A property covenant, a commitment made with a seal, is commonly located in a deed. A covenant is a written agreement between two or more people to carry out or do something together or for the achievement of a given goal within a particular time frame. The enforceability of covenants regarding land is governed by the following fundamental principles:
1. If there is privity of contract, meaning that the parties involved have entered into a legally binding agreement, the covenants can be enforced through legal means, such as an action for damages, or equitable remedies like an injunction or specific performance.
2. Enforcing all covenants that pertain to and impact the land is possible when there is privity of estate.
3. With two exceptions, if there is either privity of contract or privity of estate, no covenants are enforceable.
A property covenant can have either a positive or negative impact. A positive covenant involves an agreement where one party commits to using money or labour to fulfil their obligations. On the other hand, a negative or restrictive covenant prohibits someone from doing something on a piece of land. The individual who is bestowed with the promise is known as the covenantee.
Restrictive Covenant
Restrictive covenants, classified as real covenants, are legal responsibilities that the seller places on the buyer of real estate through a deed. These limitations usually extend to future buyers of the property and are legally enforceable.
Restrictive covenants can have different extents and can stem from diverse origins. They might be officially recorded against property titles or incorporated into lease agreements. Certain covenants are implemented to ensure safety, like prohibiting the erection of tall structures near airports or restricting fence heights on corner plots to maintain unobstructed visibility for drivers. These covenants encompass a broad spectrum of limitations, encompassing factors such as building height and size, construction materials, and even superficial elements like paint colour and holiday adornments.
Residential Covenant
Residential covenants are quite common in the United States. Certain residential covenants are generally harmless, such as those that prohibit the removal of healthy trees, significant alterations to historical structures, or actions that directly devalue properties. However, there are more specific covenants as well. Some restrictive covenants dictate the colour of a home’s exterior, the number and timing of exterior decorations, parking regulations, and even who can reside in the house (excluding the nuclear family of the owners).
Additionally, many communities aim to restrict amateur radio or outdoor television antennas. To address this, several states in the United States have either passed or are in the process of passing laws that prohibit such restrictive covenants and nullify existing ones, recognizing the importance of amateur radio operators as essential emergency services.
Are covenants legally binding?
Covenants are legally binding. If two parties enter into a covenant, they are legally obligated to fulfil their respective obligations as stated and agreed upon in the covenant document. If one party fails to adhere to, honour, and carry out the agreed terms from the beginning, the aggrieved party has the right to take legal action against the other party. The signed document can be presented in court or anywhere as a legal document that seals a relationship, partnership, or agreement.
There are different types of property covenants, namely; land covenants, building covenants, tenancy covenants, and sales covenants, among others.