What is a restrictive covenant?

A restrictive covenant is a legal agreement between two parties, typically related to real estate. It places restrictions, or covenants, on how a piece of property can be used. In the District of Columbia, restrictive covenants are usually included in residential real estate contracts as a way to protect both the seller and the buyer. For example, a restrictive covenant might only allow a two-story home to be built on the property. This means that the buyer is legally prevented from building a taller structure. The reasoning is that a taller structure might dominate the neighborhood and hurt the other property values. Another example of a restrictive covenant might prohibit the use of the property for commercial activities. This is a common agreement in residential neighborhoods where the residents want to preserve the residential character of the area. In some cases, a restrictive covenant might also be used to prevent certain people from living in the neighborhood. This form of restrictive covenant is generally called a racial restrictive covenant. These are now illegal in District of Columbia but they were once very common. When it comes to residential real estate law in the District of Columbia, restrictive covenants are typically included in the contract as a way to protect the interest of both the buyer and the seller. These covenants restrict the use of the property and can provide a sense of security for both parties.

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What is a restrictive covenant?

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