What is a restrictive covenant?

A restrictive covenant is a legal agreement that limits the use of residential real estate in South Dakota. It is typically included in a deed or other document that transfers ownership of a house or other property. A restrictive covenant could limit what can be done on the property, such as prohibiting the construction of any additional structures. It could also limit the type of activities that can take place on the land, such as preventing anyone from using the property for commercial purposes. Restrictive covenants are legally binding and are enforceable by the courts. Generally, these covenants are meant to protect the character of the neighborhood and preserve the quality of life of its residents. They can also be used to ensure that a development project maintains its architectural standards. It is important to note that restrictive covenants are often used to protect the interests of a neighborhood or a development project but can also be used in a discriminatory way.

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