Michigan Agreement Creating Restrictive Covenants

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Multi-State
Control #:
US-0064BG
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Word; 
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Description

If you are planning on buying a home, condominium, townhouse, or other property, you must take note of whether any restrictive covenants will affect your ability to use your new residence.

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FAQ

Restrictive covenants (sometimes called "deed restrictions," "covenants, conditions and restrictions," or simply "CCR's") are contractual limits imposed on the use or occupancy of real property. Restrictions may affect a single tract of land or an entire subdivision.

Are discriminatory restrictive covenants illegal? Generally, yes. Since the United States Supreme Court's 1948 decision in the case Shelley v. Kraemer, restrictive covenants based on race have been unenforceableA contract will not be enforced by a court of law..

Although the Supreme Court ruled the covenants unenforceable in 1948 and although the passage of the 1968 Fair Housing Act outlawed them, the hurtful, offensive language still exists ? an ugly reminder of the country's racist past.

Restrictive covenants are clauses that prevent, prohibit, restrict, or limit the actions of a person or entity named in a contract. Restrictive covenants are common in real estate transactions and apply to everything from the colors you can paint your house to how many tenants can live in a building.

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, the buyer may agree to use the property for the designated purpose only and not for other purposes.

Restrictive covenants in the labor and employment context are agreements between an employer and employee that restrict the activities of an employee following a separation of employment.

Restrictive covenants can be excellent tools for employers to protect their business' reputation, competitiveness, and confidential information. And in Michigan, such covenants will generally be enforceable, provided that they are reasonable.

A restrictive agreement, or restrictive covenant, is a legal contract between two or more parties that restricts one or more of the parties from engaging in certain activities. These agreements are often used to protect trade secrets, businesses interests, and other confidential information.

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Michigan Agreement Creating Restrictive Covenants