Legal Definitions - Restrictive covenant

A restrictive covenant is a legally binding agreement or provision, typically found in a property deed or other real estate document, that limits how a property owner can use or develop their land. These covenants are established to protect the interests or maintain the character of neighboring properties or a larger community.

The restrictions can cover a wide range of activities, from the type of structures that can be built to the aesthetic appearance of a property. While restrictive covenants are generally enforceable, courts may refuse to uphold them if they are deemed illegal (such as those that discriminate based on protected characteristics), unreasonable, or no longer provide a substantial benefit to the parties they were intended to protect.

• Example 1: Homeowners' Association Rules

  Imagine a new residential community where all homes are part of a homeowners' association (HOA). The property deeds for each home include restrictive covenants stating that all fences must be no taller than six feet and made of a specific material, and that no commercial vehicles can be parked in driveways overnight. These covenants are put in place to maintain a uniform aesthetic and quiet residential atmosphere for all residents.

  This illustrates a restrictive covenant because it limits the individual homeowner's choices regarding their property (fence height and material, vehicle parking) for the collective benefit of the entire community, ensuring consistent property appearance and neighborhood character.

• Example 2: Historical Preservation District

  Consider a historic home sold in a designated preservation district. The deed for the property includes a restrictive covenant requiring that any exterior renovations, such as changes to the facade, roof, or windows, must first be approved by a local historical review board. It also prohibits the demolition of the original structure without special permission.

  This demonstrates a restrictive covenant because it places specific limitations on the new owner's ability to alter the exterior of their property. The purpose is to preserve the historical integrity and architectural character of the individual home and the surrounding district, benefiting the community's heritage.

• Example 3: Environmental Conservation Easement

  A large parcel of undeveloped land bordering a protected wetland area is sold to a private owner. The sale agreement includes a restrictive covenant stipulating that a specific portion of the land adjacent to the wetland must remain undeveloped open space, prohibiting any construction or significant alteration of the natural landscape in that area. This covenant is often established with the involvement of an environmental trust.

  This is a restrictive covenant because it limits the new owner's development rights over a part of their property. The restriction serves to protect the ecological balance of the wetland, preserve wildlife habitats, and prevent environmental degradation, benefiting both the environment and the broader community.