Understanding Warranties and Indemnities
When buying or selling a business in England or Wales, understanding warranties and indemnities is essential. These legal mechanisms protect both parties, allocate risk, and ensure transparency in the sale...
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If there are restrictive covenants attached to your home, you are not alone. Many homeowners may have forgotten about them long after they have bought their property, often when they plan to make changes such as an extension, conversion, or even selling the property. So, what do these covenants mean, how could they affect you, and what can you do about them?
A restrictive covenant is a rule written into your property’s title deeds that limits what you can do with the land or buildings. It is essentially a promise made by a previous owner to use (or not use) the property in a certain way, which can continue to bind future owners.
Typical examples include:
These covenants are designed to protect the character or value of neighbouring land. For example, a developer who built a housing estate might include restrictions to keep the area consistent in appearance or to prevent future owners from building extra houses in their gardens.
Yes. In addition to restrictive covenants, there are also positive covenants. These are obligations that require you to do something rather than refrain from doing it.
Examples include:
Positive covenants do not generally pass automatically to new owners in the same way restrictive covenants do, but they can still have practical and financial implications, especially where they are managed through leasehold arrangements or shared maintenance agreements.
You can usually find details of any covenants in:
If you no longer have these documents, your solicitor or conveyancer can obtain copies for you if the property is registered. If the property is unregistered you would need to locate the original title deeds.
If you have found a covenant that could affect your plans, do not panic. Here are some practical steps to take.
Read the wording carefully. Some covenants are broad and absolute, while others are specific or limited to certain actions. For example, “not to build” could refer only to additional dwellings, not to small extensions.
A property lawyer can help interpret the wording and explain whether it is still valid and who might be able to enforce it.
Usually, only someone who benefits from the covenant, such as a neighbour or the original developer, can enforce it. If that person or company no longer owns nearby land, or if the purpose of the covenant has long expired, enforcement may no longer be possible.
Before starting any work, speak to a property solicitor or conveyancer. Breaching a restrictive covenant can lead to serious consequences, including injunctions (court orders to stop or undo the work) or claims for compensation.
A solicitor can help you assess your options, which may include:
If there is a risk that someone could enforce the covenant but it seems unlikely in practice, your solicitor may recommend indemnity insurance. This covers financial losses if a claim is made later. It can also help reassure future buyers if you decide to sell.
Covenants can sometimes delay or complicate a property sale, especially if the buyer’s solicitor spots a restriction. If you are thinking of selling, it is worth checking your title documents early and taking advice if anything looks restrictive.
Yes, in some cases. You might be able to:
However, each case is different, and professional guidance is essential before you make any application or payment.
If your property is affected byrestrictive covenants or want to understand how they might affect your plans to sell your property, our team can guide you through your options.
To discuss the issues raised in this blog or to make an appointment with our Residential Conveyancing Team, you can do so here by using the enquiry form on this page. Alternatively, you can call us on 01453 847200.
Disclaimer: The content of this blog is for general awareness and insight. It is not legal advice and should not be relied upon without seeking professional advice tailored to your circumstances. The law may have changed since this article was published.
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