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
Chris Salmon, Director

Author:
Chris Salmon, Director