A restrictive covenant is a binding rule attached to land or a contract that limits how property may be used, developed, sold, or altered.

In real estate, these limits often appear in deeds, subdivision documents, lease agreements, or homeowners' association records. A restrictive covenant might ban certain business uses in a residential neighborhood, limit building height, require approval for exterior changes, or prohibit dividing a parcel into smaller lots. Some covenants are meant to preserve property values or neighborhood appearance, while others protect access, drainage, or shared spaces. Whether one can be enforced usually depends on its wording, how it was created, and whether it conflicts with current law or public policy.

The practical effect can be significant. A buyer may discover after closing that a planned workshop, fence, rental use, or addition is not allowed. That can lead to disputes, delayed construction, reduced property value, or a court order requiring changes. In a sale, restrictive covenants can also affect title, financing, and disclosure issues.

They can matter in an injury claim when a property restriction relates to safety or maintenance. For example, a covenant governing stormwater drainage, road access, or common-area upkeep may affect who had a duty to act after dangerous conditions developed. In Wisconsin, if a property injury case turns into a premises liability claim, the state's modified comparative fault rule bars recovery when the injured person is 51% or more at fault.