What Is a Covenant on a Property?

Understanding Property Covenants and Developer Guidelines When Building on Vacant Land

If you’ve recently bought or are contemplating buying vacant land to build a new home, you may have noticed a few unfamiliar terms popping up, like ‘Property Covenants’ or ‘Developer Guidelines’.

First of all, don’t panic. We’re here to explain it to you in an easy-to-understand way. Let’s look at what a covenant is on a property, how it differs from developer guidelines and what they both mean for your new home build.

What is a Covenant on a Property?

A covenant on your property is a broad legal agreement or condition placed on a property’s title. Legally binding, it's most often imposed by the developer and puts specific conditions on how land may be used or developed. Covenants stay with the land and bind all future owners until they are formally changed or revoked through a legal process.

What are Developer Guidelines?

Developer guidelines are a set of rules prepared to ensure a high-quality and consistent look within a new estate. While developer guidelines don’t have the same legal weight as a covenant, you must comply with them to gain developer approval before construction can begin.

What it all means is:

• Covenants are legal restrictions recorded on the land title.
• Developer guidelines are design standards set by the developer.

It’s easy to get confused, as covenants and developer guidelines play a big role in shaping what can and can’t be built within a new estate, and they often work in tandem.  While they can feel like a set of limitations at first, they’re ultimately designed to ensure your new home blends beautifully into its surroundings and maintains the estate’s overall character.

What is a Restrictive Covenant on a Property?

A restrictive covenant is a specific type of property covenant that limits or restricts what can be done on the land.

Used most commonly in new housing developments, restrictive covenants on a property can limit you from things such as:

• Building more than one dwelling on the land
• Using certain materials or colours on your home’s facade
• Adding secondary buildings like sheds or granny flats
• Running a business from the property

While details vary between estates, most focus on the home’s appearance, land use and overall presentation. 

Why Do Developers Use Property Covenants?

When land is brought to market by a developer on a new estate, the aim is to deliver a harmonious, attractive and quality lifestyle for residents. Restrictive covenants on a property and guidelines for the layout of an estate are in place to provide uniformity within the neighbourhood, so each dwelling contributes to a more pleasing streetscape.

Without them, an estate could end up with a mix of inconsistent architectural styles, neglected gardens or lower-quality buildings that devalue the properties in the long term.

As a homeowner, these property covenants will usually serve your best interests:

• They protect your investment by ensuring consistency and beauty in the area.
• They guarantee that your neighbours build to the same standard, enhancing the overall appeal of the neighbourhood.
• They give you confidence that the estate will retain its value long after you move in.

So while they may seem restrictive, covenants on a property are there to protect both the developer’s vision and your long-term property value.

How to Find Out if a Property Has a Covenant

If you’re buying vacant land, always ask your developer or conveyancer whether any covenants apply before signing your contract.

Covenants are registered on the property title, so your Section 32 statement or contract of sale will include these details. You can also search directly through your state or territory’s land titles office.

Common Types of Property Covenants and Design Guidelines

Here are some of the most common property covenants and design guidelines:

Facade and Architectural Style

Developers often set rules about the type of home facades allowed to ensure a cohesive look. This may include requirements for brick over cladding, roof pitches or the number of feature materials. Some estates also require specific features such as verandahs, eaves or defined colour schemes.

Building Materials and Finishes

Covenants may limit the use of certain materials, such as lightweight cladding on front facades or specify the percentage of brick or rendered surfaces required. These guidelines maintain a sense of quality and consistency throughout the estate.

Setbacks and Building Envelope

A building envelope defines where you can position your home on the block. Setbacks dictate how close the dwelling must be from the front, side or rear boundaries. This helps create consistent spacing between homes and ensures sufficient light and privacy.

Fencing Requirements

You may need to build fences to a specific height, material or colour, often Colorbond or timber in a certain shade. Some developers also prohibit front fencing altogether to preserve open frontages.

Landscaping Standards

Many new estates require homeowners to complete front landscaping within a set timeframe (for example, within six months of construction). They might also specify the types of plants or lawn to be used.

Garages and Driveways

Developers may limit the number of visible garage doors or require driveways to be constructed from approved materials, like exposed aggregate or coloured concrete.

Secondary Structures

Some covenants restrict additional buildings, such as sheds, granny flats or even solar panels to preserve visual appeal.

How a Covenant on a Property Affects Your Home Design

It’s critical to understand these regulations up front because they play a direct role in the design and approval of your new home.

Our Eden Brae Homes team regularly works with estates that have specific covenants and guidelines. When you choose one of our designs, our specialists can help you adapt your design plans to meet these requirements while still capturing your personal style and lifestyle needs.

This early collaboration saves time and frustration during the approval process. It ensures your design not only meets council requirements but also satisfies the developer’s design review.

The Design Approval Process

Most new estates require your proposed home design to be submitted to the developer or the estate’s Design Review Panel (DRP) for approval. This step happens before your building permit is issued.

The DRP will check your plans against the estate’s covenants and guidelines. If anything doesn’t comply, such as roof materials, facades or driveway finishes, you’ll need to make adjustments before proceeding.

Your builder can handle most of this process on your behalf, but it's always best to review the guidelines yourself before finalising your design. This helps avoid any surprises or delays later on.

Planning Your Gorgeous New Home

Building on vacant land provides an exciting opportunity to create a home that’s entirely your own. Property covenants and developer guidelines may add a few extra steps, but they help ensure your new neighbourhood stays beautiful, cohesive and desirable for many years to come.

Eden Brae Homes understands how to meet estate guidelines and any restrictive covenants on your property, without compromising on your vision. Our experienced team will work with you from the start, reviewing your property's requirements, adapting your floor plan and preparing all the necessary documentation for developer approval. That way you can focus on what matters most: bringing your dream home to life.

Ready to start your new home journey? See how easy it can be, and take a look at the range of house and land packages available at Eden Brae Homes. We’ll help you find the perfect combination of location, lifestyle and design.