Deeds and restrictions??? on stores?

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Deeds and restrictions??? on stores?

Post by JC565 » Sat Jan 20, 2018 10:57 am

Hey folks. This might be a little off topic, but I figured the knowledge was here. its not really finance, but may be useful info for future purchases.

First off, I have ALWAYS been peeved about the legality of deed restrictions. It frankly pisses me off that someone along the line with some money to buy land got to basically write law and tell someone how they could and couldn't use it 100 years later. Even though they own it and their intended use is legal. (not trying to make this political, but I'm sure it will have some political overtones.)

So my town has one of the neighborhood walmarts that got closed a few years back when they did away with all those type stores. (which was ridiculous on walmart's behalf since it was the highest grossing one in the nation) When it closed, the local,"employee owned" grocer bought that store, and it has since sat shuttered, for sale. I could not figure out why no one would buy it. the population growth here is double digit percentages, the location was pretty good for the area, and it was the only place on that end of the town with a gas pump. Not to mention when it was built, it encouraged a couple of restaurants to appear next door.

The city recently bought the building from the grocer to turn into a library, and it came to light that the reason it was hard to sell was because the grocer had put restrictions on it. Basically anyone that bought it, couldn't use it for its intended purpose, which was food sales. There was a few other restrictions but they weren't mentioned.

Basically they undermined the basic free market principle of competition with nothing more than a flick of a pen. From my perspective as a local towns person who is forced to shop at this ridiculously overpriced grocery store without driving 30 minutes, Im ticked they voided MY opportunity at local competition and lower prices. Sure someone could build somewhere else, but being able to buy a purpose build build on the cheap is a much better investment, no?

What I am trying to figure out, is, how is this even legal? And really, what stops the new owner from doing what they want with it? And if a past owner can write something on a deed, why cant a new owner erase it? and whats your opinion on this? Im sure in certain cased deed restrictions are important and valid, but globally, are they really good for us?

Thoughts, comments, experiences?

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Re: Deeds and restrictions??? on stores?

Post by LadyGeek » Sat Jan 20, 2018 5:23 pm

This post is locked (not personal nor actionable). General comment threads are off topic in the forums with "Personal" in the title. See: A reminder that non-investing general comment threads are OT
- It must be personal. In other words, you must be asking about your own situation. You can also ask on behalf of someone specific, such as a family member.

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It's also off-topic (not a financial question).
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