Covenants running with the land: Overview, definition, and example
What are covenants running with the land?
Covenants running with the land refer to certain promises or restrictions tied to a specific piece of real property that apply not only to the current owner but also to future owners of the land. These covenants are legally binding and remain in effect even after the property changes hands. They are typically included in deeds or property contracts and can be either affirmative (requiring the property owner to do something) or negative (restricting certain actions related to the property).
For example, a covenant running with the land might state that a property owner cannot build above a certain height or that the land must be used for residential purposes only.
Why are covenants running with the land important?
Covenants running with the land are important because they help maintain certain uses, values, and conditions related to real property, even as ownership changes. These covenants provide long-term assurances to property owners, neighbors, and communities that specific conditions or restrictions will be respected, thus preserving the character, safety, or aesthetic of the area. They can be used to control the development of land, protect property values, and maintain community standards.
For developers, businesses, and homeowners, understanding covenants running with the land is crucial to ensure compliance with these binding obligations, avoid disputes, and understand the legal implications of property use.
Understanding covenants running with the land through an example
Imagine a residential neighborhood where a developer sells multiple homes. The deed for each property includes a covenant running with the land, which specifies that the property can only be used for residential purposes and prohibits commercial businesses from operating on the premises. If one homeowner decides to sell their property, the new buyer will still be bound by this covenant and will not be able to turn the home into a commercial business, even though the original owner is no longer involved.
In another example, a property is subject to a covenant that restricts the construction of buildings taller than two stories. If the property is sold, the new owner will be bound by this restriction, meaning they cannot build a higher structure on the land without breaching the covenant.
An example of a covenants running with the land clause
Here’s how a covenants running with the land clause might look in a deed or property agreement:
“The Property shall be subject to the following covenants, which shall run with the land and bind all subsequent owners: (i) the Property shall only be used for residential purposes; (ii) no structures shall be built higher than two stories; (iii) the Property shall not be subdivided without prior written consent of the governing body.”
Conclusion
Covenants running with the land are crucial legal tools in real estate transactions that ensure specific promises or restrictions continue to apply even after ownership of the property changes. These covenants protect the interests of the community, preserve property values, and maintain agreed-upon conditions for the use of the land. Understanding these covenants is vital for property owners to ensure they comply with these ongoing obligations and avoid legal issues in the future.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.