Covenant restricts development

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

1. 1Pause the affected decision or commitment until the issue is understood.
2. 2Record the issue in the risk register with date, source, owner, and next action.
3. 3Send the relevant documents to Lawyer, Surveyor, Planner and ask for written advice.
4. 4Update feasibility, programme, budget, and decision register if cost, time, yield, consent, title, finance, or sales assumptions may change.

Step-by-step solution

1. 1Define the problem in one sentence and identify which project decision it affects.
2. 2Check the controlling documents: Record of Title, Covenant instrument, Lawyer report, Concept design.
3. 3Ask the responsible professional to confirm whether the issue is real, minor, manageable, or project-changing.
4. 4List the available options: redesign, renegotiate, seek consent, add cost allowance, change programme, change sales strategy, or abandon.
5. 5Price and programme each option using the current feasibility model.
6. 6Make a written decision with source references and approval from the developer or project owner.
7. 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.