In real estate, what do 'covenants' refer to?

Covenants in real estate specifically refer to conditions placed in property deeds that restrict how the property can be used. They serve as legally binding stipulations that can govern a variety of aspects including the types of structures that may be built, architectural guidelines, the maintenance of property, or the activities that may take place on the property. These restrictions help maintain community standards and property values.

Understanding the function of covenants is crucial for property ownership, as they can affect what a homeowner can and cannot do with their property. These conditions are enforceable by other property owners within the development or community, and therefore they play a significant role in real estate transactions and neighborhood dynamics.

While price regulations, government regulations, and neighborhood agreements may also influence real estate, they do not encompass the specific legal nature of covenants, thus highlighting the importance of clear definitions in real estate terminology.