Question: What Is Another Description For A Restrictive Covenant?

What is a restrictive covenant Please define and provide one example?

When a party enters into a restrictive covenant, he/she agrees to refrain from doing something or from using a property in a certain way that is restricted by the contract.

For example, when purchasing real estate..

How do I know if a restrictive covenant is enforceable?

A restrictive covenant will generally be enforceable between the original contracting parties as a matter of contract. There can be situations where this is not so, for example, where: The covenant is too uncertain or ambiguous to be capable of enforcement.

What is the meaning of restrictive?

1a : of or relating to restriction. b : serving or tending to restrict restrictive regulations. 2 : limiting the reference of a modified word or phrase. 3 : prohibiting further negotiation.

What is another word for restrictive?

In this page you can discover 19 synonyms, antonyms, idiomatic expressions, and related words for restrictive, like: confining, prohibitory, prohibitive, limiting, definitive, qualificatory, opposed, conditional, nonrestrictive, unrestrictive and onerous.

Is a restrictive covenant an asset?

24. In the case of a restrictive covenant, the person who receives the consideration for the covenant creates certain rights on entering into the covenant. Those rights comprise an asset in terms of section 160A.

What are examples of covenants?

Examples of Financial CovenantsMaintaining a certain debt to equity ratio.Maintaining a certain interest coverage ratio.Maintaining a certain level of cash flow.Maintaining a minimum level of earnings before interest, tax, and depreciation (EBITD)Maintaining a minimum level of earnings before interest and tax (EBIT)More items…

What does restrictive practice mean?

Restrictive practice is making someone do something they don’t want to do or. stopping someone doing something they want to do. (Skills for Health, 2014)

What happens if you ignore a restrictive covenant?

If you decide to ignore a restrictive covenant, or are unaware that one applies to your land and breach it, it can be enforced against you. … In some circumstances, the covenant will not be enforced because it is no longer relevant or does not cause loss or nuisance to the person who has the right to impose it.

How long does a restrictive covenant last?

How long do property covenants last? Till the end of time. Many restrictive property covenants do not have an expiry date, unless the contract explicitly states one.

What does too restrictive mean?

C2. limiting the freedom of someone or preventing something from growing: He is self-employed because he finds working for other people too restrictive. The college is not able to expand because of restrictive planning laws.

How long can a restrictive covenant be enforced?

Typically, courts tend to enforce restrictions of between 6 and 12 months, depending upon the seniority of the employee concerned and their access to confidential information and clients. This is subject, of course, to the covenants being reasonable and necessary to protect a legitimate business interest.

What is an example of a restrictive covenant?

A restrictive covenant is an agreement you make with an HOA that limits the way you can use a property. … A restrictive covenant may include things that you can’t do with your property, like raise livestock. A restrictive covenant will also include things that you must do, like mow your lawn regularly.

How do you get around a restrictive covenant?

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.

Who has the benefit of a restrictive covenant?

Most importantly, a restrictive covenant must touch and concern the land of the person seeking to enforce it. This means that the covenant benefits only the owner for the time being of the land, has an impact on the nature or value of the land, and is not expressed to be personal.

What does a restrictive covenant mean?

What is a restrictive covenant? Restrictive covenants are binding conditions that are written into a property’s deeds or contract by a seller to determine what a homeowner can or cannot do with their house or land under particular circumstances.