Found a covenant listed on a property title and wondering what it means? Covenants are legally binding restrictions that control what you can — and can't — do with your property. Understanding them before you buy could save you from an expensive mistake.
What Is a Covenant?
A covenant is a binding promise attached to the land — typically a restriction on how the property can be used or developed. Unlike easements (which grant rights), covenants impose obligations or restrictions. They're registered as instruments on the Record of Title and bind all future owners of the property.
Covenants are especially common in newer subdivisions, where developers impose them to maintain a consistent look and standard across the development. But they also exist on older properties, sometimes dating back decades.
Types of Covenants in New Zealand
🏠 Building Covenants
The most common type in new subdivisions. They typically specify minimum floor area, building materials, roof pitch, colour schemes, fencing requirements, and timeframes for completing construction. For example: "All dwellings must have a minimum floor area of 180m² and use brick, stone, or plaster cladding."
🚫 Restrictive Covenants
Prohibit certain uses of the land. Common restrictions include: no commercial activity, no subdivision without consent, no keeping of livestock, no caravans or boats visible from the street, and no rental to multiple tenants.
🌳 Land Use Covenants
Restrict how the land itself can be used — for example, requiring a portion to remain as native bush, prohibiting earthworks in certain areas, or requiring maintenance of stormwater management features.
Real Examples of Covenant Restrictions
Here are real-world examples commonly found on NZ property titles:
Who Enforces Covenants?
Covenants are typically enforced by the party that benefits from them — usually neighbouring property owners or the original developer. In subdivisions, a residents' society or the developer may retain enforcement rights.
Enforcement is through the courts. If you breach a covenant, the benefiting party can seek an injunction to stop the activity and may claim damages. However, enforcement is not automatic — someone has to actively take legal action.
💡 Good to know:
Just because a covenant hasn't been enforced in the past doesn't mean it can't be enforced in the future. "Everyone else broke the covenant" is not a legal defence in New Zealand.
Can Covenants Be Removed?
Yes, but it requires legal process:
How to Check for Covenants
Covenants appear in the encumbrances section of the Record of Title. However, the title only shows that a covenant exists — to see the actual restrictions, you need to order the instrument (document) itself.
🔍 Check Covenants on Any NZ Property
Order the title and instruments to see all registered covenants
Order Your Search →Certificate of Title NZ is an independent service providing property title searches from New Zealand's official land registry.