Most modern subdivisions now include land covenants which are
registered against the titles. These are effectively rules that the
land owner must abide by when owning the land.
Many covenants relate to how and what you can build, with a view
to keeping up the value of the subdivision. However, there are also
ongoing obligations that can impact on your future use of the land
so buyers need to fully understand the nature and potential effect
of the covenants.
Mutual covenants
The covenants are mutual which means that each owner in the
subdivision must both abide by the covenants and ensure that their
neighbour abides by them too. Many land covenants contain a clause
providing for liquidated damages (i.e. an amount of money) to be
payable for every day you are in breach of the covenants.
