A restrictive covenant is a mandatory obligation imposed on the buyer of a piece of land at the time of sale. These covenants can affect almost any aspect of the land in question, including building height and size as well as what the land can be used for. These covenants can be imposed for a variety of reasons.

Restrictive Covenants can be Used as a Means of Enforcing Safety

One example of the use of restrictive covenants is that of enforcing safety in an area. Structures over a certain height may be forbidden by a restrictive covenant if the land is near an airport. A restrictive covenant may safeguard the sight lines around corners by preventing the construction of tall fencing or the planting of dense vegetation such as shrubs.

Restrictive Covenants in Commercial Real Estate

In commercial applications, restrictive covenants can prevent the construction of certain potentially hazardous factories such as chemical production facilities. They may also restrict what type of business can be developed on the property even if a business is not deemed hazardous. Examples of this include the development of businesses that sell alcohol near school zones or churches. The restrictive covenant may also forbid outright the future development of so-called unsavory businesses such as those that distribute pornography.

Restrictive Covenants in Residential Real Estate

A common example of a restrictive covenant would be the homeowner’s association agreement that is commonly found in newer neighborhoods. These agreements can place restrictions on almost every aspect of the property, from what vegetation can or cannot be planted to how many cars are allowed in the driveway at one time.

Home buyers looking to purchase in a development would be well served to give the local homeowner’s association agreement a careful perusal, as many of them have stiff fines and penalties for violating their directives. Some very strict versions may allow the homeowner’s association to file a lien against the property or to even bring a lawsuit against the property owner. In some cases, they can even foreclose on the property in question if the violation of the agreement is severe enough.

The Difference Between a Restrictive Covenant and a Zoning Law

The biggest point of difference between a restrictive covenant and a zoning law is their points of origin. A restrictive covenant is an agreement between the landowners whose property it affects, while a zoning law is an order written and enforced by the local government that affects the landowners with or without their consent.