Property Covenants
Insight
Covenants are commonly used in subdivisions and new developments to control how properties are built and used. They can protect views, maintain design standards, restrict the number or type of dwellings, prevent certain activities or require upkeep of landscaping and structures. Because covenants bind future owners, buyers and sellers need to understand how these rules affect the use and value of the land.
Covenants appear frequently in lifestyle blocks, residential subdivisions and coastal or rural developments. People typically seek advice when covenants limit planned renovations, when neighbouring landowners allege breaches, or when buying in a subdivision with strict design controls. This guide outlines common covenant issues and how lawyers can help.
Types of Covenants
Tip:
Never rely on the agent’s summary. Always read the covenant instrument itself — wording matters.
Covenants can be restrictive (limiting what you can do) or positive (requiring you to do something). Examples include restrictions on building materials, prohibitions on relocatable homes, limits on height or density, landscaping requirements, or obligations to maintain shared fencing.
Some covenants are designed to protect the character of a subdivision, while others exist to manage infrastructure, protect views or ensure compliance with agreements between landowners.
Common Issues With Covenants
Common pitfall:
Assuming covenants can be ignored because other owners breached them. Enforcement varies, and breaches can delay sales or cause legal disputes.
Common issues include disputes over building size or materials, disagreements about landscaping requirements, restrictions affecting minor dwellings, and enforcement actions by neighbours or developers. Some covenants are unclear or outdated, making compliance difficult.
In lifestyle or rural settings, covenants may restrict animal types, commercial activities or farming uses, which can surprise buyers who expect more flexibility.
How Covenants Are Created, Varied or Removed
Covenants are created by registering an instrument against the title with LINZ. They are drafted during subdivision or development and bind future owners. To vary or remove a covenant, all parties who benefit from it must usually consent, and updated documentation must be registered.
Some covenants operate alongside consent notices imposed by councils, which may require additional approvals for changes. A lawyer can help determine the correct process for varying or challenging a covenant.
Step 1
Review the Covenant Instrument
Your lawyer explains what the covenant restricts or requires and who can enforce it.
Step 2
Compare With Planned Use
Check whether your planned building, renovation or land use complies with the covenant terms.
Step 3
Negotiate Variation if Needed
Your lawyer contacts the benefiting parties to request changes or clarifications to the covenant.
Step 4
Register Updated Covenant
If approved, new documents are lodged with LINZ to formalise any variation or removal.
Costs for Covenant Advice
Legal fees depend on the complexity of the covenant, how many parties must consent to changes and whether disputes or negotiations are required. Straightforward covenant reviews may be included in conveyancing, while variations, disputes or enforcement can require more extensive work.
Surveying or council fees may apply if covenant changes interact with subdivision or consent notices. For general cost information, see the property lawyer costs guide.
How to Choose a Lawyer for Covenant Issues
Choose a lawyer experienced in covenant interpretation, subdivision law and disputes between neighbouring landowners. Ask whether they regularly assist with covenant variations or enforceability questions and whether they work closely with surveyors or planners if needed.
If the covenant affects planned construction or renovations, consider choosing a lawyer who can also liaise with your architect or builder to ensure compliance.
Find a Lawyer for Covenant Matters
Explaining the covenant terms, your planned use of the property and any concerns raised helps match you with lawyers who regularly deal with covenant restrictions. This avoids delays and ensures more focused early advice.
By outlining any disputes, desired variations or development plans, you allow potential lawyers to assess your options more accurately.
Need help with a covenant?
Tell us about the property to get matched with lawyers experienced in covenant matters.
Frequently Asked Questions
What is a covenant?
A covenant is a legal restriction or obligation recorded on the title. It can limit building height, require certain materials, restrict land use, protect views, or ensure consistent design standards in subdivisions. Covenants bind current and future owners.
Who enforces covenants?
Covenants are enforced by the party identified in the covenant instrument—often neighbouring owners, a developer, a body corporate or a residents’ association. They may take action if they believe a breach has occurred.
Can I remove or vary a covenant?
Yes, but varying or removing a covenant usually requires agreement from all parties who have the benefit of it. Some covenants also involve council rules or consent notices, which may need separate approval.
Do covenants expire?
Most covenants do not expire unless a termination date is written into the instrument. However, some may become outdated or unenforceable depending on changes to the land. A lawyer can advise on enforceability.
Will covenants affect lending or resale value?
Yes. Strict covenants can increase value by preserving design standards, but restrictive or unusual covenants can reduce buyer interest. Lenders may also consider covenant restrictions when valuing property.
You don’t need all the answers
Property issues can feel overwhelming — especially when you’re facing deadlines. Sharing a few details about your situation is enough for a lawyer to understand the context and guide you through the next steps.
Get Help From a Lawyer for Covenants
Covenants set rules about how land can be used, what can be built and what standards must be maintained. Providing a short description of the property, the covenants registered on the title and any concerns raised helps match you with lawyers who regularly assist with covenant issues.
By outlining whether the covenants restrict building materials, design, landscaping or land use, you can connect with professionals who understand how covenants are interpreted and enforced in New Zealand.