Restrictive Covenants: What Are They And Why Should You Care? Thursday, May 6, 2021 Restrictive covenants have a significant and substantial impact on the use and value of property; yet they are often ignored entirely or not considered until the end of the due diligence period before purchasing the property. Whether you are purchasing property for residential use or for commercial use, it is important to know, first, what restrictions and obligations are tied to the land you are about to purchase, and second, the consequences to you if you don't, or can't, comply with those restrictions and obligations. Newspapers and online publications frequently feature articles and editorials regarding restrictive covenants and the owners associations that enforce those covenants. Lawmakers have, and will likely continue to, attempt to pass legislation to reign in the powers of owners associations. Yet purchasers of property still do not seem to place enough importance on the impact restrictive covenants and the persons who enforce them can have on the purchasers' use and enjoyment of their property. As part of your due diligence process before you purchase any real property, it is important to take into consideration the following matters regarding restrictive covenants and their potential impact on the use and value of the property you plan to purchase before it's too late to walk away from the deal.