Restrictive Covenants And Building Schemes: Who Can Restrict Your Development?

What is a building scheme?

On the development of an estate, the creation of a 'building scheme' allows restrictive covenants entered into by all of the owners of properties to be mutually enforceable by and against the owners of the other plots on the estate and their successors in title, regardless of when the covenants were entered into or when the plots were sold.

To establish that a building scheme exists, the criteria are:

• a defined area: the area covered by the scheme must be clearly defined and known to all plot owners; and
• reciprocity of obligation: there must be an intention to impose a scheme of mutually enforceable restrictions which is known to all the parties and must be in the interests of all the parties and their successors.