Quick Answer
In the ACT, land is held under Crown lease, not freehold. This means covenants and restrictions sit on the lease itself—not just on the certificate of title. A covenant on a property title in the Australian Capital Territory can restrict building height, mandate façade materials, or prohibit certain uses. Before committing, buyers and conveyancers must check the lease, any lease variations, unit plans, and planning certificates to understand every binding restriction.
Why ACT Covenants Are Different
Unlike other jurisdictions where land is typically freehold, the ACT operates on a leasehold system. The Crown lease is the primary document—it sets out what the leaseholder can and cannot do with the land. A covenant ACT entry may appear on the lease, on the certificate of title, or on both. Miss one, and you could be buying into restrictions you cannot live with or develop around.
Common ACT covenants include:
- Restrictions on building height and setbacks
- Requirements for specific façade materials or colours
- Prohibitions on certain business uses or subdivision
- Single-dwelling requirements on residential blocks
- Obligations to maintain landscaping or driveways
Key Documents to Check
Crown Lease
The Crown lease is the starting point. It will state the purpose of the lease (e.g. residential, commercial), any development conditions, and the lease term. It may also reference specific covenants by instrument number. If a covenant is registered on the lease, you need the full instrument text—not just the entry on the title—to understand what it actually requires.
Certificate of Title
The certificate of title lists all registered interests, including restrictive covenants, easements, and caveats. In the ACT, this will cross-reference the Crown lease. Order a Current Title / State Lease search ($74.50 AUD through TitleFinder) to see both the title and lease details together.
Lease Variations
Lease conditions can change over time through formal lease variations. A variation might relax a covenant—or add new ones. Always check whether the lease has been varied, and obtain the variation document if it has. The variation instrument will tell you exactly what changed and when.
Unit Plans
For townhouses and apartments, the unit plan defines boundaries, common property, and any by-laws that function like covenants. Unit plan by-laws can restrict renovations, pet ownership, parking, and noise. Check both the unit plan and its schedule of by-laws before exchanging contracts.
Planning Certificates
A planning certificate from the relevant planning authority confirms zoning and any planning overlays that affect the property. While not a covenant itself, a planning restriction can interact with a covenant—sometimes tightening it, sometimes providing a pathway to vary it. Always compare planning certificate conditions against lease covenants.
Practical Checklist: ACT Covenant Checks
- Order a Current Title / State Lease search ($74.50 AUD through TitleFinder) to see registered interests and lease conditions.
- Read the Crown lease in full—note the purpose clause and any development conditions.
- Check for registered covenants on the certificate of title and note their instrument numbers.
- Obtain each covenant instrument to read the actual restriction text.
- Search for lease variations—confirm whether the lease has been modified and what changed.
- For units and townhouses: obtain the unit plan and read all by-laws.
- Order a planning certificate and compare zoning and overlay conditions against lease covenants.
- Cross-reference easements and caveats—these can compound covenant restrictions.
- If developing: check whether a lease variation or covenant discharge application is feasible before purchase.
- Flag any ambiguity or conflict between documents and seek conveyancer advice before committing.
Covenant Types at a Glance
| Covenant Type | Where to Find It | What It Controls |
|---|---|---|
| Purpose clause | Crown lease | Permitted land use (residential, commercial, etc.) |
| Development condition | Crown lease | Building size, setbacks, materials |
| Restrictive covenant | Certificate of title / instrument | Specific prohibitions (e.g. no subdivision) |
| Lease variation | Variation instrument | Changes to original lease conditions |
| Unit plan by-law | Unit plan schedule | Renovations, pets, parking, noise |
| Planning overlay | Planning certificate | Zoning, heritage, environmental controls |
Frequently Asked Questions
Can a covenant on an ACT property title be removed or varied?
Yes, but it requires a formal application—usually a lease variation or a request to the planning authority. The process depends on the covenant type and who benefits from it. A restrictive covenant may need the consent of the benefiting party. A Crown lease condition may require government approval. Success is never guaranteed, so check before you buy rather than assume you can vary later.
What happens if I breach a covenant on an ACT property?
Breaching a covenant can result in enforcement action, including orders to stop work, rectify changes, or pay penalties. In the ACT, the relevant authority can also take action for breach of Crown lease conditions. This is why a title search covenant check is non-negotiable before settlement.
Does a unit plan by-law override a Crown lease covenant?
No. A unit plan by-law operates within the framework of the Crown lease. If the lease restricts development, a by-law cannot permit it. Both apply simultaneously, and the more restrictive requirement wins. Always check the Crown lease first, then layer on unit plan by-laws.
This article is for informational purposes only and does not constitute legal advice. Consult a qualified conveyancer or solicitor for advice specific to your transaction.
Order the right TitleFinder document
Use this guide as a reference, then order the actual record that answers your question:
- ACT Certificate of Title — $69.90
- ACT Deposited Plan — $85.90
- ACT Instrument — $91.80
If you are unsure, start with the current title search, then add the plan or instrument if the title points to one.
Need the title search? Use the TitleFinder product links above to order the current title, plan, instrument or state-specific property record you actually need.
