Land covenants often catch property buyers by surprise, limiting how they can use their newly acquired land. A covenant is a legally enforceable restriction written into the property's deed. Understanding how covenants work can help you avoid costly conflicts and make informed purchasing decisions.
Common Types of Land Covenants
Covenants typically involve restrictions on:
- Types of structures allowed (homes, barns, commercial buildings)
- Building height, appearance, or setback requirements
- Land use limitations, such as prohibiting certain agricultural or commercial activities
How Covenants Impact Your Land Use
Covenants can significantly affect your ability to develop or modify your property:
- They may restrict your construction plans or limit business activities.
- Violating a covenant can lead to legal action, including fines or enforced removal of structures.
Land covenants often exist to maintain uniformity and character within a neighborhood or community. While these restrictions may enhance property values by ensuring a consistent appearance, they might also interfere with your specific plans—such as expanding your home, constructing farm structures, or running a home-based business. Carefully considering covenants before you buy will help you avoid unpleasant surprises later.
Identifying and Navigating Covenants
To identify covenants on your property or one you’re considering buying:
- Carefully review the property deed and title reports.
- Contact local title companies for thorough searches.
- Consult legal advice for clarity and interpretation.
Being proactive about identifying covenants can save significant headaches later. Buyers often discover covenants only after initiating construction projects or other property improvements, resulting in costly redesigns, delays, or legal fees. Early identification and clear interpretation provide the clarity needed to confidently move forward with your plans.
What If You Disagree With a Covenant?
If a covenant negatively impacts your intended property use, you may have options:
- Negotiation: Reach out to affected neighbors or the covenant holder to seek modifications.
- Legal Action: Petition the court for modification or termination if the covenant is obsolete or unreasonable.
How Covenants Affect Future Resale
It’s also important to consider how existing covenants may affect the property's marketability when you're ready to resell. Restrictive covenants can be appealing to some buyers seeking a specific neighborhood character, but overly restrictive covenants can also narrow your potential buyer pool. Potential buyers who prioritize flexibility may choose a property with fewer or less restrictive covenants. Clearly understanding and being able to explain existing covenants when you list your property can streamline the selling process and attract buyers whose plans align with your land’s permitted uses.
Final Thoughts
Covenants can protect neighborhood aesthetics and property values, but they can also limit your plans. Understanding them thoroughly before investing can save significant frustration and cost later. Careful due diligence and awareness of how covenants impact both immediate and future property uses will help ensure your purchase decision is the right one for your needs and goals.