Quick Answer
A covenant on a NSW property title is a legally enforceable restriction or obligation that runs with the land. It can limit what you build, how you use the property, or require you to maintain something. You find covenants by ordering a Current Title search, then checking the referenced dealings, deposited plans, and 88B instruments for the full conditions. A Current Title search through TitleFinder costs $74.50 AUD and lists every registered encumbrance, including covenants.
What Is a Covenant on a NSW Property Title?
A covenant is a registered written promise that binds current and future owners. In NSW, covenants typically fall into three categories:
- Restrictive covenants — limit what the owner can do (e.g., single dwelling only, no construction above two storeys, no commercial use)
- Positive covenants — require the owner to do something (e.g., maintain a shared driveway, contribute to drainage infrastructure costs)
- Building covenants — specify construction standards or materials (e.g., brick exterior only, minimum roof pitch, mandatory fence style)
Covenants bind the land, not the person. When you buy the property, you inherit every covenant on the title — regardless of whether the previous owner enforced it.
Where Covenants Appear on the Title
A Current Title search lists covenants in the Encumbrances section. However, the title entry is often brief — it may show only a dealing number or a reference to a deposited plan or 88B instrument. The full covenant text lives in those supporting documents.
This is why a title search is step one. You must then order the referenced dealing or instrument to read the actual conditions.
Covenants and Strata Apartments
Strata-title apartments carry covenants through two layers:
- The strata scheme by-laws registered on the common property title
- Any developer-imposed covenants on the individual lot title
Check both. By-laws can restrict renovations, pet ownership, flooring types, and short-term letting. Developer covenants may mandate specific fit-out standards or restrict alterations for a set period after registration.
Always order the strata plan and by-laws alongside the lot title to get the full picture.
Torrens Title Homes and Covenant Risk
Most houses in NSW are Torrens title. Covenants on Torrens-title homes often originate from:
- Original subdivision deeds — restrictive covenants limiting dwelling type or building envelope
- Heritage conservation areas — restricting exterior changes
- Estate covenants from developers — mandating fence styles, driveway surfaces, or garden standards
These covenants survive for decades. A 1950s subdivision covenant restricting construction to one detached dwelling of brick or concrete still applies — and can block a dual-occupancy development or secondary dwelling.
Old System Land: Higher Covenant Risk
Properties still under old system title carry covenants buried in the chain of title deeds. Unlike Torrens title, where the register is conclusive, old system land requires examining the deed history to identify all encumbrances.
If the property is old system land, a Current Title search alone may not reveal every covenant. You may need a full abstract of title or historical deed search. Ask your conveyancer whether the property is old system and what additional searches are required.
Covenants, Easements, and Caveats: Know the Difference
Buyers sometimes confuse these three encumbrances. The table below clarifies what each one does and where to look.
| Encumbrance | What It Does | Where to Find Details | Extra Document to Order |
|---|---|---|---|
| Covenant | Restricts or requires actions on the land | Encumbrances section of title; dealing number listed | Dealing instrument or 88B instrument |
| Easement | Grants another party right to use part of the land | Encumbrances section; easement reference | Deposited plan showing easement location |
| Caveat | Flags an unregistered interest or claim on the title | Caveats section of title | Caveat document (identifies caveator and claim) |
Practical Checklist: What to Check for Covenants on a NSW Title
Use this checklist before you exchange contracts:
- Order a Current Title search ($74.50 AUD through TitleFinder) and read every entry in the Encumbrances section
- Identify each covenant by its dealing number or instrument reference
- Order the full dealing instrument or 88B instrument for every covenant listed — the title summary alone will not give you the conditions
- Check the deposited plan for building envelopes, setback lines, or restriction zones drawn on the plan
- For strata lots, order the strata plan and registered by-laws
- For old system land, confirm with your conveyancer whether deed-history searches are needed
- Compare covenant restrictions against your intended use — renovation, extension, subdivision, or business use
- If a covenant appears unenforceable or outdated, get legal advice on removal or variation before settlement, not after
When to Order Additional Documents
A Current Title search tells you that a covenant exists. It does not contain the full covenant text. Order these extra documents when covenants appear:
- Dealing instrument — when the title lists a dealing number next to the covenant entry
- 88B instrument — when the covenant was created as part of a subdivision; the 88B contains the full restriction and positive covenant schedule
- Deposited plan — when the title references a DP number; the plan may show building envelopes or restriction lots
- Strata plan and by-laws — for any strata-titled lot
These documents are available through TitleFinder as separate searches.
Frequently Asked Questions
Can I remove a covenant from a NSW property title?
It is possible but not automatic. Removal usually requires demonstrating that the covenant is obsolete, adversely affects the property, or that the benefiting party agrees to its release. Some covenants include sunset clauses that cause them to expire after a set period. Get legal advice before assuming a covenant can be removed.
Does a title search covenant show the full covenant text?
No. A Current Title search identifies the covenant and lists its dealing number or instrument reference, but the full conditions sit in the dealing instrument, 88B instrument, or deposited plan. You must order those documents separately to read the actual restrictions.
What happens if I breach a covenant I did not know about?
Ignorance of a registered covenant is not a defence. Covenants on the title bind every owner. Breach can lead to court orders to undo works, damages, or injunctions. This is why checking every covenant before exchange is standard due diligence — not a step you can skip.
This article provides general information only and does not constitute legal advice. For covenant interpretation or removal, consult a qualified solicitor.
Order the right TitleFinder document
Use this guide as a reference, then order the actual record that answers your question:
- NSW Title Search — $69.90
- NSW Imaged Deposited Plan — $85.90
- NSW Imaged Documents — $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.