Covenant

A covenant is a registered obligation or restriction affecting how land may be used, built on or dealt with, binding present and future owners.

What they typically restrict

• Minimum floor area or build value
• Materials, roof pitch, colours, fencing
• Time limits within which a house must be built
• Restrictions on relocatable or transportable homes
• Limits on further subdivision
• Restrictions on business use, signage, vehicles or pets

Why they matter more than people expect

Covenants can be more restrictive than the district plan. A section zoned for a minor dwelling can be subject to a covenant prohibiting one. A site where the council would permit a 90m² home can carry a covenant requiring 180m² minimum.

In modern subdivisions, developer-imposed covenants are extensive and are designed to protect the look and value of the whole development — often at the cost of your flexibility.

Removing or varying one

Difficult. It usually requires the consent of every party with the benefit of the covenant, or an application to the High Court. Assume you cannot remove it.

Common misunderstanding

Zoning permits, covenants restrict, and the more restrictive one wins. Checking the district plan is not enough.

Read the covenant before buying a section, not after. Investors have bought land intending a minimum-cost build only to find a covenant requiring a substantially larger and more expensive house.

Related terms

Last reviewed: 1 August 2026 · ---

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