Covenant In Deed
Description
How to fill out Michigan Covenant Deed?
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FAQ
The covenant will burden one owner, and the other will receive some benefit. To make this concept easier to understand, consider the following examples of real covenants: An agreement to maintain an English-style garden on the land in perpetuity (this is an affirmative covenant ? a covenant to do something)
A property covenant is an agreement between two or more parties regarding certain use of a piece of real property. The covenant will either benefit or burden the landowner. A covenant that burdens the landowner is also called a restrictive covenant.
Negative covenants are actions you can't take, while positive covenants are actions you must take. For example, a negative covenant in real estate could prevent you from raising chickens on your property. On the other hand, a positive covenant could require you to mow your lawn.
Common examples include restricting a company from issuing dividends to its shareholders, restricting management fees from being paid to related parties, or restricting the amount of debt a business can carry.