Declaration of Restrictive Covenant

• Category: Real Estate - Covenants
• State: Multi-State
• Control #: US-RE-COV-101-1
• Format: Word; Rich Text

Description

"Restrictive covenants" are an aspect of residential and commercial real estate, where an entity, or community, seeks to place limits; i.e., a development's growth or insure the uniformity of appearance by regulating the development's aesthetic attributes. These provisions in a deed to a particular parcel of property may limit use of property, or the type and placement of structures upon it.

A Declaration of Restrictive Covenant is an agreement between parties that limits certain activities for a specific period of time. Generally, it is used to protect one party from potential economic harm caused by the other. It is most commonly used in the context of real estate transactions, where it can be used to limit the use of a property by the buyer or seller. Declaration of Restrictive Covenants can also be used to protect intellectual property, such as confidential information or trade secrets. There are two types of Declaration of Restrictive Covenant: positive and negative covenants. Positive covenants are promises to do something, such as maintain a certain level of quality, while negative covenants are promises not to do something, such as compete with the other party.