In real estate, a covenant is a legally binding agreement or promise that requires a property owner to do or refrain from doing a specific act. Covenants often relate to how property may be used or improved, such as a requirement to construct a home in a particular architectural style or a restriction against certain uses of the land. These promises are intended to maintain consistency, protect property values, or ensure compliance with community standards.
Covenants are commonly included in deeds and are made by the grantor to the grantee, although some may be implied by law. They may “run with the land,” meaning they bind not only the original parties but also future owners of the property. Because covenants can significantly affect property rights and use, they are an important consideration in real estate ownership and transactions.
