ALTA Practice Exam – Complete Prep Resource

Restrictive covenants are legal obligations that are included in a deed to property, establishing limitations on how that property can be used. They are typically placed by developers or previous owners to maintain a certain aesthetic or character of a neighborhood, or to ensure specific uses of the property in accordance with community standards or values. These covenants can dictate a variety of restrictions, such as prohibiting certain types of buildings or activities on the property, imposing minimum square footage for homes, or requiring properties to adhere to specific architectural styles.

In contrast, while neighborhood association guidelines might help govern activities within a community, they do not hold the same legal weight as restrictive covenants written into property deeds. Tax regulations and building codes enforced by local governments pertain to different aspects of property ownership and development, separate from the private limitations that restrictive covenants impose. Therefore, the definition affirming that restrictive covenants are legal obligations in a deed limiting property usage is entirely accurate.