Covenant
Definition and meaning of Covenant in real estate.
A covenant is a formal, legally binding promise or agreement written into a deed, lease, or contract that obligates a party to do or refrain from doing something.
In more detail
In real estate, covenants are used to govern land use, protect property values, and outline the rights and responsibilities of property owners. Common examples include covenants in deeds that guarantee the seller has clear title, or restrictive covenants in subdivisions that dictate aesthetic rules. Covenants run with the land, meaning they automatically transfer to new owners and remain binding even after the property is sold.
Violating a covenant can result in legal action, monetary fines, or an injunction forcing the property owner to correct the violation.
Key facts
| Category | Legal, Titles & Closing |
|---|---|
| Legal duration | Often permanent and runs with the land |
| Enforcement | Enforced by neighbors, homeowners associations, or courts |
| Consequences of violation | Injunctions, monetary fines, or property liens |
A homeowner planning to build a tall metal fence is stopped by their neighbor because a deed covenant prohibits fences over six feet tall in their subdivision.
Frequently asked questions
What does it mean when a covenant runs with the land?
When a covenant runs with the land, it is permanently attached to the property deed, meaning all future buyers are legally bound by the rules, regardless of when the covenant was originally written.
Can a covenant be removed from a property deed?
Removing a covenant is difficult and usually requires a unanimous vote of all affected property owners, a formal release from a homeowners association, or a court order declaring the covenant invalid or obsolete.
Related terms
Sources & references
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