Restrictive Covenant - What does this mean?

Rikz12

Hey peeps - I hope you are well and having a good day. 

I've seen many posts with regards to Restrictive Covenants and wanted your help. A a questions I have:

1) "THE Purchaser with intent and so as to bind (so far as practicable) the property hereby conveyed into whosesoever hands the same may come but not so as to render himself personally liable for any breach covenant committed after he shall have parted with all interest in the property in respect of which such breach shall occur hereby covenants with the Vendors that he the Purchaser and his successors in title will at all times hereafter observe and perform the restrictions and stipulations which are set out in the First Schedule hereto - What the hell does this mean?

(sorry, if a question like this has been answered before but I am new to this and hoping to buy our first family home. We really like and want this place and are keen to understand all details - sadly with my dyslexia, understand the above has just been super challenging .)

ArbitraryRandom

It means that the purchaser (you) promises to ensure that the property and any future owners of the property (anyone you sell it to) will comply with the agreed-upon restrictions and stipulations (listed in schedule 1), but the purchaser (you) will not be personally liable for any breaches committed by future owners (i.e. you won't be liable for anything your buyers do after you sell it).

EDIT: okay... read that back and it's still a bit confusing so take 2: 

When someone buys this property, they promise they will follow the restrictions listed elsewhere in the document AND to make sure that anyone who owns the property after them follows the same restrictions. However, if someone else who owns the property after them breaks those rules, the original buyer won't be held personally responsible.

The main implication/intent (I think) is that you can't have the restrictions removed?

Flugelhorn

Honestly you really need to ask your solicitor, they will be able to tell you in a few words.

I think it might  mean that there are covenants and you have to follow them and tell  any future purchasers to follow them to but you aren't actually responsible if they don't. 

user1977

Rikz12 said:

1) "THE Purchaser with intent and so as to bind (so far as practicable) the property hereby conveyed into whosesoever hands the same may come but not so as to render himself personally liable for any breach covenant committed after he shall have parted with all interest in the property in respect of which such breach shall occur hereby covenants with the Vendors that he the Purchaser and his successors in title will at all times hereafter observe and perform the restrictions and stipulations which are set out in the First Schedule hereto - What the hell does this mean?

"You've got to obey the rules in the First Schedule while you're the owner of this property"

Rikz12

Thanks all for responding - it's been screwing with head trying to vaguely understand this.

@Flugelhorn - so, my wife has raised this with our solicitor but annoyingly they are super slow. Furthermore, from the little Googling on restrictive covenants that I found online, it said the solicitors should have informed us that is exists (not sure if this the actual process but if it is, then highly disappointed). 

I'm trying to find a contact for the limited company online but its seems its dissolved (I am assuming it is the same one) and if I am reading this right, would that mean that these rules are not valid anymore?

fantasyvsreality

I had this on a property I was trying to buy some years ago (that ultimately fell through). The restrictive covenant was that you couldn't run a business from the property. It was one of many bungalows all built by the same builder in the 60s and when they were built this covenant was put in place. It also had a possessory title but that's another story! I agree it is stressful at the time as these terms are meaningless to a lay person and it's hard to get hold of your solicitor. 

user1977

Rikz12 said:

Thanks all for responding - it's been screwing with head trying to vaguely understand this.

@Flugelhorn - so, my wife has raised this with our solicitor but annoyingly they are super slow. Furthermore, from the little Googling on restrictive covenants that I found online, it said the solicitors should have informed us that is exists (not sure if this the actual process but if it is, then highly disappointed). 

I'm trying to find a contact for the limited company online but its seems its dissolved (I am assuming it is the same one) and if I am reading this right, would that mean that these rules are not valid anymore?

The bit you've quoted doesn't tell us what the covenant is that you're concerned about.

If you are still in the process of your purchase than possibly your solicitor hasn't yet reached the stage of reporting to you on the title - or have they already done so and told you there were no covenants?

Rikz12

@fantasyvsreality - Yeah, its most annoying. The house is from the 50s (1958 to be exact) so trying to find back dated details is annoying. I thought I would even give HM Land Registry a call too however, when they looked at the file, the said the information thats in the Title Register isn't that different so, we wouldn't necessarily find any additional information. 

@user1977 - essentially, we want to build an extension for a kitchen and diner. The covenant that is concerning is the following: 4.  Not to make any structural alterations or additions to the property or to erect any new permanent buildings or outbuildings on the land without first submitting plans thereof to the Vendors and obtaining their approval in writing thereto."   

propertyrental

You need to read schedule 1 to find out what your rights and obligations under the covenenant are.

Rikz12

@propertyrental please find the what schedule one covers below:
A Conveyance of the land in this title dated 20 October 1958 made between (1) Mitchell Wilson Limited (the Vendors) and (2) XXX XXX (the Purchaser) contains covenants details of which are set out in the schedule of restrictive covenants hereto.

propertyrental

Rikz12 said:

@propertyrental please find the what schedule one covers below:
A Conveyance of the land in this title dated 20 October 1958 made between (1) Mitchell Wilson Limited (the Vendors) and (2) XXX XXX (the Purchaser) contains covenants details of which are set out in the schedule of restrictive covenants hereto.

As explained, you need to read the conveyance dated 20 October 1958, find schedule 1, and read that section.

will at all times hereafter observe and perform the restrictions and stipulations which are set out in the First Schedule hereto -

As we do not have copies of the conveyance, we cannot read schedule 1, therefore we cannot advise what the obligations are.