What Is a Covenant on a Property Title?

Plain-English Answer

A covenant on title is a promise or obligation relating to land. It may restrict how the land can be used or developed, or impose an obligation concerning the land — such as a minimum building size or a restriction on specific commercial activities. Whether it binds future owners, and how it can be enforced or varied, depends on the wording of the covenant, how it was created, and the law that applies in the relevant state or territory.

What the Document Can Show

• Covenant Registration Details — the dealing number and date of registration on the title search.

• Benefited Land or Party — which neighbouring lots or developer entities hold the benefit of the covenant, where recorded.

• A Reference to the Covenant — a basic title search may flag that a covenant exists; whether it's described as restrictive or positive often isn't apparent from the search alone and generally requires the full instrument.

What It May Not Establish

• Full Text Provisions — summary title searches usually list the covenant reference but omit the full terms in the original agreement.

• Current Compliance — records don't state whether current structures or land uses comply with the covenant's terms.

• Enforceability Status — a covenant that hasn't recently been enforced isn't necessarily expired or invalid; a title document alone won't confirm its current enforceability.

Practical Next Steps

• Review the title search to note any listed covenants under encumbrance schedules.

• Request the full legal instrument or transfer document containing the complete covenant terms.

• Review building design plans against the restriction text before committing to alterations.

When to Seek Professional Advice

If you're planning to modify a property, build new structures, or vary an existing covenant, a conveyancer or property lawyer can assess the legal risk and the process for seeking a variation or removal.

Related: What is an encumbrance on a property title? · Registered vs unregistered property interests

This article provides general information only and is not legal, conveyancing, surveying or financial advice. Property title terminology and procedures can differ between Australian states and territories. Check the relevant land registry records for your property and obtain professional advice for your specific situation.