officers who must clear exceptions before closing and attach recorded exhibits to title policies.
  • Real estate attorneys, brokers, and developers who draft and negotiate covenants and need precise enforceable language.
  • Lenders and servicers who review restrictions for collateral quality, permitted uses, and borrowing covenants required by underwriting.

Each participant uses the exhibit differently — prepare it with accurate legal descriptions and recording instructions to meet those needs.

Core pieces every professional exhibit should include

A complete exhibit is concise but comprehensive, enabling title clearance, recording, and enforcement without further amendment.

Parties

Identify grantor(s) and grantee(s) with full legal names and entity types to ensure obligations bind the correct legal persons.

Property

Provide the full legal description and parcel identifier (APN) used for county recording and title searches to avoid ambiguity.

Restrictions

List specific covenants, easements, use limits, setback lines, and any permitted exceptions or reserved rights in plain language.

Term

State effective date, expiration, renewal conditions, or whether restrictions run with the land indefinitely.

Enforcement

Describe remedies, responsible parties for enforcement, and any notice or cure periods before sanctions or injunctions apply.

Recording

Specify county recording instructions, book/page or instrument number references, and notary/acknowledgement requirements.

Step-by-step: preparing and finalizing the exhibit

Follow these sequential steps to draft, review, execute, and record a compliant exhibit that binds the intended parties.

  • 01
    Draft: Compile legal description and list restrictions clearly.
  • 02
    Review: Have title counsel and lender review exceptions and form language.
  • 03
    Execute: Obtain signatures, notarization, and witness affidavits if required.
  • 04
    Record: File with county recorder and provide recorded copy to stakeholders.

How the exhibit fits into the closing workflow

The exhibit moves in parallel with contract and title work; coordination prevents last-minute delays and recording errors.

  • Prepare Exhibit: Draft using the transaction's legal description and negotiated covenants.
  • Attach to Contract: Reference the exhibit in purchase agreements and addenda before execution.
  • Sign & Notarize: Have required signers execute with proper notarization and witnesses.
  • Record & Distribute: Record with county and circulate certified copies to title and lender.

Security and compliance features to include in digital workflows

In-transit Encryption: TLS 1.2/1.3
At-rest Encryption: AES-256
Audit Trail: Comprehensive signing logs
Certifications: SOC 2 Type II
Regulatory Compliance: ESIGN and UETA
Healthcare Support: HIPAA (BAA available)

Common legal and practical risks from errors

Unrecorded Exhibit: May not bind later purchasers
Name Mismatch: Can void enforceability
Missing Notarization: Recorder may reject instrument
Ambiguous Description: Triggers title exceptions
Incorrect Effective Date: Alters rights and deadlines
Improper Signature: Risk of invalid execution

Typical drafting and completion pitfalls to avoid

  • Using informal or shorthand legal descriptions that mismatch county records leads to recording rejections and title exceptions if not corrected.
  • Listing unclear covenants or mixing permissive and prohibitory language can create enforceability disputes and unexpected compliance obligations.
  • Failing to verify party capacity or entity authority (resolution, signature block) often invalidates an otherwise clear restriction.
  • Neglecting county-specific recording formats or required acknowledgement language causes delays and additional clerk fees at closing.

Typical eSignature pricing and feature snapshot for document workflows

Compare starting prices and core features relevant to signing and storing exhibits. signNow is shown first for column alignment.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by plan Varies by plan Yes, limited Yes, limited
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently asked questions and solutions

Answers to common execution, recording, and enforcement questions encountered when using a Real Estate Restrictions Exhibit.


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