restrictive covenant

Erinw,

In a deed a kind of agreement which is used to limit the use of the house in any particular manner. It is used by the seller to restrain the buyer from doing certain kind of development work on his property after it is sold like building on certain section of the property.

When you are buying a particular property your real estate agent will normally provide you with a copy of the restrictive covenants for that property. Before placing your offer for the purchase you should go through it to know if any restriction will be imposed through it.

S. Howard

Hi Erinw,

Restrictive covenant is a type of clause included in a contract which prevents one party from doing certain things. For example, thelender can impose this kind of restriction on the borrower.

Restrictive covenants are restrictions imposed through a deed applicable on a group of homes, lots or property which is part of a development project.

The covenants stipulate the minimum size of the property allowed, the number of homes that can be built on a lot and the type of construction the homes may be.

Thanks,

Sara

Hello erinw,

Below is a link from wikipedia providing a clear explanation of a Restrictive covenant. Hope the information helps.

http://en.wikipedia.org/wiki/Restrictive_covenant