This chapter is concerned only with restrictive covenants affecting land other than the land demised by the lease, and reference to 'restrictive covenant(s)' in this chapter has this meaning alone.

General points

A lease may contain a restrictive covenant entered into by a landlord or tenant in favour of the other. Such a restrictive covenant cannot be noted in a register of a title where it affects the same piece of land as that demised by the lease (s33(c) LRA 2002). However, covenants affecting other registered land of the tenant or landlord can be noted in the register(s) of those titles. A typical example would be where a landlord lets a retail unit for use as a supermarket and covenants with the tenant not to lease any other units on the site for the same purpose.

Restrictive covenants contained in leases granted before 13 October 2003 do not need to be registered if the lease is not subject to registration. However a voluntary application can be made in form AN1 or UN1 to note the covenants on any registered title burdened by the covenants.

Restrictive covenants in a lease granted on or after 13 October 2002 must be noted on the burdened title, otherwise they will not bind a subsequent purchaser for value of the burdened land (s29(1) LRA 2002). This applies even where the lease is not capable of registration or noting. For prescribed clauses leases, see the module covering that subject.

The next page looks at when a specific application to register is required.