Covenants are legally binding conditions registered on property titles that control what you can and cannot do with your land. Before buying or developing any NZ property, understanding the covenants on the title is essential.
What Is a Property Covenant?
A covenant is a promise or restriction attached to a property title that binds current and future owners. Covenants are registered as instruments on the Record of Title at the official land registry and "run with the land" — meaning they stay in force when the property is sold.
There are two main categories:
✅ Positive Covenants
Require you to do something — such as maintain a fence, contribute to shared infrastructure costs, or keep the property in a certain condition.
🚫 Restrictive Covenants
Prevent you from doing something — such as building above a certain height, using certain materials, running a business from home, or keeping certain animals.
Common Types of Covenants in NZ
Covenants are especially common in newer subdivisions where developers want to maintain a consistent look and standard. Here are the most frequent types:
🏗️ Building Design Covenants
Minimum floor area (e.g., 180m²), approved cladding materials, roof pitch requirements, colour palette restrictions. Must build within a specified timeframe (often 2-3 years).
🌳 Landscaping Covenants
Requirements for front yard landscaping, fencing restrictions (e.g., no solid fences on street frontage), approved plant species, and maintenance obligations.
🚗 Use Restrictions
No commercial vehicles parked on the street, no caravans or boats visible from the road, residential use only, no subdivision without developer consent.
🏡 Fencing Covenants
Approved fence types, maximum heights, materials restrictions. Common in modern developments to maintain streetscape aesthetics.
How to Find Covenants on a Property
Covenants appear in the Schedule of Interests on the Record of Title. You'll typically see an entry referencing a covenant instrument number. However, the title itself only shows that a covenant exists — to read the actual terms, you need the instrument document.
💡 Save with the Pre-Purchase Package:
Our Pre-Purchase Diligence Package ($189.90) includes the Record of Title plus key instrument documents — perfect for buyers who want to understand all covenants, easements, and restrictions before making an offer.
What Happens If You Breach a Covenant?
Breaching a covenant can have serious consequences:
- 🚩Injunction — The covenant holder can seek a court order to stop you or require you to undo the breach (e.g., demolish an unapproved structure)
- 🚩Damages — You may be liable for compensation if the breach affects neighbouring property values
- 🚩Sale complications — Future buyers and their solicitors will identify the breach during due diligence, potentially scuttling a sale or reducing the price
Can Covenants Be Changed or Removed?
Yes, but the process varies:
Covenants vs Council Rules
A common misconception is that if council grants building consent, you can ignore covenants. This is wrong. Council consents and private covenants are separate legal requirements. You need to comply with both.
For example, the district plan may allow you to build a 10-metre-high dwelling, but a covenant on your title may limit buildings to 7 metres. The covenant restriction applies on top of council rules.
Frequently Asked Questions
🔍 Check Covenants Before You Buy
Order a title search and instrument documents to know exactly what restrictions apply
Order Your Search →Certificate of Title NZ is an independent service providing property title searches from New Zealand's official land registry.