What is a restrictive covenant?

A restrictive covenant is a private written agreement between landowners to restrict the use or development of land for the benefit of other land. The land where the restrictions apply is called the ‘burdened’ land. The land that benefits from the restrictions on the burdened land is called the ‘benefited’ land.

Restrictive covenants are most commonly applied when a developer subdivides land for sale and wishes to apply some restrictions on the use and development of the lots to benefit or protect other land.

A covenant that limits the use and development of a lot to a single house is a common type of restrictive covenant. Covenants that restrict the type of building materials that can be used for new buildings and fences are also common.

A registered restrictive covenant is a restrictive covenant that is recorded on the certificate of title for the burdened land.

 Source Restrictive Covenants by the State of Victoria