Easements and Covenants: What They Mean When You Buy

Easements and Covenants: What They Mean When You Buy

When you look at a home for sale, most of your attention naturally goes to what you can see: the layout, the yard, the condition of the kitchen and the street it sits on. Some of the details that matter most, though, are written on paper rather than built in brick. Easements and covenants are two of them, and understanding what they are can help you ask better questions before you commit to a purchase.

In Victoria, both usually appear on the certificate of title, which forms part of the vendor’s statement, often called the Section 32. They are attached to the land itself rather than to the current owner, which means they generally stay in place when the property changes hands. If you buy the home, you take it with whatever easements and covenants are already recorded.

An easement gives someone other than the owner a right to use part of the land for a particular purpose. In most suburban streets, including many across Melbourne’s north, the most common examples are drainage and sewerage easements running along a rear or side boundary. Others may allow for power lines, a shared driveway or access to a neighbouring property. The owner still owns that strip of land, but there are limits on what can be done with it.

For buyers, the practical question is how an easement might affect the way you want to use the property. A drainage easement across the back of a block may make little difference if you simply want a lawn and a garden bed. It becomes more important if you are picturing a garage, a granny flat or an extension in that part of the yard, because building over or close to an easement usually needs consent from the relevant authority and may not be approved at all.

A covenant works differently. It is a promise, usually made by an earlier owner when the land was first subdivided, that restricts how the land can be used or developed. Covenants in older estates sometimes limit a block to a single dwelling, set rules about building materials or restrict certain fence types. Some were written decades ago and can read as old-fashioned, but that does not necessarily mean they no longer apply.

This matters most to buyers with future plans. If you are hoping to add a second dwelling, subdivide or knock down and rebuild, a restrictive covenant can have a real bearing on what is possible. A planning permit from council does not override a registered covenant, and councils are generally unable to approve a proposal that would breach one. Changing or removing a covenant can sometimes be done, but it tends to be a formal process that takes time and is not guaranteed to succeed.

You may also see other items listed in the vendor’s statement, such as an agreement between a previous owner and the council that sets conditions on the land. These can cover matters like vegetation, building envelopes or how a site may be developed, and are worth reading with the same care.

The simplest step is to read the title and the vendor’s statement early, ideally before an auction or before you sign a contract, and to have your conveyancer or lawyer explain anything you do not understand. Plans attached to the title show where easements sit, and it can help to walk the boundary and picture how they line up with the fence, the shed or the space where you imagined that extension.

If your plans depend on doing something specific with the land, it is worth raising them with your conveyancer and, where relevant, checking with the local council and the water authority before you buy rather than afterwards. Questions that feel minor during an open for inspection can become expensive surprises once settlement has passed.

None of this means a property with an easement or covenant should be avoided. Many homes have one or the other, and often they make little difference to everyday living. The key is knowing what is there, understanding what it means for your plans and making a decision with your eyes open.

This article is general information only and is not legal or financial advice. Before buying, please speak with your own conveyancer or lawyer about the title, the vendor’s statement and how any easements or covenants may apply to your circumstances.

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