Understanding land covenants in New Zealand — what they are, how they work, and what restrictions they may impose on your property.
What is a Land Covenant?
A protective or restrictive covenant is an interest in land according to the Property Law Act 2007 and is registered on the record of title.
Restrictive covenants are the most common type. The owner of the burdened property agrees with the owner of the benefited property (who receives the benefit) not to take some action that might otherwise have been done.
💡 Key Point:
Property owners are bound by covenants to perform or not perform in specified ways. Covenants may be private agreements between parties or may be imposed by the council.
Building Covenants
It is common for developers to use private covenants, commonly known as building covenants, to control how future owners both develop and maintain the land. This is especially relevant for residential developments marketed with certain characteristics.
The developer often drafts covenants relating to:
⚠️ Watch Out:
While identical covenants are often applied to each property in a subdivision (as a blanket provision), some developers register individual covenants on each parcel prior to sale. If land needs to be sold urgently, properties may be sold without the covenants applied to earlier transactions in the same subdivision.
Types of Covenant Restrictions
Protections and/or restrictions that may be imposed through covenants include:
🏠 Building Requirements
- Use of specific materials for buildings
- Size, style, or colour of building
- Setback and side-line from roads or adjacent properties
- Bulk and location, particularly heights to preserve views
📋 Approval Requirements
- Requirement for developer approval of plans (even after building consent)
- Required timeframe for construction
🌿 Conservation & Protection
- Protection of native bush, wetlands, and conservation areas
- Protection of historic buildings and features
🏡 Use Restrictions
- Use of the site for a home occupation
- The use of minor residential units
- Restrictions on pets and animals allowed at location
🔍 Check for Covenants on Your Property
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