The Basics of Restrictive Covenants and Their Legal Implications

July 5, 2023    propertylawyersperthwide
The Basics of Restrictive Covenants and Their Legal Implications

When you are up for renting your property, you need to build up an agreement. You can consult the skilled property lawyers & covenant lawyers team in WA to discuss your tenant’s rights. It would benefit you to clarify your points on the tenant.

 

Moreover, the clarification would help avoid conflicts in the future between you and your tenant. So you can use a covenant to distinguish the rights of your tenants. But what if you want to put some restrictions? The covenant may not clearly restrict any activities.

 

In that case, you can issue a restrictive covenant. It prohibits a pledge to restrict the utilization of some property advantages. It can protect against damage to your property. Read the blog to know the context’s basics and how they are legally applied.

Concept of Restrictive Covenants

A covenant means an agreement or a contract of an individual or entity’s rights. In comparison, a restrictive covenant means prohibiting or preventing their activities. For instance, it can include limiting the number of people living in the house.

 

It can only limit the use of the property for the tenant. In simple terms, the tenant may only be able to use some of the areas or take advantage of them. Under this covenant, you can also restrict the buyers of your property.

What Are the Characteristics of a Restrictive Covenant?

Restricting a covenant is equally important as the property agreement. Whether you are selling land or putting it on rent, the characteristics of it are the same. Three common characteristics are mentioned below.

  • It is imposed for your own benefit.
  • It includes your preference for blocking the prohibited area.
  • It is put on one solid part of the land where the unsold part needs to be protected.
  • It protects the individual rights of multiple buyers of land.

You can take the help of Property lawyers Perth WA, to legalize the method. It would make the agreement trustworthy for the buyers. In case you need to change something in the contract, the lawyers can give you a legitimate exhortation.

What Are the Variants of Restrictive Covenant?

It has several benefits, which divide it into a few variants. But the most common ones in terms of real estate are the following.

  • Limitation on Usage

Most people include prohibitions on the rights of the buyers or tenants. It prevents them from colouring the property, the number of people living there, and barriers they cannot cross. There are many more that are included in the limitations. You can also include the terms against the property value to limit their activities. It gives you the privilege to restrict all the advantages for them.

  • Required Maintenance

Did you know you can continue the maintenance of your property even after selling it? You can include what your tenant should or should not do to keep your property safe. The buyer or tenant can do the maintenance of its colour, design, clarity or other.

 

Thus restrictions on your buyer can help you keep your property safe. It would last long and stay damage free. You can secure the unsold part and limit the usage of all the advantages. It would be splendid for your privacy and save your property from sabotaging.

What Is Its Benefit?

The purpose it serves can have multiple benefits. But remember to consult a covenant lawyer before you set the restrictions. Under the Transfer of Land Act 1893, they can allow you to amend the planning scheme successfully.

 

You are eligible to apply for a permit to legalize your planning. Your buyers would then take it more seriously. Thus you can get absolute benefits from restriction planning.

  • Maintenance

As you have included the terms of maintenance, it would keep your property undamaged. The buyer needs special permission to keep pets. They cannot throw trash just anywhere. It is their duty to maintain the property on behalf of you.

  • More Protection

Due to the prohibition in property control, you can protect a single of the sold property. It allows you to restrict the entry or usage of the part under the covenant.

  • Damage Control

You can restrict them from colouring it or doing other such things. When the onus of maintenance is upon them, they cannot harm the property.

  • Privacy

When you are willing to put a part of your property on rent, the restrictive covenants property law can help you. It can protect the privacy of the other half of the property.

  • Dispute Mediation

Building a convent beforehand would make the buyers or tenants aware of their rights. Thus it can prevent any dispute regarding the buying or selling of the property.

 

When you take the support of the law, any business entity or individual renting or buying it has to follow the covenant. No matter whoever you are selling it to, they must maintain all its mentions.

 

If the buyer violates the regulations, you can file a case against them based on the contract. The lawyers can even help you get an enforcement fee from them.

What Are the Examples of It?

If you wish to build a restrictive covenant, you first need to identify what you want to restrict. You have to be very specific about things to avoid disputes. Other clarification can raise misunderstandings. Here are common examples that can help you determine your preferable area of prevention.

  • You can restrict them from colouring the property.
  • You can restrict your buyer from renting the house.
  • You can allow or prohibit certain business activities.
  • If you want, you can restrict pets on your property.
  • You can also ask them to maintain the exterior or interior aesthetics.
  • The buyer can only build a fence, garage or shed with permission.
  • You can prevent cutting down trees that fall under your property.
  • You can restrict them from making any changes.

You can also follow the regulations from the CC&Rs and the HOA. They include all the elements based on which you can build a covenant. You would like where to put the prevention would be fair for both you and your buyer.

What Are the Disputes Associated with It?

Even if you create a covenant, there can still be disputes.

  • Unclear statements.
  • No proper mention of property rights.
  • A breach in restriction covenant by the buyer.

Thus you need to be very specific about your requirements. Otherwise, the restrictive covenant can take the turn of a caveat dispute. Caveats refer to the precautionary measure that allows the alleged person to claim a right before the court hearing.

 

In case you file a case against your buyer for breaching a restrictive covenant, it can raise an issue for you. It can only happen if you have issued an unclear agreement. Thus you are advised to always discuss it with an experienced solicitor.

Conclusion

In conclusion, building a restrictive covenant is a critical duty. You can search for the Best Property lawyers in Perth to avoid the possible complications associated with it. They would guide you towards what possible elements you can restrict. You can use the covenant to your full advantage with their support. If any dispute occurs, the solicitors can also help you deal with the entire process.

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