Property owners can decide what can or cannot be done on their land.
Usually, this is a verbal agreement between family members or neighbours.
But what happens if they want these rules to be written into law?
A covenant on a property is a common soluton.
What are covenants on a property?
A covenant on a property is a type of legal agreement. It states what a person can or cannot do on the property.
Covenants are usually created between two landowners, who might own adjoining land and thus agree to do something such as:
- Erect a fence
- Contribute to land maintenance
- Avoid any commercial use of the property.
Covenants can also be placed on land or property when its sold.
This might be because the seller doesn’t want the new owner to change the look or feel of a property. Or they want the new owner to maintain something about the property.
For example, it might prevent extensions or extra buildings from being constructed.
The new owners of the property must abide by the coveneant’s rules.
Types of covenant
There are two categories of covenants.
1. Positive covenants
A positive covenant is something that property owners must do. Common examples include:
- Financial contributions to maintenance
- Keeping an area tidy
- Erecting a fence.
In some cases, this type of covenant is tied to the person who created it rather than property.
This means the new property owner might not have inherited it by buying the house or land.
2. Restrictive covenants
A restrictive covenant is something that a property owner must not do. Common examples include:
- Keep wild animals
- Use property for business purposes
- Extend a house
- Construct an extra building.
Restrictive covenants are almost always tied to the property. This means that buyers inherit them with their purchase of property or land.
How can potential buyers find out if there are covenants on a property?
All official covenants should appear on the title deeds of a property.
Conveyancers look at these when assessing a property for a potential buyer – it’s part of the searches. They should inform their client at this stage.
How can homeowners find out if there are existing covenants on a property?
Homeowners unsure if covenants exist can also check their property’s title deeds. If nothing is noted there, a covenant likely doesn’t exist.
(Verbal agreements between previous neighbours are not often enforceable by law.)
When does a covenant expire?
In most cases, a covenant doesn’t expire. It continues indefinitely.
If a covenant has an expiration date, this will be put in writing when it’s first created.
Positive covenants will sometimes only apply to the person who created it rather than the land itself.
How do property owners apply for a covenant?
Solicitors can help property owners to create a covenant.
The applicant needs to be the registered owner of the land before the process can begin.
A covenant consent application form must be completed. It usually includes details such as the address, proposed covenant, parties involved, and more. Plans or drawings might also be required.
A local authority will typically review the application and then give feedback on whether the covenant is approved.
There tends to be an administration fee. Solicitors will also charge for assisting with this process, too.
How can covenants be removed?
Property owners who want to remove existing covenants must apply to the Upper Tribunal Lands Chamber.
This will involve getting approval from the beneficiaries of the covenant to waive it. If consent is not possible, it is up to the Upper Tribunal whether or not the covenant will be removed.
If a local authority has placed a covenant on a property, the property owner can complete a ‘covenant consent form’.
This is an application to break the terms of a restrictive covenant. It’s often seen with Right to Buy properties (amongst others), which tend to have strict conditions about what can or can’t be done.
Some legal professionals specialise in this area and can help applicants increase the likelihood of covenants being removed.
Do covenants impact house sales?
Homeowners have a legal responsibility to disclose a covenant when selling a property.
Whether it then impacts the said sale depends on the circumstances.
Some covenants are considered disruptive by potential buyers.
For example, ones preventing them from extending the house or keeping animals there.
Other covenants are viewed more neutrally or even positively. For example, covenants for ensuring that both the buyer and their neighbours don’t do something that the buyer wouldn’t do anyway.
What happens if someone breaks a covenant?
If someone breaks a covenant, the beneficiaries of the covenant should lodge a complaint with the property’s freeholder or managing agent.
And if the party breaking the covenant is either of these, then the complaint should be with a court.
The party that breached the covenant may then be forced to undo their works.
This can sometimes mean removing an extension, so the property or land is in its previous condition. And it will sometimes coincide with a fine. It depends on the situation and the severity of what they’ve done.
