When you buy or sell a property, you may come across something in the paperwork called a covenant. A covenant is simply a legal promise attached to the land.
These promises are usually found in old deeds, and they can be either:
- Positive covenants: promises to do something, such as repairing a wall or putting up a fence.
- Restrictive covenants: promises not to do something, such as building without consent or causing a nuisance.
The difference between positive and restrictive covenants
Restrictive covenants normally pass automatically to new owners. For example, if there is a promise not to build on a certain part of the land, that promise will usually continue to apply to whoever owns the property in the future.
Positive covenants are different. The responsibility to carry them out does not automatically transfer to a new owner. Instead, the person who first made the promise can remain liable, even after selling the property, unless something is put in place.
How the indemnity covenant helps
To solve this, property lawyers use what is known as an indemnity covenant. When you buy a property, you agree to “indemnify” (or protect) the seller. This means that if the seller was ever held responsible for a breach of a covenant in the future, you would cover the cost.
When the property is sold again, the next buyer makes the same promise, and so on. This creates a chain of indemnity covenants which ensures that responsibility follows the current owner, rather than leaving past owners exposed.
Does this matter in practice?
For many buyers, these covenants are more of a formality than a real concern. In fact:
- Many covenants are very old and relate to obligations that no longer apply.
- It is often unclear who, if anyone, still has the right to enforce them.
- The likelihood of being sued for a breach is often very small.
Because of this, indemnity covenants are usually included as a routine part of the legal process. Sometimes indemnity insurance can be arranged, but in most cases it is not needed.
What this means for you
If your solicitor advises you to enter into an indemnity covenant, it is usually nothing to worry about. It is a standard way of keeping the paperwork in order and making sure the seller is protected after the sale. In most cases, it has little or no impact on how you use your property.
In summary
- Covenants are legal promises linked to land.
- Restrictive covenants usually bind all future owners automatically.
- Positive covenants do not, so indemnity covenants are used to pass on responsibility.
- For most homeowners, this is a routine legal step with little practical risk.
How Lewis Nedas Law Can Help
At Lewis Nedas Law, our property team understands the complexities of conveyancing and the issues that can arise around covenants. Whether you are buying, selling, or managing a property with historic obligations, we provide clear, practical advice tailored to your circumstances.
We are proud to be accredited by the Law Society’s Conveyancing Quality Scheme (CQS), reflecting our commitment to high professional standards. Our team takes a client-focused and proactive approach, working efficiently to make the conveyancing process smooth and stress-free. Clients benefit from secure communication, transparent no-obligation quotes, and the reassurance that we are recognised by the lender panels of major UK banks.
Whether you are a first-time buyer, an investor, or involved in a more complex transaction, we tailor our service to your needs, combining expertise with straightforward advice every step of the way.
Joe Calver is a highly experienced and competent specialist property professional assisting Jeremy Galman.
Contact our expert Residential Conveyancing Team
For expert advice and support with residential conveyancing, please contact Lewis Nedas Law on 020 7387 2032 or complete our online enquiry form.