Restrictive Covenant Advice Please

Shushannah

We are in the process of buying our allotment. It was in private hands and when the owner died the estate offered the allotments for sale to the tenants.


For reasons I do not understand the process has taken several years, but now we have been offered the contracts to sign.


It has a list of restrictions; most of which I have no problem with ie we won't build a house on it.


There is one which worries me because I do not understand its purpose. If we were ever to sell the land we would need to get their or their heirs permission. This obligation because it is a covenant would be passed on to the new owners or our heirs.


Why would someone put that in to the deeds? Am I being unnecessarily wary not wanting to sign this?

rexmedorum

It sounds as if they want your money without giving up any of the control I would walk away personally.

G_M

covenants like this are quite common but usually end "not to be unreasonably witheld."

I would ask for that wording to be added to the contract.

audigex

Yeah I'd agree with G_M - it has to work for you, too.

The idea is that if someone buys it trying to change the use, they can veto it to maintain the original purpose, style etc.... but not to simply hand them unlimited control.

It then comes down to whether the sale is reasonable, and the onus would be on them to show that they have good reason to withhold it.

stator

I don't think it really causes you any problems. What's the worst that could happen? You move away from the area but they refuse you permission to sell the allotment and you own it until the day you die?
Do the "heirs" continue to own other property nearby?

Shushannah

stator wrote: »

I don't think it really causes you any problems. What's the worst that could happen? You move away from the area but they refuse you permission to sell the allotment and you own it until the day you die?
Do the "heirs" continue to own other property nearby?

I'm not sure where the heirs are only their solicitor. I am worried that there may be complications if we had to sell the land to help fund nursing home fees or the like.