New York Real Estate Salesperson Exam 2025 - Complete Practice Guide

The term that refers to limitations on how property can be developed or modified is zoning laws. Zoning laws are established by local governments to control land use and ensure that development aligns with community goals, environmental concerns, and public health and safety standards. These laws dictate aspects such as the type of structures that can be built, their size, height, and placement on a property, as well as the purposes for which the property can be used (e.g., residential, commercial, industrial).

While restrictions can refer to specific limitations set by property owners or applicable to a property, such as covenants or private agreements, zoning laws are formal regulations enacted by municipalities that apply across broader areas to manage land use comprehensively. Encumbrances generally relate to claims or liabilities against a property, and regulations could encompass various rules but are not as specific as zoning laws when it comes to property development. Thus, zoning laws are the most precise term for the limitations imposed on development practices.