What is Restrictive Covenant (Property)?

Full Definition

A restrictive covenant, in a property law context, is a legally binding obligation recorded in a property's title deeds that limits or prohibits certain uses of the land, typically imposed by a seller (often the original developer of an estate) to protect the value, character or amenity of neighbouring land they retained or sold to other buyers. Common examples include covenants preventing a property being used for any purpose other than as a single private dwelling, prohibiting commercial or trade use, restricting further building or extensions without the benefiting party's consent, banning the keeping of livestock or caravans, or requiring buildings insurance to be maintained; unlike a positive covenant (such as an obligation to maintain a fence), which generally does not bind future owners of the burdened land under English law unless specific arrangements are made, a restrictive covenant that meets certain legal conditions can bind successive owners indefinitely, running with the land much like an easement. For a restrictive covenant to bind a buyer, it typically needs to have been registered as a notice against the property's title at HM Land Registry (for registered land) or discoverable in title deeds, and conveyancing solicitors routinely check for covenants during a purchase, since a serious breach can, in principle, lead to an injunction forcing a buyer to reverse unauthorised work, such as demolishing an extension built in breach of a covenant restricting further building. Where a covenant is old, its original purpose has become obsolete, or the person or land it was meant to benefit can no longer be identified, an owner can apply to the Upper Tribunal (Lands Chamber) to have it modified or discharged under section 84 of the Law of Property Act 1925, though this can be a lengthy and uncertain process, and in the meantime restrictive covenant indemnity insurance is commonly used to cover the risk of enforcement, particularly where a breach is minor, historic, or where tracing anyone with the legal standing to enforce the covenant is impractical. Buyers planning significant works, a change of use, or new building on a plot should always check for restrictive covenants early, since discovering one after exchange of contracts, or after work has already started, can be far more costly and disruptive to resolve than addressing it during pre-purchase due diligence.

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