Definition
Private covenants are legally binding promises included in a deed of property to either perform or refrain from specific actions. These restrictions or obligations are typically placed by developers, homeowners associations (HOA), or municipal entities to ensure aesthetic uniformity, maintain property values, or uphold specific community standards. Common examples include restrictions on property usage, architectural styles, pet regulations, and landscaping requirements.
Examples
- Architectural Style: A private covenant may require that all homes within a subdivision adhere to a particular architectural style or color palette.
- Pet Regulations: An HOA may impose restrictions on the number or type of pets that homeowners can keep on their property.
- Landscaping: Covenants may dictate specific landscaping guidelines, like the types of trees that can be planted or how lawns should be maintained.
- Operating a Business: A private covenant may prohibit residents from running certain types of businesses out of their homes.
- Fences and Outbuildings: The deed may restrict building heights, types, and locations of fences and outbuildings to maintain neighborhood aesthetics.
Frequently Asked Questions
Q: Are private covenants enforceable in court?
A: Yes, private covenants are legally binding and enforceable in court, provided they do not violate any public laws or governmental regulations.
Q: Can private covenants be changed or removed?
A: Changing or removing covenants usually requires agreement from a majority (or sometimes all) of the property owners affected, as specified in the original covenant agreement or HOA rules.
Q: Do private covenants affect property value?
A: Yes, they can influence property value positively by maintaining community standards or negatively if they are too restrictive or outdated.
Q: How can I find out if a property has private covenants?
A: Information about covenants is generally included in the deed and can be found in public records at the county recorder’s office or detailed in HOA’s governing documents.
Q: What happens if I violate a private covenant?
A: Penalties for violating covenants can range from fines imposed by the HOA to legal actions leading to court orders compelling compliance.
- Covenant: A formal agreement or promise between parties.
- Deed Restriction: A limitation written into the deed of a property restricting its use or ownership.
- Homeowners Association (HOA): An organization in a subdivision, planned community, or condominium that makes and enforces rules for the properties within its jurisdiction.
- Easement: The right to use another person’s land for a specified purpose.
- Zoning Laws: Regulations that designate areas for residential, commercial, industrial activity, etc., set by local governments.
Online Resources
References
- Friedman, Jack P. (2012). Dictionary of Real Estate Terms. Barron’s Educational Series.
- Miller, M. (2020). Real Estate Law for Paralegals. Wolters Kluwer Law & Business.
Suggested Books for Further Studies
- The Homeowner’s Guide to Private Covenants and Deed Restrictions by Elizabeth Cox.
- Real Estate Law by Marianne M. Jennings.
- Principles of Real Estate Practice by Stephen Mettling and David Cusic.
Real Estate Basics: Private Covenants Fundamentals Quiz
### What is a private covenant?
- [x] A legally binding promise included in a deed of property.
- [ ] A type of mortgage insurance.
- [ ] A homeowner's insurance policy element.
- [ ] A permanent easement for utilities.
> **Explanation:** A private covenant is a legally binding promise included in a deed of property that either compels or restricts certain actions related to the property.
### Can a private covenant be enforced in court?
- [x] Yes, if they do not violate any public laws or regulations.
- [ ] No, they are suggestions only.
- [ ] Only if approved by a significant majority of homeowners.
- [ ] Only by local government officials.
> **Explanation:** Private covenants are enforceable in court as long as they do not violate public laws or governmental regulations.
### Who typically places private covenants?
- [ ] Only federal government.
- [ ] Banks and financial institutions.
- [x] Developers, HOAs, or municipal entities.
- [ ] Property inspection companies.
> **Explanation:** Private covenants are typically placed by developers, homeowners associations (HOA), or municipal entities to maintain specific standards within a community.
### What is a common purpose of a private covenant?
- [x] To maintain a level of consistency or standard within a neighborhood.
- [ ] To establish zoning laws.
- [ ] For property tax calculation.
- [ ] To provide broadband services.
> **Explanation:** The common purpose of a private covenant is to maintain a level of consistency or standard within a neighborhood or community, which can help in preserving property values.
### What might a private covenant restrict about pets?
- [ ] The provision of food for pets.
- [ ] Veterinary choices.
- [x] The kind and number of pets that can be kept.
- [ ] The sale and purchase of pets.
> **Explanation:** A private covenant might restrict the kind and number of pets that homeowners can keep on their property to maintain community standards.
### Which document should you review to find information about private covenants?
- [ ] Bank statements.
- [x] The property deed and HOA's governing documents.
- [ ] Title insurance paperwork.
- [ ] Rental agreements.
> **Explanation:** Information about private covenants can be found in the property deed and the HOA's governing documents.
### Can private covenants positively impact property value?
- [x] Yes, by maintaining community standards.
- [ ] No, they have no impact.
- [ ] Only if agreed by all homeowners.
- [ ] Yes, but only for commercial properties.
> **Explanation:** Private covenants can positively impact property value by maintaining consistent community standards that potential buyers might find attractive.
### What must homeowners do to change an existing private covenant?
- [ ] Get state approval.
- [ ] Request an inspection.
- [ ] Wait for the covenant's automatic expiration.
- [x] Obtain agreement from a majority of affected property owners.
> **Explanation:** Changing an existing private covenant usually requires obtaining agreement from a majority (or sometimes all) of the property owners affected.
### Why might a private covenant include architectural restrictions?
- [ ] To allow individualistic design.
- [x] To uphold a uniform look within the community.
- [ ] To ensure buildings are earthquake resistant.
- [ ] To reduce construction costs.
> **Explanation:** A private covenant might include architectural restrictions to uphold a uniform look within the community, preserving aesthetic and potentially property values.
### Violating a private covenant can result in?
- [ ] Receiving general warnings.
- [ ] Securing loan benefits.
- [x] Legal action and fines.
- [ ] Property appraisal reduction.
> **Explanation:** Violating a private covenant can result in fines imposed by the HOA and legal actions leading to court orders compelling compliance.
