Legal Definitions - future covenant

A future covenant is a formal promise or agreement, often found in legal documents related to property, where an obligation or right is established but will only become active or enforceable at a later date or upon the occurrence of a specific future event. Unlike an immediate obligation, a future covenant creates a commitment that is deferred in its performance or effect.

• Example 1: Real Estate Development

  Imagine a real estate developer selling plots of land in a new residential community. In the sales agreement for each plot, the developer includes a covenant promising to construct a community park and walking trails within the next five years. This promise is a future covenant because the obligation to build the park and trails is not immediate but will arise and be fulfilled at some point within the specified future timeframe. Homeowners purchase their plots with the understanding that this amenity will be provided later.

• Example 2: Homeowners Association (HOA) Regulations

  A new homeowner purchases a house in a community governed by a Homeowners Association. The HOA's governing documents contain a covenant stating that all exterior fences must be replaced or professionally stained every ten years. For the new homeowner, this is a future covenant. While they don't need to replace or stain their fence immediately upon moving in, they are legally bound to perform this maintenance task at a specific point in the future (ten years from the last maintenance or purchase, depending on the covenant's exact wording).

• Example 3: Commercial Lease Agreement

  A business signs a long-term lease for office space. The lease agreement includes a covenant where the landlord promises to upgrade the building's common area lighting to energy-efficient LED fixtures within the next two years. This is a future covenant because the landlord's obligation to perform the lighting upgrade is not immediate but is a commitment to take action at a specified future time. The tenant enters the lease with the expectation that this improvement will occur.