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 In Contracts In Georgia
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In 2011, Georgia adopted landmark legislation governing the use of restrictive covenants in employment contracts. The Georgia Restrictive Covenants Act (GRCA) does not require that restrictive covenants contain an express geographic restriction to be enforceable.Georgia Supreme Court Finds Restrictive Covenants Not Required to Contain Express Geographic Restriction. Q: Are non-compete agreements enforceable in Georgia? A: Under Georgia's Restrictive Covenants Act, employee non-compete agreements are generally enforceable. A contract that is against the policy of the law cannot be enforced. Contracts deemed contrary to public policy include but are not limited to: The new statute eliminates the prior rules invalidating one covenant based on the unacceptable language of another separate covenant within the same contract. Employers should revise any restrictive covenant agreement accordingly to avoid a challenge to the enforceability of an employee nonsolicit. What agreements does Georgia's non-compete law affect?