Which document would you expect to find in a title report that defines ongoing restrictions on property use?

• A. Deed of trust.
• B. Mortgage.
• C. CC&Rs.
• D. Lien release.

Answer: (C)

Ongoing restrictions on how the property can be used are defined by covenants, conditions, and restrictions (CC&Rs). These are recorded documents created by the developer or homeowners association that place limits on things like architectural design, maintenance, land use, setbacks, appearances, and even what can be built or rented on the property. Because they are public records that affect the title, they appear on a title report so buyers and lenders can see how the property use is restricted now and for future owners.

Deed of trust and mortgage are encumbrances that secure the loan; they establish a lien for repayment but do not set use restrictions on the property. A lien release removes a lien after repayment and does not define ongoing use limitations.