Covenant

A covenant is a condition registered on the certificate of title that either requires or prohibits certain actions by the property owner. Common covenants include building material requirements (e.g. no corrugated iron roofing), minimum floor area sizes, fencing standards, or prohibitions on certain uses.

Covenants are typically imposed by developers when subdividing land to maintain neighbourhood character and property values. They can also be imposed by councils or agreed between neighbours.

Covenants run with the land, so they bind all future owners — not just the person who originally agreed to them.

Covenants can significantly limit what you can do with your property. A covenant requiring brick construction could add tens of thousands to your building costs. A covenant prohibiting home businesses could affect your livelihood.

Before buying, have your lawyer review all covenants on the title. Consider whether they align with your plans for the property, including any future renovations or changes of use.

Covenants are registered on the certificate of title and referenced in covenant instruments held by LINZ. Your conveyancer will review these as part of the standard title search. The LIM report may also reference council-imposed covenants.