It’s imperative that any parties that plan on purchasing land be aware of any covenants attached to that land, as breaching these covenants can lead to dire legal repercussions. Restrictive covenants on land titles can put significant limitations on what landowners and property developers are legally permitted to do with the land or the property placed on it. Below, we detail what a covenant is and discuss some common restrictive covenants to be aware of.
What is a Covenant on a Title?
Covenants on land titles are legally binding conditions that stipulate what restrictions are in place regarding what the party purchasing the land can build on it. These conditions must be adhered to when modifying an existing property to ensure it complies with the general look and purpose of the area the property is located in. Where commercial properties are concerned, it may be stipulated what types of businesses can operate on the land. Any covenants on land titles being sold will be included with a land title certificate or contract of sale.
Common Restrictive Covenants on Land Titles:
- The number of buildings on a parcel of land
- Alterations to a property, such as property extensions or converting a house into a block of flats
- A property or parcel of land being used for commercial or industrial purposes.
- What types of building materials and colour schemes can be used with the land
How to Determine if There Are Covenants on Land Titles
Any parties that are interested in purchasing a parcel of land should conduct a property title search with a land registry search provider to reveal if there’s a covenant on that land. This is a simple and inexpensive way to obtain critical information pertaining to any land in Australia.
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If you’re still wondering “what is a covenant on a title?” and want to learn more, please get in touch with us for more information on covenants on land titles.
