A covenant is a binding contractual agreement between two parties to do or not to do a specified act. Covenants are usually enforceable by the courts if they are reasonable, clear, definite and lawful.
A breach of covenant is the failure to obey a previously agreed-upon legal arrangement that was created honestly and in good faith. When one party to a contract refuses to uphold their obligation as spelled out in that covenant, that party is in breach.
In real estate, a breach of covenant most often occurs when a buyer or seller backs out of a contract to buy or sell a home. A breach can also occur when either individual fails to perform any of the terms of a purchase contract. Breaching a contract should be taken seriously. The party who has suffered from the breach usually has recourse in a court of law, where the legal remedy could result in monetary damages being awarded.
Photo by Erica Magugliani on Unsplash