RESTRICTIVE covenants are important features of many property transactions and is critical that buyers are aware of any that are in place before they complete their purchase.

A restrictive covenant is a promise not to do something and can cover a broad range of issues.

A common example of where they are imposed is where a seller is only selling part of some land and retaining the rest.

The seller may wish to prevent the buyer from using the land in such a way that they feel could be damaging to the land which they intend retaining, for example imposing a restrictive covenant preventing the erection of buildings or structures on the land, or not to use the land to run a business without the express permission of the seller.

The recent case of Davies v Dennis shows how broad-ranging restrictive covenants can be.

In this case, Mr Davies was prohibited from carrying out an extension to his property on the basis that it would result in annoyance or nuisance to other residents.

Central to the argument was whether the covenant not to do anything that may be a nuisance or annoyance applied to the erection or extension of a building.

The Court of Appeal agreed with the neighbouring residential plot owners by confirming that the covenant was wide enough to extend to all activities carried out and an injunction was granted preventing Mr Davies from building an extension.

Whether a particular building will actually constitute a nuisance or annoyance depends upon the facts in each case.

The lesson from this particular case is that anyone subject to a covenant of this type (as developer, investor or occupier) needs to bear in mind that it may be used by those wishing to oppose a new development or extension.

A key point to remember is that planning permission granted by a local authority or building regulations approval is completely separate from covenant consent, which must be applied for separately.

Buyers must be aware of what restrictive covenants are in place before they complete their purchase to ensure they will not be prevented from using the land for the purpose for which they purchased it.

Buyers are bound by any restrictive covenants on property they buy, so it is essential they are able to comply with them.

There are a number of ways potentially to overcome problematic restrictive covenants but it is important to seek expert legal advice as early as possible.

■ Nagina Hussain is a solicitor specialising in commercial property with BHP Law in Stockton. She can be contacted on 01642- 672770.