What is a restrictive covenant?

A restrictive covenant is a legal agreement between two or more parties that affects the use of a residential real estate property in North Dakota. It can be used to limit or restrict certain activities, such as the number of people allowed to reside on a property, the type of construction permitted on a property, and the types of commercial activities allowed. Restrictive covenants can be used to protect a residential real estate development from activities, such as excessive noise, that would negatively impact the neighborhood. Restrictive covenants can also protect residential property owners from activities that could cause property values to decrease. For example, a restrictive covenant could limit the height of any structures built on a property, or prohibit the use of certain colors or materials in a particular area. Restrictive covenants are typically enforced by local government entities, such as county zoning or planning boards, or by a homeowners’ association.

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