According to the duhaime.org legal dictionary, a restrictive covenant definition is: “A contract in which a party agrees to be restricted in some regards as to future conduct.”
With respect to real estate, restrictive covenants dictate what property owners must do, or may not do with or on their property, and are generally agreed upon when the owner purchases the property. These agreements ostensibly protect property values.
History of restrictive covenants in residential neighborhoods
Although the idea of covenants has been around for centuries, the recent history of this type of contractual agreement in housing developments reveals its dark side. For many years, restrictive covenants were used to prevent members of certain minority groups from moving into white neighborhoods. In other words, the residents of a neighborhood would agree not to sell or rent to specified “racial,” religious, or other minority groups, and anyone subsequently moving into the neighborhood would be obliged to agree to the same terms (LawBrain, “Restrictive Covenant”)
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