Restrictive Covenants

A restrictive covenant is a legally binding condition that is attached to the title deeds or contracts of sale relating to a particular property or piece of land. They restrict what can be done with the property or land by the owner.

Restrictive covenants on property fall into several main categories, including:

• Restrictive covenants against altering a property (e.g. extending a property or converting a house into flats)
• Restrictive covenants against the erection of new buildings (often used in land sales)
• Restrictive covenants against a property or land being used for business purposes
• Restrictive covenants governing access over land
• Restrictive covenants to maintain shared conditions of leasehold flats (e.g. for noise regulation)
• Anti-competition restrictive covenants on commercial property (i.e. preventing the buyer from running a business that competes with that of the seller at the site)

You can check with the Land Registry whether there are any restrictive covenants attached to the title deeds of a property or piece of land, or you can have a lawyer check this for you.

For restrictive covenants included in contracts of sale, you will need to carefully check the contracts. It is strongly recommended to have solicitor with specific expertise in restrictive covenants do this for you, so you can be sure you fully understand the conditions and what can be done if a restrictive covenant is likely to interfere with your plans.

A restrictive covenant on land is a legally binding condition attached to title deeds or contracts of sale that restricts what a landowner can do with the land. Common restrictive covenants on land include conditions preventing development or certain kinds of development as well as restrictions on which kinds of trades or businesses can operate on the land.

A restrictive covenant on a property will usually be attached to the title deeds but may sometimes be part of the contract of sale. They are generally used to prevent alterations being made to a building, but are also sometimes used for other purposes, such as maintaining shared conditions in relation to leasehold flats e.g. over the right to keep pets.

How long a restrictive covenant on a property or land lasts will depend on its conditions. The covenant may expire after a certain time period or it may last indefinitely. One key point to understand is that the covenant relates to the land or property, not a particular owner, so it will be passed along if the property is sold.

In general, a properly written restrictive covenant on a property or piece of land will be legally enforceable, meaning there can be serious repercussions for a breach.

However, it is important to take specialist advice as there may be options that will still allow you to move forward with a project in spite of a restrictive covenant. It may also be possible to have the covenant removed or modified to suit your needs.

Breaching a restrictive covenant can be very serious, so should be avoided at all costs. Potential consequences for the person or business who breaches a restrictive covenant may include a requirement to:

• Immediately stop any work or activity that breaches the covenant
• Rectify any breach of the covenant (e.g. demolish any construction works not allowed by the covenant)
• Pay compensation to the beneficiary of the restrictive covenant

If you believe you may have breached the terms of a restrictive covenant on land or a property, please contact our team immediately for specialist advice. Early intervention can often minimise any consequences and may help you to keep your project moving forward.

In many cases, it will be possible to have a covenant on a property or land removed or modified via negotiation with the beneficiary (e.g. the seller). This can allow you to carry out your plans without worrying about any legal repercussions.

Where a private agreement cannot be reached, you may need to apply to the Lands Chamber of the Upper Tribunal to have a restrictive covenant discharged or modified.

IBB Law’s Property Litigation team have extensive experience with both private negotiation and applications to the Lands Chamber of the Upper Tribunal in relation to restrictive covenants, so can ably guide you through either option as the situation requires.