Covenants

[gaz1234]

Hello
I recently looked at a property which which went to closed bids off which I missed out on. It’s subsequently back otm at the increased price of £25k more, the price I offered initially.

apparently there are covenants that was the reason for the collapse.

can anyone give advise as to what these mean?

Thanks


All covenants listed below:

4) The Transferee covenants with the Transferor, for the benefit of the Retained Land and each and every part of it, with the intention of binding the Property and each and every part of it: (a) not to use the Property for any purpose other than for one single private dwelling or carry on any trade or business at the Property;
(b) not to use the Property for any noisy, offensive, illegal or immoral purpose;
(c) not to do anything at the Property that would cause loss, damage, injury, nuisance, annoyance, disturbance or inconvenience to the Transferor.;
(d) not to allow to pass into the Service Media serving the Property any noxious or deleterious effluent or other substance which may obstruct or damage them or any other neighbouring property;
(e) not to park caravans, mobile homes, lorries, derelict vehicles or trade vehicles (except trade vehicles in the course of delivering goods to or supplying services to the Property) on the Access Road and the external areas of the Property;
(f) not to cut down, damage, neglect or remove any existing tree or hedge on the Property or any other plant planted pursuant to the requirements of the local planning authority;
(g) not to obstruct or interfere with the flow of light or air to the windows, doors or other openings in the buildings currently situated on the Retained Land;
(h) not to do or permit or suffer to be done upon the Property any act or things which: (i) may result in loss or damage to or interference with any Service Media within the Property which is used jointly with the Transferor;
(i) not to obstruct the Access Road;

 

[blup]

can anyone give advise as to what these mean?

Yes a lawyer, but he/she will need a bit more information than you are giving us, like the planning history of the site and the retained land.

The sale may have fallen through for a simple reason like a proposed business use.

Blup

 

[Notch7]

Nothing very restrictive in that. No restrictions on extensions

does the holder of the covenant still exist?

 

[^woody^]

does the holder of the covenant still exist?

You mean the property owner/purchaser? It's they who will covenant.

 

[^woody^]

Those are all standatd and common covenants applied to many house sales.

They all seem self explanatory.

 

[Mottie]

Our old house had things in the deeds like 'not to be used as an ale house or lunatic asylum'.

 

[oldbutnotdead]

Very common set of restrictions. The one most likely to affect modern purchasers is the restriction on caravans etc. Talk to your solicitor...

 

[blup]

Ask what you want to use the property for, rather than second guess the reasons why the previous sale fell through. It was obviously popular because the SP has gone up. I would want to change the covenant about trade or business as many people run businesses from home. I would also check that the services and local authority planting scheme on the land wouldn't get in the way, or significantly add to the cost of any future extension etc.

Blup

 

[Old Salt]

You need to decide if you can live with the retrictions, no motorhome, no caravan, no trade vans etc.

In our bungalow we are not allowed to keep pigs as in 1860 when the land was originally sold the piggery did not want any competition. The developer in 1957 felt obliged to pass on the same covenant to subsequent purchasers.

My daughter took great delight in buying us 2 garden ornaments in the shape of pigs.

 

[mrrusty]

There isn't much there to worry about. Take the caravans covenant. OK, it's there, but what and who would do something about it? what would they sue for? It isn't illegal so no authority can impose a fine, no authority is interested in prosecuting broken covenants, so that leaves the transferor. To get a remedy you have to sue for something, but what damages could you claim? IMHO you would have to have evidence that e.g. the transferor had suffered some financial loss against which a claim could be made. For most circumstances this would all be in the too hard pile.

Much of what is there is covered by planning rules anyway, including "trade or business". Insurers discriminate between working from home and running a business. The former doesn't require visitors or planning, the latter does. Again, the transferor would have to show tangible loss to sue for damages.

 

[bernardgreen]

no authority is interested in prosecuting broken covenants,

It depends if the covenant was part of the planning application then they may prosecute.

What may happen is that other homeowners with the same covenants will decide to take a group action against the person who ignores the terms of the covenant

 

[Dereekoo]

It depends if the covenant was part of the planning application then they may prosecute.

What may happen is that other homeowners with the same covenants will decide to take a group action against the person who ignores the terms of the covenant

Do planning get that involved in covenants? But my understanding is that its original seller of the land who imposes the covenant and this continues in the deeds to subsequent sellers and its only the original imposer of the covenant who can enforce this and if the they are dead, ceased trading, etc. there's not much that can be done?

 

[^woody^]

Any beneficiary of a covenant can enforce it, not just the original/previous owner.

Not running a business from the house and not having an ugly caravan on the drive would benefit all the neighbours.

 

[blup]

Its the purchasers of the new houses in the back garden, field, or whatever is being developed that benefit from the covenants. Nothing to do with planning.

Blup

 

[Diver Fred]

My reading (understanding) of the covenents meanings inserted (I'm not legally trained so everything I commented below should be taken with a pinch of salts you may wish to take further advice). :-

All covenants listed below:

4) The Transferee covenants with the Transferor, for the benefit of the Retained Land and each and every part of it, with the intention of binding the Property and each and every part of it: (a) not to use the Property for any purpose other than for one single private dwelling or carry on any trade or business at the Property;

I take that to mean you cannot knock the property down and replace with 2 or more houses.

(b) not to use the Property for any noisy, offensive, illegal or immoral purpose;

You cannot (should not) make excessive noise for non domestic purposes - could also mean you cannot have a noise hobby; make / grow 'medicines'; or run a brothel!

(c) not to do anything at the Property that would cause loss, damage, injury, nuisance, annoyance, disturbance or inconvenience to the Transferor.;

Now this is a bit more difficult - it could mean that the vendor has an ongoing interest in the property - it usually means that you cannot setup a rival business to the vendor.

(d) not to allow to pass into the Service Media serving the Property any noxious or deleterious effluent or other substance which may obstruct or damage them or any other neighbouring property;

Block the foul and surface water pipes either intentionally or unintentionally. Think 'FatBurgs'. Who would pay for cleaning etc.

(e) not to park caravans, mobile homes, lorries, derelict vehicles or trade vehicles (except trade vehicles in the course of delivering goods to or supplying services to the Property) on the Access Road and the external areas of the Property;

i.e. any non-delivery vehicle pertaining to yourself must be parked on the property - you shall not block the road.

(f) not to cut down, damage, neglect or remove any existing tree or hedge on the Property or any other plant planted pursuant to the requirements of the local planning authority;

In other words the property hedges and trees are likely subject to Tree Preservation Orders - means requests to the council to cut trees down, possibly even prune such; hedges need fairly regular trimming.

(g) not to obstruct or interfere with the flow of light or air to the windows, doors or other openings in the buildings currently situated on the Retained Land;

Is the land subject to Radon Gas testing? It reads that airflow in, through and around the buildings needs maintaining.

(h) not to do or permit or suffer to be done upon the Property any act or things which: (i) may result in loss or damage to or interference with any Service Media within the Property which is used jointly with the Transferor;

Does the original vendor run a business or farm next to the property or have access through the property?

(i) not to obstruct the Access Road;

Is the road a private one with more properties further along? They may own the road or have full access rights over it.