6 Reasons Why You Should Care About Restrictive Covenants

Restrictive covenants are an essential legal concept in landlord-tenant law. You should care about these covenants because they can seriously affect your ability to run your business effectively if you’re not careful. You may have to sign a restrictive covenant in your contract if you’re in the market to buy an apartment, condo, or single-family home. The provision will impose certain obligations on you as the property owner and will probably last for a long time. So why should you care about restrictive covenants?

1. Restrictive Covenants Help to Protect the Interest of a Company

A restrictive covenant can help protect your company’s IP and prevent it from falling into the wrong hands. Additionally, restrictive covenants can help keep key employees from leaving your company and taking your trade secrets. Finally, restrictive covenants can give you peace of mind knowing that you’ve taken steps to protect your company’s interests.

2. A Restrictive Covenant Can Limit Profitable Sales

It is essential to know if you have covenants on your property. If you do, it’s critical to understand their restrictions on you and your business. It’s also important to understand these restrictions to know what steps are necessary to remove them or change them. Some restrictive covenants can significantly affect how you run your company. For example, homeowners associations put many agreements prohibiting businesses from operating within certain zones in their communities.

Consequently, your business is less likely to be profitable in those areas. Restrictive covenants can damage your business if you don’t understand what you’re facing. Hence, hiring an experienced lawyer in restrictive covenants like stephen gleave ancaster is crucial to assessing any possible impacts your agreement may have. They will then work with you to draft a resolution that helps take care of any issues before they arise. As long as you know about these limitations beforehand, there should be no surprises regarding your next purchase or sale.

3. A Restrictive Covenant Can Restrict Development

Some developers may want to include restrictive covenants in their development plans to control future development on their property. Before agreeing too quickly with a developer, you should be aware of this, as it may limit your ability to develop the property into something different from the developer’s original plan.

A restrictive covenant can also restrict utility or transportation infrastructure: For example, you might have an agreement with a utility company that allows them to run particular pipes or cables over your land, and if there’s a restriction from building anything that would interfere with those utilities, then you would need to get written permission from the company to do so. It’s, therefore, crucial to know how restrictive covenants will affect your project when negotiating a contract.

4. A Restrictive Covenant Can Make Ownership Less Attractive

Restrictive covenants are a pain. They make buying and selling a property more challenging, meaning fewer people will want to take on the responsibility of owning it. As a result, you’ll probably have trouble finding someone who wants to buy your home.

Additionally, restrictive covenants may be included in agreements with homeowners’ associations, meaning that if you move out of the neighborhood or sell your house to somebody else, they’ll need permission from the HOA before moving in. In some cases, this can cost hundreds or even thousands of dollars.

5. Restrictive Covenants Are in the Public Record.

Restrictive covenants are in the public records. That means if you have a restrictive covenant in your lease, it will appear on the deed of trust. That can be very helpful in terms of determining who may or may not sell your property. If your property is “restricted,” no one else can buy it without approval from you or the bank.

If you want to sell your property, it’s essential to know its restrictions and whether they’re enforceable. Restrictive covenants allow banks to control who buys their properties and how much they’re paying for them. There are several types of restrictive covenants, such as time restraints and requirements for improvements before sale.

6. Restrictive Covenants can Expose You to a Lawsuit

If someone violates your restrictive covenant and you want to sue them, they will have to prove that they had permission from the owner when they did so — this is “proving an affirmative defense.” If they fail to do so, then there’s a good chance that any court will decide in your favor because you have established an affirmative defense against their claim of violation.

A restrictive covenant is a legal agreement between two parties that restricts what one or both parties can do. For example, a non-compete clause in an employment contract may prevent an employee from quitting and starting a competing business. If you violate a restrictive covenant, the other party to the agreement may sue you for violation. You can contact stephen gleave ancaster for all your legal issues concerning restrictive covenants in employment.


Restrictive covenants can significantly impact your ability to make a living and start your own business. However, they can also have a significant impact on the way you do business. If you want to stay small if you don’t want to lose sales or clients to more prominent companies, and if you want to expand in the mold of your choosing, restrictive covenants could be a pretty big factor—and you must understand how they fit into the larger scheme of things. It’s, therefore, crucial to contact an experienced lawyer in matters of restrictive covenants before signing any agreements that might limit what you can do with your business down the line. They’re professionals who will examine all aspects of these contracts before advising you whether it would be worth your while to sign them.