Definition
A restrictive covenant is a recorded restriction limiting how you can use the property—like prohibiting commercial use or requiring architectural approval for changes.
Not sure where this fits?
Answer a few questions and we’ll open the path that fits, at the right step.
Find my pathAbout this term
Restrictive covenants are conditions imposed on the land that restrict owner use and activity. Common covenants limit property use to residential purposes, restrict home business operations, or require architectural approval for modifications. Covenants are typically imposed by developers and are intended to maintain neighborhood standards and values. Violations of restrictive covenants can result in injunctions forcing compliance. Covenants run with the land and bind all future owners.
Pro Tip
Review all covenants before buying. They may significantly restrict your property use.
Example
The restrictive covenant prohibited commercial activities and required architectural review for any exterior changes.