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.
Alabama Agreement Creating Restrictive Covenants
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FAQ
Alabama Non-Compete LawAlabama law generally frowns upon non-compete agreements, stating that every contract by which anyone is restrained from exercising a lawful profession, trade, or business of any kind otherwise is void.
A restrictive covenant is a clause in an employment contract or services agreement that works to prohibit an individual from (among other things) competing with his or her ex-employer for a certain period after he or she has left the business.
Non-compete agreements are legally binding restrictive contracts between an employer and an employee. These agreements typically prohibit an employee from directly or indirectly competing with the business for a specific length of time after employment has ended.
An application to remove or modify the restrictive covenant can take between 18 and 24 months to go through. If the party controlling the covenant can still enforce the ruling, consider negotiation, but be prepared for them to want compensation.
An agreement restricting the solicitation of current customers will be considered reasonable if it extends for 18 months or for as long as post-employment consideration is paid, whichever is longer. Noncompetition.
Generally speaking, it is hard to enforce a restrictive covenant after 20 years. The Limitation Act 1980 also states that claims in land should be brought within 12 years, within 12 years from the time the breach occurred, not when the deed came into force.
As restrictive covenants don't 'expire', if they are breached the person with the benefit of the covenant can enforce them against you.
Generally speaking, non-compete agreements (also sometimes called non-competition agreements, or simply non-competes) are not enforceable in California against former employees.
Restrictive covenant indemnity insurance can only be obtained when a covenant has been breached for at least 12 months without complaint. But once procured, the policy will last in perpetuity and can usually be passed on to future owners of the property.
Requirements in US LawThe covenant must be in writing to satisfy the Statute of Frauds. The original parties to the agreement must have intended that successors be bound by the agreement.