What are "restrictive covenants" in real estate?

Restrictive covenants are specific clauses found in deeds that impose limitations on what property owners can do with their property. These covenants are designed to maintain a certain standard within a community or development and ensure that the use of the property aligns with the intentions set forth by the original developer or property owner.

For example, a restrictive covenant might prohibit homeowners from building structures that exceed a certain height, or it could restrict the types of commercial activities that can be conducted on residential properties. By enforcing such limitations, these covenants help to preserve property values and the aesthetic integrity of the neighborhood.

In contrast, legal agreements that allow for the sale of property focus more on the transaction process itself rather than imposing operational restrictions on the property. Regulations set by the government for property taxes are related to taxation and not to the property's use or developmental considerations. Lastly, conditions set by lenders for mortgage approval pertain specifically to financing and borrowing, rather than the ownership rights or restrictions associated with the property.