What is a restrictive covenant?

A restrictive covenant is a type of legal agreement that applies to residential real estate in North Carolina. It is a contract between two or more parties that sets limits on how the property may be used. Restrictive covenants can include limiting the types of buildings that can be constructed, regulating the number of occupants for a property, and specifying acceptable uses of the land. Restrictive covenants are often established by a homeowner’s association (HOA) and are legally binding on all homeowners in the area. The covenants may be found in the HOA’s bylaws or in the deed of the property. Restrictive covenants are intended to protect and promote the interests of all homeowners in the area. Often, the types of restrictions will be specific to the community, such as prohibiting brightly colored houses, limiting the number of pets per home, or banning certain types of landscaping. The enforceability of restrictive covenants can vary from state to state. In North Carolina, it is important to be aware of all of the restrictive covenants that may be in place when purchasing property. Failure to comply with the restrictive covenants could result in fines or other legal repercussions.

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What is a restrictive covenant?

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