Property investment involves a range of legal terms. One of these is the property covenant. This is a provision or promise in your property’s title deed. There are two primary covenant categories in real estate including restrictive and positive covenants. The restrictive covenant unlike the positive limits some form of property enjoyment.
There are different penalties included in the breach of a restrictive covenant. It is imperative to seek out property solicitors from Townsville to advise you on the impact of a restrictive covenant on your property ownership.
Here are the common restrictive covenant types:
Property Use Restriction
This currently forms the most prevalent restrictive covenant. It limits the use of your property and might significantly impact your property enjoyment. In most states, property use is regulated by a property use restrictive covenant and zoning ordinance. If the state’s zoning ordinance places more limitation on use compared to a restrictive covenant, then the former takes precedence.
These limit constructions and any modifications on your property’s existing structures. Your property’s developer establishes architectural restrictions. After selling the property, enforcement of the restrictions becomes the duty of the board of directors of your home-owner’s association. Common architectural restrictions include exterior paint colours, fencing material and style, and landscaping.
This restriction covenant entirely prohibits property leasing or places some restrictions on leasing. It might, for instance, restrict your property’s leasing for a certain period. Though this might have minimal impact on commercial properties, it will impact your investment if you buy a vacation home you plan to lease weekly for profits.
Property investment is in most cases a legal minefield you cannot afford to navigate alone. There are two options a property lawyer will have for removal of the above restrictive property covenants if need be. They can send an application to the courts for an amendment or get a planning permit from your area’s planning scheme for your lot.