Associate Contractors License Practice Exam

Covenants are specific agreements or restrictions placed on a piece of property that dictate how that property may be used or modified. These legal restrictions can be included in deeds or established by homeowners' associations. They commonly serve to maintain a certain aesthetic, control development, or impose rules that benefit the community or neighborhood.

In the context of property, covenants protect the interests of all property owners within a particular area by ensuring that the rights and uses of the land are consistent. For example, a covenant may restrict the types of structures that can be built on a property, the colors that can be painted, or the types of businesses that can operate in a residential area. By adhering to these covenants, property owners help to preserve the character and value of the neighborhood.

While common law refers to the body of law developed through court decisions rather than statutes, it does not specifically establish the property restrictions that covenants do. Commercial law focuses on business and commerce transactions, and statutory law includes laws enacted by legislative bodies, which may encompass various aspects of real estate but do not inherently impose specific property restrictions.