Quick Answer: A covenant on an ACT property title is a legally binding restriction or obligation recorded in the official property records. It can limit what you build, how you use the land, or require you to maintain shared infrastructure. Before exchanging contracts, order a full Current Title and State Lease search through TitleFinder ($74.50 AUD) to identify every covenant and assess its impact on your plans.
What is a covenant on an ACT property title?
In the Australian Capital Territory, land is held under Crown lease rather than freehold. Covenants appear on the Crown lease, on unit plans for townhouses and apartments, and as restrictive covenants registered against the title. These are enforceable rules that run with the land. They bind every future owner, not just the person who originally agreed to them.
Unlike easements, which typically give someone a right to use part of your land, covenants impose positive obligations (you must do something) or negative restrictions (you must not do something). Both types matter for buyers.
Types of covenants ACT buyers encounter
- Restrictive covenants: Limit building height, materials, façade appearance, or subdivision. Common in newer estates and older garden city suburbs.
- Positive covenants: Require you to maintain a retaining wall, shared driveway, or stormwater infrastructure.
- Crown lease covenants: Conditions embedded in the ACT Crown lease itself, covering land use, development timelines, or environmental management.
- Unit plan covenants: By-laws and management statements in a unit title that restrict renovations, pet ownership, or parking.
Practical checklist: what to look for in a title search
- Order a Current Title / State Lease search — Cost is $74.50 AUD through TitleFinder. Confirms the registered proprietor and lists every encumbrance, including covenants. Includes the Crown lease terms for the block.
- Check the Crown lease for development conditions — Look for use clauses, building commencement dates, and completion deadlines. These are covenants that can trigger lease variation charges if you need to change them later.
- Identify any registered restrictive covenants — Listed in the encumbrances section of the title search. Cross-reference the dealing number to order the full covenant instrument. The title search lists the reference; the instrument gives you the actual text.
- Review the unit plan if buying a townhouse or apartment — Unit plan by-laws contain covenants about renovations, noise, and common property. Order the management statement separately for full detail.
- Read planning certificates alongside the title — A planning certificate tells you the zoning and overlay rules. Compare these against covenant restrictions, as both layers apply and the stricter rule wins.
- Search for lease variations — Previous owners may have applied to vary Crown lease covenants. Check whether a variation was approved, refused, or is pending.
- Verify compliance with existing covenants — If a covenant requires a driveway to be sealed, check whether the current owner has complied. Non-compliance becomes your problem after settlement.
What each document reveals
| Document | What it shows | When to order it |
|---|---|---|
| Current Title / State Lease search ($74.50 AUD) | Registered proprietor, all encumbrances, Crown lease conditions | Always — this is your starting point |
| Covenant instrument (dealing) | Full text of the covenant, parties, and specific restrictions | When the title search lists a covenant you need to assess |
| Unit plan and management statement | By-laws, common property rules, renovation restrictions | When buying a unit or townhouse |
| Planning certificate | Zoning, overlays, and territory plan controls | When development or renovation is planned |
| Lease variation instrument | Changes to original Crown lease conditions | When the title shows a varied lease or you plan to vary it |
When to order extra documents
The title search gives you a summary. When it lists a covenant by dealing number, you need the full instrument to understand what it actually requires. Order the instrument through TitleFinder when:
- A restrictive covenant appears on the title and you need its exact wording
- The Crown lease contains development conditions and you plan to build or renovate
- A unit plan shows management statements you have not seen yet
- You suspect a previous lease variation may affect your proposed use
Delaying this step until after settlement is risky. Once you own the property, removing or varying a covenant requires application to the relevant authority, negotiation with beneficiaries, and potentially significant lease variation charges.
ACT-specific covenant risks
Crown lease conditions are the dominant covenant type in the ACT. Unlike other jurisdictions where freehold title is the norm, ACT blocks are leased from the territory. The lease itself contains enforceable covenants about permitted land use, timeframes for completing buildings, environmental management obligations, and requirements to maintain landscaping or heritage features.
Failing to meet a Crown lease covenant can result in lease termination in extreme cases. For typical residential buyers, the more common risk is discovering you cannot build the extension, secondary dwelling, or fence you planned because a covenant prohibits it.
Restrictive covenants registered by developers in newer ACT estates often control façade materials, roof colours, and fencing styles for a set period. These may expire after a date stated in the instrument, but until then they are enforceable by the developer or a residents' association.
FAQ
How do I find covenants on an ACT property title?
Order a Current Title / State Lease search through TitleFinder for $74.50 AUD. The results list all encumbrances, including covenants, and provide the Crown lease conditions. If a covenant appears, note the dealing number and order the full instrument to read the exact terms.
Can I remove a covenant from an ACT property title?
It depends on the covenant type. Restrictive covenants can sometimes be removed or varied if all beneficiaries consent or if an authority determines the covenant no longer serves its original purpose. Crown lease covenants require a lease variation, which may attract a lease variation charge. Seek legal advice specific to your situation before applying.
What happens if I breach a covenant on my ACT property?
Breaching a covenant can lead to enforcement action by the beneficiary. For restrictive covenants, this might mean court orders to reverse unauthorised building work. For Crown lease covenants, the territory can issue directions, impose conditions, or in serious cases, take steps toward lease termination. Always check covenants before committing to purchase or starting construction.
This article is for general information only and does not constitute legal advice. Property decisions should consider professional advice specific to your circumstances and the property in question.
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.
