Hawaii Pre-Licensing National Practice Exam

What are limitations on the use of a property, as noted by a licensee during a deed review, commonly known as?

1. Restrictive covenants

2. Building codes

3. Leases

4. Land use regulations

The correct answer is: Restrictive covenants

The correct answer is restrictive covenants because these are specific stipulations placed within a deed or lease that restrict the way a property can be used. They are designed to maintain a certain standard within a community or neighborhood and can include limitations on activities such as the type of structures that can be built, the colors of paint that may be used, or whether certain types of businesses can operate on the property. Restrictive covenants are part of private agreements and can be enforced by other property owners in the vicinity or by homeowners' associations; thus, they play a crucial role in property use and development. Understanding these covenants is essential during a deed review to ensure compliance and avoid potential legal issues or dissatisfaction with property usage. The other options represent different concepts that do not precisely align with the definition of limitations noted by a licensee during a deed review. Building codes govern the standards for construction and safety but do not limit property use itself. Leases pertain to the rental agreements and specify terms between landlords and tenants rather than overarching use limitations tied to property ownership. Land use regulations, while important for zoning and planning purposes, typically arise from municipal or state laws rather than private property agreements.