Managing Covenants in Real Estate

In real estate law, covenants are legally binding agreements that restrict or dictate how property owners can use their land. These agreements are typically in property deeds or separate documents referenced by the certificate of title, and they help to maintain property values and community standards.

Understanding Restrictive Covenants

Restrictive covenants in real estate are legal agreements embedded in property deeds or contractual agreements that limit how an owner may use a property. Typically imposed by developers or homeowner associations, these covenants ensure uniformity and maintain property values within a neighborhood or community.

Common restrictions include limitations on structural modifications, exterior color choices, types of permissible landscaping, and restrictions on commercial activities on residential lots. They could also cover guidelines regarding pet ownership, fence height, or vehicle parking rules.

Covenants aim to preserve an area's intended character and aesthetic appeal, benefiting all residents by providing a predictable and cohesive environment. Violating these covenants can lead to legal disputes and potential penalties.

Buyers should thoroughly review existing restrictive covenants before purchasing a property to ensure they align with their lifestyle and plans. This will allow them to make an informed decision.

Enforcement of Covenants

Homeowner associations (HOAs) or neighborhood committees typically oversee and enforce restrictive covenants through various legal mechanisms outlined in the agreements. 

They can monitor compliance, address violations, and initiate corrective actions. If an owner violates a covenant, the HOA or affected parties can issue warnings, demand rectification, or impose fines. Continued non-compliance may lead to legal action, where the enforcing party seeks a court order requiring adherence to the covenant or imposing damages for the breach.

The enforcement seeks to protect communal interests but must balance fairness and reasonableness to withstand legal scrutiny.

Modifying or Removing Covenants

Removing or modifying restrictive real estate covenants involves a legal process requiring negotiation, agreement from affected parties, or judicial intervention. First, review the covenant’s terms to understand the governing rules or limitations. Often, covenants include provisions for amendment or removal, typically requiring a majority or unanimous consent from property owners within the affected community or the homeowners association.

If the covenant is outdated or overly restrictive, homeowners can gather support from neighbors or fellow property owners. They can present a formal request or petition to the HOA or relevant governing body, clearly outlining why the change is necessary or beneficial. Sometimes, demonstrating that a covenant no longer serves its original purpose can be persuasive.

If an informal resolution fails, legal action might be necessary. A real estate attorney can guide you through filing a lawsuit to seek a court order invalidating or altering the covenant, especially if it conflicts with public policy or modern standards.

Contact the Real Estate Lawyers at Bingaman Hess Today

Do you want to experience the benefits of working with a real estate lawyer? Contact Bingaman Hess to schedule a consultation with one of our experienced real estate law attorneys. Our seasoned legal professionals bring a wealth of skill and experience to every case, ensuring you receive the highest level of representation and personalized attention.

This article is for informational purposes only and does not constitute legal advice. No one may rely on this information without consulting an attorney. Anyone who attempts to use this information without attorney consultation does so at their own risk. Bingaman Hess is not and shall never be responsible for anyone who uses this information. It is not legal advice.