Quick Answer
A covenant on a NSW property title is a registered restriction or obligation that survives the transfer of ownership — you inherit it at settlement. Covenants appear in the Second Schedule of the Current Title and reference a deposited plan or instrument number. To read the actual wording, you must order the underlying document. Missing a covenant can block renovations, prevent subdivision, or force costly compliance.
What a covenant is and why it matters
A covenant is an encumbrance registered on a property title. Restrictive covenants limit what you can do — for example, banning double-storey construction or requiring specific fencing materials. Positive covenants require you to do something — such as maintain a shared drainage system or contribute to a communal driveway.
Both types bind future owners. A registered covenant is enforceable by whoever holds the benefit, and it does not expire when the original parties move on.
Covenants differ from easements (which grant someone a right to use part of your land) and caveats (which are a claim of interest lodged by a third party). All three appear on title and all three can affect your use of the property. When you run a title search covenant checks should cover all three.
Where to find covenants on a NSW title
On a NSW Current Title, encumbrances are listed in the Second Schedule. Each entry references a deposited plan (DP) number or an instrument number.
A Second Schedule entry might read: Restrictive Covenant — DP123456 — affect the whole of the land herein. This tells you a covenant is recorded on that deposited plan. You then need to order the deposited plan and any section 88B instrument attached to it to read the full text.
A Current Title search through TitleFinder costs $74.50 AUD and gives you the schedule entries. But the title alone will not contain the covenant's full wording — you need the underlying documents.
Types of covenants and what they restrict
| Covenant type | What it does | Where to find full text |
|---|---|---|
| Restrictive covenant | Limits land use, building height, dwelling type, materials | Deposited plan or section 88B instrument |
| Positive covenant | Requires the owner to maintain or construct something | Deposited plan or section 88B instrument |
| Section 88B covenant | Restrictions or obligations written into a deposited plan's instrument | Section 88B instrument attached to the DP |
| Strata by-law | Restricts use within a strata scheme (covenant effect) | Strata scheme by-laws (separate from title) |
Property-specific covenant risks in NSW
Torrens title homes
Most NSW residential homes are Torrens title. Common covenants on these titles include:
- Single dwelling covenants — preventing duplexes or secondary dwellings
- Building envelope restrictions — limiting where on the block you can build
- Setback requirements from boundaries
- Material restrictions on roofing, fencing, or facades
These are especially common in newer subdivisions where the developer registered covenants to maintain neighbourhood character. Older titles may carry decades-old covenants that still apply even if the original developer no longer enforces them.
Strata apartments
Strata titles carry restrictions through by-laws, but covenants can also appear on the strata lot title itself. Check whether:
- The scheme's by-laws include use restrictions that function as covenants
- Common property is subject to a covenant limiting alterations
- The lot carries a covenant from before the strata scheme was registered
Strata by-laws are not listed on the Current
Use this guide as a reference, then order the actual record that answers your question: If you are unsure, start with the current title search, then add the plan or instrument if the title points to one.Order the right TitleFinder document
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.
