NCEES Principles and Practice of Surveying Practice Exam

What does a covenant typically restrict?

1. The use of the land in subdivisions or complexes

2. The sale of property to third parties

3. The duration of leases

4. The rights of easement holders

The correct answer is: The use of the land in subdivisions or complexes

A covenant is a formal agreement or promise that restricts certain actions, often included in real estate transactions, particularly in subdivisions or complexes. Its primary function is to maintain the character and use of the land within a community. For example, a residential subdivision can impose covenants on homeowners that limit activities such as the types of structures that can be built, the materials that can be used, or the appearance of the homes. This is done to ensure that all properties adhere to a specific standard that aligns with the overall vision of the community. The idea behind these restrictions is to promote cohesiveness and protect property values by preventing uses that may be deemed undesirable or incompatible with the vision for the neighborhood. Such covenants can vary widely based on the community and are vital for maintaining the intended aesthetic and functional qualities of the area. Other aspects, such as the sale of property, duration of leases, and rights of easement holders, may be governed by different rules, regulations, or agreements, but they are not the primary focus of what a covenant restricts. Covenants primarily target the use of the land, ensuring that the regulations around it are adhered to for the mutual benefit of the community and its residents.