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Mortgage Glossary

Covenant

Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker

A covenant is a binding promise written into a deed or contract, such as a restriction on how a property may be used.

What Covenant means

Deed covenants and HOA covenants govern things like building styles, fences, and rentals. Loan covenants are promises in the mortgage, like keeping insurance in force. Violating a covenant can carry legal or lending consequences.

Florida example

A buyer in a deed-restricted Florida community reviewed the covenants and found a rule barring short-term rentals before deciding the home suited a primary residence.

What it is

A covenant is a rule or promise tied to a property, often set by a community or HOA. It can limit changes like paint color or additions.

Covenants run with the land.

Why it matters

Knowing the covenants tells you what you can and cannot do with a home. They affect your enjoyment and value.

We help you spot restrictions before you buy. Apply now and we will make sure you know the rules.

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