What is a Restrictive Covenant?

A restrictive covenant is a private treaty or written agreement between landowners or landowners and purchasers that limits the way land can be used or developed. The planning system is only involved if there is an application to remove or vary a covenant, councils and government do not create or enforce them. -  www.planning.vic.gov.au

Usually covenants place restrictions or guidelines over how land can be developed or used. These are expressed in the negative, such as “the registered proprietor will not”. The main type of restrictive covenant is a “neighborhood” covenant. This is put in place to protect the “character” of a neighbourhood or to set out a general direction of how they would like the community to be developed. For example, a restive covenant may:

1.           Limit the development to only one house on a lot;

2.           Control the type of building materials used for new buildings and fences; or

3.           Prohibit the use of the land for business operation.

The covenant will apply irrespective of what the planning scheme for the property states. It is also important to know that these covenants are not tied to the people who entered into the covenant. They are tied to, or run with, the land itself.

Restrictive Covenants are complex and will need to be individually interpreted because even though a covenant might look similar to another covenant, the words used might be slightly different resulting in different restrictions. There are some nuances used in covenants which may have a meaning different to what you expect. If you would like any help varying or removing a restrictive covenant, contact us on 9707 1155 or via email - admin@wslegal.com.au