13th June 2024 ❘

Residential Conveyancing – What is a restrictive covenant?

What is a restrictive covenant?

We continue to detail the most frequently asked questions received by our Residential Conveyancing team with this one… What is a restrictive covenant?

 

What is a restrictive covenant?

A restrictive covenant is a private agreement made between two landowners.  The landowner purchasing the land promises the landowner selling the land not to carry out certain acts on their own land and restricts what the purchaser can do with it.  Common examples of restrictive covenants include, not to alter or extend the property without consent of the seller landowner, not to hang washing out at the front of the property and not to use the property for any trade or business.

 

What is a breach of covenant?

A breach of covenant means that one or more parties have breached the covenant that is currently in place. This could be in relation to any number of things including extending the property without obtaining consent and access and parking rights.

 

What is restrictive covenant indemnity insurance?

Restrictive covenant indemnity insurance is cover for a breach of a restrictive covenant whether they are known or unknown covenants. Indemnity insurance is usually taken out by the seller because of a breach of the covenants affecting the property to protect the new buyer of the property against any party who has the ability to enforce these covenants.  A common breach is the erection of a conservatory or extension without consent from the original owner of the land who has the benefit of the covenants.

 

If you have more questions about restrictive covenants, or would like other advice from our Residential Conveyancing team, you can reach them via the contact details on this page.