When considering the legal implications of real estate ownership, you may have come across the term “covenant that runs with the land.” This term is a legal concept which embodies a pledge made by one party about the use of the land and the obligations attached to the land. It is seen to have the same effect as if written in a contract.
Basically when there is a covenant that runs with the land, it is a legally binding pledge between the parties involved regarding the rights of use and obligations of the land. This is different to when a covenant is merely imposed on the land, which is not legally binding.
What Does a Covenant That Runs With the Land Look Like?
A covenant that runs with the land is all about preserving the rights and obligations related to a property, even after it has been sold. For example, a covenant may be agreed between the buyer and seller of a property, and be attached to the title deed as binding. This means that even if the property is sold, the future owners of the property are also bound by the same covenant.
One modern example is when a developer sells land for a housing complex. The developer may have included a covenant in the sale which states that the land can only be used for residential purposes and will never be used for commercial buildings. This covenant runs with the land, subsequent owners of the property are still bound by this covenant no matter the number of times the property has been sold.
Conclusion
At the end of the day, “covenant that runs with the land” is just a way of describing a legally binding agreement or pledge which is enforced on a piece of real estate no matter how many times it is changed ownership. This agreement is added to the title deed and binds all future owners to the obligations and rights prescribed by the covenant. With a thorough understanding of this term, you’ll be able to make more informed decisions when it comes to real estate purchases.