glossary Glossary 2 min read

Restrictive covenant

A restrictive covenant is a promise registered on title that limits how land can be used. Binds all future owners in NSW under the Conveyancing Act 1919.

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A restrictive covenant is a registered encumbrance on a property’s title that prohibits the owner from doing something with the land. Common examples on residential lots include: single-dwelling-only restrictions (prevents dual occupancy), minimum floor area requirements, building setback or building line limits, and restrictions on materials or external finishes.

Restrictive covenants are created under the Conveyancing Act 1919 (NSW) and registered on title via a Section 88B instrument attached to a deposited plan. They run with the land, binding every future owner automatically. They are different from planning controls in a Local Environmental Plan (LEP), although both can restrict what can be built. An LEP control is a public regulatory instrument; a restrictive covenant is a private legal obligation on the title.

Also known as: covenant, title covenant, building covenant.

Category: Approvals, Conveyancing.

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Last updated: 2026-05-09. Verified: 2026-05-09.