Deed of Covenant
In the context of property conveyancing, a deed of covenant is a legal document in which a nominated party agrees to carry out specified obligations, adhere to certain clauses or terms, and/or agree to make certain payments.
Deeds of covenant are most common with leasehold properties when the lease is being assigned to a new owner. Examples in which a deed of covenant might be used on a leasehold transaction include where the tenant agrees:
- not to keep a pet at the property or use the property as a place of business
- to make certain contributions towards maintenance (service charges)
- to pay the ground rent set out in the lease
Author:
Chris Salmon, Director
About the author
Chris Salmon is a co-founder and Director of Quittance Legal Services. Chris has played key roles in the shaping and scaling of a number of legal services brands and is a regular commentator in the legal press.