Covenants are legally binding restrictions registered on a property's title that control what you can and can't do with your land. Common in subdivisions across New Zealand, they can affect everything from your house design to your fence height. Here's what every property buyer and owner needs to know.
What Are Property Covenants?
A covenant is a promise attached to the land — a legal obligation that binds current and future owners. When registered on a Record of Title, covenants "run with the land" and must be complied with by anyone who owns the property, regardless of whether they agreed to the original terms.
Covenants are different from council rules. While district plan rules set minimum standards that apply to everyone, covenants are private agreements that can impose additional restrictions beyond what the council requires.
💡 Good to know:
Even if your council says you can build something, a covenant on your title might say you can't. Covenants can be more restrictive than council rules — never less.
Types of Covenants You'll Encounter
Restrictive Covenants
These are the most common type and restrict what you can do with your property. They're particularly prevalent in newer subdivisions where developers want to maintain a certain standard or aesthetic.
Positive Covenants
These require the owner to do something — such as maintain a shared fence, contribute to a private road's upkeep, or keep landscaping to a certain standard. They're less common but can carry significant ongoing obligations.
Land Covenants vs Consent Notices
Don't confuse private covenants with consent notices (s221 conditions). Consent notices are placed by councils as conditions of subdivision or resource consent and are also registered on the title. They might require things like specific building platforms, stormwater management, or noise insulation.
How to Find Covenants on a Property
Covenants are listed in the Schedule of Interests on the Record of Title. You'll see entries like:
The title tells you a covenant exists, but to read the actual terms, you need to order the Instrument document. This is the registered legal document containing the full covenant wording, including exactly what is required or restricted.
🛡️ Due diligence tip
Always order the instrument for every covenant listed on a title you're considering buying. The title summary alone doesn't reveal the specific restrictions. A covenant described as "Land Covenant" could contain anything from minor landscaping requirements to major building restrictions.
What Happens If You Breach a Covenant?
Breaching a covenant can have serious consequences:
- 🚩Injunction — A court can order you to stop what you're doing or undo what you've built
- 🚩Damages — You may have to compensate the covenant holder for losses
- 🚩Demolition — In extreme cases, unauthorised structures may need to be removed
- 🚩Selling difficulties — Buyers' solicitors will flag covenant breaches, potentially stalling or killing a sale
Can Covenants Be Removed?
Yes, but it's not easy. Options include:
Frequently Asked Questions
🔍 Check for Covenants Before You Buy
Record of Title from $42.90 — Instruments from $39.90
Order Your Search →Certificate of Title NZ is an independent service providing property title searches from New Zealand's official land registry.