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.
Illinois Agreement Creating Restrictive Covenants
Instant download
Description
Free preview
How to fill out Agreement Creating Restrictive Covenants?
You can spend hours online attempting to locate the legal document template that satisfies the state and federal regulations you need.
US Legal Forms provides thousands of legal forms that are reviewed by professionals.
It is easy to download or print the Illinois Agreement Creating Restrictive Covenants from the service.
To obtain another version of the document, use the Search box to find the template that fits your needs.
- If you have a US Legal Forms account, you can Log In and click the Download button.
- Then, you can complete, modify, print, or sign the Illinois Agreement Creating Restrictive Covenants.
- Each legal document template you acquire is yours permanently.
- To obtain another copy of any downloaded form, visit the My documents tab and click the corresponding button.
- If you are using the US Legal Forms website for the first time, follow the simple instructions below.
- First, ensure you have selected the correct document template for the area/town of your choice.
- Review the form description to confirm that you have chosen the right document.
Form popularity
FAQ
Restrictive covenants are common in real estate. They mandate owners and tenants to avoid or take specific actions intended to preserve the value and enjoyment of the adjoining land. Restrictive covenants are established in a deed or a separately recorded document called a declaration of restrictive covenants.
How legally binding are restrictive covenants? Providing restrictive covenants are not void for restraint of trade and required to protect legitimate business interests, they will be viewed as legally binding. If restrictive covenants are introduced to existing employees, employer's need to provide consideration.
Binding neighborhood covenants are created by written documents (e.g., a declaration of covenants). In most cases, they will already be in existence at the time a purchaser takes interest in a parcel of land or house.
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.
Restrictive Covenants arise initially in the Sale Agreement. In completion of the sale, the Restrictive Covenants and the recital must be included as part of the transfer if the parties desire the covenants to be noted in the Certificate of Title.
If there is a restrictive covenant on your property you may be able to remove it. The first step would be to negotiate with the original developer or landowner to enter into a formal agreement to remove the covenants from the title.
Non-compete clauses and restrictive covenants are highly enforceable in the UK in order to protect the business the employee is leaving. They have to be narrowly defined and should only stay enforced for the time that is required to protect the business.
A restrictive covenant is a condition that restricts, limits, prohibits, or prevents the actions of someone named in an enforceable agreement. In bond obligations, restrictive covenants limit the amount issuers can pay in dividends to investors.
Employers may not enforce non-competition and non-solicitation covenants against an employee who loses their job due to COVID-19 or to circumstances that are similar to the COVID-19 pandemic unless the employers provide the employee with the equivalent of their base salary for the duration of the restricted period,
Breaching a restrictive covenant leaves you open to potential legal action from the other party, if they wish to enforce the covenant. If you are taken to court and the other party is successful, you might have to undo any work carried out and may face a fine or have to pay damages, as well as legal fees.