In a deed, a grantee may agree to do something or refrain from doing certain acts. This agreement will become a binding contract between the grantor and the grantee. An example would be an agreement to maintain fences on the property or that the property will only be used for residential purposes. This kind of covenant is binding, not only between the grantor and the grantee, but also runs with the land. This means that anyone acquiring the land from the grantee is also bound by the covenant of the grantee. A covenant that provides that the grantee will refrain from certain conduct is called a restrictive or protective covenant. For example, there may be a covenant that no mobile home shall be placed on the property.
A restrictive or protective covenant may limit the kind of structure that can be placed on the property and may also restrict the use that can be made of the land. For example, when a tract of land is developed for individual lots and homes to be built, it is common to use the same restrictive covenants in all of the deeds in order to cause uniform restrictions and patterns on the property. For example, the developer may provide that no home may be built under a certain number of square feet. Any person acquiring a lot within the tract will be bound by the restrictions if they are placed in the deed or a prior recorded deed. Also, these restrictive covenants may be placed in a document at the outset of the development entitled "Restrictive Covenants," and list all the restrictive covenants that will apply to the tracts of land being developed. Any subsequent deed can then refer back to the book and page number where these restrictive covenants are recorded. Any person owning one of the lots in the tract may bring suit against another lot owner to enforce the restrictive covenants. However, restrictive covenants may be abandoned or not enforceable by estoppel if the restrictive covenants are violated openly for a sufficient period of time in order for a Court to declare that the restriction has been abandoned.
Restrictive Covenants For Healthcare In Florida
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What voids a non-compete agreement in Florida? A non-compete agreement in Florida is voidable if it is unreasonable in geographic scope, length of time, or type of business it restricts.
For example, restrictive covenants can prevent owners and tenants from making certain renovations, having pets, parking RVs in the driveway, or raising livestock.
At the time of drafting this article, non-compete agreements are enforceable in Florida. The Federal Trade Commission (“FTC”) issued a rule in April 2024 providing that beginning on September 4, 2024, non-compete agreements would be unenforceable.
How to Get Out of a Non-Compete Agreement in Florida Seek legal advice from an attorney. Review the agreement carefully. Evaluate the legitimacy of employer interests. Assess the reasonableness of the agreement. Negotiate with the employer. Challenge the enforceability in court.
(1) Notwithstanding s. 542.18 and subsection (2), enforcement of contracts that restrict or prohibit competition during or after the term of restrictive covenants, so long as such contracts are reasonable in time, area, and line of business, is not prohibited.
In the case of an HOA, restrictive covenants are general rules that members of your HOA vote on that all property owners living in the area must follow. The covenant may include actions you can't take with your property, like raising livestock or running a business from your home.
Therefore, enforceable non-compete agreements in Florida do exist, but they must meet specific criteria: Reasonable Timeframe: Typically, one to two years is considered reasonable, but the exact duration depends on the ownership interest, industry, the specific business, and other factors.