Terms made simple
Covenant
A legally binding promise or restriction relating to a property, found in the title deeds. Positive Covenant An obligation to do something (e.g., maintain a fence, contribute to the cost of a private road). Restrictive Covenant A prohibition on doing something (e.g., not building beyond a certain height, not running a business from the property). Breach of a restrictive covenant can lead to legal action or the need for indemnity insurance.

