What is a restrictive covenant?

A restrictive covenant is a legal agreement between two or more parties which restricts their rights and behaviors in regards to a certain piece of property. This type of agreement is generally associated with real estate. In Florida, restrictive covenants are written documents and should be registered in the public records in order to be valid. A restrictive covenant outlines certain restrictions that must be followed by the parties involved in a real estate transaction. For example, a restrictive covenant might outline that the property be used for residential purposes only and that no business activity can be conducted on the premises. Restrictive covenants can also restrict the types of modifications that can be made to the property or the types of structures that can be built. If a party to the agreement violates the restrictive covenant, the other party has the right to take legal action. This could include filing a lawsuit against the party who violated the agreement. In most cases, it is in the best interests of all parties to follow the restrictions outlined in the covenant. Failing to do so could result in serious legal and financial ramifications. Therefore, it is important for all parties involved in a real estate transaction to review and understand the terms of any restrictive covenant before signing.

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What is a restrictive covenant?

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