What does the term “covenant” refer to in the context of real estate?

In the context of real estate, the term "covenant" specifically refers to an agreement or promise made in a deed or lease about how a property can be used or what obligations the parties have. Covenants can impose restrictions on the use of the property or can establish responsibilities for maintenance and repair. They are legally binding and can impact the rights of the property owners or tenants significantly.

For example, a covenant might stipulate that a property owner cannot build above a certain height, or it might require them to maintain the property in good condition. This legal concept ensures that all parties understand their rights and responsibilities concerning the property, promoting harmony and adherence to agreed-upon terms over time.

Understanding the role of covenants in real estate is crucial for brokers, as these agreements can affect property value, usage, and compliance with local regulations.