Indiana Amendment to Protective Covenant

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Description

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.



The following form shows one way in which Restrictive or Protective Covenants may be amended.
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FAQ

An application can be made to the Lands Tribunal to have a covenant removed or varied. The Lands Tribunal will consider any changes to the property or neighbourhood since the covenant was put in place, whether the covenant is unreasonably preventing developments that would be beneficial.

Restrictive Covenants may be removed and/or modified from the Register Book of Titles by:an agreement between the parties having an interest in the covenant, or,an order of a court of competent jurisdiction.

Can I get a restrictive covenant removed? If there is a covenant on your property which is obsolete, you can make an application to the Upper Tribunal (Lands Chamber) (which use to be known as the Lands Tribunal) asking for the covenant to be discharged or modified.

The easiest way to elude the requirements of a restrictive covenant is to simply ignore it. Covenants can become unenforceable if they expire, if there is a history of the covenant being violated, or if there is no individual or group benefiting from them.

How to Find Out if You Need Covenant Consent. You can find out if you need covenant consent by checking the title deeds for a property you own or a property you are planning on buying. The title deeds will state if any restrictive or positive covenants apply to the property.

The cost of lifting restrictive covenants involves a statutory fee of £880 upon application. If your application progresses to a hearing, there's a fee of A£1,100. If a decision is reached without a hearing, the fee is A£275. If you need more time to carry out the Tribunal's directions, you'll have to pay a fee of A£110.

By way of agreement; By way of drawing up a Deed of Release of Restrictive Covenant or; By applying to the Upper Tribunal to have the covenant removed, if it meets certain criteria, such as, the beneficiary is unknown, the covenant cannot be enforced or the covenant is unreasonable.

Negotiating limitsIt's unlikely that you can delete a restrictive covenant from your contract altogether, but depending on the situation and your leverage, you may be able to narrow its scope.

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.

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Indiana Amendment to Protective Covenant