Property Convenants
When purchasing a property, it's crucial to be aware of covenants on property, which could potentially hinder any future plans you might have. Breaching a covenant on property can lead to significant financial penalties, so understanding them is essential.
What is a property covenant?
A property covenant is a legal obligation detailed in the title deeds of a property that must be adhered to by the new owner. These obligations are usually perpetual, meaning they remain in effect indefinitely, impacting all future owners of the property.
The different types of property covenants
Property covenants are typically classified into two categories: positive and restrictive.
Positive Property Covenant
Positive property covenants require property owners to perform certain actions or contribute financially to specific tasks within the property’s boundaries. Legally termed as 'burdens,' these obligations can involve maintaining communal areas or funding repairs. Positive covenants involve at least two parties, with one benefiting from the covenant.
Restrictive Property Covenant
Restrictive property covenants are more common and impose limitations on what can be done within the property's boundaries. These restrictions often include prohibitions on building extensions, conducting business activities, or altering the property’s structure. Like positive covenants, restrictive covenants also have a benefiting party who can enforce these rules.
Common examples of land covenants
Restrictive Land Covenants:
- Prohibiting property alterations, such as extensions or conversions
- Preventing the construction of new buildings or significant structures
- Restricting business operations within the property
- Banning the keeping of livestock
Positive Land Covenants:
- Maintaining shared areas like fences or driveways
- Funding the repair of communal roofs
Why are property covenants needed?
Land covenants are used by landowners to control how the land is used or maintained after selling it. These restrictions help preserve the character of an area, especially in residential developments or historically significant properties. For instance, a restrictive covenant might ensure that new constructions adhere to the area's architectural style.
What happens if you break a covenant on a property?
The consequences of breaching a covenant on property vary but can include reversing any unauthorized changes or facing legal action. You might have to pay fines or cover the costs of restoring the property to its original state. Therefore, it’s vital to understand any property covenants before making significant modifications to your property.
Can you change or remove property covenants?
If a land covenant seems unreasonable, you can apply to the Lands Chamber of the Upper Tribunal to have it modified or removed. However, this process can be both expensive and time-consuming. Additionally, you may need to compensate the party benefiting from the covenant and cover legal fees.
FAQs about covenants on property
How to Find Covenants on Property:
When purchasing a property, have your conveyancer thoroughly review the title deeds for any covenants on property. Once you own the property, these covenants become your responsibility. Ignorance of a property covenant does not exempt you from liability if you breach it.
Should I Buy a House with a Restrictive Property Covenant?
The impact of a restrictive property covenant depends on your plans for the property. If the covenant restricts actions you weren’t planning to take, such as specific alterations, it might not be a concern. However, if you envision significant changes or developments, ensure you understand any existing covenants fully.
Are Property Covenants Legally Binding?
Properly established covenants on property are legally enforceable. It’s crucial to determine whether a covenant 'runs with the land,' meaning it applies to all future owners, or if it was only enforceable on the initial owner.
How Long Does a Covenant on Property Last?
Covenants on property are generally perpetual and do not expire. However, some very old covenants might be unenforceable due to their age, unclear wording, or irrelevance to modern practices.
What Does Deed of Covenant Mean?
A deed of covenant is a legal document in which the party responsible for a covenant on a property agrees to fulfil its obligations.
Contact Haybrook for property guidance
If you're interested in buying a property and need expert advice on covenants on property and other considerations, contact your local Haybrook branch. Let Haybrook assist you in finding the perfect home, equipped with all the knowledge you need for a successful move.
Additional Resources
Haybrook offers a range of useful guides on topics such as buying advice, property viewing tips, upsizing strategies, and shared ownership Explore these resources to help make informed decisions in your property search.
