Restrictive covenants explained

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A restrictive covenant is a type of legal obligation imposed in a property deed or title, which restricts the use or development of the land in some way. In the UK, restrictive covenants are used to control the use of property and maintain certain standards within a development or neighborhood.

Key Points About Restrictive Covenants:

  1. Purpose:
    • To maintain the character of a neighborhood or development.
    • To ensure a uniform appearance or standard within a community.
    • To prevent activities that may be considered undesirable by neighbors or the original developer.
  2. Types of Restrictions:
    • Building and Structural Restrictions: Prohibit certain types of construction or modifications. For example, restrictions on the height of buildings, types of materials used, or specific architectural styles.
    • Usage Restrictions: Limit the ways in which the property can be used. For instance, prohibiting commercial activities in a residential area, or banning specific activities like keeping livestock.
    • Aesthetic Restrictions: Ensure a consistent appearance in the neighborhood, such as restrictions on exterior paint colors, types of fencing, or landscaping requirements.
  3. Enforcement:
    • Who Enforces: Typically enforced by the original developer, a homeowners’ association, or neighbors who benefit from the covenant.
    • Legal Action: If a covenant is breached, the affected parties can seek legal enforcement through the courts, which may result in an injunction to stop the breach or require the removal of any unauthorized alterations.
  4. Duration and Modification:
    • Permanence: Many restrictive covenants are intended to last indefinitely, binding future owners of the property.
    • Modification or Removal: Changing or removing a restrictive covenant usually requires the agreement of all parties benefiting from it. This can be a complex legal process and may involve application to the Lands Tribunal for modification or discharge.
  5. Implications for Buyers:
    • Due Diligence: When buying a property, it is crucial to check for any restrictive covenants as they can significantly impact what you can do with the property.
    • Legal Advice: It is advisable to seek legal advice to understand the implications of any restrictive covenants and ensure compliance.
    • Disclosure: Sellers are typically required to disclose any known restrictive covenants to potential buyers during the conveyancing process.

Example:

If you buy a house in a residential development with a restrictive covenant that prohibits the construction of any additional buildings in the garden, you would be unable to build an extension or a separate structure like a shed without breaching the covenant.

Checking for Restrictive Covenants:

  • Title Deeds: Restrictive covenants are usually recorded in the title deeds of the property.
  • Land Registry: Property records held by the Land Registry will indicate any restrictive covenants.
  • Solicitor Searches: A solicitor will conduct searches and review the title documents during the conveyancing process to identify any restrictive covenants.

Understanding restrictive covenants is essential when purchasing property in the UK, as they can affect your use and enjoyment of the property, and breaching them can have legal and financial consequences.