Restrictive covenant - Definition and Overview

A restrictive covenant is a legal promise made in a deed by the buyer of real estate to do or not to do something, and not to sell it without exacting the same promise from the next buyer. Examples might be to maintain a property in a reasonable state of repair, to preserve a sight-line for a neighbouring property, not to run a business from a residential home, or not to build on certain parts of the property.

Some past cases have been found to be unenforceable, for example one not to sell it to any person not of the "White race" or otherwise considered an unacceptable owner. In the case of Shelley v. Kraemer, the United States Supreme Court ruled that it would be unconstitutional for the courts to enforce such a covenant.