In real estate, what does a restrictive covenant involve?

A restrictive covenant involves a promise by landowners to limit the use of their properties. This type of legal agreement is designed to enhance the value and enjoyment of properties within a community by ensuring that certain conditions and restrictions are met. For example, a restrictive covenant might prevent homeowners from building structures that would obstruct the view of others or mandate the types of materials that can be used in construction.

These covenants serve to maintain the character of a neighborhood and can impact property values positively. By agreeing to these restrictions, landowners are committing to a certain standard of land use that can help in preserving the aesthetic or environmental qualities of an area. This concept is a crucial component in real estate transactions, particularly in planned communities or developments where uniformity in property appearance and use is desired.