Initially, for me, a covenant and contract seemed to be the same. I could not distinguish between the two until one of my lawyer friends helped me understand what is covenant meaning in real estate. A contract is legally binding, but the covenant is a bit flexible in that respect. The covenant definition refers to it as a pledge between two or more parties. In fact, you can even break a covenant but do not do so as it will depend on the terms and conditions you agreed upon while signing the agreement. In real estate, it refers to the conditions that are tied to the ownership or use of the property. Let me elaborate on this topic here.
What is the meaning of property law covenant?Let me elaborate a bit about the meaning in covenant for your better understanding. A covenant refers to a formal, binding agreement or contract between two or more parties. It outlines the rights, obligations, and responsibilities of each party involved. Covenants are often used in the legal, business, or real estate fields. They mention specific conditions that must be met or actions that must be taken.
Thus, a property covenant is an agreement between two or more parties regarding the use of the property. For example, a landowner asks the tenant to keep the rented room clean and tidy. This is a covenant. It is like a promise between the tenant and landlord. The tenant can or cannot obey.
It not only revolves around a tenant or landowner but any real estate owner, buyer, or seller as well. A covenant on a piece of land or property states what an owner can do and cannot do. If you buy a property with an existing covenant, it already means that you have agreed to abide by the rules stated there. This is how you can define covenant.
What are the two types of covenant?There are two types of covenant mainly- positive and restrictive.
Positive Covenant:A positive covenant is an expectation of action. If you agree to this covenant, you are agreeing to do something with the property you own. This type of covenant is tied to the owner who agreed to the terms, so get your documents verified to check whether any covenant is attached to your property or not.
Restrictive Covenant:A restrictive covenant is a stipulation of what cannot be done with the property in question. This means that there will be restrictions on what you can and cannot do with the property.
This is the basic covenant meaning in real estate.
Seek NoBroker’s legal experts’ advice in case of any doubts or queries
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What is Covenant?
Yash
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2023-06-05T10:33:21+00:00 2025-02-20T23:56:06+00:00Comment
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