Why are covenants imposed on land

Restrictive covenants obviously place restrictions on your free use of your land, but there can also be benefits to purchasing property subject to restrictive covenants, especially in a community where such covenants are enforced by an owners association. Restrictive covenants, such as architectural guidelines, ensure not only a certain level of uniformity and standard of design, but also the consistent use of property within the community. If the community is governed by an owners association, you can purchase property with at least some level of comfort that the restrictions and obligations in the covenants will be enforced and that the common elements will be maintained.

In order to determine whether a particular set of restrictive covenants will create more of a burden or benefit for you, you will need to review all of the community documents in addition to the covenants. Although not applicable to the property per se, the community documents typically include the articles of incorporation and bylaws of the owners association, the rules and regulations of the association, its architectural guidelines, and any other set of guidelines created and enforced by the owners association.

Some of these documents are filed in the public records and others must be obtained from the owners association.

The decision to purchase real property involves many different considerations, but one of the most important is the existence and effect of restrictive covenants. Like beauty, whether the restrictive covenants create a benefit or impose a burden is in the eye of the beholder — that is, the individual purchaser. In order to make an informed decision, you, as a purchaser of restricted property, should carefully review all of the covenants affecting the property prior to purchasing it and consider the effect of their restrictions and obligations on your intended use of the property.

A little bit of research now may prevent a great deal of heartache in the future. Justin's practice experience includes a wide variety of residential and commercial real estate matters, including the representation of sellers and buyers in the negotiation and preparation of purchase agreements, construction agreements, and loan agreements, and the representation of landlords and tenants in the negotiation and preparation of leases.

He assists residential and commercial developers in connection with the acquisition, financing, development, subdivision, zoning, leasing, and sale of residential and commercial real estate, including mixed use developments Skip to main content.

New Articles. October 25, Telecom Alert: 4. Kunkle and Wesley K. Weber and Melanie E. The offended owner may also sue for money damages, but there is often only nominal monetary damage or none at all. The North Carolina Condominium Act and the North Carolina Planned Community Act have empowered owners associations to use several mechanisms to enforce restrictive covenants.

If an owner fails to pay assessments, the owners association may file a claim of lien against the owner's property subject to the restrictive covenants and may ultimately foreclose on the property to enforce the claim of lien. These enforcement provisions are applicable to both commercial and residential communities governed by owners associations and it is important for purchasers of property in these communities to understand and appreciate these enforcement mechanisms.

Whether restrictive covenants will be more of a burden or a benefit to you as an owner depends on you and your intended use of your property. Restrictive covenants obviously place restrictions on your free use of your land, but there can also be benefits to purchasing property subject to restrictive covenants, especially in a community where such covenants are enforced by an owners association.

Restrictive covenants, such as architectural guidelines, ensure not only a certain level of uniformity and standard of design, but also the consistent use of property within the community. If the community is governed by an owners association, you can purchase property with at least some level of comfort that the restrictions and obligations in the covenants will be enforced and that the common elements will be maintained.

In order to determine whether a particular set of restrictive covenants will create more of a burden or benefit for you, you will need to review all of the community documents in addition to the covenants. Although not applicable to the property per se, the community documents typically include the articles of incorporation and bylaws of the owners association, the rules and regulations of the association, its architectural guidelines, and any other set of guidelines created and enforced by the owners association.

Some of these documents are filed in the public records and others must be obtained from the owners association. The decision to purchase real property involves many different considerations, but one of the most important is the existence and effect of restrictive covenants. Like beauty, whether the restrictive covenants create a benefit or impose a burden is in the eye of the beholder — that is, the individual purchaser.

In order to make an informed decision, you, as a purchaser of restricted property, should carefully review all of the covenants affecting the property prior to purchasing it and consider the effect of their restrictions and obligations on your intended use of the property.

A little bit of research now may prevent a great deal of heartache in the future. For further information regarding the issues described above, please contact Justin M.

This article is not intended to give, and should not be relied upon for, legal advice in any particular circumstance or fact situation.

For a restrictive covenant to be enforceable a buyer must have notice of it. The covenant must not be too uncertain or ambiguous, be prohibited by competition law or be contrary to public policy The law around the enforceability of a restrictive covenant against an individual purchasing a property subject to a covenant is complex and there are specific tests that have been created in order to establish whether a successor to a property will be subject to the burden of a restrictive covenant.

What happens if a Restrictive Covenant is breached? What can I do about a Restrictive Covenant? Available Advice from Ison Harrison If you believe that your existing property, is subject to a restrictive covenant and you want advice on the meaning or enforceability of that covenant, we can assist you.

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But opting out of some of these cookies may affect your browsing experience. Necessary Necessary. Who enforces land covenants? What happens if I breach a land covenant? Who puts the covenant in place and what is the purpose of a covenant? The original landowner, developer or Council registers the covenant on the title.

To control development, land use and to ensure neighbourhood structure in residential subdivisions As a condition of the resource consent in the Resource Management Act RMA 1 The most common use of modern restrictive covenants is by developers to uphold the standards of the subdivision. Recording an agreement between neighbours. Where do I find information about covenants? Registering a Covenant as a Land Owner If you are subdividing your land, restrictive covenants can be used to restrict the owner of the new subdivided lot doing certain things.

Contact experienced property lawyer, Jason Hendriks by phone on 09 or email: jason. Do you need assistance understanding covenants on property you are looking to purchase? Or would you like to add a covenant? Contact experienced property lawyer, Jason Hendriks. Related articles What is a Residential Property Title? Key questions to bear in mind Dec 12, Read more ». Jason's Recent Articles Why do I need a will?

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