A covenant is any binding legal obligation which the owner of the property
is obliged to fulfil. For example, to allow a neighbour a specific right of access
across the property in which case the neighbour, who has these rights, is said
to enjoy the benefits of an easement.
Not all covenants have related easements.
Some more general covenants may relate to maintenance of the property, or to the
protection of the interests or the environment for the benefit of everybody living
locally.
Most of these obligations will be listed in the title deeds or
in separate documents although, in some cases, they may even be implied. The obligations
to comply with the covenants will be transferred in the contract agreement.
An express covenant will be set out in full in writing and be part of the
agreement while an implied covenant will be one which follows automatically from
other provisions that are in writing. The fact a covenant is only implied does
not mean to can be ignored.
Covenants may be positive – requiring
the property owner to do something specific – or negative (or restrictive)
preventing a property owner from doing something, for example, parking a caravan
in front of the house, or holding a noisy all-night party!
These responsibilities
will be set out in the draft contract and inherited with the conveyance of the
property. Some covenants are very old, maybe dating from when the area was first
developed, and their validity has probably long since lapsed. Law reform is being
discussed to cancel such irrelevant covenants out – ask your solicitor if
any apply to your proposed purchase so that you know what specific obligations
remain in force. Details of all current covenants will be included in the new
Home Information Packs when they are introduced in a few years’ time.
There is an alternative meaning of the word covenant when it refers to personal
creditworthiness. This aspect could come into question when you are taking up
a tenancy or offering to act as a guarantor. A tenant with excellent financial
and professional references is said to have presented a strong covenant.
