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 Shareholders Agreements In Virginia
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In the case of an HOA, restrictive covenants are general rules that members of your HOA vote on that all property owners living in the area must follow. The covenant may include actions you can't take with your property, like raising livestock or running a business from your home.
Chapter 2 – How to Beat Your Virginia Non-Compete Get a copy of the agreement. Have an attorney review the agreement. Don't plan your new business at work! ... Do not advertise your new business until you know your non-compete agreement is not an issue. Be Honest. Seek legal action to determine validity of the agreement.
Generally speaking, deed restrictions do not expire unless there is a specified, written expiration date. If there is a specific expiration date, it is possible for an HOA to vote to extend the time limit on the restriction.
Restrictive covenants in employment agreements (like non-compete and non-soliciation provisions) are disfavored in Virginia and only enforced when narrowly crafted so that the restrictions are no broader than necessary to protect the employer's legitimate business interests.
As a reminder, Virginia is one of eleven states (along with Washington, D.C.) that imposes restrictions on the use of non-compete agreements for so-called “low wage employees.” Effective now in 2025, the salary threshold defining a “low wage employee” in Virginia has increased from $73,320 to $76,081 annually.
Restrictive covenants in employment agreements (like non-compete and non-soliciation provisions) are disfavored in Virginia and only enforced when narrowly crafted so that the restrictions are no broader than necessary to protect the employer's legitimate business interests.
Take a non-competitive job or role outside your current employer's specialty. Prove your employer breached the contract to invalidate the non-compete clause. Argue that the non-compete is overly restrictive or not enforceable. Negotiate or prove no legitimate business interests exist to uphold the agreement.
In Virginia, non-compete and non-solicitation agreements are enforceable only if they are narrowly drawn to protect the employer's legitimate business interests, are not unduly burdensome on the employee's ability to earn a living, and are not against public policy.
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Virginia has enacted a ban on non-compete agreements for "low-wage employees. " If that applies to you, your non-competition agreement may be invalid.A deed may include a general provision that states that such deed is subject to any and all covenants and restrictions of record. The key takeaway for Virginia businesses is that restrictive covenants can and will be enforced in sale of business agreements. The most common and easily recognizable restrictive covenant in the employment context is a noncompetition agreement, or a noncompete. On April 9, 2020, Governor Ralph Northam signed House Bill (HB) 330, Virginia's first law banning covenants not to compete against "lowwage employees." To be enforceable, covenants not to complete must be: 1. In writing and signed;. 2. A restrictive covenant is a condition that restricts, limits, prohibits, or prevents the actions of someone named in an enforceable agreement. One employment lawyer explains how companies can navigate challenges of federal and state governmental scrutiny on restrictive covenant agreements.