What are covenants?
Covenants are strict rules that control what you can and cannot do with your property. You will usually find them in neighborhoods run by a homeowners association. The word comes from an Old French term meaning a binding agreement or a promise. Real estate developers started using them heavily in the 1900s to control the look and feel of new subdivisions. Today, they are a standard part of life in many planned communities.
When you purchase a house in one of these neighborhoods, you sign a legal document agreeing to follow these rules. This document is often called the Covenants, Conditions, and Restrictions. It is legally binding. You cannot simply opt out of it. When you close on the house, the title company will give you a thick stack of papers. The rules are buried in there. They attach to the land itself. This means they apply to you and anyone else who buys the house after you.
Why they matter to you
These rules exist to protect property values and keep the neighborhood looking uniform. Some people love them because they stop a neighbor from leaving junk cars on the lawn. Other people hate them because they limit personal freedom. You need to read the rules carefully before buying a home in a regulated community.
Covenants dictate big and small details. They might force you to get permission before you build a fence. They might ban you from running a business out of your garage. If you want to change your exterior siding or add a deck, you usually have to submit your plans to an architectural review committee. If you skip this step, the association can force you to tear down your new deck.
Common restrictions to watch for
Every neighborhood has a different set of rules. Some are very relaxed, while others are incredibly strict. Here are a few common things covenants usually control:
- Paint colors: You might have to choose from a small list of approved exterior colors.
- Parking and vehicles: Many rules ban you from parking boats, campers, or commercial work trucks in your driveway.
- Landscaping: You might have to keep your grass cut to a certain height. You might also be banned from planting certain types of trees.
- Pets: The rules might limit how many dogs you can own or ban specific breeds entirely.
- Trash cans: You often have to hide your garbage bins behind a fence so they are not visible from the street.
What happens if you break them
Breaking these rules can cost you a lot of money. If you ignore a rule, the association will usually send you a warning letter. If you do not fix the problem, they will start charging you fines. These fines vary widely based on your location and your specific association. A typical fine ranges from $25 to $100 per day until you fix the issue.
If you refuse to pay the fines, the situation gets much worse. The association can place a lien on your house. This means you cannot sell your home or refinance your mortgage until you pay the debt. In extreme cases, they can even force your home into foreclosure to collect the money you owe. On top of the daily fines, you might also have to pay the legal fees for the association if they take you to court. A simple dispute over a fence color can easily end up costing you $2,000 to $5,000 in legal bills. Ranges vary, but lawyers are never cheap. This is why it is so important to understand your neighbors and your HOA rules. If you want to change a rule, you usually have to run for a seat on the board and get a majority of your neighbors to vote for the change.
