Legal Restrictions on Inventing at Home

If you plan to do your inventing at home, you may have potential problems with your local zoning laws or with land use restrictions

Not all inventors are fortunate enough to have large factories or laboratories to work in. Many inventors need to work at home. However, if you plan to do your inventing at home, you may face problems with your local zoning laws, land use restrictions in your lease, or condominium/homeowners' association rules. However, even if your community is unfriendly to home workplaces, there are many things you can do to avoid difficulties.

Zoning Laws

Municipalities have the right to make rules about what types of activities can be carried out in different physical areas. For example, cities and towns often establish commercial zones for stores and offices, industrial zones for factories, and residential zones for houses and apartments.

Some areas have no zoning restrictions at all. However, most organized communities do, and they have laws limiting the kinds of business or activities you can conduct in a residential zone. The purpose of these restrictions is to help maintain the peace and quiet of residential neighborhoods. A noisy, dangerous steel mill would probably not be permitted to open on the same street as a suburban home.

Although your inventing may feel like a hobby to you, zoning laws will treat it as a business activity. Fortunately, the growing trend across the country is to permit home businesses. Many cities, such as Los Angeles and Phoenix, have updated their zoning laws to permit many types of home business. However, some communities remain hostile to home businesses (and just one complaining neighbor can put the existing rules to the test).

To find out where your community falls on the issue, carefully read your local zoning ordinance. You can obtain a copy from your city or county clerk’s office or your public library.

Zoning ordinances are worded in many different ways to limit businesses in residential areas. Some are extremely vague, allowing “customary home-based occupations.” Others allow homeowners to use their houses for a broad but, unfortunately, not very specific list of business purposes--for example, “professions and domestic occupations, crafts and services.” Still others contain a detailed list of approved occupations, such as “law, dentistry, medicine, music lessons, photography, cabinetmaking.” Whether inventing falls within one of these categories is often unclear--meaning it may be difficult or impossible to know for sure whether your local zoning ordinance bars home inventing businesses.

Ordinances that permit home-based businesses typically include detailed language on how you can carry out your business activities. These vary widely, but the most common types limit car and truck traffic and restrict the number of employees who can work at your house on a regular basis (indeed, some prohibit employees altogether.)

Some ordinances also limit the percentage of your home’s floor space that can be devoted to your business. Again, study your ordinance carefully to see how these rules apply to you.

Most ordinances prohibit activities that cause excessive noise, pollution, waste, odors, and similar conditions not appropriate in a residential neighborhood. These might be relevant to your invention. For example, if you are creating chemical compounds, consider the smells or pollution that might result, and whether neighbors are likely to notice or complain.

Public Nuisance Laws

Even if your community does not have restrictive zoning laws concerning home businesses, it could take legal action against you if you make a nuisance of yourself. It’s illegal to create a public nuisance, usually defined as an activity that may harm public heath or safety.

For example, creating excessive noise or offensive odors, or storing hazardous chemicals or waste, might constitute public nuisance. This is a private cause of action, meaning that an annoyed neighbor could sue you for civil liability.

Deed Restrictions

Property deeds often contain restrictions, called restrictive covenants, limiting the ways in which you can use your property. Restrictive covenants can bar or limit the use of home workplaces. These may apply both to homeowners and renters or subletters.

You can find out whether your deed contains such restrictions by reading your title insurance policy or checking your deed. If you are a renter, ask your landlord about such restrictions, preferably before you move in. (Your landlord might object to any sort of risky "inventing" on his property.)

Remember, if your neighbors believe that you are violating these restrictions, they can take court action to stop you. Such restrictions are usually enforced by the courts unless they are unreasonable or the character of the neighborhood has changed so much since they were written that it makes no sense to enforce them. But typically, it takes only one angry neighbor to cause you legal grief.

Condominium or Homeowners' Association Restrictions

Many Americans live in a planned community with a homeowners’ association (HOA). When you buy property in such a development, you automatically become a member of the homeowners’ association and agree to follow its rules, which are usually set forth in a lengthy document called Covenants, Conditions, and Restrictions, or CC&Rs for short. CC&Rs often regulate in detail what you can do on, in, and to your property. The HOA is in charge of modifying and enforcing these rules.

The CC&Rs for many developments specifically bar home workplaces of any kind. The homeowners’ association may be able to impose fines and other penalties against you if your inventing business violates the rules. It could also sue you in court to get money damages or other penalties. Some HOAs are very strict about enforcing their rules against home businesses, others are much less so.

Carefully study the CC&Rs before you buy into a condominium, planned development, or cooperative to see whether home workplaces are prohibited. If so, you may want to buy somewhere else if your inventing business is important to you.

If you’re already in a development that bars home workplaces, you may be able to avoid problems if you’re unobtrusive and your neighbors are unaware you have a home workplace. However, the best course may be to seek to change the CC&Rs. Most HOAs rule through a board of directors whose members are elected by all the members of the association. Lobby members of the board about changing the rules to permit home workplaces. If that fails, another strategy is for you and like-minded neighbors to try to get seats on the board and gain a voice in policy-making.

Lease Restrictions

If you are a renter, check your lease before you start your home business. Many standard lease forms prohibit tenants from conducting a business on the premises. At the very least, they may prohibit certain types of business or activities (most likely those that are noisy or dangerous).

Theoretically, your landlord could evict you if you violate such a lease provision. However, in practice, few landlords want to evict their tenants. Most will not care what you do on your premises as long as it doesn’t disturb your neighbors, create noise, pollution, or liability, or cause damage. Keep up good neighbor relations to prevent complaints.

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