What is a covenant?
This is a legally enforceable promise or restriction in a contract. A Mortgagor to a real property may covenant to keep the property well maintained and adequately insured for fire, wind, flood or earthquake damage. A breach in this covenant is considered a breach of contract and may become the basis for legal action against the Mortgagor.
Properties which are in historic districts or that are part of neighborhood associations, may be subject to certain covenants. These are restrictions which must be adhered to by all residents of the area and may include, use or building restrictions, siting or sizing guidelines, and behaviors which have been agreed upon by the association or commission. Covenants help to maintain a consistency within an area and protect its’ value.
