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.
Shadow covenants are contracts between two entities "above the employee," restricting the employee's employment without their knowledge. As of July 1, 2023, noncompetition provisions are no longer enforceable against Minnesota employees or independent contractors in most situations."Covenant not to compete" means an agreement between an employee and employer that restricts the employee, after termination of the employment, from performing: Document number; Date of recording; Names of owners; Legal description. 2. Complete the Discharge of Restrictive Covenant Affecting Protected Classes form. 3. Minnesota is now the fourth state in the US to ban noncompetition covenants in agreements between employers and employees. In most states, restrictive covenants are enforceable only if they serve a legitimate business purpose and are reasonable in duration, geographic scope. If you are interested in free services to renounce a restrictive covenant from your property, fill out the Just Deeds form at EdinaMN. We can help property owners remove racial covenants from the title for a property.