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Simple English definitions for legal terms

covenant that runs with the land

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A quick definition of covenant that runs with the land:

A covenant that runs with the land is an agreement between two or more parties about how a piece of real property can be used. This agreement transfers to future owners of the property, meaning they are also bound by it. There are two types of covenants: affirmative, which require a person to do something, and negative, which forbid a person from doing something. A covenant that runs with the land continues to affect the property even after it is sold to a new owner. To determine if a covenant runs with the land, different jurisdictions look for different elements, such as intent, notice, and privity.

A more thorough explanation:

A covenant that runs with the land is a type of agreement that transfers when ownership of the attached land transfers. This means that the future owner of the property subject to a covenant that runs with the land is bound by that covenant.

There are two types of covenants that can burden the landowner: affirmative and negative. An affirmative covenant obligates a person to act, while a negative covenant prohibits a person from acting. For example, a covenant that requires the homeowner to keep the trees trimmed in the yard is an affirmative covenant, while a negative covenant can forbid a homeowner from building a fence.

In a covenant that runs with the land, the subsequent landowner of property subject to the covenant will continue being burdened or benefited by the covenant. This is different from a personal covenant, which only binds the original parties of the covenant and will not pass to subsequent parties.

To determine whether a covenant will run with the land, different jurisdictions look for different elements. The four standard elements to establish a covenant that runs with the land include:

  • Intent to run with the land at the time of covenant formation
  • Whether the subsequent landowner has notice of the covenant
  • Whether the covenant touches and concerns the land
  • If horizontal/mutual and vertical privity exists between the parties

For example, in California, the court looks for all four elements if the covenant at issue burdens the landowner, while the court will only look for intent, touches and concerns, and privity if the covenant at issue benefits the landowner. In Tennessee, however, the court only looks for intent, touches and concerns, and privity regardless of whether the burden or benefit runs with the land.

Overall, a covenant that runs with the land is a legal agreement that binds subsequent landowners to the terms of the covenant, whether it burdens or benefits them.

Example 1: A homeowner's association (HOA) creates a covenant that requires all homeowners to maintain their lawns and landscaping. This covenant is a negative covenant that burdens the landowner. If a subsequent homeowner purchases the property, they will also be bound by this covenant and must maintain their lawn and landscaping.

Example 2: A developer creates a covenant that requires all homeowners in a new subdivision to only use certain types of roofing materials. This covenant is a negative covenant that burdens the landowner. If a subsequent homeowner purchases a property in the subdivision, they will also be bound by this covenant and must use the approved roofing materials.

Example 3: A developer creates a covenant that requires all homeowners in a new subdivision to pay an annual fee to maintain the community pool. This covenant is an affirmative covenant that burdens the landowner. If a subsequent homeowner purchases a property in the subdivision, they will also be bound by this covenant and must pay the annual fee to maintain the community pool.

These examples illustrate how a covenant that runs with the land can burden subsequent landowners with certain obligations or restrictions.

covenant of quiet enjoyment | covenants, conditions, and restrictions

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