A restrictive covenant is registered on a Victorian property's title. Which of the following correctly describes the legal effect when the property is sold?
Correct Answer
C) It runs with the land and binds later owners, whether or not they agreed to it.
A restrictive covenant registered on title runs with the land and binds each successive owner, whether or not they personally agreed to it. In Victoria it can be removed or varied only through a formal process, such as a planning permit or planning scheme amendment under the Planning and Environment Act 1987, or an order of the Supreme Court.
Why This Is the Correct Answer
A registered restrictive covenant runs with the land and binds all later owners. It does not end on sale or need re-registration. Removal or variation needs a formal process: a planning permit or planning scheme amendment, or a Supreme Court order.
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