New South Wales
Positive covenantsA positive covenant is either:
a covenant for maintenance or repair (under s 88BA of the Conveyancing Act 1919 (NSW));
a public positive covenant (being a covenant imposing obligations to carry out development, provide services or maintain structures, imposed by a prescribed authority); or
a forestry covenant (being a covenant incidental to a forestry right imposing obligations requiring the construction of maintenance roads and access to trees or forests).
A positive covenant must be drafted in a way so as to directly require the owner of the land burdened to do something positive in connection with the land.
There is usually some confusion between positive covenants for maintenance and repair created by way of the operation of s 88BA of the Conveyancing Act 1919 (NSW) and public positive covenants created by public authorities by way of the operation of ss 88D and 88E . Practitioners should take the time to understand the differences.
Covenants imposed under s 88BA of the Conveyancing Act 1919 (NSW) may be imposed by either the owner of a lot benefited or the owner of a lot burdened in connection with land that is either subject to the burden of an easement or that is the site of an easement (or both). The covenant will create an obligation to maintain and/or repair the part of the lot the subject of that easement. These types of positive covenants are usually between private land owners.
For public positive covenants, involving prescribed authorities (such as local councils), the obligations contained in the terms of the covenant will include an obligation on the owner of the lot burdened to:
carry out specified development on or with respect to the land;
provide services on or to the land (or other land within the vicinity); or
maintain, repair and/or insure structures or works on the land.
Levels of performance (such as the frequency or time limits within which the obligations are to be done) are also commonly found in public positive covenants.
Under the Torrens title system, there is a heavy reliance on the use of LPI forms to create, vary or release positive covenants and practitioners should be familiar with the use of these forms. The relevant forms are provided in the guidance note. Section 88B instruments are also another tool to record positive covenants. See Positive covenants.
Restrictions on use and restrictive covenantsIn practical terms, there is no difference between a covenant and a restriction on the use of land. Convention and practice has influenced legal practitioners as to the use of certain terminology when describing restrictions and much will depend on how the restriction was created.
A restriction on the use of land is an agreement between two or more parties not to do something regarding a parcel of land. It is usual for the adjoining land to have the benefit of the restriction, however sometimes it will be a prescribed authority (such as the local council). Above all, the restriction must be negative in its nature and cannot create any positive obligations.
A restrictive covenant is also known as a negative covenant. Under the restrictive covenant, the owner of the lot burdened must not do the thing or act identified in the terms of the restrictive covenant.
As with positive covenants, there is a heavy reliance on the use of LPI forms and also s 88B instruments to create, vary, release or extinguish restrictions on the use of land and restrictive covenants. These forms are again provided in the guidance note. See Restrictions on use and restrictive covenants.
Profits a prendreA profit a prendre is a legal right to enter land and to remove the produce from the soil of that land (for example, a right to harvest a crop or a right to timber grown on the land).
A profit a prendre is usually created by or with a transfer for a parcel of land. The existence of a profit a prendre will not prevent any dealings with that parcel of land as the profit a prendre is described as a right rather than an encumbrance.
As with positive covenants, restrictions on the use of land and restrictive covenants, LPI forms and s 88B instruments are used to create and remove profits a prendre. See Profits à prendre.