Property Covenants are sometimes referred to as Restrictive Covenants or a Deed of Covenant.
The purpose of a covenant is to limit or guide the development of land or property for the benefit of another piece of land and also makes sure that the worth of the land is maintained, by limiting its’ misuse.
Covenants are a private treaty and are not monitored or enforced by local councils.
The terms associated with the covenant are Burdened and Benefited Land.
Burdened Land is the land that the contract applies to and the benefited land is the land which benefits from the restrictions placed on the former.
The most common form of property or land covenant is what a developer will impose on their lots, to benefit their entire development.
This can include or extend a contractual constraint, on how many buildings can be built as well as the allowable structural or externals materials.
Many covenants do not have an expiry date unless explicitly stated and new owners of burdened land will inherit the same restrictions upon signing the contract.
Most restrictive covenants relate to the exterior of a property and can dictate the following:
- Size of a building
- Landscaping
- Exterior colours and materials (brick/timber/metal)
- Privacy measures
- Ancillary structures
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