Millions of Americans own properties under the effects of restrictive covenants, also known simply as covenants, which are a type of non-possessory property interest that other people may have in your land. These covenants place substantial burdens on how people can use their property for the benefit of neighbors or others in the same real estate development. Here are five things you may need to know about restrictive covenants as a homeowner:
- Restrictive covenants can impose restrictions on how you use your property
- One of the biggest reasons that covenants can become an issue for homeowners is how they impact a person’s property rights. Restrictive covenants can place restrictions on what kinds of additions or renovations can be made, how high a building can be built, or even cosmetic features like the color of paint on the outside of a house. Violating the terms of a covenant can lead to serious legal ramifications, so they should be taken seriously.
- Covenants run with the land, not the owner
- While some people agree to covenants as a result of a contractual agreement, such as joining a Homeowners Association (HOA), many people become bound by them simply by buying their property. This is because covenants “run” with the land, rather than with the homeowner, meaning you inherit any covenants from the previous owner when you buy the property. A title search should reveal any ongoing covenants or other title issues affecting the property.
- You may be under the effects of a restrictive covenant and not realize it
- All covenants are supposed to be disclosed as part of the real estate sale, but that does not mean people recognize the relevance of these terms when they see them. As a result, some people who buy a property will find themselves bound by restrictive covenants and not realize it. However, just because you do not know a covenant exists does not mean it cannot affect you.
- Your neighbors can try to have covenants enforced against you
- Restrictive covenants give other people rights in your property, which can be enforced through various mechanisms. If you belong to an HOA, for example, they may use their authority to try to fine you for violating their restrictions. In more extreme cases, violations of covenants may lead to litigation.
- Some restrictive covenants may be illegal
- Just because a covenant is restricting your land does not mean it is legal. Many covenants, for example, are from decades ago and would be considered illegal under current law. However, to know what legal options may be available to you, you should speak to a lawyer with experience handling real estate matters.
At David J. Lorber & Associates, PLLC, we assist clients throughout New York who are looking to buy or sell real estate. We will guide you through the process and help you minimize your legal and financial risks. Call us at (631) 750-0900 or contact us online to schedule your Free consultation at our Setauket office.
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