What Are Covenants on a Queensland Property Title?
Covenants are legally binding restrictions registered on a property title that control how the land can be used or developed. In Queensland, covenants appear in the encumbrances section of your Certificate of Title and can have a significant impact on what you can and cannot do with your property.
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Whether you are buying a home in a new estate, investing in development land, or planning renovations, understanding covenants is essential. This guide explains the types of covenants you may encounter, how they are created and enforced, and what to do if a covenant affects your plans.
Types of Covenants in Queensland
Restrictive Covenants
Restrictive covenants limit what an owner can do with their property. They are the most common type and are frequently imposed by developers when creating new residential estates. Typical restrictive covenants include:
- Minimum dwelling size: Requiring houses to be at least a certain floor area (e.g., 180 sqm)
- Building materials: Mandating brick, rendered masonry, or prohibiting certain cladding types
- Colour schemes: Requiring approval from a design review panel for exterior colours
- Fencing: Specifying fence heights, materials, and styles
- Outbuildings: Limiting or prohibiting sheds, carports, or secondary dwellings
- Commercial use: Prohibiting any business activity on the property
- Vehicle storage: Prohibiting caravans, boats, or commercial vehicles being stored in view
Positive Covenants
Positive covenants require an owner to do something, such as maintain a fence, contribute to shared infrastructure, or keep the property in a certain condition. These are less common than restrictive covenants but can carry financial obligations.
Building Covenants in New Estates
Most new residential estates in Queensland impose a suite of building covenants designed to maintain a consistent streetscape and protect property values. These typically require:
- Construction to commence within a specified period (often 18-24 months from settlement)
- Plans to be approved by the developer or a design review panel before construction
- Landscaping of the front yard within a set timeframe after completion
- Maintenance of the property to a certain standard
How Covenants Appear on Your Title
When you order a Current Title Search ($74.50 AUD) from TitleFinder, covenants appear in the encumbrances section as a dealing number. The title will show something like:
"Covenant in Gross No. 7XXXXXXX" or "Restriction on Use of Land No. 7XXXXXXX"
The title search tells you a covenant exists, but to understand its full terms and conditions, you need to order the Dealing Instrument ($91.80 AUD) using the dealing number. This document contains the complete legal text of the covenant, including exactly what is restricted and who has the benefit of enforcing it.
Who Can Enforce a Covenant?
Enforcement depends on who holds the benefit of the covenant:
- Developer covenants: The original developer (or their successors) can enforce building and design covenants. In some cases, a body corporate or residents association takes over enforcement after the developer exits.
- Neighbour covenants: Some covenants benefit adjoining landowners, giving them the right to enforce restrictions even without the developer involved.
- Covenants in gross: These are held by a specific party (often the developer or a management entity) rather than being attached to a neighbouring lot.
Enforcement is typically through the courts, where the beneficiary can seek an injunction to stop a breach or claim damages.
Can Covenants Be Removed or Modified?
Yes, but it is not always straightforward. Options include:
- Agreement: If the covenant beneficiary agrees, it can be surrendered by lodging a dealing with the Titles Registry
- Court application: Under the Property Law Act 1974, you can apply to the Supreme Court to modify or extinguish a covenant if it is obsolete, unreasonable, or the character of the neighbourhood has changed
- Planning scheme override: In some cases, development approval under the Planning Act 2016 may override certain covenants, though this is legally complex
- Expiry: Some covenants include a sunset clause and expire after a set period (commonly 10-15 years for building covenants in new estates)
Covenants vs Easements: What Is the Difference?
While both appear as encumbrances on your title, covenants and easements serve different purposes:
- Easements grant a right to use part of your land (e.g., for drainage or access)
- Covenants restrict or require certain actions by the landowner
A property can have both easements and covenants, and they interact independently. Always review both when conducting due diligence. Order the relevant Survey Plan ($85.90 AUD) to see where easements are physically located on the lot.
Impact on Property Value and Development
Covenants can both protect and limit property value:
- Positive impact: Building covenants in quality estates maintain streetscape standards and protect property values for all owners
- Negative impact: Restrictive covenants can prevent subdivision, dual occupancy, or commercial use—limiting development potential and reducing land value for investors
For developers, covenants are a critical due diligence item. A covenant prohibiting subdivision or limiting building height can make or break a development feasibility. Always order the dealing instrument to review the full terms before committing to a purchase.
Due Diligence Checklist for Covenants
- Order a Current Title Search ($74.50) to identify all registered covenants
- Order the Dealing Instrument ($91.80) for each covenant dealing number
- Read the full terms—do not rely on the brief title description
- Check for sunset clauses or expiry dates
- Confirm who holds the benefit and can enforce the covenant
- If the covenant conflicts with your plans, seek legal advice on modification or removal
- For development sites, cross-reference covenants with the local planning scheme
Order Your Title Documents
Do not let an unknown covenant derail your property plans. Start with a current title search to identify what is on the title, then order the dealing instruments to understand the full picture.
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