What are restrictive covenants in real estate?

What are Restrictive Covenants?

Restrictive covenants in real estate are rules or agreements that limit how a piece of property can be used. These covenants are placed on the property deed and bind current and future owners. They can dictate a wide range of conditions, such as types of allowable constructions, architectural designs, minimum square footage of homes, and prohibitions on certain activities to preserve the neighborhood's character and property values. For example, a restrictive covenant might prevent owners from building structures above a certain height or using their property for commercial purposes in a residential area. Violation of these covenants can lead to legal consequences or fines.