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 Covenant With In Georgia
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Are non-compete provisions enforceable in Georgia? Yes. But under the Old Law it was and is very difficult to do so. 85-90% of such agreements we review are, in fact, not enforceable.
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.)
In the minority of jurisdictions, like California, courts will likewise disregard the fact that something is labelled as a covenant not to solicit customers and/or clients, and may instead deem it akin to a covenant not to compete and treat it as such.
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).
In general, a license is an affirmative grant of authority to commit an act that would otherwise be unlawful, while a covenant not to sue is merely a personal promise not to sue.
Notwithstanding subsection (a) of this Code section, covenants restricting lands to certain uses shall not run for more than 20 years in municipalities which have adopted zoning laws nor in those areas in counties for which zoning laws have been adopted; provided, however, that whenever a zoning ordinance, upon its ...
If the obligation restricts the use and enjoyment of the land it is called restrictive covenant. Examples of restrictive covenants are not to use the property other than for residential purposes or not to build any structures on the property.
My limited understanding is, restrictive covenants are only enforceable by a home owners association created among them. A local government isn't going to swoop in and enforce, or defend, a covenant that you created on your property. The local government is only concerned with land use ordinance's and state laws.