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Restrictive Covenants in the Sale Deed
Restrictive Covenants in the Sale Deed
The sale deed of a residential property may include a restrictive covenant relating to the modification and usage of the property.

As a homebuyer, one has to pay attention to several minute details and requirements before finalising a house. This becomes all the more necessary while reviewing the sale agreement or sale deed. Homebuyers must ensure that they understand all clauses of the agreement. Some agreements include restrictive 'covenants'. To understand what this legal term means, let us first understand what a legal covenant is.

A legal covenant is an agreement, contract or written promise between two parties/individuals which acts as a pledge to do something and/or refrain from doing something, thus, a covenant could be positive or restrictive. A positive covenant is a legally binding promise compelling to do something, and a restrictive covenant to refrain.

The sale deed of a residential property may include a restrictive covenant relating to the modification and usage of the property. Different properties may have different rules. One may come across covenants relating to:

  • The minimum property and landscaping standards
  • Types of fencing
  • Limitations on the installation of security lights
  • Limitations on painting the exterior walls
  • Restrictions on storing arms and ammunition illegally
  • Placing personal belongings in common areas
  • Regulations dealing with home-based businesses and letting and sub-letting (clauses restraining home-offices)
  • Maintenance fee

The restrictive covenants are legally enforceable by the court, and hence, homebuyers must enquire about these before signing the agreement. The covenants cannot be separated from the land under any circumstance. In case of transfer of property, the new owner will be subject to all benefits and burdens, as stated in the clauses.


Can restrictive covenants be altered?

Since the housing association is responsible for regular maintenance and smooth functioning of the building/society, its approval is required to modify covenants.

If no such association exists, the homeowner can appeal to the court of law (civil court) for modification of the clause.

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