Definition of "Covenant"
Betty Klepetka, Real Estate Agent
The KB Home Group Of Keller Williams American Premier Realty
- Entering into a contractual commitment such as signing a three year leas.
- Agreeing to perform or not to perform some act. An example is a tenant agreeing not to sublease the apartment.
- Stipulating something such as a tenant agreeing not have a dog into apartment.
- Implied or express commitment in connection with a contract or deed. An example is a restriction placed on the borrower in a loan agreement by the bank to protect its interest. Another example is requiring a real estate developer to maintain a minimum working capital and carry a minimum amount of insurance.
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