A covenant is an agreement, contract, or promise. A restrictive covenant is a covenant which acts as a restriction or prohibition of certain uses of real estate. For example, restrictive covenants for a residential subdivision may restrict use of the real estate in the subdivision to residential purposes only. Some restrictive covenants may define the maximum and minimum square footage of homes to be built and define further limitations regarding construction of other buildings upon the residence. CAUTION: Restrictive covenants prohibiting sales of real estate to minorities have been declared unconstitutional and unenforceable.

Restrictive covenants must be in writing and must be signed to be enforceable. To be effective against subsequent purchasers, restrictive covenants must be recorded. Typically, restrictive covenants run with the land, meaning that they will continue to apply to the real estate even after the original owner of the real estate at the time of execution of the restrictive covenant transfers it to another person. Most states do have limitations as to the length of the time the restrictive covenants may run. These limitations may be found in statutes, sometimes referred to as "stale use acts." To be enforceable, restrictive covenants must be clear and unambiguous. Courts will often refuse to enforce restrictive covenants that are unclear or ambiguous. Please see specific state for details and/or differences.

Black's Law Dictionary, Fifth Edition.