Covenants

A Covenant is a voluntary agreement that imposes some form of restriction or guideline to the parcel of land. Most frequently, the Covenant, in some cases known as a design guideline, is used to protect the physical appearance of the property for the benefit of the Suburb or Estate in question.

There are two forms of covenants, Registered Covenants or Developer Covenants. A registered Covenant relates to the use of the land or part of the land. Registered Covenants can also relate to the preservation of native animals or plants. A Developer Covenant is to impose conditions of the style of property you can build on the land.

When dealing with a Developer Covenant, it is important to note that there are most frequently terms included that relate to the future sale of the property and the seller may have an obligation to disclose or pass on the agreement to the new buyer. It is important to be mindful of property sales in new estates or areas recently developed as there may be a requirement to include a Deed of Covenant with the Contract.

Don’t be caught out not complying with your obligations. Contact our office to discuss your options!

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Andrew Francey

B.Bus, GCAF, GAICD

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Andrew has over two decades experience in high growth fast moving consumer goods, agribusiness and professional services. Supporting the Ownit team to deliver on client expectations, and implementing processes to scale the organisation, is a key focus for Andrew.

Andrew is a C-Suite leader with Chairman and Board experience.  He has formal qualifications in Business, Applied Finance and AICD Company Directors Course.

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