Advice needed - Freehold Property with Restrictive Covenants

jd392

Hi, I am in the process of buying a freehold property which is being managed by an estate management company. However in the transfer deed which contains restrictive covenants, there is a provision in it which allows the estate management company to hold and occupy the property and basically take it back if there is any breach in the covenants. My solicitors have already asked for this provision to be removed, however the developer of the property is refusing to as they say it is a standard clause for all of the properties in the estate (I'm not sure if the current seller was even aware of this provision).

My question is - is this provision even legal? I understand that freehold means I completely own both the property itself and the land, so if I am the legal owner and have paid for the property, would this provision not be equivalent to theft? What would be the point of paying for the property in the first place if the company could just take it back at anytime???

Hoping for someone with knowledge on property law who could help here?

Thanks in advance for the advice.

jbainbridge

What conditions would you have to break to result in them taking the property? Sounds a bit extreme!

jd392

Breaking any of the restrictive covenants as far as I can see e.g things like putting a satellite dish up without permission or a cable box to the front of the house - standard things which I guess are in place for properties in a typical estate area. Hence I'm thinking its a bit extreme too...

Muds1

that Is extreme indeed, can you post exact wording of covenant ?

jd392

Hi, cant list all of the covenants as there are at least 40 of them to do with satellite dishes, not playing music in the open area around the estate, not putting the laundry out unless in the back garden etc. However the offending provision in question in the transfer deed says:

"If there is any breach of the Restrictive Covenants or if there is a disposal by the Transferee in breach of...(the covenants)...then the Community Body may re-enter the property and henceforth hold and enjoy the Property and any rights enjoyed with the same as the Transferee in fee simple and the estate vested in the Transferee shall absolutely cease and determine"

lincroft1710

I would ask your solicitor if he thinks a court would rule that the covenant is unfair and unenforceable.

If he thinks it is enforceable then I would think very, very carefully about whether to go ahead with the purchase or not.

nomoneytoday

We have a "no satellite dish" clause on our convenants.
It makes the estate look a lot nicer than my previous dwelling, where there were different dishes on half the properties.

I would imagine that the clause is there as a last shot, rather than being used routinely, but your solicitor should explain it better, as they're paid to do so