When selling a home, certain legal details can catch even experienced sellers off guard. One of the most common is property covenants. These often-overlooked restrictions are tucked into a property’s title deeds and can affect how a home is used, developed, or even altered.
If you’re getting ready to sell your property, understanding how restrictive covenants work can give you added confidence and help the process run smoothly.
What are property covenants?
Property covenants are legal obligations or restrictions that are attached to the land and pass from one owner to the next. They’re written into the title deeds and are legally binding unless removed or varied.
There are two main types:
- Restrictive covenants: These prevent certain actions. For example, you might not be allowed to build an extension, run a business from home, or erect certain fences or walls.
- Positive (or Affirmative) covenants: These require the owner to do something, such as maintain a boundary wall or contribute to communal upkeep.
These covenants are intended to maintain the character of an area, protect neighbours, or preserve the value of surrounding properties. However, for homeowners or sellers, they can sometimes feel limiting, especially if they get in the way of your plans.
Related: Boundary rules: Which fence is yours?
Why do restrictive covenants matter when selling?
If you’re selling a property that’s subject to restrictive covenants, it’s crucial to declare them during the legal process. Most buyers will ask their solicitor to check the Land Registry records for any restrictive covenants on the property.
Failure to disclose them can result in legal disputes, renegotiated offers, or even compensation claims if the buyer later finds they can’t use the property as expected.
Common restrictive covenants include:
- No building without prior permission from a third party (often a developer)
- No commercial vehicles parked on the drive
- No sub-dividing the land
- No satellite dishes on the front elevation
For sellers, it’s always best to check your title deeds early in the selling process and get clarity on any restrictions listed.
Related: What are title deeds and what happens if you lose them?
Can you remove a property covenant?
In some cases, yes. However, it depends on the situation. Removing a restrictive covenant typically requires:
- Consent from the person or body that benefits from the covenant (e.g. a developer, local authority, or neighbour)
- Or a formal application to the Upper Tribunal (Lands Chamber) to have it discharged or modified
If you’re wondering about removing a covenant on land, keep in mind:
- You’ll usually need to show that the covenant is obsolete, unreasonable, or is preventing reasonable use of the land
- You may need to provide supporting evidence, such as planning permission, architectural plans, or evidence of similar nearby developments
- Affected parties will be notified and may object
Related: Flying freehold explained: What buyers should know
Legal options and costs for removing covenants
The process of removing restrictive covenants via the Land Registry isn’t as simple as submitting a form. In most cases, legal advice is recommended. You’ll also likely need a solicitor who specialises in property law.
Typical costs can include:
- Legal fees – for reviewing title deeds, writing to the benefiting party, or submitting an application to the tribunal
- Tribunal application fees – if you pursue formal discharge or modification
- Indemnity insurance – a possible workaround if you’re not able to remove the covenant but want to protect against future enforcement risks
Overall, removing covenants can range from a few hundred pounds (for simple legal letters) to several thousand if a tribunal case is needed.
What if a covenant has already been breached?
If you or a previous owner has already breached a covenant, and it’s gone unnoticed for years, you might assume it no longer matters. But in legal terms, that’s not always true.
While some covenants may not be actively enforced, that doesn’t mean they’ve expired. In some cases, an affected party could still raise objections, especially during a sale.
Solicitors often advise buyers to take out indemnity insurance in these scenarios, offering protection if someone tries to enforce the breach after the sale has gone through.
Related: What is the difference between conveyancers, solicitors and surveyors?
Easements vs covenants: What’s the difference?
A covenant restricts or requires something; an easement gives a right, such as the right to use a shared driveway or a footpath across neighbouring land.
While both covenants and easements are recorded on title deeds, they serve different purposes: covenants typically restrict or require certain actions on the land, whereas easements grant rights to use another’s land, often for shared benefit.
What to do next
Whether you’re selling a home with restrictive covenants or you’re a buyer concerned about possible limitations, the key is to know what’s on the title, seek legal advice where needed, and clarify your rights before committing.
Here’s a quick recap for sellers:
- Review your title deeds
- Be straightforward with your agent and solicitor
- Seek legal advice if a covenant limits your plans
- Explore legal removal or indemnity cover if needed
With the right guidance, you’ll find that dealing with restrictive covenants is straightforward, taking early steps just helps everything run more smoothly.
Need help with legal restrictions when selling your home? Contact your local Parkers branch to make your move smoother and more successful.
