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.
Covenants Form For Client In Minnesota
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Restrictive employment covenants; void and unenforceable. (a) No service provider may restrict, restrain, or prohibit in any way a customer from directly or indirectly soliciting or hiring an employee of a service provider. (b) Any provision of an existing contract that violates paragraph (a) is void and unenforceable.
Subd. (a) Any covenant not to compete contained in a contract or agreement is void and unenforceable.
181.78 AGREEMENTS; TERMS RELATING TO INVENTIONS. Any provision which purports to apply to such an invention is to that extent against the public policy of this state and is to that extent void and unenforceable.
If a deed restriction is not enforceable, you can choose to ignore it and take on the risk of a neighbor filing suit, or you can seek out a judge's ruling to have the covenant removed from the deed. Obtaining that ruling is easier when no one is actively enforcing the covenant.
Although restrictive covenants have been prohibited in Minnesota since 1953, they still appear in real estate records across the country. In 2019, the Minnesota Legislature passed a law allowing people to renounce these covenants by filing a document with Minnesota counties.
(a) An owner or operator of a petroleum refinery shall, when contracting with contractors for the performance of construction, alteration, demolition, installation, repair, maintenance, or hazardous material handling work at the site of the petroleum refinery, require that the contractors performing that work, and any ...
In Minnesota, the new law prohibits enforcement of non-competes entered into after July 1, 2023, but leaves existing agreements in place for the nearly 300,000 Minnesotans we estimate had a non-compete before the law passed.
Minnesota Statute § 181.9881 — Restrictive Employment Covenants; Void in Service Contracts — prohibits on a go-forward basis service providers from restricting “in any way a customer from directly or indirectly soliciting or hiring an employee of a service provider.” The law is not limited to just employees, but also ...
(a) Any covenant not to compete contained in a contract or agreement is void and unenforceable. (2) the covenant not to compete is agreed upon in anticipation of the dissolution of a business.
From a legal perspective, including NDAs in employment agreements in Minnesota strengthens the enforceability of confidentiality obligations. It provides a formal framework for outlining the scope of confidentiality and the consequences of violating the agreement.