What is a covenant?

In the property context “covenant” describes restrictions to the way property owners can utilise their land.

Covenants are rules or obligations imposed on the property title which the owner must abide by.

Covenants can be positive/non-restrictive or restrictive.

Positive covenants

A positive covenant refers to an action you need to take. Positive covenants are generally used to ensure a level of quality and unity in newly established areas lacking established infrastructure.

Restrictive covenants

A restrictive covenant limits the way an owner can use the land. This type of covenant applies to all owners over time and runs with the title. Whilst it can possibly be removed, it does not expire like a positive covenant might.

Should I care about covenants?

You need to know what covenants are on the property and how they will affect your future plans.

Is it possible to remove a covenant?

It is possible to remove or vary a covenant however it is generally done by an application to the Supreme Court of NSW which can be very complex and expensive with an uncertain outcome.

It is possible to apply for planning permission through your local council who have the ability to amend a covenant. However, the process for such an application is generally complex and requires consent by all owners affected by that covenant.

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