Covenants Explained
What a covenant is, how it differs from a building envelope or setback, and the restrictions developers place on new estate blocks that can limit your choices.
Cost estimates only: Any building or upgrade figures in this guide are indicative, not fixed prices or quotes. Costs and inclusions vary by project, supplier, location and time. Confirm current written prices and specifications directly with your builder, suppliers and relevant trades.
Table of Contents
- What a Covenant Actually Does
- Common Covenant Restrictions in New Estates
- Covenants vs Building Envelopes vs Setbacks
- How Covenants Affect Your Build
- The Design Review Process
- What This Can Mean for Your Build
- What This May Cost
- What to Check Before Signing
- Questions to Ask Your Builder
- Questions to Ask Before Buying the Land
- Common Mistakes
A covenant is a legal restriction registered on a property's title that requires or prohibits certain actions by the property owner. In new residential estates, covenants are almost always registered by the developer to control the standard and appearance of homes built in the estate. They can dictate everything from the minimum house size to the type of fencing, the roof pitch, the colour palette and even the materials used for the facade.
Covenants are one of the most commonly overlooked restrictions when buying land in a new estate. Many buyers discover them only when their builder's design is rejected by the developer's design review panel — after they have already paid for plans.
What a Covenant Actually Does
A covenant runs with the land, which means it binds not just the original buyer but every subsequent owner. It is registered on the Certificate of Title and is enforceable by the party who registered it (usually the developer) or sometimes by other lot owners in the estate.
Covenants can be:
- Negative — they prohibit you from doing something (e.g. 'no chain-wire fencing', 'no transportable buildings', 'no second-hand materials on the facade').
- Positive — they require you to do something (e.g. 'must construct a driveway within 12 months of occupation', 'must landscape the front yard within 6 months').
- Design standards — they specify minimum quality or aesthetic requirements (e.g. 'minimum 200m2 house size', 'minimum 22-degree roof pitch', 'no flat roofs').
Common Covenant Restrictions in New Estates
| Restriction | Why Developers Impose It | Impact on You |
|---|---|---|
| Minimum house size (e.g. 180–250m²) | Maintain property values and streetscape quality | May prevent smaller, more affordable designs |
| Minimum roof pitch (e.g. 22 degrees) | Visual consistency in the streetscape | May limit modern flat-roof or low-pitch designs |
| Required facade materials (e.g. brick, render) | Quality appearance and durability | May prevent cladding-only or budget facades |
| No colorbond or front fencing above 1.2m | Open, welcoming streetscape | May affect privacy and security preferences |
| Driveway material (e.g. exposed aggregate, concrete) | Consistent streetscape quality | May add $2,000–$5,000 to driveway cost |
| No transportable or relocatable homes | Permanent, high-quality housing | Prevents modular or transportable options |
| Landscaping deadline (e.g. within 6 months) | Prevent unfinished front yards | Adds upfront cost for landscaping |
| No sheds or outbuildings visible from street | Streetscape quality | May affect shed/garage positioning |
| Minimum ceiling heights (e.g. 2550mm) | Quality and resale value | May prevent designs with lower ceilings |
| Solar panel restrictions (e.g. not on front roof) | Streetscape aesthetics | May affect solar orientation and efficiency |
Covenants vs Building Envelopes vs Setbacks
| Restriction | What It Controls | Who Sets It | Ease of Variation |
|---|---|---|---|
| Covenant | What you can build (size, materials, design) | Developer (registered on title) | Very difficult — requires developer consent or court order |
| Building envelope | Where you can build on the block | Developer or council | Sometimes — with developer/council approval |
| Setback | Minimum distance from boundaries | Building code, council, developer | Sometimes — with a planning report or developer approval |
| Design guidelines | Detailed design and material standards | Developer (contractual, not on title) | May be flexible — check with developer |
The key distinction is that covenants are registered on the title and are very difficult to remove, while design guidelines are contractual and may be more flexible. However, some developers enforce design guidelines almost as strictly as covenants through a design review process.
How Covenants Affect Your Build
Covenants can affect your build in several practical ways:
- They may require a larger or more expensive house than you budgeted for (minimum size requirements).
- They may force specific materials or facade treatments that add cost (e.g. brick facade instead of cladding).
- They may prevent certain design styles (e.g. flat-roof homes, modern cladding facades).
- They may require specific driveway or landscaping materials that add upfront cost.
- They may require design review approval before construction, adding time to the approval process.
The Design Review Process
Many new estates require your house design to be reviewed and approved by a design review panel before you can submit to council or a building certifier. The panel checks your design against the covenants and design guidelines. This process can take 2–6 weeks and may require revisions.
If your design does not comply with the covenants, the panel will request changes. This can mean redesigning the facade, increasing the house size, changing the roof pitch or altering the materials — all of which add cost and delay.
What This Can Mean for Your Build
Covenants can add tens of thousands of dollars to your build cost by requiring larger houses, specific materials or higher design standards. They can also delay your build by weeks through the design review process. The key is to read the covenants before you buy the block and before you commission house plans.
What This May Cost
What to Check Before Signing
- Ask the developer or agent for a copy of the covenants and design guidelines before purchasing.
- Check the Certificate of Title for registered covenants.
- Read the minimum house size requirement and compare it to your preferred design.
- Check facade material requirements and how they affect your preferred design.
- Check if there is a design review process and how long it takes.
- Check if the covenant has an expiry date.
- Ask whether any covenant variations have been approved previously in the estate.
Questions to Ask Your Builder
- Have you reviewed the covenants and design guidelines for this estate?
- Does the proposed house design comply with all covenant requirements?
- What materials and finishes are required by the covenant, and what is the cost difference?
- How long does the design review process take for this estate?
- Have you built in this estate before and successfully passed design review?
Questions to Ask Before Buying the Land
- What covenants are registered on this block?
- What is the minimum house size required by the covenant?
- What facade materials and roof pitch are required?
- Is there a design review process, and how long does it take?
- Do the covenants expire, and if so, when?
- Have any covenant variations been approved in this estate?
Common Mistakes
- Not reading the covenants before buying and discovering minimum house size requirements after commissioning plans.
- Assuming design guidelines are the same as covenants — guidelines may be more flexible, but covenants are very difficult to change.
- Not budgeting for covenant-required upgrades (facade materials, driveway, landscaping).
- Underestimating the time the design review process adds to the build timeline.
- Assuming the covenant does not apply because other homes in the estate do not comply — enforcement can be selective and delayed.
Frequently Asked Questions
Practical Takeaway
Covenants are registered restrictions that control what you can build on your land, and they are very difficult to remove. In new estates, they can add significant cost through minimum house sizes, required materials and design review processes. The single most important step is to read the covenants and design guidelines before you buy the block and before you commission house plans. If the covenants require a larger or more expensive home than you budgeted for, it is far better to know before you commit.
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