A Covenant Deed serves as a crucial legal instrument in U.S. property law when property owners need to transfer ownership while ensuring specific conditions or restrictions remain attached to the property. This document type is commonly used in planned communities, residential developments, and commercial properties where maintaining certain standards or uses is essential. The Covenant Deed includes both the property transfer elements and detailed covenants that specify restrictions, requirements, or obligations that subsequent owners must follow. These covenants 'run with the land,' meaning they bind future owners regardless of how many times the property changes hands, subject to state-specific property laws and recording requirements.
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1. Date and Parties: Identification of grantor and grantee with legal names and addresses
2. Consideration Statement: Statement of consideration paid for the property transfer
3. Granting Clause: Legal language conveying the property
4. Property Description: Legal description of the property being conveyed
5. Covenants: Specific restrictions, requirements, or obligations that run with the land
6. Warranty Statement: Grantor's warranties regarding title and property
1. Habendum Clause: Defines the extent of ownership being transferred - used when specific limitations on ownership need to be specified
2. Environmental Declarations: Statements regarding environmental conditions - used when property has known environmental issues or requirements
3. Duration Clause: Specifies how long covenants remain in effect - used when covenants are intended to expire or change over time
1. Property Survey: Detailed survey showing property boundaries and features
2. Title Report: Current title report showing encumbrances and chain of title
3. Restrictive Covenants: Detailed list of specific restrictions and requirements
4. Environmental Reports: Any relevant environmental assessments or declarations
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