Restrictive covenants and overage payments: a ‘touching concern’
A restrictive covenant is an agreement between two parties whereby one of the parties agrees to restrict the use of its land for the benefit of the other party.
For example, Mr Jones decides to sell some land adjoining his house to Mr Smith. Mr Smith plans to open a coffee shop and Mr Jones is keen to ensure that no alcohol is sold from the shop (as he is fearful of the anti-social behaviour this may cause). Mr Smith and Mr Jones therefore agree that Mr Smith will not sell alcohol from his premises and a restrictive covenant is inserted into the transfer.
Mr Smith’s land has the ‘burden’ of the covenant (he can’t sell alcohol from his premises) and Mr Jones’ land has the ‘benefit’ of the covenant (his land will benefit from the fact that Mr Smith can’t sell alcohol)…
If you are registered and logged in to the site, click on the link below to read the rest of the Mills & Reeve briefing. If not, please register or sign in with your details below.
News from Mills & Reeve
News from The Lawyer
Briefings from Mills & Reeve
Mills & Reeve has released the December edition of its Health Legal Update.
The Court of Appeal has handed down its decision in Mitchell v News Group, resolving recent uncertainty about the implementation of Jackson reforms — at least for the time being.
Analysis from The Lawyer
The trend for unbundling legal work is advancing through the law firm ranks but there is still resistance in some quarters - namely in-house. We asked why