Covenants Form With 2 Points In Georgia
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FAQ
The owner of a conservation use or residential transitional property must enter into a 10 year covenant. This covenant is a sworn agreement that the property owner will maintain the current use of the property for 10 years from January 1 of the year the property is entered into the covenant.
In Georgia, the enforceability of restrictive covenants is governed by the GRCA, OCGA § 13-8-50 et seq. The GRCA provides that employment contracts that restrict competition must be “reasonable in time, geographic area, and scope of prohibited activities.” OCGA § 13-8-53(a).
A covenant never to sue is equivalent to a release as is a bond to indemnify a debtor against his own debt. (Orig. Code 1863, § 2802; Code 1868, § 2810; Code 1873, § 2861; Code 1882, § 2861; Civil Code 1895, § 3714; Civil Code 1910, § 4308; Code 1933, § 20-909.)
A covenant is an obligation to do or not to do something with your real property required simply because you own the property.
Perpetual Duration: Prior to 1993, Georgia law generally provided that covenants expire after 20 years. In 1994, the law was amended to permit covenants to automatically renew. Yet, Georgia courts have subsequently held that covenants in communities recorded prior to 1994 do not receive the benefit of the 1994 law.
It is possible to apply to the Lands Chamber of the Upper Tribunal to have a restrictive covenant “discharged or modified”, as the statute puts it, in order to get the covenant removed or changed so that development can take place or the use of the land can be changed.
Georgia common law was generally hostile to restrictive covenants but was more permissive of anti-raiding restrictions such as employee non-solicitation provisions. Georgia's passage of the Restrictive Covenants Act (RCA) in 2011 made enforcement of valid restrictive covenants easier than it had been before.
In the US, blue penciling commonly refers to the practice of modifying, narrowing, or deleting an unenforceable contract or contractual provision so that the remainder of the agreement is enforceable. It is often used by courts adjudicating challenges to restrictive covenants.
Georgia is a blue pencil state, which means that if any part of the agreement is found to be unenforceable, then the entire agreement voided not just the part in question. An extended period of time will not be enforceable as it would unduly limit the employee's ability to work.
Perpetual Duration: Prior to 1993, Georgia law generally provided that covenants expire after 20 years. In 1994, the law was amended to permit covenants to automatically renew. Yet, Georgia courts have subsequently held that covenants in communities recorded prior to 1994 do not receive the benefit of the 1994 law.
