Deed restrictions in a subdivision can affect home-based businesses, such as prohibiting them.

• A. They cannot restrict home-based businesses at all
• B. They must be reviewed by the homeowners association
• C. Yes, they can restrict home-based businesses
• D. They apply only in commercial zones

Answer: (C)

Deed restrictions are private agreements recorded against a subdivision that run with the land. They can set limits on how property within the development may be used, including whether a resident can run a business from home. Because of that, they can prohibit or heavily restrict home-based businesses, even if zoning would otherwise allow a home occupation. These rules are enforceable by the homeowners association or by other owners, and they stay with the property as it changes hands.

So, the statement that they can restrict home-based businesses is correct because deed restrictions are private, binding constraints on use within the subdivision. They are not universally irrelevant (they do not apply only in commercial zones), and they do not require HOA review to exist, though an HOA typically enforces them. The idea that they cannot restrict home-based businesses is false.