A restrictive covenants property is a property whose use is limited by a restrictive covenant. A restrictive covenants property agreement is an agreement that is entered into by two property owners one of who agrees to restrict the use of his land for the benefit of other. The covenant usually applies to properties that are adjacent to each other. There is no legal obligation for any party to enter into the agreement. Each party signs the agreement by his own personal will rather than coercion. Once the agreement is signed, it becomes legally binding. Going against the agreement is considered a breach of contract and can be punishable by the law.
A restrictive covenant can be passed on from one property owner to the other if the covenant remains on the title deed. This succession process can be highly inconveniencing to buyers or property inheritors that were not part of the original agreement. These new owners are bound to the agreement just like their predecessors. You may never tell if the property you intend to buy is restricted by a covenant until you see its title deed. The covenant is clearly indicated in the title deed.
It is important for new property owners to adhere to terms of the restrictive covenant of property ownership. Some new homeowners may overlook the covenant and develop a property to the extent that it breaches terms of restriction covenant. This owner is liable for prosecution and may suffer damages to his property. If this property had indemnity insurance against restriction covenant, the owner might not suffer many damages. It is important to find out if a newly purchased property with a restrictive insurance has indemnity insurance. A previous owner may have taken an insurance fearing that he could go against the covenant. You may also take insurance if a property does not have one.
There are other loopholes that you can follow to avoid damages arising from breaching a restrictive covenant. The first is seeking a compromise from the owner of the property that is protected by the covenant. A new owner of this property may not see any importance of the covenant and may be readily willing to let it go. The owner who signed the original covenant may be harder to convince. He may only release the covenant after you pay him some money. It is upon you to decide whether the new development you plan to make is worth the money the other party is asking for.
The very last option for an individual who wants to release a covenant is the Land Tribunal. The Land Tribunal has the authority to release, modify or make partial changes to a covenant. It can only act if it is supplied with relevant information. You must include substantial grounds for making an application to the Land Tribunal. Some of the acceptable grounds that may be considered by the tribunal include:
- Important changes in the neighbourhood since the covenant was signed
- Lack of losses of practical value on the beneficiary of the covenant
- The covenant is preventing the maximal use of another property.