Property
Covenant (Real Covenant)
Definition
A real covenant is a promise concerning the use of land that runs with the land, binding or benefiting successors in interest. For a covenant to run at law, it must be in writing, the parties must intend it to run, it must 'touch and concern' the land, and there must be horizontal and vertical privity. Horizontal privity exists when the original parties share an interest in the same land (e.g., grantor-grantee). Vertical privity requires that the successor hold the entire estate of the original party.
Example
A developer sells lots subject to a covenant restricting use to residential purposes. If the covenant runs with the land, subsequent purchasers are bound by it.