The Hidden Rules That Could Stop You Building Your Dream Home
You've found the perfect section in a new subdivision. The views are stunning, the neighbours seem nice, and the price is right. You start planning your dream home — a sleek, black-clad modern design with floor-to-ceiling windows.
Then you read the covenants.
No dark colours. Minimum 180m² floor area (your plans show 140m²). No metal cladding. Architectural approval required. Your dream design? It's not happening here.
Land covenants are legally binding restrictions registered on your property title that control how you can use your land. They can dictate everything from the colour of your roof to whether you can park a boat in your driveway. And once you buy, you're stuck with them — often for decades.
Before you commit to any property, especially in a subdivision, you need to understand exactly what covenants apply and what they'll prevent you from doing.
What is a Land Covenant?
A land covenant is a legally binding restriction or obligation registered on a property title that controls how the land can be used. Unlike easements (which grant rights), covenants typically impose limitations or requirements on property owners.
Covenants are designed to:
- Protect the character of a neighbourhood
- Maintain property values in a development
- Ensure certain standards are met
- Preserve specific features or uses
Once registered on your title, covenants bind you and all future owners — they "run with the land" and cannot be ignored.
Types of Covenants in New Zealand
1. Restrictive Covenants
The most common type, restricting what you cannot do:
| Common Restrictions | Example |
|---|
| Building materials | Must use brick or weatherboard, no metal cladding |
|---|
| Colours | Approved colour palette only |
|---|
| Fencing | Height limits, style requirements |
|---|
| Building size | Minimum floor area requirements |
|---|
| Use restrictions | Residential use only, no home businesses |
|---|
| Vehicles | No caravans, boats, or commercial vehicles visible |
|---|
| Animals | Limits on types or numbers of pets |
|---|
2. Positive Covenants
Requiring you to do something:
- Maintain landscaping to a certain standard
- Keep buildings in good repair
- Contribute to shared area maintenance
- Build within a specified timeframe
3. Building Covenants
Specific to construction and development:
- Minimum dwelling size
- Maximum site coverage
- Building setback requirements
- Roof pitch specifications
- Architectural approval requirements
These are especially important when applying for building consent.
4. Conservation Covenants
Protecting environmental features:
- Native bush protection
- Wetland preservation
- Heritage tree protection
- Wildlife corridor maintenance
Where Covenants Come From
Understanding the origin helps you assess a covenant's likely enforceability:
Developer Covenants
When land is subdivided, developers often register covenants to:
- Ensure a consistent look and feel
- Protect property values
- Create marketing appeal
These are extremely common in newer subdivisions and can be quite detailed.
Historical Covenants
Older properties may have covenants from previous owners or subdivisions that:
- May seem outdated or irrelevant
- Can still be legally enforceable
- Might require effort to remove
Council-Imposed Covenants
Sometimes required as conditions of:
- Subdivision consent
- Resource consent
- Land use changes
Private Agreements
Individual arrangements between neighbours, often for:
- View protection
- Building restrictions
- Access arrangements
How Covenants Appear on Your Title
When you order a Certificate of Title, covenants appear in the "Interests" section:
- "Subject to covenant" — your property must comply
- "Together with covenant" — you have the right to enforce against others
- Instrument number — reference to the full legal document
Need to Read the Full Covenant Terms?
Order the instrument document to see exactly what restrictions apply to the property.
Order Covenant Documents — $39.90 NZDCovenant Enforcement: Who Can Make You Comply?
Covenants can typically be enforced by:
Benefited Landowners
If neighbouring properties benefit from the covenant, their owners can take legal action if you breach it.
Original Developer
Some covenants give the developer ongoing enforcement rights, even after they've sold all lots.
Residents' Associations
In some developments, a body corporate or residents' association has enforcement powers.
Other Lot Owners
In subdivision schemes, any owner within the scheme may have enforcement rights.
Enforcement typically involves:- Written notice of breach
- Request to remedy
- Court proceedings if not resolved
- Potential injunction and damages
Common Covenant Scenarios
Scenario 1: Colour Restrictions
"You want to paint your house bright blue, but covenants require colours from an approved palette." Reality: You likely cannot paint bright blue. Covenant holders can seek an injunction and require you to repaint at your cost.Scenario 2: Building a Granny Flat
"You want to add a minor dwelling, but covenants say 'single residential dwelling only.'" Reality: This covenant may prevent your granny flat. Even if council approves, the covenant remains enforceable by private parties.Scenario 3: Home Business
"You want to run a business from home, but covenants require 'residential use only.'" Reality: Depends on the business type and whether it's visible or causes disturbance. Some low-impact businesses may not breach, but it's risky.Scenario 4: Minimum Floor Area
"You want to build a modest 90m² home, but covenants require minimum 150m²." Reality: You must build at least 150m². No exceptions without covenant modification.Buying Property with Covenants: Due Diligence
Before purchasing any property, especially in newer subdivisions:
1. Get the Full Documents
Order the complete covenant instrument, not just the title. Covenants can run to many pages of detailed restrictions.
2. Read Everything
Don't skim. Restrictions that seem minor at first might significantly impact your plans.
3. Check for Time Limits
Some covenants expire after a set period (e.g., 10 or 20 years). Check the sunset clause, if any.
4. Understand Enforcement
Who can enforce the covenant? Developer only? All neighbours? A residents' association?
5. Consider Your Plans
Will covenants prevent:
- Future extensions or renovations?
- Working from home?
- Keeping certain pets?
- Parking your boat or caravan?
6. Get Legal Advice
For complex covenants, have your solicitor explain the implications before committing.
Covenants vs Council Rules
Many buyers confuse covenants with council planning rules. They're separate and both apply:
| Aspect | Council Rules | Covenants |
|---|
| Created by | Local council | Private parties |
|---|
| Found in | District Plan | Title instruments |
|---|
| Enforced by | Council | Private parties |
|---|
| Can be varied by | Council process | Private agreement/court |
|---|
| Applies to | All properties in zone | Only properties with covenant |
|---|
Can Covenants Be Removed or Changed?
Yes, but it's often difficult and expensive:
Consent from Benefited Parties
The simplest method — get written agreement from everyone entitled to enforce the covenant to surrender or modify it. This requires:
- Identifying all benefited parties
- Getting unanimous agreement
- Registering the change on the title
Sunset Clauses
Some covenants automatically expire after a period. Check the instrument for any time limits.
Property Law Act Application
You can apply to the High Court under the Property Law Act 2007 to modify or extinguish a covenant if it:
- No longer serves its purpose
- Impedes reasonable use of the land
- Creates hardship without corresponding benefit
This is expensive (typically $20,000+) and outcomes are uncertain.
Practical advice: Assume covenants will apply for the duration of your ownership. Don't buy expecting to remove them.Frequently Asked Questions
How do I find out what covenants affect a property?
Order a Certificate of Title, then order copies of any covenant instruments listed. The title shows covenants exist; the instruments contain the actual restrictions. Both are available within 2 hours.
Are old covenants still enforceable?
Potentially yes, unless they've expired under a sunset clause or been formally surrendered. Age alone doesn't make a covenant unenforceable. A covenant from 1950 can still be enforced in 2026 if it was properly registered.
What happens if I ignore a covenant?
Benefited parties can seek court orders requiring compliance, plus damages. You may be forced to undo work and pay legal costs. For example, if you build a structure that breaches covenants, you could be ordered to demolish it.
Do covenants affect property value?
They can — either positively (maintaining neighbourhood standards and protecting your investment) or negatively (restricting your options and development potential). The impact depends on the specific restrictions and your intended use of the property.
Can a single neighbour enforce covenants?
If they're a benefited party under the covenant, yes. Even if other neighbours don't care about a breach, one determined neighbour with legal standing can enforce the covenant through court action.
Before You Buy: Check the Covenants
Covenants are a permanent feature of property ownership that can significantly impact how you use your land. Understanding what restrictions apply is essential due diligence.
Certificate of Title NZ can help with:
- Title searches — identifying all registered covenants ($42.90)
- Instrument copies — the full legal text of each covenant ($39.90)
- Expert advice — understanding what covenants mean in practice ($129.00)
Need a Title Search?
Get your official Record of Title delivered in 2 hours. See all registered covenants.
Order Now — $42.90 NZDQuestions about covenants on a property you're considering? Contact our team for expert guidance.
