Closings glossary

Covenant

A recorded promise or restriction that runs with the land and binds future owners. Restrictive covenants limit what the property may be used for or how it may be built on.

What is a covenant on a property?

Quick Answer

A covenant is a promise or restriction recorded against land that binds later owners, such as a use restriction, a party wall agreement or a homeowners association rule. It shows on the title report as an exception, and the buyer takes the property subject to it.

The full definition

A recorded promise or restriction that runs with the land and binds future owners. Restrictive covenants limit what the property may be used for or how it may be built on.

Where does covenant come up in a New York City closing?

A Staten Island subdivision from 1926 carries a covenant limiting each lot to one single-family dwelling, which surfaces when a buyer plans a two-family conversion.

What else should you read before closing?

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