Covenants on South Australian Property Titles: What Buyers Must Check

Quick Answer

A covenant on a South Australian property title is a legally binding restriction or obligation affecting how you can use the land. Buyers must check official property records to identify these encumbrances before settlement, as they can block building modifications, limit land use, or enforce heritage obligations.

Understanding Covenants in South Australia

Under SA's Torrens title system, the certificate of title registers interests that bind the current owner and all future owners. While the Torrens system guarantees title, that guarantee is subject to the encumbrances and covenants recorded on the register. If a covenant exists, you cannot simply ignore it—breaching it can result in court orders, fines, or forced demolition of unapproved structures.

In SA, you will often see the term 'encumbrance' used broadly on the title search to cover mortgages, easements, and restrictive covenants. When reviewing the title, you must identify which encumbrances are covenants rather than financial charges or access rights, as they require different due diligence paths. When you order a Current Title search through TitleFinder, the document lists the registered interests. However, the title search only names the covenant and provides a dealing or instrument number. To understand what the covenant actually prevents or requires, you must order the underlying instrument or plan.

Key Areas of Risk for SA Buyers

Covenants create specific risks depending on the property type and your intended use. Pay close attention to the following areas:

Building and Renovation Restrictions

Restrictive covenants often dictate building materials, roof pitch, maximum building height, or setback requirements from the street. A covenant might even require you to build a certain minimum dwelling size. If you plan to renovate or develop, you must verify that your plans comply with both planning rules and the title's covenants.

Land Use and Activity Limits

Some older covenants restrict the property to residential use only, banning commercial activities or specific hobbies. Others might prohibit certain structures, like sheds or pools. If you intend to run a home business, a restrictive covenant can stop you before local planning rules even come into play.

Heritage Areas

Properties located within state or local heritage areas frequently carry covenants or heritage agreements noted on the title. These restrict external alterations, demolitions, or even specific internal changes. Even if local planning rules allow a change, a registered heritage covenant can override them.

Community Titles

If you are buying into a community title scheme, the community statement contains by-laws that function as covenants binding all lot owners. These can dictate everything from pet ownership and noise levels to the colour of your window frames. You must obtain and read the community scheme documents to understand your obligations.

Subdivision Limits

For developers, a covenant expressly prohibiting the subdivision of the land is a hard stop. Even if the local zone allows subdivision, a restrictive covenant on the title will prevent official property records from being updated to create new certificates of title.

Practical Checklist: What to Check for Covenants

When reviewing official property records, follow this checklist to avoid unwelcome surprises:

1. Order a Current Title Search: Start by ordering a Current Title search through TitleFinder for $74.50 AUD. This provides the baseline record of all registered interests.
2. Scan the Encumbrances Section: Look specifically for any entries listed under encumbrances or notifications. Note down the dealing numbers, instrument numbers, or plan numbers associated with each.
3. Check for Heritage Notations: Scan for any text referring to state heritage, local heritage, or heritage agreements.
4. Identify Community Scheme References: If the property is a community title, the title will reference a community plan. You will need to order the community statement.
5. Order the Instruments: For every covenant listed on the title, order the specific instrument. The title search alone will not tell you the rules—only the instrument contains the full text and conditions.
6. Map the Restrictions: Cross-reference the covenant conditions with a deposited plan. Determine if the restriction applies to the entire lot or a specific building envelope.

Which Document Answers Which Question?

Due diligence requires ordering the right document to answer specific questions about the land.

Frequently Asked Questions

Can I remove a covenant from a SA property title?

Removing a covenant usually requires an application to the relevant authority or a court order. This process can be expensive, time-consuming, and has no guarantee of success. Always assume the covenant is fully enforceable until a conveyancer advises otherwise.

Does a title search show the actual rules of the covenant?

No. A title search lists the existence of the covenant and its dealing or instrument number. You must order the specific instrument to read the exact wording, restrictions, or obligations that apply to the land.

How do covenants differ from easements on a SA title?

An easement gives another party the right to use part of your land (such as a neighbour's right of way or a service authority's access). A covenant dictates what you can or cannot do on your land. Both appear on the title, but they serve different legal purposes.

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.