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 A Debt Contract In Middlesex
Category:
State:
Multi-State
County:
Middlesex
Control #:
US-00404BG
Format:
Word;
Rich Text
Instant download
Description
Free preview
Form popularity
More info
Do you have restrictive covenants in your employment contract? Find out their impact.THIS DECLARATION OF RESTRICTIVE COVENANT ("Declaration") is made as of the ___ day of. A restrictive covenant is a condition that restricts, limits, prohibits, or prevents the actions of someone named in an enforceable agreement. The Court noted that, under New York law, the enforceability of a restrictive covenant depends in part on the nature of the underlying contract. Restrictive, or negative, covenants are a type of non-financial covenants that limit the borrower from engaging in a certain activity or keep it from. If you are facing a legal concern or challenge relating to a restrictive covenant, we can assess your situation and assist in protecting your rights. A debt covenant lays out the conditions the borrower must fulfill, or the actions they must avoid, to remain in good standing with the lender. Many times employees are required to sign a restrictive covenant or non-compete agreement as a condition of their employment. Debt covenants, while they may seem reasonable and harmless at first, may end up being more restrictive than they look.