What are restrictive covenants in real estate?

Restrictive covenants in real estate are specific contractual clauses that limit how property can be used or what can be built on it. These covenants are often put in place by developers, homeowners' associations, or through local government regulations to maintain a certain character within a community or to protect property values. They can dictate various aspects, such as the types of structures that can be built, the materials used, the height of buildings, or even the colors that can be painted on homes.

These restrictions serve to ensure consistency and stability within a neighborhood, which can help preserve the aesthetic appeal and functionality of the area. By outlining permissible uses and structures, restrictive covenants play a crucial role in urban planning and community development.

In contrast, clauses that promote property use and development or enhance property value do not capture the essence of what restrictive covenants do. They may aim to increase property values or encourage development, but restrictive covenants specifically limit options rather than promote them. Likewise, clauses that increase tax obligations for property owners are unrelated to the concept of restrictive covenants, which focus solely on the use and development of the property itself.