A covenant is an express written agreement between a seller (the registered proprietor) and the purchaser of a piece of land, limiting the way the burdened land can be used of the for the benefit of other land i.e. avoiding a building overlooking a neighbour.  Covenants bind current and future owners until they are removed.

Covenants might control building types, land use, or even aesthetic features like fencing or landscaping.

Covenants under the Transfer of Land Act can only be between two parties, the vendor and purchaser. While those relating to subdivision are not limited to vendor and purchaser and can be between multiple parties, such as the local council and the owner.

Common examples in Victoria:

• Building restrictions: Limiting the height, style, or size of a home
• Subdivision rules and limitations: Restricting further division of the land.
• Environmental protection: Prohibiting the removal of certain trees or vegetation
• Use restrictions: Limiting the use of the property, for example only permitting residential and prohibiting commercial use (may also be limited via a planning scheme). 

Note: This is not an exhaustive list.

Can you vary or remove a Covenant

There are three ways to change or remove a covenant from title:

• Apply to the Supreme Court of Victoria, or one of competent jurisdiction or to VCAT
• Apply for a planning permit to remove or vary the restrictive covenant
• Request to amend the planning scheme
• By agreement between all the registered proprietors of the burdened land (the property with the covenant) and of the registered proprietors of the benefitted lands (the property being benefited by the covenant).

How can I see if a property has a Covenant

Covenants are recorded on the Copy of Title (or Register Search Statement) as encumbrances.  You can purchase a property’s Copy of Title at landata.online.

Note: Covenants are a complex subject – if you need support in this area, it is advisable to seek independent legal advice from a solicitor or property law professional.