Understanding Real Estate Covenants: A Comprehensive Guide§
A covenant is a binding promise embedded within an agreement between a buyer and a seller. These covenants can take various forms, originating from either party and sometimes relating to the real property itself.
Types of Covenants§
- Seller’s Covenant of Warranty: The seller pledges that the buyer will receive a title to the property that is free of any claims or encumbrances.
- Buyer’s Mutual Covenant: A commitment from the buyer to adhere to certain agreed-upon conditions, such as following the rules outlined by a homeowners association.
- Land-related Covenant: These covenants attach to the property, such as a permanent easement that grants the right to use a driveway to an adjoining property. This kind of covenant remains in place even if the property changes ownership.
Application of Covenants§
Covenants may work independently or depend on another covenant. They can also function in conjunction with one another, enhancing their significance in property transactions and neighborhood dynamics.
Understating these covenants is pivotal for both buyers and sellers, as they impact ownership rights and obligations, help maintain property value and ensure harmony within communities.
Related Terms: Real Property, Contracts, Easement, Homeowners Association.
