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Restrictive covenants

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  • glasgowdan
    glasgowdan Posts: 2,968 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    I wouldn't get bogged down in thinking about this. There's no way you'll come across problems doing this type of business.
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I am confused why you think this as I stated in my original post that I had been looking a copy of the original deed and the parts I typed and you have specifically referred to from my posts were directly from it.
    I implied it because you said:
    "
    deed filed just references the original title deed and that it contained restrictive covenants ". I assumed you were looking at the current Title, not the original deed.

    If I was wrong - sorry.

    Please can you advise why you think otherwise?
    See my previous post!


    Since my post earlier today I have downloaded a copy of my title deed that is lodged on the land registry (the sale from 'Mr No1 Owner' to me) which does not have the restrictive covenants detailed but refers to them as follows in the separate sections.
    within A: Property Register "The land has the benefit of the rights granted by but is subject to the rights reserved by the Transfer dated *original 2003 sale date* referred to in the Charges Register."
    within B: Proprietorship Register "The Transfer to the proprietor contains a covenant to observe and perform the covenants referred to in the Charges Register and of indemnity in respect thereof."
    and within C: Charges Register "A Transfer of the land in this title dated *original 2003 sale date* made between (1) The Developer and (2) Mr No1 Owner contains restrictive covenants."
    Well - that is what I thought you'd been looking at!

    So anyway, it confirms my conclusion that you are bound by the covenant and the beneficiaries are all those owners of (parts of) the original land.
  • NeilCr
    NeilCr Posts: 4,430 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    thanks for that da_rule and NeilCr that makes it clearer, it does make me think people really should be nicer to their neighbours as every example so far has at least 1 offender within my near vicinity that I have wanted to throttle on occasion so i'll just run with my plan and if anything pops up remind people in glass houses not to throw stones.

    My experience is that residents are pretty selective about covenants. They can be vehement about upholding one that they don't like but quite happy to break another one if it suits them
  • JP1978
    JP1978 Posts: 527 Forumite
    Having just moved into a newish estate (60 houses, 10 years old) there is a covenant to say that no one can park commercial vehicles at their property. At least four of the neighbours have, some are sign written, some are not - one is a local authority employee. As suggested above, probably there to discourage the initial owners from parking loads of vans outside their house when marketing was still been done.
  • Land_Registry
    Land_Registry Posts: 6,142 Organisation Representative
    Part of the Furniture 1,000 Posts Name Dropper
    edited 30 December 2016 at 3:04PM
    Looks like you have arrived at the relevant conclusions around covenants and how they bind the land and therefore run on even with a change of ownership.

    The Developer puts the in place to bind each plot for the reasons posted re ability to sell all the plots off whilst having some control over what new owners can do.

    The covenant is clause is the key as it explains who is covenanting with who i.e. Buyer with Seller and who it is for the benefit if i.e. The 'estate' which will be defined in the Transfer.

    These covenants do not simply disappear, die or extinguish as they bind the land. They may often be ignored until of course such time as someone chooses not to. That may not, in my experience, be because of the specific breach but perhaps for some other reason relevant to you as being neighbours.

    Nowadays people are often steered towards indemnity insurance which can insure you against a loss associated with a breach and someone proving that they have the benefit and enforcing it. It is often a question of 'risk' assessment but no one neighbour is the same so if you have any uncertainty then legal advice should be sought before digging deeper as you have the registered details and copy Transfer to work from. And the advice posted to aid your own understanding
    Official Company Representative
    I am the official company representative of Land Registry. MSE has given permission for me to post in response to queries about the company, so that I can help solve issues. You can see my name on the companies with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE"
  • Hi all, I’m new to the site though have used it on the odd occasion previously for advice.
    I’m also having a problem with restrictive covenants and just wondered if anyone would be able to tell me whether a shed that has been put up would be governed by the following:
    “The Transferees covenant with the Transferor for the benefit of the Transferor’s retained land comprised in the above title number not to use the property otherwise than as garden land and not to cause or permit to be built on the property any buildings whatsoever without the previous consent in writing of the Transferor”
  • dunroving
    dunroving Posts: 1,903 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    I am looking to start a business and had intended to register it at my home address. Going through my paperwork and due diligence I found there is a restrictive covenant (amongst a long list of others) in the original deed of the developer to the original buyer who sold it to me (I don't have a copy of my deed at present but will obtain one shortly from the land registry) stating "Not to use the Property for any purpose other than as or incidental to one private residential dwelling and not to use the Property for any trade or business"
    I do not believe that this has been removed at all when transferring the deed to me.

    Is my reading of this correct that I should not be registering/using a business at my address?

    Within the list of restrictive covenants on the deed there are also ones such as "Not to erect or construct any building or other structure whatsoever whether temporary or permanent on the Property (except for good quality domestic sheds and greenhouses) without the prior consent in writing of the Seller for which a fee will be payable", "Not to park or cause or suffer or permit to be parked any commercial vehicle caravan or boat on the property between any building on the Property or the Estate Road", "Not to park on or obstruct the Estate Roads or Accessway"
    I am very aware of others living in the road who do have companies registered at their addresses, the correspondance and operating address, company registered vehicles parked outside their property, caravans, additional summerhouses constructed do I take it that they are most likely just flouting these covenants?

    Also I can not see what benefit may be obtained by the person benefiting from the covenant if I were to use the property for trade or business.
    Any assistance on interpretation would be greatly received.

    Edit: put in here as I feel the land registry representative may be best to assist & its more relating to title deeds and house purchase/selling than anything else

    These covenants are almost word for word the same as on the house I am purchasing and I was wondering very similar questions. Can I sit at my computer working on my consultancy work, or my writing work?

    No desire to park caravans or mobile homes, though I think my covenant says no parking "any vehicle"!

    Similar wording about building structures. I want to build a garage at the side of the house but as about 80% of the surrounding houses have already done so, I'm assuming I will be fine to do so, also.
    (Nearly) dunroving
  • lincroft1710
    lincroft1710 Posts: 18,869 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Gavlar08 wrote: »
    Hi all, I’m new to the site though have used it on the odd occasion previously for advice.
    I’m also having a problem with restrictive covenants and just wondered if anyone would be able to tell me whether a shed that has been put up would be governed by the following:
    “The Transferees covenant with the Transferor for the benefit of the Transferor’s retained land comprised in the above title number not to use the property otherwise than as garden land and not to cause or permit to be built on the property any buildings whatsoever without the previous consent in writing of the Transferor”

    Has the Transferor retained any land?

    Who erected the shed? Are there any sheds in neighbouring gardens?
    If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales
  • The Transferor is now the neighbour who bought the land not long after they moved in. The shed was erected over a year and a half ago. There are no sheds currently in neighbouring gardens but another neighbour has just had a larger one delivered for erection.
  • lincroft1710
    lincroft1710 Posts: 18,869 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    If the transferor hasn't complained yet then I don't think iy's worth worrying about
    If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales
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