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.
Arizona Agreement Creating Restrictive Covenants
Instant download
Description
Free preview
How to fill out Agreement Creating Restrictive Covenants?
US Legal Forms - one of the largest collections of legal documents in the United States - provides a variety of legal document templates that you can download or print.
Through the website, you can find thousands of forms for business and personal use, categorized by types, states, or keywords.
You can quickly access the latest versions of forms such as the Arizona Agreement for Creating Restrictive Covenants.
Check the form summary to confirm that you have selected the correct document.
If the form does not meet your needs, use the Search field at the top of the screen to find the one that does.
- If you already have a membership, Log In to download the Arizona Agreement for Creating Restrictive Covenants from the US Legal Forms library.
- The Download button will be visible on every form you encounter.
- You can access all previously saved forms in the My documents section of your account.
- If you are using US Legal Forms for the first time, here are some simple steps to get you started.
- Ensure you have selected the correct form for your city/state.
- Click on the Preview button to review the form's details.
Form popularity
FAQ
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.
Under Arizona law, restrictive covenants may be enforceable, but there are pitfalls in trying to go too far to restrict employee conduct. In Orca Communications Unlimited, LLC v.
Certain restrictive covenants will be enforceable, if you are able to prove that they are: reasonable. necessary to protect legitimate business interests; and. of a duration no longer than is necessary to protect those interests.
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.
A restrictive covenant is a private agreement between land owners where one party will restrict the use of its land in some way for the benefit of another's land. Restrictive covenants, once agreed between the parties, are placed in the title deeds to the property. They bind the land and not the parties personally.
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.
Breach of restrictive covenantSeek damages: from the employee for breach of the restrictions; Sue the new employer for inducing the employee to breach their contract.
Arizona courts have found restrictive covenants to be reasonable and enforceable when they protect some legitimate interest of the employer beyond simply protection from competition.
Providing restrictive covenants are not void for restraint of trade and required to protect legitimate business interests, they will be viewed as legally binding.
In Arizona, non-compete agreements may be enforceable if reasonable. In determining whether a non-compete is reasonable, courts evaluate several factors, none of which are controlling.