What are "restrictive covenants" in real estate?

Restrictive covenants are specific provisions or limitations included within property deeds or associated documents that dictate the conditions under which a property can be used. These conditions may include various restrictions related to the nature of improvements, types of activities permitted on the property, and aesthetic requirements like maintaining a certain architectural style.

The purpose of these covenants is often to maintain a consistent and harmonious environment within a neighborhood or development, thereby protecting property values and ensuring that certain community standards are upheld. For example, a restrictive covenant might prohibit the construction of fences taller than a specified height or restrict the type of materials that can be used for construction.

In the context of the other options, while legal agreements (as mentioned in one option) can encompass a broader range of topics, restrictive covenants specifically focus on land use limitations rather than property resale. Dispute resolution clauses pertain to how disagreements will be handled and are not part of covenants related to property usage. Terms enhancing property value could be a result of well-structured restrictive covenants, but this is more of a potential outcome rather than the defining characteristic of restrictive covenants themselves.