Covenants in Gross: A Comprehensive Guide to Their Legal Meaning

Q: How does it differ from a covenant appurtenant?

A covenant appurtenant is tied to the land and transfers with ownership, while a covenant in gross does not.

Q: Can a covenant in gross be transferred?

Generally, it is non-transferable unless explicitly stated in the agreement.

Q: Where are covenants in gross commonly used?

They are often found in real estate agreements, easements, and land use contracts.

Q: What should I do if a covenant in gross affects my property?

Review the covenant carefully and consider consulting legal resources or professionals for guidance.

Definition & meaning

A covenant in gross is a type of legal agreement that is personal to the individual who owns it, rather than being tied to a specific piece of land. This means that the obligations or benefits of the covenant do not automatically transfer to future owners of the property. In contrast, a covenant appurtenant is linked to the land itself and passes with ownership. Covenants in gross can be classified as either personal, which are not transferable, or as running with the land, which can be passed on to successors.

Table of content

Legal use & context

Covenants in gross are often used in real estate and property law. They may appear in various legal contexts, such as easements, land use agreements, and development contracts. Understanding these covenants is essential for property owners, developers, and legal practitioners. Users can manage related forms and agreements with resources like US Legal Forms, which offers templates drafted by experienced attorneys.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

Example 1: A property owner grants a neighbor the right to access a private road. This agreement is a covenant in gross, as it benefits the neighbor personally and does not transfer to future owners of the property.

Example 2: A developer enters into a covenant in gross with a city to maintain a park. This obligation is personal to the developer and does not automatically bind future owners of the development. (hypothetical example)

State-by-state differences

Examples of state differences (not exhaustive):

State	Key Differences
California	Covenants in gross are often used in easement agreements.
New York	More stringent requirements for enforceability compared to other states.
Texas	Allows for specific terms regarding transferability in covenants.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term	Definition	Key Differences
Covenant Appurtenant	A covenant that benefits a specific parcel of land.	Transfers automatically with the land ownership.
Covenant Running with the Land	A covenant that binds successors of the property.	Unlike a covenant in gross, it is tied to the land itself.
Personal Covenant	A covenant that is not transferable.	Similar to a covenant in gross but may not involve property rights.

Common misunderstandings

What to do if this term applies to you

If you are involved in a covenant in gross, it's important to understand your rights and obligations. Review the terms of the covenant carefully. If you need assistance, consider using US Legal Forms to access templates and legal documents that can help you manage your situation effectively. For more complex issues, seeking professional legal advice may be necessary.

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Quick facts

Type: Personal covenant
Transferability: Non-transferable unless specified
Legal Area: Real estate law
Common Use: Easements and access agreements

Key takeaways

FAQs

What is a covenant in gross?

A covenant in gross is a personal agreement that binds only the current owner, not the land itself.