Owning residential or commercial property in Florida does not always mean that you can use it as you choose. If there is a restrictive covenant attached to the property, your use of the property might be limited. Additionally, breaching a restrictive covenant may come with legal consequences.
A restrictive covenant is a binding condition that comes with the purchase of a property. The covenant is written into a property contract or deed and should explicitly state what an owner can or cannot do with the property or land.
Common examples of restrictive covenants
Although a restrictive covenant can generally forbid anything, some common restrictive covenants include preventing you from making certain alterations to a property, forbidding specific structures to be added onto the land or prohibiting you from operating a business on the property.
Restrictive covenants are generally designed to maintain certain standards for the land and buildings. Housing developments often have restrictive covenants attached to the properties in the development so the neighborhood maintains a specific character or look.
For example, you might purchase a home in a housing development and then learn that a restrictive covenant prohibits you from parking your vehicles in a specific area, such as on the street.
Restrictive covenants “run with the land”
Running with the land means that restrictive covenants apply to all future purchasers of the property and do not end when the original owner sells the property.
Knowing if there are any restrictive covenants on land or property before purchasing is extremely important. Learning about a restrictive covenant when it is too late to cancel a real estate transaction usually means that you are stuck with it.
Conducting a title search is a step in most Florida real estate transactions. Any restrictive covenants should be uncovered during a title search, so it is important to perform a thorough title search and verify whether there are any restrictive covenants on the property and if so, if you can live with them.
Even if you can accept any restrictive covenants that come with the property, consider if they will affect the future value of the property. Sometimes mortgage lenders are hesitant to lend to property owners when a covenant can negatively affect the property’s sale value.
What if I violate a restrictive covenant?
If you violate a restrictive covenant, you could be legally required to undo anything that breached the covenant, such as removing a structure from the land. This is true whether you knew about the restrictive covenant or not.
You will likely learn about your violation of the covenant from the person who holds the “benefit of the covenant.” It could be the original owner or a subsequent individual or company who previously owned the land.
Depending on the situation, you might be able to request that the restrictive covenant be removed. You can ask the person who holds the covenant for retroactive consent for whatever work you did or for permission to remove the covenant. You may have a better chance of success if your work was performed many years ago and it has not adversely affected the property.
Learning about any restrictive covenants prior to purchasing property helps you make an informed decision. If you find that you have unknowingly breached a restrictive covenant, there may be potential options for resolution.
