What are "restrictive covenants"?

Restrictive covenants are legally binding stipulations in property deeds that impose limitations on how a property can be used, altered, or developed. These covenants are typically put in place to maintain certain standards within a neighborhood or community, ensuring that the character of the area is preserved. For example, a restrictive covenant might prohibit the construction of fences above a certain height, dictate the types of materials that can be used for external renovations, or restrict business activities on residential properties.

These limitations often serve to protect property values and the overall aesthetic of the neighborhood. When property owners agree to these covenants, they are taking on the responsibility to adhere to the specified restrictions, and such agreements can contribute to the orderly development of a community. Understanding restrictive covenants is crucial for real estate professionals, as they directly impact property rights and the potential use of the property. There is a clear emphasis on the nature of the restrictions, distinguishing them from other types of agreements or clauses that may pertain to property and its transfer.