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What is the main difference between a restrictive covenant and a positive covenant affecting land?

Correct Answer

B) Restrictive covenants prohibit certain actions, while positive covenants require action.

A restrictive covenant stops an owner doing something, such as building above two storeys. A positive covenant requires the owner to do something, such as maintain a fence or pay towards shared costs. At general law, the burden of a restrictive covenant can bind later owners, but the burden of a positive covenant generally does not run with freehold land, so positive obligations bind successors only under specific statutory schemes (for example covenants in favour of public authorities in NSW) or through community and strata arrangements.

Answer Options
A
Restrictive covenants expire after 20 years, while positive covenants are permanent.
B
Restrictive covenants prohibit certain actions, while positive covenants require action.
C
Restrictive covenants apply to residential land, positive covenants to commercial land.
D
Positive covenants always bind later owners, while restrictive covenants never do.

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Related Topics & Key Terms

Key Terms:

restrictive covenantpositive covenantTorrens titleencumbranceland obligations
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