What Are Covenants on a Property Title?
A covenant is a binding promise attached to a property title that restricts or requires certain actions by the landowner. Unlike easements (which grant rights to use land), covenants control what you can and cannot do with your property. They're one of the most misunderstood encumbrances on Queensland titles, and ignoring them can lead to legal disputes, forced demolitions, or blocked development applications.
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Image of Dealing Instrument
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Covenants are registered on the certificate of title and run with the land — meaning they bind every future owner, not just the person who originally agreed to them. Before buying any Queensland property, you need to know what covenants apply and how they'll affect your plans.
Types of Covenants in Queensland
Restrictive Covenants
These are the most common type and restrict what you can do with your property. Examples include:
- Building material restrictions: Must use brick, cannot use Colorbond
- Minimum dwelling size: House must be at least 200 square metres
- No subdivision: The lot cannot be further divided
- Single dwelling only: No duplexes or multi-unit development
- Fencing requirements: Specific materials, heights, or styles mandated
- No business use: Property restricted to residential purposes only
Restrictive covenants are particularly common in newer estates where developers want to maintain a certain aesthetic or property value standard across the development.
Positive Covenants
Less common in Queensland, positive covenants require the owner to do something — such as maintaining a shared driveway or contributing to infrastructure upkeep. These are more frequently seen in community title schemes.
Building Covenants
A subset of restrictive covenants focused specifically on construction requirements. Common in master-planned communities, they may dictate:
- Roof pitch and materials
- Garage placement (front-facing vs side-entry)
- Landscaping requirements for front yards
- Timeframes to commence and complete construction
- Approved builders or architectural styles
How Covenants Differ from Council Regulations
An important distinction: covenants are private agreements between landowners, while council planning regulations are public law. You must comply with both, and they can conflict.
For example, your local council's planning scheme might allow you to build a duplex on your lot, but a covenant registered on the title might restrict the property to a single dwelling. In this case, the covenant prevails — you cannot build the duplex even though council would approve it.
This is why a title search is essential, not just a council planning check. The two sources of restriction operate independently.
Finding Covenants on Your Title
Covenants appear as registered interests on the certificate of title. To fully understand a covenant, you need two documents:
1. Current Title Search — $74.50
Identifies all registered covenants by their dealing number. The title will note something like "Covenant in Transfer 71234567" — telling you a covenant exists and referencing the document that contains the full terms.
2. Image of Dealing Instrument — $91.80
This is the actual document that sets out the covenant's terms and conditions. Without reading this, you won't know exactly what the covenant restricts or requires. The dealing instrument specifies:
- The exact restrictions or obligations
- Who benefits from the covenant (the "benefited lot")
- Who is burdened by it (your lot)
- Any conditions for modification or release
We strongly recommend ordering both documents together. The title tells you covenants exist; the dealing instrument tells you what they say.
Can Covenants Be Changed or Removed?
Yes, but it's not simple. Queensland law provides several paths:
Consent of the Benefited Party
If the person or entity who benefits from the covenant agrees to modify or release it, a formal surrender can be registered. In newer estates, this is often the developer — but once they've sold all lots, the benefit may pass to individual lot owners, making consent much harder to obtain.
Court Application
Under the Property Law Act 1974 (Qld), Section 181, you can apply to the Supreme Court to modify or extinguish a covenant if:
- The covenant is obsolete due to changes in the neighbourhood
- It unreasonably restricts the use of the land
- The benefited parties won't be substantially injured by its removal
- It conflicts with the planning scheme
Planning Scheme Override
In limited circumstances, if a covenant conflicts with a local council's planning scheme, the planning scheme may take precedence under the Planning Act 2016. However, this is complex and case-specific — legal advice is essential.
Real-World Covenant Scenarios
Scenario 1: You buy a block in a new estate planning to build a Colorbond shed. The covenant requires all structures to be brick or rendered. Your shed application is rejected by the body administering the covenant — not by council.
Scenario 2: You purchase a large lot intending to subdivide. The covenant prohibits subdivision. Despite council approval for the subdivision, you cannot proceed without first having the covenant removed.
Scenario 3: A 1960s covenant restricts your inner-city lot to "residential purposes only." The neighbourhood is now zoned mixed-use. You may have grounds for a court application to extinguish the outdated covenant.
Due Diligence Checklist for Covenants
Before purchasing any Queensland property:
- Order a current title search to identify all registered covenants
- Order the dealing instruments for each covenant to read the full terms
- Compare covenant restrictions with your plans — renovations, extensions, subdivision, business use
- Check if the covenant is still actively enforced — look at what neighbours have done
- Get legal advice if any covenant could conflict with your intended use
Don't Skip the Title Search
Covenants are invisible until you look for them. They don't appear on real estate listings, they're not mentioned in open house brochures, and your agent may not know about them. The only reliable way to discover covenants is through an official title search.
Order your Queensland title search through TitleFinder today. At $74.50 for a current title, it's the most affordable protection against covenant surprises you can buy.
