Covenants In Respect Of Land: Don’t Be So Negative!

In contract law, a covenant is merely a promise by one party to another. Covenants may be either positive or negative. Negative covenants are often referred to as "restrictive covenants."

In the real estate context, a positive covenant refers to a promise by the owner of a parcel of land to do something (e.g., to pay money) in respect of that land or to use it in a specified way. Positive covenants are personal obligations that are only binding on the parties that agree to them and, at common law, do not "run" with the land owned by the person who made the promise or bind future owners when the land is transferred (unless the transferee expressly assumes the obligation by contract). Common law positive covenants may not be registered as interests in land in the Land Title Office.