negative covenant

A restrictive covenant, in property law, is an agreement that limits how a property can be used. These covenants are frequently employed in residential developments to maintain property values and neighborhood stability. They can prohibit nonresidential uses and specify permitted dwelling types and uses, such as single-family homes. Commercial developments may also have covenants that restrict the types of businesses allowed.1

Government agencies and nonprofit organizations utilize restrictive covenants to preserve open spaces, farmland, historic structures, and wildlife habitats, as well as to limit land use in areas with hazardous materials. These covenants can be enforced in court by other property owners within the same development or by homeowner associations. While restrictive covenants can serve various purposes, those that are illegal, unconstitutional, or against public policy are unenforceable. For example, racially exclusive restrictive covenants are no longer permissible in the United States due to equal protection laws.1