Pondering over the decision to purchase a property with restrictive covenants? Hear what the experts have to say.
Restrictive covenants are a common feature in property deeds, and they can significantly impact how a property is used or its relationship with neighbors. These legal restrictions, which bind successive property owners, are designed to regulate the appearance or use of a property.
Typically, restrictive covenants can prevent the owner from carrying out certain activities, such as building to a specific height, operating certain types of businesses, or keeping specific pets. They may also limit the number of stories, architectural styles, or minimum building sizes to maintain a consistent neighborhood appearance.
In some cases, restrictive covenants might prohibit activities like keeping livestock, making major structural changes to a property, installing large structures, or adding smaller things like security cameras or a satellite dish.
Removing a restrictive covenant can be challenging, especially if there is no significant money at stake or the person who put the covenant in place is still alive or traceable. The process of removing a restrictive covenant through the court can be lengthy and expensive. However, in certain circumstances, a court can modify or discharge a restrictive covenant with legal help.
For example, in the case of Cheung & Anor v Mackenzie in 2022, the courts ruled a "deed of modification" was permissible for a property with a 1947 restriction preventing building on the site "except one detached dwelling house."
When selling a house with a restrictive covenant, it is obligatory to declare it at the earliest reasonable opportunity. Buyers should take advice from their solicitor about how restrictive or enforceable the clauses are. A document called a "report on title" should be provided by the solicitor, detailing any restrictive covenants and their risks.
Some mortgage lenders may be wary of lending on a property with very strict covenants. In such cases, indemnity insurance can be taken out to secure a mortgage or minimize risks. Before buying a property, a title check can be carried out by looking at the registered title at the Land Registry.
It's worth noting that not all properties have restrictive covenants. Most properties do not have any restrictions. However, when buying a property, it's essential to be aware of these potential legal restrictions to avoid any unexpected issues down the line.
For instance, a developer might impose covenants requiring new homes to conform to a specific architectural theme or size within a subdivision, as seen in subdivisions like Vistas and Lakeridge. Other examples include restrictions to protect neighboring properties' enjoyment, such as preserving views by limiting building height.
In conclusion, while restrictive covenants might seem like a nuisance, they are essential legal restrictions that protect the neighborhood's aesthetics and the enjoyment of neighboring properties. As a home buyer, it's crucial to understand these covenants and their potential impact on the property's usage and value before making a purchase. Seeking professional advice from a solicitor is always recommended.
Read also:
- More than half of British homes adhere to insulation standards established during the 1970s.
- German Obsession with Luxury Vehicles Thriving Amid Traffic Congestion
- Ferrero, Nudossi, and other manufacturers face potential price hikes for Nutella due to an upcoming hazelnut crisis, and here's how they plan to react.
- Coastal men's disruptions of dolphin gatherings might lead to jail sentences
