Restrictive Covenant Agreement
A restrictive covenant agreement is a legally binding contract that imposes limitations or restrictions on the use of property. It is often used in real estate to maintain a certain standard within a community or to protect property values by preventing owners from engaging in activities that could negatively affect the neighborhood.
These agreements can dictate various aspects such as the type of structures that can be built, the colors that can be used for houses, restrictions on commercial activities, or requirements for property maintenance. For example, a restrictive covenant may prohibit homeowners from painting their houses in bright colors, ensuring a uniform aesthetic within a subdivision.
Additionally, restrictive covenants can be enforced by homeowners’ associations (HOAs) or individual property owners, and violations can lead to legal action or fines. It is important for property buyers to review any existing restrictive covenants associated with a property before making a purchase, as these agreements can significantly affect how they may use their property in the future.
« Back to Glossary Index