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Can anyone help me to interpret a restrictive covenant?

10 replies

ecuse · 26/11/2012 15:42

We're considering offering on a property, but it has a restrictive covenant attached to it.

Would you interpret the following wording to prohibit someone running a business from home?

He would likely be in a freestanding garden office (either purpose built from brick or log cabin style). He fixes computers and does random technical stuff including a bit of web programming. There are probably between 5 and 10 customers a week coming to the house for no more than about 5 or 10 minutes each time and most usually during the day or early evening. It doesn't make a noise or smell or anything like that.

Could anyone credibly claim that was causing a "nuisance" to the extent that a court would uphold?

Any advice would be gratefully received. We've had our figers burned on a previous abortive purchase which had a restrictive covenant explicitly prohibiting the carrying out of trade. This one doesn't seem to do so, but would value other opinions. We haven't got the heart to make an offer just to have our solicitor advise us after a few weeks that this is a showstopper.

The Transferees on behalf of and so as to bind the said Society but not so as to impose on the Transferees any personal liability hereby jointly covenant with the Transferor to the intent and so as to bind (so far as practicable) the land into whosoever hands the same may come but not so as to render the Transferees or the said Society liable in damages for any breach of covenant committed after they shall have parted with all interest in the premises in respect of which such breach shall occur That the Transferees will not use or permit the land or any part thereof or any building erected thereon to be used as a licensed Public House or Inn or Beer House or Beershop or for a lunatic or other Asylum or for a Hospital or for a receptacle for paupers or a reformatory or as a place for frying fish or for any purpose which may be a nuisance to the neighbourhood or to the owners or occupiers of the property of the Transferor adjoining or near thereto and particularly will not permit the trade of a licensed Victualler or retailer or Wines Spirits or Beer to be consumed either on or off the premises or a Club where such liquors may be sold or consumed to be carried on thereon or on any part thereof.

OP posts:
Pascha · 26/11/2012 15:45

As far as I can tell you can't sell booze, host a prison, an asylum, a poorhouse, a chippy or be a pain in the arse to your neighbours though any means. I can't see anywhere which prohibits any other form of business use.

I'm no legal bod though.

ecuse · 26/11/2012 15:54

Neighbours can be funny sorts, though. What if they think him having customers coming to the door a couple of times a day is a "nuisance"?

OP posts:
ecuse · 26/11/2012 15:55

(obvs I'm hoping the answer is: tough shit!)

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UC · 26/11/2012 15:59

No, I wouldn't interpret them as that. I interpret them as saying you can't:

  • run a pub
  • run an off licence
  • run a "mental asylum"
  • run a hospital
  • run a poor house
  • run a fish & chip shop
UC · 26/11/2012 16:01

I think any neighbours who saw a couple of customers a day as a nuisance would not fit into this restrictive covenant at all. The types of "nuisance" listed are of a totally different variety!

wonkylegs · 26/11/2012 16:04

Nope that's a fairly common type of covenant it doesn't restrict running a business just of the types listed.
You just need to make sure that his business is within normal reasonableness - not too noisy, smelly, messy etc to avoid it being a nuisance but to be honest you would need to do this in terms of normal neighbourliness

TiredFeet · 26/11/2012 16:08

from recollection, the case law suggests that was is a 'nuisance' is 'what would reasonably be considered to be a nuisance'. 5-10 visitors a week doesn't sound too bad maybe. Your solicitor should be able to advise you at an early stage also, before too many costs are incurred

Collaborate · 26/11/2012 16:23

This is the legal definition of nuisance

en.wikipedia.org/wiki/Nuisance

ecuse · 26/11/2012 16:25

This is encouraging, thanks all!

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ecuse · 26/11/2012 16:26

We probably won't get it now I've gone to the trouble of doing all the research. Second viewing tonight .

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