Legal
Covenant restricts development
This can change development yield, consent pathway, purchase price, funding, construction cost, settlement timing, or legal risk. Treat it as a decision point, not background noise.
What it looks like
- Lawyer finds a covenant restricting building type, materials, number of dwellings, use, access, or subdivision.
- The proposal may conflict with private legal restrictions.
Likely causes
- Covenant not checked early
- Assumed planning permission is the only restriction
- Old subdivision controls
Immediate action
- 1Pause the affected decision or commitment until the issue is understood.
- 2Record the issue in the risk register with date, source, owner, and next action.
- 3Send the relevant documents to Lawyer, Surveyor, Planner and ask for written advice.
- 4Update feasibility, programme, budget, and decision register if cost, time, yield, consent, title, finance, or sales assumptions may change.
Step-by-step solution
- 1Define the problem in one sentence and identify which project decision it affects.
- 2Check the controlling documents: Record of Title, Covenant instrument, Lawyer report, Concept design.
- 3Ask the responsible professional to confirm whether the issue is real, minor, manageable, or project-changing.
- 4List the available options: redesign, renegotiate, seek consent, add cost allowance, change programme, change sales strategy, or abandon.
- 5Price and programme each option using the current feasibility model.
- 6Make a written decision with source references and approval from the developer or project owner.
- 7Notify affected parties such as lender, lawyer, consultants, builder, agent, buyer, or council when required.
What not to do
- Do not rely on a seller, agent, or builder comment when a planner, lawyer, accountant, engineer, surveyor, valuer, lender, or council needs to confirm it.
- Do not hide the issue from the feasibility just because the project looked profitable yesterday.
- Do not waive due diligence, lodge consent, sign a contract, approve a variation, or promise settlement while the issue is unresolved.
- Do not give legal, tax, finance, planning, engineering, or council advice to others unless a qualified professional has confirmed it.
Verification
Source / where to check
Use current official information and the controlled documents for the actual project.
Use LINZ, a lawyer, and a licensed cadastral surveyor to verify Record of Title, legal description, interests, easements, covenants, consent notices, survey plans, and boundary/title matters.
Planner, surveyor, architect, engineer, quantity surveyor, lawyer, accountant, lender, valuer, real estate agent, and other project specialists must confirm site-specific decisions.
Project-specific consented documents and professional advice override generic guidance.
Cost impact
High if yield or sale product must change.
Programme impact
Medium to high if legal advice or variation/removal process is needed.
Risk level
High
Compliance and contract impact
Check whether the issue changes the resource consent pathway or conditions, building consent documents, consultant scope, sale and purchase conditions, finance terms, construction contract scope, notice requirements, variation process, or settlement obligations.
Example email / decision wording
Subject: Covenant restricts development — advice and decision required. We identified this issue during due diligence. The current evidence is listed in the attached record. Please confirm the controlling requirement, available options, cost/programme implications, further information needed, and whether any consent, contract, funding, or settlement action must pause. No assumption has been approved pending written advice.