A prohibition which states that Caravans and Boats cannot be parked within the property. A restriction which limits the number of cars allowed to park. In example 3 we have recently dealt with two cases where the sales fell through because the buyers owned caravans and the only place they could keep them was at their property. As it was not possible to obtain a release from this covenant the buyers' withdrew. This is an Insurance Policy taken out to deal with a defect in the title of the property being sold.
Defects can be in many forms, some of a technical nature and sometime serious.
By way of example there might be an old restrictive covenant which stated that not more than two dwellings are to be built on the land being sold. If the house you are buying is one of three houses built on the piece of land you will want to be satisfied that the land owner who benefits from the restrictive covenant cannot make a claim because your property is one too many. If the land owner can be found it is best to request approval to the third house or a release from the covenant. If that is not possible because the land owner or his successors cannot be found then an Indemnity Policy could be used to deal with this defect. The Insurance Policy is intended to protect the owner of the property.