What are restrictive covenants?

Restrictive covenants refer to agreements placed in property deeds that limit certain activities or uses of the property. These rules are typically established to maintain a certain aesthetic or use standard within a community, ensuring that all property owners adhere to the same guidelines. Such covenants can restrict things like the type of construction that can occur, the colors of paint that may be used, or even the types of animals that can be kept on the property. By placing these limitations, communities aim to preserve property values and enhance the overall quality of life for residents.

The other options do not accurately capture the essence of restrictive covenants. Legal documents that increase property value typically refer to financial agreements or enhancements rather than limitations. Rights that allow property owners to dictate neighborhood rules may hint at association rules but lack the specificity of what a restrictive covenant entails. Lastly, insurance policies covering property damages pertain to financial protection against loss, which is unrelated to the concept of property use restrictions present in restrictive covenants.