What is a Restrictive Covenant?

How do I put a covenant on my property?

A covenant can be created by separate deed (a Deed of Covenant). The deed will need to be protected by the entry of a notice on the register of title and needs to be signed by the covenantor though not necessarily by the covenantee.

How long do covenants last UK?

If the covenant is attached to the land it is said to ‘run with the land’. That means it continues to apply to the land regardless of whether either the burdened or neighbouring lands have been sold on. This means a restrictive covenant can last indefinitely even if its purpose now seems obsolete.

Do covenants run with the land UK?

Covenants (both affirmative and negative), restrictions and easements can all run with the land and bind all future owners of the subject real property.

How do I find a restrictive covenant on my property UK?

Restrictive Covenants are recorded in the C section of the Title Register; if lengthy, they may appear in a Schedule at the end of the C section.

Do restrictive covenants expire?

As restrictive covenants don’t ‘expire’, if they are breached the person with the benefit of the covenant can enforce them against you.

What is a restrictive covenant in a contract?

A restrictive covenant is a clause in an employment contract or services agreement that works to prohibit an individual from (among other things) competing with his or her ex-employer for a certain period after he or she has left the business.

Should I worry about restrictive covenants?

Restrictive covenants can be frustrating for property owners. But it is always advisable to seek professional legal advice before acting in breach. You could be risking thousands of pounds, years of legal battles and untold stress if a restrictive covenant is enforced against you.

What does a covenant on a property mean?

A covenant is a provision, or promise, contained in a deed to land. Land may be subject to a covenant which affects or limits its use. This is known as the burden of a covenant. A covenant may give a landowner some say over what is permissible on neighbouring property. This is called the benefit of a covenant.

Can a restrictive covenant be removed?

To do this, you’ll need to apply to remove the restrictive covenant. An application to remove or modify the restrictive covenant can take between 18 and 24 months to go through. If the party controlling the covenant can still enforce the ruling, consider negotiation, but be prepared for them to want compensation.

Can I build on land with a restrictive covenant?

Can it really stop me building or developing on my own land? Yes, it can. Even though planning permission has been granted, it does not override any restrictive covenants. The two are not mutually exclusive, they are entirely independent of one another.

Can companies enforce restrictive covenants?

In order to enforce a restrictive covenant, an employer must demonstrate that the clause protects one of its legitimate business interests. Secondly, the employer must show that the clause is reasonable, and it only goes so far as is necessary protect a legitimate business interest of the employer.

Is a restrictive covenant legal?

How enforceable are restrictive covenants? The general position is that post-termination restrictive covenants are void on public policy grounds as being in restraint of trade, unless they are being used by the employer to protect a legitimate business interest.

How do I remove a restrictive covenant from my property?

Can I get a restrictive covenant removed? If there is a covenant on your property which is obsolete, you can make an application to the Upper Tribunal (Lands Chamber) (which use to be known as the Lands Tribunal) asking for the covenant to be discharged or modified.

Who owns restrictive covenants?

Characteristic of restrictive covenants is the fact that they are binding not only on the immediate buyer but also future owners. Equally they are usually enforceable by the original seller and often by those who subsequently acquire the seller’s retained land.

Who can release a restrictive covenant?

A restrictive covenant may be varied or released expressly by the beneficiary.

What is a restrictive covenant UK?

A Restrictive Covenant is a rule in your property deeds that decides what you can do to a property or piece of land. It consists of an agreement in a title deed, which restricts the use of the land or building in some way. This is usually in the interests of neighbours or the surrounding area.

Are restrictive covenants enforceable after 20 years?

Generally speaking, it is hard to enforce a restrictive covenant after 20 years. The Limitation Act 1980 also states that claims in land should be brought within 12 years, within 12 years from the time the breach occurred, not when the deed came into force.

What is an example of a restrictive covenant?

A restrictive covenant may include things that you can’t do with your property, like raise livestock. A restrictive covenant will also include things that you must do, like mow your lawn regularly. The specific restrictive covenants you need to follow will vary depending on where you live.

Who has benefit of restrictive covenant?

It can help remove future impediments and delays and mitigate increased costs in dealing with future issues. A restrictive covenant insurance policy provides cover not only for the current owner but can benefit successive owners of the property and their lenders.

How do you get around a restrictive covenant?

If there is a restrictive covenant on your property you may be able to remove it. The first step would be to negotiate with the original developer or landowner to enter into a formal agreement to remove the covenants from the title.

How do you find out if a property has a restrictive covenant?

If you want to check the restrictive covenants affecting a property you already own, you may be able to identify the restrictive covenants yourself by looking in the ‘Charges Register’ (registered land only) of the title document.

Can I remove a covenant from my property?

If it is not enforceable then an application can be made to the Land Registry to remove the covenant from the deeds. If it is, it may be possible to negotiate with the party that has the benefit of the covenant to remove by entering into a Deed of Release.

Is a 12 month restrictive covenant enforceable UK?

Yes. However, the restriction is more likely to be upheld if the clause only restricts the employee from dealing with customers/clients with whom the employee had contact with during a specified period (often 12 months) before termination. The restriction should also be limited in time.

Are restrictive covenants normal?

Nowadays, it’s common to have restrictive covenants preventing you from parking caravans in your front drive or from running a business from your house. A common one says you must not make any alteration to the exterior of the property without getting the builder’s consent.

Should I be worried about a restrictive covenant?

And it’s advisable you do, as they’re a fine detail that you cannot afford to overlook. In fact, in many cases they can ‘make-or-break’ your property sale; often restrictive covenants are the reason behind buyers pulling out last minute (i.e. chain break).

Can you break a covenant?

Covenants can become unenforceable if they expire, if there is a history of the covenant being violated, or if there is no individual or group benefiting from them. But it’s very important to make sure the covenant is void before violating it. Otherwise, you could face legal action.

What is a Restrictive Covenant?

Can you sell a property with a restriction?

When there is a restriction on your property it means you cannot sell it without meeting certain obligations.

What happens if you ignore a covenant?

Ignoring a restrictive covenant means that you could potentially be faced with a legal claim against you and injunctions to stop you from making the changes you wish to. You may have to pay damages to the other party to compensate for the breach too.