What Is Covenants in Real Estate: All You Need to Know

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Written By Tommy

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If you’re looking to buy or sell a home, it’s important to know about real estate covenants. But what is covenants in real estate? Here’s what you need to know about real estate covenants!

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What is Covenants in Real Estate

What is covenants in real estate? A covenant is a legal agreement between two or more parties. In real estate, covenants typically involve the use of the property.

Covenants can be found in both residential and commercial real estate contracts. For example, a covenant may restrict how the property can be used or require the property to be used for a certain purpose.

Types of Covenants

There are two types of covenants in real estate. Covenants are there to protect the property and the homeowner. Here are the two common types of covenants:

1. Positive covenants

Positive covenants are put in place to ensure the property is maintained a certain way. For example, a positive covenant might state that the homeowner must keep their lawn mowed. This helps to keep the property looking nice and helps to maintain its value.

2. Negative/restrictive covenants

Negative covenants are put in place to restrict the homeowner from doing something that could devalue the property. For example, a restrictive covenant might state that the homeowner can’t have a trampoline in their backyard. This is to prevent the property from being damaged by the trampoline and keep the property values high in the neighborhood.

Another example of a restrictive covenant might state that a neighbor can’t build a pool in their backyard. This ensures that the property values of all the homes in the neighborhood are maintained.

The Benefits and Drawbacks of Having a Covenant

In real estate, a covenant is typically a promise made by the property owner to do or not do something that would affect the property’s value. For example, an owner might promise not to build anything on the property that would obstruct the view of the surrounding area.

Covenants can be enforceable by the court system if one party breaches the agreement. This means that if the property owner breaks their covenant, the people who are impacted by the breach can take them to court to have the agreement enforced.

There are benefits and drawbacks to having a covenant on a piece of property. The main benefit is that it can help protect the property’s value.

If an owner makes a covenant not to do something that would negatively impact the property’s value, it helps to ensure that the property will retain its value over time. This can be important for the owner and the people living around the property.

The main drawback of having a covenant is that it can be difficult to enforce. If an owner breaches their covenant, the impacted people may be unable to take them to court to enforce the agreement. This can be a problem if the covenant is important to the people who live around the property.

Covenants can be a helpful tool for protecting the value of a property. However, they can also be difficult to enforce.

Frequently Asked Questions

What are covenants in an agreement?

A covenant is a clause in a real estate contract that imposes certain obligations on the buyer or seller. For example, a covenant may require the seller to repair the property before selling it or the buyer to obtain financing within a certain time frame.

How do covenants work?

A covenant is an agreement to do or not to do a particular thing about land. Covenants can be positive or negative. Positive covenants are agreements to do something, such as keep the property in good repair, while negative covenants are agreements not to do something, such as build a structure that would block another’s view.

What are some examples of restrictive covenants?

A restrictive covenant is a real estate contract that limits what the property owner can do with the land. For example, a restrictive covenant may prohibit the owner from building a certain type of structure on the land, using the land for a certain purpose, or selling the land to a specific person.


 What is covenants in real estate? Covenants are rules and regulations that dictate how a piece of real estate can be used. These rules and regulations are typically put in place by the developer of the property or by the homeowner’s association. Covenants can affect real estate in several ways, such as dictating what type of structures can be built on the property or how the property can be used.